New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-11-12

dorefng the bonds OF the company, shall be-
come subscriber to its stock, said stock t.
be paid for in the honds Of the State.
In other words, on receipt of the bonds Of
the State the company gives their eouiys-
lent in it's stock. 1t is fair to admit that,
during the construction of this road, the
State will be compelled to pay, and will.
therefore, lose the interest upon the bonds
which are issued. and to that extent only
this will be an additional burden upon the
State in the completion of this great work.
But l. venture to say that the moment the
road is completed the dividends ON this
stock will more than repay the interest on
that the stock itself will be Of as much II
not more value to the State than it's own
bonds. This bill is certainly not meant to
evade the constitutional article in reference
to the State debt, but it 10 simply for
the purpose, as l said before, Of substitute
ing one form Of State Indebtedness for
another, without placing any additional
burden of any consequence upon the peo-
pie of the State, and for the purpose, also,
Of facilitating the company in the prosecu-
ton Of this great undertaking. l am per-
night as the advocate of this measure.
do not wish to cut off any discussion on
the matter, but desire to hear anything and
everything that can be said on the subject,
pro and con. ......
Mr.. Sypher: would like to PROFOUND a
few questions to the gentleman who has
just spoken in relation to this much-lauded
Chattanooga Railroad Company. That COM
pany was chartered, believe, in 1868. They
represented, at that time, that they asked
nothing from the State but the right to build
q railroad from New Orleans to Texas. The
General Assembly granted that right. When
the next Legislature met they came again and
wanted something m0re-i. e., that tho State
should indorse their bonds to the amount of
twelve thousand five hundred dollars per
mile. That demand was also complied with.
by the willing Legislature. One year after
that they came back again. and asked that
the State should give them five million dol
lars more. They did not get the whole of
that amount, but they received three mill
ions. Now, would like to be informed
mot taking into consideration the twelve
thousand five hundred dollars per milel,
what has become Of those three mill
ion dollars. They commenced to build
their railroad here. and when they
had forty miles Of it completed the State
was to indorse their bonds for twelve thou
sand tlve hundred dollars tmile. Forty
miles Of railroad in this section Of the
country would cost about one million dol
lars. Certainly one could he built for
twenty-five Thousand dollars q mile. Ac-
cOrding to that calculation they have not
spent more than 0ne-third Of the three mil
lion dollars given to them by the State in
addition to the twelve thousand five hun.
dred dollars per mile. Now they come back
again to the General Assembly and make
another demand. I think an amendment
had better be inserted in this bill. providing
that it he State has anything left it viii give
it to these cormorants. l am utterly and
bitterly opposed to giving the whole State
of Louisiana to one railroad corporation.
am especially opposed to that section of the
bill which provides for the 1evying of
special tax Of one mill on the dollar. That
provision is, in my opinion, clearly unc0n-
stitutional. l do not believe that We have
any right to levy q special tax. the proceeds
Of which are to 60 into the Golfers Of pri-
further consideration of this bill be post
pOned until next Monday, and that the bill
itself be printed. Lost.
Mr.. Blackman: When this famous Chat
tanOoga Railroad Company first came to
the State Of Louisiana-a foreign corpora
ton, unknown to US, except, perhaps, as
they were introduced and Endorsed by some
of their capitalists in New York, without q
solitary dollars worth of property or inter
est in this state-they applied to the Legis-
lature to direct the State to indorse their
second mortgage bonds on their road lead
ing from Mobile to New Orleans. The
General Assembly complied with that re-
quest. As that was more tLan had ever
been asked Of the State before, we con-
graduated ourselves that that would GER
tainly be the last demand they would make
upon US. But in 1870 they came again with
a new project. to run a railroad
through the State from this city to
the State Of Texas. am willing
to acknowledge that it is magnificent
scheme. and one which will benefit this city
and State incidentally, by bringing us in
closer connection with the great and pros
porous State Of Texas. Nobody would. l
suppose, have objected to the grant of
twelve thousand five hundred dollars per
mile, but, in addition to that, they asked
and obtained from the Legislature, for the
purpose Of constructing their road in Louis
ANA, three million dollars, for the payment
)f which the whole State Of Louisiana was
taxed. We assured ourselves then that the
State would be relieved Of the presence of
this company as petitioner for more pecu-
mary aid for at least enc session OF the
but our hopes were des-
lined to disappointment, for here they
come again and ask for two mil
Ion five hundred thousand dollars more.
Mr.. McMillen: beg the Senator's par
lon. The bill asks for no such thing.
Mr.. Blackman l would ask the Secre-
AIRY to read the section in reference to the
ponds Of the State.
The secretary read the section referred |
Mr.. Blackman: There is no use PLAYING
tump. This is nothing more or less than a
subsidy to this company. 1t is ridiculous
% talk about the State subscribing for stock |
against that private corporation, which will |
lold the balance of power and manage and |
control the affairs Of the road as they |
'hoose. predict that the very next move |
his company will make will be to come in,
ike the jackson Railroad Company, and !
.sk the State to sell its stock at
certainly be sacrificed. Why, there never |
vas corporation on earth so favored as
his one. A special and distinct tax has |
'een levied on all the property of the State
o construct railroad through only four or
i've parishes, while I, as one of the repre- |
'entatives of Northern Louisiana, have
abored hard to get bill through the Cen
raj Assembly simply asking the indoree
nent OF the State Of loan OF twelve thou
and five hundred dollars per mile. The
'tate is actually building this road, and do
'ating it to the Chattanooga Railroad Com
AMY. The only way we can Judge of the
uture is by the events Of the past; and
What has been our experience in relation to
abroad stock subscribed for by the State I
n every case-in the cases Of the Jackson
abroad, the Mexican Gulf railroad, and
he Opelousas railroad-the State has been
loser, and the other parties gamers in the
nd.
Now, in answer to the assertion that it is
My proposed in this bill to change the ma
ure OF the States Indebtedness, l reply
hat the mere Endorsements Of the company's
mortgage bonds does not make it debt of