New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-25

| 1870. and to secure the construction OF INT
road from Vermilionville to Shreveport.
| These bonds are recorded nowhere IN tnt
books of the treasury department., and
| though reported as an outstanding debt Of
the State, they are so reported merely IRON
| a memorandum of the Secretary OF state.
| %. BONDS ISSUED FOR THE RELIEF OF p. j.
KENNEDY. los
BY act No. los Of 1870, entitled IAN ACT
| for the relief OF p. j. Kennedy, and to pro
| vide for the issue of bonds in payment OF
| Indebtedness due him." which act became q
law without the approval of the Governor
| bonds of $1,000 each to tfe amount OF Sl34,-
! 900, dated January |, 1870, payable twenty
years after date, and bearing eight per
| cent interest per annum, were issued and
| delivered to said p. j. Kennedy. The act
| under which this grant was made recltes IN
| the preamble the losses OF Mr.. Kennedy
| through the neglect of the State TO comply
with the terms of a contract.
| 23. FUNDING THE FLOATING DEBT OF THE
STATE.
By act No. 60, entitled can act to provide
| for the payment or funding of the floating
| debt of the State. by the issue and sale or
| exchange of State bonds" approved March
| l6, 1870, the Governor was authorized to
issue bonds of the State for $1,000 each to
an amount OF SoVoV,VUo paydDIo III Ioi "
years from the first Of MAY, 1870, bearing
six per cent interest per annum.
By the second section of the act, the Gov
ernor, the Auditor and the president OF the
Citizens Bank were constituted board OF
liquidato1s, and were authorized to sell
these bonds at not less than seventy-tw0
cents on the dollar. The proceeds were to
be paid into the State treasury, and credited
to y fund called floating debt liquidation
l,a ia6
sively to the payment and redemption of
the floating debt OF the State, past due in
terest coupons and past due State bonds
In case of failure of tie sale of the bonds,
the board of liquidators was authorized and
empowered to exchange the bonds at the
rate of 500 in bonds for each and every
$72 Of outstanding evidences of indebted
ness against the State, which had been is
sued in accordance with law prior to the
passage of the act.
The books of the treasury department
show that $2000,000 of these bonds were
sold in New York at seventy-twO cents on
the dollar on the twentieth OF June, 1870;
that the proceeds, 81, 430, Cos 40, were paid
into the State treasury and applied to the
payment of outstanding obligations; that
of the last million of bonds, 1898 600 were
exchanged for evidences Of debt and $1,000
we're sold at seventytwo cents on the dol
lar. and the proceeds paid into the treasury
The evidences of debts, according to the
detailed statement furnished by the Treas
urer, consisted in warrants issued for all
purposes of the government. A portion of
them can be regarded clearly as floating
debt of the State within the scope OF the
law. The balance requires investigation.
OF these bonds $50. 900 have been redeemed,
leaving outstanding S2.95O,OOO, due May l.
1910.
"a. FREE SCHOOL FUND.
The origin and nature of this fund have
been described above. In 1872 the Legis-
lature, by act No. 81, sought to abolish this
fund; the act provided that the bonds there
in should be sold at public auction, to the
highest bidder, for United States currency,
Auditors warrants on the State Treasurer
or certificates of Indebtedness, and that no
bids should be received of less than sixty
five cents on the dollar for State bonds, and
eighty cents on the dollar for city consol-
idated bonds. The sale took place on the
seventeenth of June. 1872. The official re-
port of the State Treasurer of January,
1873, shows that ll4l bonds belonging to
the fund. amounting to 81, 123 500 were sold
for ST. ,096 $50 %
The Legislature (Confederate), in 1863,
took from this fund and expended for
Estate" purposes $2O0,000. One hundred
and thirty eight thousand dollars il, bonds
belonging to the fund have been lost. The
State, therefore, owes the school fund