New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-09-28

l leave to report, /. That the bonds desi
( mated IN the written proposition presente
: described as follows
First mortgage bonds. o...o,.o..s $1,000
Second mortgage guaranteed bonds.....o 2O70C
, Eight percent bonds OF the State of Lousi.
ana ss.........s. NEUTRALITY-SUSPICIOUS.. 2lOOO
Texas land grant bonds. 5000
T0tal..s ..o.,s........,,.....S AGO
amounting in all to 81, ,4L9, 900 are otfere
tor sale at fifty cents on the dollar of the
lace value, and par for accrued interest Fel
resented by coupons. The purchasers an
| to receive pro rata share of each of th
above securities upon their payments; tia
! Is to say, that each class of the above st
| curltles will be divided by the number G
purchasers of the whole and the distribu
tIon made according to amount paido /
two parties should purchase the whole, eac
| paying halt, each would receive one -halt o
each class of securities.
IN addition to receiving tie abovoo as al
! extra lnducement to the purchaser, $3.50,
IVY OF income bonds and the same amour
OF stock Of the company are fbrown il
without further charge, to be- distributed
! pro rata among the aforesaid purchasers
The total amount cash t0 be realized by
this sale will then be $3,709 500, and th(
question to be solved by your committee il
| whether the before mentioned securities
are sufficient to warrant Oug citizefs an be
coming part purchasers.
Upon an examination of the laws author
| Izing the issue of the first and second mort
gage bonds, we conclude that the mortgage
| to secure the same covers all that part OF
| the Mobile and Texas railroad westerly
| from New Orleans, except what is known
| as the Shreveport and FermiliOn branch,
| and 50 soon as the present membranes
| upon that portion OF the road in Louisiana
I east OF New Orleans are removed, the mort
| cages aforesaid will also be available upon
I such eastern portion of the road
Nothing short Of failure to complete the
| road can reduce the value of the first mort
! gage bonds at pay day below their face.
Nothing short OF repudiation by tho
! State can reduce the value of the second
| mortgage bonds guaranteed by the State
after they are issued-that is to say, as fast
| as issued under the Jaws, the States guar.
antee attaches.
We therefore yegard these as eventually
worth their face. 9he s., 100000 eight per
cent bonds, issued and to be issued under
the act OF February q, 1870, known as the
$4,000 900 subsidy bonds, must also be REQ
garded as eventually worth their face, their
non payment involving the failure of the
State to meet her legat liabilities IN este
mating the value Of the two classes Of seo
curities above enumerated. which have the
Stat6's guarantee your committee have
weighed with care the fears said to be en-.
rertained by some capitalists, OccasiOned in
part by lmprudenf publications IN our citvo
and have determined III their own minds
that such fears are not SO well grounded as
TO cause any serious apprehension OF 3 fall
ure 20 pay by the State.
They believe that the people of Louis.
lana still cherish the memory of her good
name among the capitalists Of the world.
and mindful OF tue evil effects in the future
to- commerce and al of her material integ-
ests, il her credit is stained, viii not t0IeT
ate Eepudiati0n III any form OF guise. They
are content to leave the settlement Of anr
vex@6 questions of Hhis nature that may
arise TO the al bitrament Of that department
OF the government, the judicial designated
FOR that duty in the constitution, and feel
confident that the legislative department
will cheertully cooperate with the jV@icial
in securing the payment Of all Legal obIiga-
lions. In a word, we believe the people OF
Louisisna are still q debt-pasing people.
1he ?otale theno OF bonds regarded as
gOOG is s., ,9I9O00o
The totai cash 90 be paid FOR sll that are
offered IS $3,s09, 500o which is less by over
$4,000. 900 than che securities regarded as
eventually good. without reference to the
Texas 5aiLroaG land grant bondso
9ESAs~iAND GRANT BoHDso
TIE Issue of these bonds sgas originally
by the representatives of tie !
State OF Texas (undeT and by virtue Of the |
authority OF Che Congress OF the United !
States 81 Auerica) in convention assembled !
EDWARD j. DAVIS.
President OF the Convention
Januar.r 49, 1862
This authorization Is entitled: o'!3 dec9ar.
alton to the New Orleans, Mobile and Chat !
5anooga Railroad Company, corporation
9t the State OF Alabama, and authorizing
md empowering said company to exercise
ma enjoy its corporate powers an4 tEa1o
,hisos IN the State of Bexas.'
The Shirteenfh section Of this ''decfara.
ion provides that said company shall be
Untitled 90 receive and shall vece:ye, from
he State of Texas a grant of sixteen sec.
ions, GAO acres each, Of land for every 3niie |
# railroad iexclusive of side tracks, within
he State Of Texas which the said company
hal! construct and put in running order,
nd which shall form s. part OF the main
ine, ETC.
Whether this 0'deelaration" has Been con.
rmed by subsequent legislation of the
tate Of Texas your committee, in the linn
ted time allotted, have not been able to aso
ertain, nor can they express any opinion
s to the value of said land grant bonds,''
ven if the title 10 said lands be beyond dis
ortanCe to the ST. 10000 land grant bonds
fered, but, for the reasons heretofore emu
lerated they recommend the adoption OF
ne following resolution. i
The above report, presented TO the com
littee by J. H. Kennard, Esq, was received
nd adopted, and the following resolution
lsO adopted
Rcso!ved, That the New Orleans subscrib-
rs accept the offer rendered by j. & w.
eligman & Co, with the distinct under
5anding that the $2,l00 900 Of bonds of
red are part of the bonds known as the !
J, 100000 subsidy bonds, issued under the
ct of Louisiana, February q, 1870, and .
ith the further understanding that no
,cOnd mortgage bonds shall be received eX-
spt such as have been issued upon porti ms t
the road actually built and with the fur 7
Ter understanding that this entire sub :
,ription shall be appropriated to the build
g of the railroad from D0naldsOnyille to I
Ouston, payable in installments as the t
'ad shall be completed in sections of ten Z
lies west from DOnaldsOnville, upon the
flowing terms and conditions, to wit:
That the fourth condition, which is in t
ese words t
"The said j. & w. Selgman & Co. may i,
oliver for any payment such securities as :
ey may command, provided each sub 1
riber gets his share of each class at his
lal payments" be withdrawn from the Z
and that the following clause be
bstituted in its place and stead, to wit:
"For the purpose of efecting the sale of 7
3 securities offered to Louisiana sub t
rbers, the collection Of the moneys to be .
ceiyed for same and the payment of same
er to j. g. w. Seigman & Co., a syndi-
to be appointed in New Orleans, which
all make payments when called for uE-
T the agreement upon delivery of the g.
J +rJ oh