The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1850-06-06

submitted, for my consideration and opiniol.s the
following statement and questions
The Board of Liquidators elected in pursuance
OF the Act of 10Th March, 1850, have notified the
Comptroller and the TreasUrer Of the Municipality,
that they have entered upon the discharge Of their
duties, and have demanded the assets of the Sink
ing Funds
1st. What course should the Municipality Dur
sue! Should it order The Treasurer and the
Comptroller to deliver the funds to the liquidaors
"a Can the Municipality pay any Of its debts
existing at the time Of the notification Or its
falling due day after day! Or its cash warrants
for work done, the pay roll of its officers issued
before notification and not paid at notification!
3d. Can the Municipality issue notes in payment
OF new obligations! Can il carry out contracts in
progress of completion, or are such contracts modi
fed by the act of 1S50l
4th. Does the act Of 80 require deposit ID be
1850! =
have given to this subject as full considera-
tlon, as the tilue allowed me and other eircum-
stances would pSr,nt and have been anxious to
give such an Interpretation to the act, as would
make II consistent with the constitution Of the State
ana me obligations of the Municipality. 1t is i'm
possible Tor me, at present, TO discuss thoroughly
ali me matters and points involved in the act Of
IooO But deem it my duty to lay before the
committee, some Of the views which present them
selves on an examination Of the act
The statute of I847, to provide for the payment
of the debts Of the Municipalities of New Orleans {"
authorized each Municipality to fund its debt, to
borroW money for the purpose of paying it, by ssu.
ing bonds therefor, payable period not exceed
ing thirty years, and bearing interest of per
10 secure the payment Of these bonds and all
other bonds of the Municipality then existing and
for which provision had not been made bV law.
each Municipality was directed to appropriate from
It's revenues derived from wharfage aud the mar
kets, per centage upon the amount of the bonds,
so as to extinguish the same at maturity
And this appropriation, the Legislature specially
declared and stipulated, should constitute sinking
Jgnd, and be specially pledged for the payment of
such bonds, and should not be liable for any other
or future obligations of the Municipality; nor be
liable TO seizure for any debts other than those for
the extlnguishment of which it was established
In order to insure the faithful performance Of the
dnty imposed on each Municipality by this act and
to place the holders of the bonds contemplated by
this beyond all fear or possibility of loss or in
jury, from the want of good faith or of prompt ac
ton on the part of any Municipality it was further
provided, that it shall not be lawful for the Mu-
nicipal Council to proceed to any other busin SIS,
until such appropriation is made"
| And iG twas again solemny declared and provided
| that the sinking fund thus created and specially
pledged, should only he applied, first TO the extin-
guishmcnt of the bonds for the payment of which it
was established and, second, to The purchase, be-
| fore maturity, of any such bonds according 10 a
mode prescribed by the act.
And It was still further provided, that no portion
of the sinking fund shond be drawn from the place
OF deposit except for these purposes and unless au-
tnorized by the Council; and then only upon a
| check signed jointly by the Treasurer and Comp
Irolier, and eountersgned by the Recorder Of the
Municipality, and by the Mayor of the city.
such were some of the provisions of the act o
IS4; such the security and Inducements held ou
TO the creditors Of the Municipalities, and bond
| holders under those provisions
| Now, the act of 1850 " to provide for the liqui.
datIon of the city debt and of the debts OF the sep
arate municipalities of the city of NewOrleans, -
If valid, must operate as repeal of all the proyi-
sons of the act of IS47
The LIST SECTION, provides for the creation of a
Board, 10 consist of tDO citizens of each Municipal
ny, ior the liquidation of the debts of the city and
OF the separate Municipalities; of which Board the
| Mayor Is declared to he ex-officio President
The 81 SECTION makes it the duty of The Board
to ascertain the indebtedness of eUery Kind of the
city OF NewOreans, etc, and the indeb edness OF
each municipality, the precise amount and condi-
ton OF the same, and of the means sci apart by law
and at present held for the payment of said debts.
