New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-05-18
LAWS Of THE STATE OF LOUISIANA
PUBLISHED BY AUTHORITY.
AN ACT
No. %.

To relieve the State from its obligation to
guarantee the second mortgage bonds of
the New Orleans, Mobile and Chattanooga
Railroad Company, under an act of the
General Assembly, approved February
81, 1870, by the subscription on the part
of the State to the capital stock of said
corporation, and to regulate the cOndl-
lions of such subscription, and to secure
the construction of the road of said cor
poration from Nermilionville to Shreve-
port.
SECTION |. Be it enacted by the Senate
and House of Representatives of the State
of Louisiana in general assembly convened
That the Governor of this State be and is
hereby authorized to subscribe for twenty
five thousand shares of one hundred dol
lars each. of the capital stock OF said cor
pOration on behalf of this State, and to re-
ceive the certificates of stock thereof as
payment shall be made for the same, which
certificates shall be deposited by him in the
Office of the Treasurer of this State, and
shall not be assignable or transferable ex-
cept by the authority of the General As
sembly.
And be it further enacted, etc, That
whereas the subscription for stock and the
issue of bonds therefor herein provided are
intended to extingush the obligation of the
State to indorse or guarantee the second
mortgage bonds of said corporation under
the act of the General Assembly relative to
said corporation, approved February q,
1870, and as a discharge of either party
from all obligations for the issue. indorse-
ment, guarantee and security of said mort
gage bonds, as provided in the fourth sec
ton of said act, that the SAID corporation
shall be required. at or before the complete
issue of the said bonds, to file with the Sec
rotary of State full release and acqult-
lance of the obligation of the State so
created to guarantee said mortgage bonds.
and for which the provisions OF this act are
designed as a substitute and discharge; and
the said corporation shall, by its express
agreement made and entered into by the
vote of its Board of Directors, and attested
bylts seal and the signature of its secretary,
obligate itself to commence that part of its
railroad from VermiliOnville to Shreveport
within six months, and to complete the
same within the time limited therefor in the
said act of the General Assembly; provided
that the said corporation may purchase
from this State the said shares of stock, at
their par value, at any time prior to the
maturity of the bonds issued therefor, and
may pay for the same in lawful money or in
any of the bonds of this State at their par
value.
SEC. 2. Be it further enacted, ETC., That
for the payment of said subscription, bonds
of this State shall be issued, signed by the
Governor and Secretary of State, and sealed
with the seal of the State, payable not less
than thirty-ive nor more than forty years
from their date, with interest at the rate of
eight per cent per annum, payable semi
annually, in the city of New York, on the
first days of January and July of each year,
for which interest coupons, bearing the fac
simile of the signature of the Treasurer of
the State, shall be attached to the bonds;
and annually, from and after the issuing
of the said bonds, or any part thereof,
there shall be imposed for each fiscal year
State tax of one mill on each dollar of the
valuation, for each year, of the real and
personal property in this State subject to
taxation, which tax shall be assessed, levied
and collected in current moneys, by the
annual assessment and collection of taxes
for each year. in the manner prescribed by
law for the collection of other taxes, and
the moneys derived therefrom shall, immedi-
ately on collection, be paid into the treasury
of this State as distinct fund, and kept as
separate account; and such moneys, and
all moneys received from said company for
dividends on said stock, shall be applied in
each and every year, first to the payment of
the interest as it shall accrue on said bonds,
and the balance in each year shall be ap-
piled to the purchase of said bonds; and
such tax shall continue to be so assessed,
levied, and collected in each and every
year until all the interest and principal of
said bonds which shall from time to time
remain outstanding shall be fully paid; and
all bonds and coupons so purchased and
paid shall be Immediately Cancelled by the
said treasurer.
SEC. 3. Be it further enacted, ETC., That
from and after the subscription aforesaid,
and the issue of certificates OF stock, and !
during the time the State shall own the |
same, the State shall be represented at the |
corporate meetings of the stockholders; and |
in the board of directors to be chosen by |
the other stockholders under the charter of |
this incorporation, by the Governor of the |
State for the time being, Tor by his proxy,
and by another director to be designated |
by the Governor, whose duty it shall be to |
attend all meetings and perform all duties |
incident to the Office of directors, but that |
the directors thus appointed shall not vote |
in the elections of the board of directors |
provided for in the act of incorporation.
Sec L. Be it further enacted, ETC.. That |
this act shall take effect from and after its |
passage.
(Signed) GEO. w. CARTER,
Speaker of the House of Representatives.
(Signed) OSCAR j. DUNN,
Lieutenant Governor and President of the |
Senate.
Approved April 90, 1871.
(Signed) II. c. WARMOTH,
Governor of the State of Louisiana.
A true copy: