New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1858-03-09

the State bonds issued Ia the Citzans Bank IN 1885,
and due in 1852 is now before the Legislature, and
has elected some discussion here also, let as examine
the question and see what grounds the stockhold-
ers base their memorial to the State for postpone
ment. "a
his veil known that the Citizens Bank was origi
naIfy property bank that Is, founded without any
capital being paid in BY the stockholders who gave
mortgage TO the State to it from loss and the
State then agreed to issue certain amount Of its own
bonds. IN proportion 70 the security placed in her
possession and it was provided that the Governor
sha only emit the State bonds after it shall have
been proved 70 him. by the certificate Of the Presi
"dent Of the Bank, that mortgages have been sub
"scribed by the stockholders Of said bank, in con-
~formty TO the charter for at least one-ffth moro
ethan the bonds required and both the capital and
interest Of said bonds shall be paid by the bank at
'sthe time they shall become due"
The stockholders, therefore, acting under this pro-
vision Of the charter subscribed the full amount Of
capital stock, say sl4 400 0oa-ben the $40 100000
-of capital, together with the oneh more for ulti-
mate security 10 the State as required. They were,
therefore, entitled to receive from the State si2 0O0
900 ia State bonds bearing per cent interest," and
to negotiate the same within two years from the date
Of their emission, provided par could be obtained
Under this authority and the restriction not 70 dis
pose Of the State bonds under the par value, the
Bank only disposed Of 81 lss.000 previous to the
rsyulsion Of 1887 This was consequently the actual
capital Of the Bank, and for which the State held,
and now holds. sl4 900 Of mortgage property in
the city and various parishes OF the State, although
the charter only provides that the mortgages shall
be Subscribed by the stockholders Of said Bank for
"at least one.lth than the bonds required for
sthe use Of the Bank
B Now, let us examine the question and see il the
conditions have been fulfilled by both parties. The
stockholders have already furnished the required
security in order to obtain the full capital mentioned
In the charter. The first section OF the amended
charter provides that, in order to facilitate the Ct
zens Bank Of Louisiana in the negotiation of the
e oanof Sl2 00Oo00 authorized by the act OF incor
poration Of LIST April 1885, the faith Of the State is
hereby pledged for the security of the said loan Of
100000 or such part thereof may be required
ehy the BaRk.p 1t will be seen, therefore, that,
the Bank furnished the sl4 400 900 Of mortgages the
faith or the State i actually pledged for the whole
81 900 900. But the Bank only received and dis
posed Of the s7lSs000 as before mentioned. In that
case the stockholders could only be required to mort
gage their property for oneih more or 50 62s 900;
while, as we have just shown, they have an actual in
cumbrance on their property Of s14i0e 900, or e.
100000 more than they bargained for id subscribing
! 70 the capital stock.
! This was the position OF the Bank in 1912, when
the charter was declared forfeited to the State The
Bank was then plsced in liquidation and 50 con
tnued until LIST March, 1852, when the charter was
revived, and the Bank relieved from the decree Of
forfeiture rendered against it, and restored to the
conduct and administration Of its affairs in the same
manner, and with the same rights and privileges,
to the same extent, and with the same restrictions,
cas- Il the said decree Of forfeiture had never been
sreudered"
As some doubts still existed in the minds Of some
Of the abes members of the bar Of the constitution
atty Of said act Of the Legislature, although there
was equal array Of talent on the other side it was
deemed prudent to provide against any such contin-
gencies in view Of the heavy interests at stake and
when the Convention assembled to make new eonr
stitutIon for the State in 1852 it was provided in ar
ticle l2l7"the Legislature shall have power to pass
auch acts as it may deem expedient for the relief or
revival Of the Citizens Bank Of Louisiana, and the
Facts already passed for the same purpose are ratified
''and confirmed, thus placing the corporation beyond
doubt as regards its revival, and leaving it conse-
quentIy in possession Of all its corporate powers and
/
when its charter was declared forfeited.
Subsequent legislation authorized the Bank to
raise cash stock of sl,O00,O0o, and in order to
carry this Into effect the Bank was directed to ad-
init the cash stockholders on such footing as might
be agreed upon BY the Board OF Directors. In pur-
snance of this authority the Bank was divided into
banking and a mortgage department and entered
into active business on the LIST September, 1853
1 We have deemed II necessary TO enter into the
4 above details 70 show the actual footing on which
the Bank has been placed, both under the act revy.
ing Its charter and article III OF the present const
luton o. inc s'ate.
Lev os now examine more closely tne appneaton
q lhe s.ocAno'uefS ior tls Sooo'oou extension Oh
oonas' PREVIOUS % 'ne forfeiture Of us charter 10
Ls4z, tne stoekh9aels were emitted % borrow on
slelf s'oek' Inc pelton informs us that SAS awaited
'nehse,seS % iis provisions, ana oze ola not Con
49, 49, my sne sa,n9 iisnss as lux
:. ), .''sss Aeas, y US
~ VIA 'us s'.'
sas VIZ,
- ~ ''s y iolie,'
~ ~ 49, p"yis h
.'pa u'e :, sae.o WI. Nc no iueais lei
-. u q. sne 'oa'
".s. my s'rssiipeu ah'
a lutA'ausu nof'ssse Neu "a Siell property 10