The 4th, 9th and 9th SECTIONS, provide, among
| other things, that so soon as the ndebtedness "
euery KIND of said city and of the several Mnuiei
paililes, shall have been ascertained, the Boart
shall issue bonds in the name of each of the sait
municipalities, payable from one TO TWENTY-FIVE
years, which bonds shall be given in exchange 70
the debt OF the city, and for the debts OF the Muni
| cpalities.
The Act of 1850 therefore embraces, in its pro
visions, not only the bonded debts of the of Mun
cipalities, but their debts Of every kind
The 9Th SECTION provides that the said Boa I'd
OF Llqudators and their successors in office, shall
rake possession OF the General Sinking Fnnd of the
city, and the several Sinking Funds Of the munich
palltles; and realize the value of The assests Of the
| sinking Fund of each municipality; and appropri-
| ate the proceeds thereof to the exnguishment of
The debts of the municipalities, to which said Sink
| ing Funds belong; and the said Sinking Funds
shall thereupon be and remain for ever abolished:
And for the balance Of the debts over and beyond
the proceeds of the said sinking fund, the Lquida.
tors shall levy yearytax in each municipality, on
| all property, movable and immovabIe and capita.
to pay the amounts due on the bonds issued in ac-
| cOrdance with the act.
The act further provides, that in case any holder
| ofthe bonds and evidences of debt of the CITY or
OF the municipalities, shall refuse to exchange the
same for the new bonds 10 be issued in conformity
with the act, that the Board of Lquidators "shail
continue to raise the sums necessary 10 extingush
| annually twenty-fitth part of the said bonds and
| evidences of debt" etc.
The 10Th SECTION directs the Treasurer of each
municipality to deposit in such bank as the Liqui-
| datOrs may direct out of the taxes collected for
the year 1850, sum sufficient pay the permanent
| dots of each municipality, accrung during the
| year 1880, and such sums as may be necessary tc
pay the pro rata of each municipality" ETC.; and
| enacts, that, thereafter, the Councils of the sale
municipalities shall levy no tax for the payment o
the principal or interest of the debt of said munic
| palities.
Such are some of the most important features o.
| this act of 1850. Without commenting on the yar
prevent me from doing at this time it is sufficient
10 observe the following manifest objects and ope
ration of the act.
1t is evident, that the act of 1850 abolishes the
Sinking Fund created by the act of S47, and with
draws from the creditors of the several municpali-
tes the holders of bonds, under that act, the
pledge formally and solemny given to them for the
security Of their debts.
1t would not only dispose of The proceeds of The
assess at present in the Sinking Funds of the seve-
raj Municipalities, and appropriate portion there.
OF, in violation of the act of lS47, to the payment
OF debts, other than those they are pledged to se-
cure but it would put end the fu'ure increase
and existence of anv sinking fund.- and violate the
faith of the State, and would compel each munich
paliy TO disregard its just obligations to creditors
1t would operate as stop law, to prevent the
municipalities from paying their present outstand-
ing debts and obligations, falling due from dav 10
day; and would compel their creditors to await
the action of the Board of Lquidaiors
| Ii takes from The Council of each municipality
and from the people of each municipality the right
OF levying their taxes and regulating their oWn
affairs under the law, and vests the power of taxing
them in Board of Liqudators, composed of the
Mayor and six members, four of whom are elected
by the people of other municipalities, who have ne
common interest with The persons taxed, or the
aratekmunlcipality debts-for instance transfer
ring from the Council of the Second Municipalir,
the right to tax the people Of the municipality 70
the payment of their debts, to a Botrd of Liauida
tors, majority OF whom are elected by the peop
of the other municipalities.
1t forbids the Councils Of the municipalities, afte
the year 1850, fromlevying any tax Tor the paymen
of the debt of the citV or of tha dsht nf the mimi