New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-25
kEPORT OF THE COMMITTEE OF Ex.
AHIINERS.
Appointed to Ascertain the Condition Of
the State Debt.

Appointed to Ascertain the Condition Of
the State Debt.
| To his Excellency William p. Kellogg
| SIR-The undersigned auditors and exam
| liners, appointed to Investigate the State
debt, respectfully report:
| l. Under an act Of the Legislature in 1882
| Sl25, 900 of forty years five per cent bonds
| were issued to purchase land of the Charity
| Hospital. The bonds fell due in 1872;
| 100000 of them have been paid; the rest,
$4,000, are still outstanding.
2. BONDS ISSUED TO THE NEW ORLEANS AND
| NASHVILLE RAILROAD COMPANY.
| On the first of April, 1887, under the au-
| thority of section two of an act entitled IAN
| act to expedite the construction of the New
| Orleans and Nashville railroad" approved
March -, 1887 five hundred bonds OF $1,000
each, bearing six per cent interest per an
mum, payable thirty years after date, were
| issued to that company. Twentv-four of
| these bonds were paid at different times,
leaving 476 unpaid at their maturity in 1867.
| The State being then unable to pay them
the Legislature passed an act mo. Is of
| 1860, giving to the holders of the bonds the
right either to exchange them for red
back bonds" or TO renew them for twenty
years longer. Under this law thirty-tive
| were exchanged for red back bonds" and
the balance ($44l000) were renewed for
| twenty years. None Of these bonds have
been paid.
3. BONDS TO THE MEXICAN GULF RAILROAD
| COMPANY.
On December II, 1889, and March ii and
May %, 1910, 100 bonds OF $1,000 each,
] having thirty years to run, bearing six per
! cent interest per annum, were issued by the
State to the Mexican Gulf Railroad Com
| pany, in accordance with act No. SO, ap.
proved March II, 1888. Ninety seven of
these bonds have been paid, leaving still
outstanding and past due $4,000.
q. In 1853, under general law, entitled
IAN act to provide for the manner OF giving
| the aid Of the State to railroad anG plank
| road companies" being act No. 23l of that
year, the State subscribed for one fifth OF
the capital stock OF each of the following
companies:
To the New Orleans, Opelousas and Great
Western Railroad Company. 81 100000
To the New Orleans. jackson and Great
Northern Railroad Company. ......... LOCO 600
To the Vicksbrrg, Shreveport and Texas
Railroad Company, 100000
To the Crosse Tete and Baton Rouge
Plank Road Company. ............... 500.U0
Amounting to-. 81, ION, 900
The third section of the act provided that
all bonds to be issued by the State from
time to time in payment of her stock should
equal one fourth of the amount actually
paid by the other stockholders. The fol-
lowing payments were made by the State
prior to the war:
To New Orleans Opelousas and Great
Western Railroad Company. .......... $3.50 900
To New Orleans, jackson and Great North
err Railroad Company. .......... 1874 600
TO Vicks burg, shreveport and Texas Rail
road Company -.................-.. U93 600
To Crosse Tete and Baton Rouge Railroad
Company. ACKNOWLEDGEMENTS. 100000 |
In aI....................... .......S 1892 ono |
IN bonds, having forty years to run from |
their respective dates, and bearing six per |
cent interest per annum, payable semi |
annually. None Of these bonds have been |
paid.
5. BONDS FOR RELIEF OF STATE TREASURY. |
By act No. 277 of 1853, entitled ian act to |
provide means for the relief of the treasury /
of the State,' approved April 80, 1858, the |
Governor was authorized to issue bonds Of |
$500 each, payable in forty years and bear
ing interest at the rate of six per cent per
annum, payab le semi-apnually. for the total
amount Of $4,000. The bonds were issued
on the eighteenth of July. 1853, and their
proceeds placed to the credit of the general
funds OF the State treasury. All these
bonds are now out
FREE SCHOOL FUND BONDS.
BY law Congress donated to each and
every township in this State the sixteenth
-, |
and provided that the proceeds of the sales
of these sixteenth sections should be paid
into the State treasury, and remain invio-
late forever for the benefit of these town
ships. The Legislature subsequently car
ried out the intention of Congress by pass
ing laws authorizing the sale of these
lands under certain terms and conditions |
BY referring to- the several constitutions of
this State it will be seen that each of them
declares that: THE proceeds of all lands
heretofore granted by the United States for
the use and support of public schools, and
of all lands or other property which
may hereafter be bequeathed for that
purpose, and of all lands which may
be granted or bequeathed to the
expressly for any other purpose, which may
hereafter be disposed of by the State, and
the proceeds of all estates of deceased Der
sons to which the State may be entitlad by |
law, shall be held by the State as q loan,
and shall be and remain perpetual fund,
On which the State shall pay an annual in
terest of SIX per cent, which interest. with |
the interest OF the fund deposited with this !
State by the United States, under the act
If Congress, approved June %, 1885, and
,he rent of the unsold lands, shall be appro- 6
)rIated to the support of such schools, and
his appropriation shall remain inviolable" {
From year to year, and as the voters of 9
he several townships would authorize the {
ale of these sixteenth sections, they were ,
disposed Of to the highest bidder, and the /
proceeds paid into the State treasury to the | s
redit of general funds, and used by those '
unds to pay all claims against the State
rot otherwise proved for. That system
'egun in 1912, was kept up until 1857, when q
ct No. 1872, entitled IAN act in relation to )
ertain debts of the State" was passed,
nder and in accordance with which the '
dina Inv tl,.>S Al. T. l ~
und was ascertained and fixed, and the t
mount tS529, 000) SO fixed was declared the o
rincipal upon which interest should be |
aid to the several townships Accordingly |
- bonds of $1,000 zach we're issued. and | u
be mere book account in the treasury de a
artment was thereupOn closed The bonds I,
re dated the first of July, 1857, payable I
,rty years from that date, and bear six
er cent interest per annum, payable semi :,
nnually. L
These bonds have all been sold under act o
%. 81 of 1879, and their amount is, there G
IRE, twice due by the State, as will here Il
lter appear.
Z. SEMINARY FUND BONDS. Il
The State having used the proceeds of
le sales of the Seminary lands, settled her | b
Indebtedness to the Seminary fund by issu- a
g bonds for $1,000 each, having forty years D
} run, and bearing six per cent interest t.
u dAuuH, " tHo diuOuuI Vi CloO,UUU, | 81
hich bonds are now in possession Of the Il
tate Treasurer.
BONDS LOANED TO THE CITIZENS BANK. y
An act was passed in 1886 to loan the 6,
)nds of the State to the Citizens Bank to | i,
10 amount Of $l2,000,000. h
The third section of the act provided: | Il
That for the guarantee of the bonds to be A
nitted by the State in favor of the Citi- r,
ms Bank, and of the interest thereof. and s.
r which the State pledges its faith, all the
curities granted by the act Of incorpora-