New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-03-09

chasers of g., 0OO, COO, at ninety cents, less
the charges and interest, the proceeds of
which sale, amounting to &l,756.665 80,
were transferred to the State Treasurer.
| The remaining 81, OOO,O 900 were bought BY
p. j. Kennedy e. Co., also at ninety cents,
less the interest. giving as net proceeds
| $3.50. 707 II. which was made PAYABLE in
warrants of the Board of Public Works,
| and which were exchanged for the Auditors
warrant, and it has had due course through
the State treasury.
The Citizens Bank, as fiscal agent of the
State. made the following disposition of the
S3,OOO, 0U of bonds issued in pursuance of
an act, No. t9, passed in extra session, and
approved March l6, 1870: 81, OOO.O 900 of these
bonds were delivered to Hunt Il Macauley,
for Sl.4G COS 49, which was transferred to
the State Treasurer; 1898, 600 were, under
proper instructions, exchanged by the bank
tor evidences of debts Of the State, which
have had due course through the Auditors
and Treasurer's departments; and $1,000
were sold for currency at seventy-twO cents.
thus giving a return of S5040,. which. il
April and June of 1871, was transferred to
tie State treasury.
The apecial and general inquiries enjoined
by yOur Instructions having thus been made,
and their result embodied in the foregoing
report. | shall conclude by expressing the
opinion that the Citizens Bank has faith
fully discharged its duty as financial agent
OF the State.
The Consolidated Association OF the
Planters OF Louisiana was created oy an
act OF the Legislature approved FEBRUARY
-, ISIS, with a capital OF S?,ooo,ouV, the
faith of the State being pledged Tor the
same. Two thousand five hundred bonds
of $500 each were accordingly issued to
cover that amount, ard deposited with the
bank 10 be negotiated. The bonds were
secured and their payment provided for by
the deposit of s., 1000. 900 of stockholders
mortgage bonds as collateral pledges in the
vaults of the association. The subsequent
operations of the bank disclosed the facts
that ultimate loss was inevitable; that the
assets Of the bank would be insufficient to
meet its debts. and that a contribution
from the stockholders would be required
to meet the deficiency. The Legislature.
April 6, ISi7, enacted a law which
authorized the managers to extend the
terms of payment of the bonds to six. nine.
twelve, fifteen and eighteen years, and that
they should also exact an annual cOntrl-
button from the stockholders adequate to
meet the obligations OF the State as they
fell due. In compliance with this act, a
contribution of 100000 was levied and
made payable by annual installments in
SAtttA SoA "
amount to be paid on each share OF stock.
At this time the outstanding State bonds
amounted to 81. 376, 600, which was divided
into five payments, as follows: S275.2 300 on
June 80, 1854; $275, 200 on June 80. 1857;
s275. 200 on June 30, 1860; $275,2O0 on June
80, 1863; $215,2 200 On June 80. 1866.
The first three payments were p~unctually
made, and also a part OF the fourth. But
owing to the losses entailed upon the stock
bnlderS nv the war the remaining norton |
Of the fourth payment, together with the
fifth and last, could not be paid. leaving a
still remaining due in 1866 OF
800. In that year the Legislature
again came to the relief of the association.
and, on the twenty-sixth February, author
lied a further extension of ten years IN
to liquidate the affairs of the asso-
Under this act the amount was
divided.into tour installments, maturing as
$780, 200 on June 30, 1870; Sl35.2W
on June 80, 1872: $l35. 200 on Juue 30, 1874:
Sl35. 200 on June 30, 1876.
These amounts have not been promptly
only S34,l50 having been paid up to
this date, leaving as a balance due upon
the outstanding bonds the sum of S506.350,
to which should be added, as the additional
1ebt of the bank, sioS00 "a for unpresented
bonds and coupons now due. giving as the
amount of indebtedness the sum
If $3.50. $50 "a. The original mortgages Sc
curing the State bonds are reported to be
to guarantee the State agains:
INV eventual loss"
The State bonds paid previous to the first
,ct of legislative relief above cited were de-
ivered at their several periods of payment,
o the Governor. as will appear by tue re-
on file at the bank.
The State holds two thousand shares CT
he capital stock as a bonus, with a credit
If $4,000. Dividends have been declared
It various times and placed to her credit,
hough the losses and disasters of the asso-
.iation Will certainly not enable it to de-
;lare any ultimate dividends at the period
# its liquidation.
The State, II should be observed. though
to her share Of any declared divi-
lend, has never been held to be liable for
ny of the contributions levied to cover
osses. This was the decision of the Su-
Court OF Louisiana, before which
tribunal this question was tested under u
hority OF the Legislature to sue the State,
en- the nineteenth of December, ls4s.
Respectfully submitted,
THOMAS c. ANDERSON.
Chairman.