New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-03-15
THE COURTS.
The state Floating Debt Matter.

Th0 STATE ElOuuu8 ACOA
Samuel Smith & Co., ct ais, VS.. the Board
Of Liouidators.- came up before
Judge Dibble the several cases OF holders
Of State warrants VS.. the State Board OF
I.inuidators, in order to compel the dlstrlbu-
t;o1 nv the board of several hundred thou
eond dollars worth Of State bonds IN the
hands of the board, under the recent act OF
the Legislature. There were four cases in
ali. which, as they involved the same issues,
were, by consent, taken up together.
The case was opened by reading to the
court the petition of Samuel Smith & Co.,
in which plaintiffs ask fJr writ OF
mandamus to compel the issuance OF bonds
for Sl65. 900, at the rate of seventy cents
uuon the dollar. He also read the answer
OF the board. in which no cause for acton
ia set up. and in which it is alleged that
the demand by Messrs. Smith Il Co. was
not made until after written order had
been received from the board of iquida
tors to deliver to them all the bonds IN the
hands of the bank, to be distributed in ac-
cOrdance with the award made in SAID or
der. to which order the bank assented IN
conformity with law, and was progressing
in the verificatiOn of the evidences OF IN
debtedness presented to her, about hali OF
which having already been ascertained as
correct. and the bonds for some set aside,
when the bank was stopped: |. By letter
of Samuel Smith a. Co., notifying OF
mandamus. 9. BY mandamus OF Levy.
3 Bv the Injunction of Samuel Smith: and
4. By the notice of Klein.
That the order of evidences ascertained
to he correct, when the notices were re-
ceived, were as follows:
A. Carriere, $7917; p. j. Kennedy,
4994S 60: Citizens Bank, $6Sl3 80; l.. r.
Generes, $4,000; d. +. Boyd S9Gl2 so; South
ern Bank, $35Ol SO; John Lynch. $23.33 81;
A.. L. Lee, $4,000 II; George Binder,
That the parties named in the said
order being the first ones whose claims
we're presented for settlement after the
approval Of the statute by the Governor
are entitled to preference over all
others.
At this stage of the proceedings Mr..
Samuel Smith was placed upon the stand.
and testified as to his demand made upon
Nr. Gaines, and his refusal to give him
bonds in exchange for warrants.
Mr. Miller here filed the warrants IN
question, $l35,000.
He first spoke to- Mr.. Gaines about the
first Of March; Mr.. Gaines said that if the
law was signed the bonds would be deliver.
able; the first time made the application
to Mr. Gaines to redeem my warrants was
on the second day of March; told him
had deposited the warrants with the
cashier, and hoped to get fair return in
bonds; Mr.. Delery was in his room at the
time gave him the amounts; l asked him
to Go the best he could with them; or
Saturday, the fourth of March, went t.
2 zee Mr.. Gaines: I asked him if he could
not give me some of the bonds; he said no
that they had been taken up by Other
PARTIES; l took the warrants away from
the bank about ten o'clock on Saturday
which were handed to me by the cashier
the notice of the injunction suit l hat
commenced was announced to Mr. Gaines
in letter about one o'clock; gave it t,
him in person; he said the letter was pr
waite one, and he could not notice it, bu
that if an order Of court came he would ODE.
it; on former occasions, my business witt
the board of iquidators was through til,
cashier Of the bank; l exchanged some Ger
tificates for bonds in that way-that is,
stated to Mr.. Gaines that / had some OLE
warrants exchangeable at 70, and he tolt
me the cashier would give me bonds fo
them, which he did.
Mr. Delery sworn-Am the cashier OF TIN
Citizens Bank; under the act respectin!
the funding of the floating debt the certiti
{ Gates of Indebtedness were presented to me
md exchanged them for bonds; at tn
lime Mr.. Smith called, on Saturday, til
fourth instant, had already received from
Mr.. Gaines enough warrants 10 take up tn
Whele amount Of the bonds; Mr.. Gaine
gave them to me that morning; the wa!
rants of Mr.. Smith had been in my posses
eion before that time; l received the wal
rants spoke of from Mr.. Gaines and Gov
ernor Warmoth; they were in the pres
dents room about halfpast eight O'Clock
Monday, March 6; can't say how many tn
Governor gave me, or how many MIR: Game
gave me; Mr.. Gaines was present when Nj
: loft his with l u{
clined to receive them to exchange for bond!
but he said to keep them anyhow, and do tn
best YOU can for me; the bonds are still
the bank; no exchange has yet been effected
can't say what proportion OF the certificate
are issues of the boards of public works
did not see the written order of the boar
until Monday, the sixth instant; the verb
orders got on Saturday, the fourth instan
the second package handed to the on MOI
day was from Mr.. Levy; at ten O'Clock,
about that time, received package troi
MI. Hernandez; all the packages came t
me through MI. Gaines; all the claims WEI
verified before night Amounting in all
come $780, S H.-Reporter.l
Don't remember that l spoke to any on
about the verifcatiOn except Mr.. Gaines;
NAV have spoken to Mr.. Graham, I'll
Auditor, a member of the board; decline
three times to receive these warrants fro
Mr.. Samuel Smith-twice in the bank an
once outside; the letter from Messrs. Smit
pm.
George E. Bovee, Secretary of Stat
sworn-The act concerning the t1oatir
debt in question was received in my Ofiic
signed by the Governor at a few momen
before eleven o'clOck A. NJ; on Monday, II
sixth of March, received the act from NJ
Bragdon, the Governors private secretar
can't say when the act was signed by Il
Speaker Of the House of Representative
except from hearsay; there was no da
to the approval of the act when it fir
came into my office; Mr.. Bragdon came i
[Obiected to by Mr.. Semmes, who said tn
the counsel could not attempt to prove
oral evidence what was shown by the la
itself; 1t would be against public policy
attempt such thing; the date OF a statu
can not be attacked when the statute bea
a certain date; if allowed to 60 into SUI
evidence, said Mr.. Semmes. then in 9th
cases inquiries might be allowed conce1
ing alleged frauds, ETC., in the passage
acts. Objection Overruled.
Mr.. Boyee. continuing, said-The 81
rotary returned in about five or ten minut
afterward, and requested the recall of
bill; he came back a short time afterwa
with the date of the fourth of March
serted: l made memorandum in pencil
the time.
James Graham, Auditor of the Sta
sworn-[Was shown the order from
board to the bankl; thinks he signed it
Monday, the sixth instant: had no knO'
edge of the same before the sixth of Mar
/ was summoned to a meeting of the boz
at the office of the Citizens Bank. and ,
order having been explained to me by
James, l signed it; the meetings OF ,
board of liquidators are informal in til
character; / keep no record of them a
there are no books kept to my knowledge
the board; there has not been a meeting
the board before for some three montl