In a long-awaited court ruling that will lead to additional transparency and millions for the city’s budget each year, Judge Kern Reese ruled Friday May 23, that the City of New Orleans is now the sole recipient of funds generated by the Wisner Trust. For generations, the Wisner Trust has been used almost as a personal slush fund for New Orleans mayors, a perk none of them wanted to give up.
Edwin Wisner was a savvy businessman in the early 1900’s who accumulated substantial land holdings in Lafourche, Jefferson and St. John the Baptist Parishes. He established the Wisner Fund on August 4, 1914, with the intent to provide a steady income stream for the Wisner ladies – his widow Mary and daughters Elizabeth and Rowena Harriet – as well as select charities including the Salvation Army, Tulane University and Louisiana State University and finally the City of New Orleans.
After 100 years all proceeds were to go to the City of New Orleans. After Wisner’s death, the Wisner ladies filed a suit in 1928 against the City of New Orleans to set aside the donation and subsequently became beneficiaries of 40% of the funds available annually. The Wisner ladies also arranged for their heirs and heirs to the attorneys Milner and Porteous who represented them to benefit from the funds the remainder of the 100 years. At first, income from the land was minimal until oil was discovered on the property in the 1950’s which made the land worth fighting for.
In August 2014 when the trust should have automatically expired, distribution of the funds continued as usual. Perhaps because of a behind-the-scenes deal with the dozens of heirs of the Wisner ladies, their attorney descendants and the charities, in 2020 Mayor LaToya Cantrell arbitrarily extended the original agreement without the consent of the New Orleans City Council. The Council sued to gain full control of the roughly $9 million annual payment and eliminate the heirs and attorneys, and the three major charities – Tulane, LSU and the Salvation Army.
“This trust was inappropriately extended in 2020, and the ownership of the property formerly held in trust belongs entirely to the City of New Orleans. This is a big win for the City and its future. I am proud of the Council for standing up for what is right,” said Councilmen Joe Giarrusso who chaired the Budget Committee. “After 11 years of litigation, the never-ending Wisner saga is finally coming to a resolution. When Edward Wisner originally created this trust in 1914, his wish was to support the livelihood, of New Orleans for generations to come. With today’s judgment, this wish can finally be honored despite the efforts of greedy heirs to circumvent Mr. Wisner’s laudable aim,” said City Council President J.P. Morrell. “This is a long battle, which the Council took on alone, We remained unwavering and resolution in our commitment to the people of New Orleans,” said City Council Vice President Helena Moreno.
