New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-25
NEW ORLEANS RERUBIdOAN. THURSDAY DECEMBER rs 1878

- DGOxA41Au1e 40, 4OGO.
bonds shall be made, and the State shall
have the right to fOreclose the mortgage
therein given to secure the payment of the
bonds and interest issued to said road &C
cOrding to the provisions of this act.
By act No. l05 Of 1871, approved June q
1871, 1t was provided that said railroad
company shall have the right to borrow
money and pledge or mortgage said rail
road. it's property of every kind and the
franchies thereof to secure the payment OF
the same; to have the force and effect of a
lien and privilege, or first morris gage there
on, to the amount of $4,000 per mile.
The Treasurer's books show that the only
deposit the company ever made to meet the
interest on the State bonds was $l9, l20 dur
ing the years 1869 and 1870. Subsequently,
by act No. 81, approved April 10, 1872, i;
was directed that in lieu of the second mort
gage required by the eleventh section OF
tue charter of the North Louisiana and
| Texas Railroad Company, to be given to
secure the State for the ultimate payment
of the bonds of the State, issued in conform
ity to said charter act No. l0S OF 1868,
the said company might give stock to the
State to an amount equal to the aggregate
sum of the State bonds issued or to be is
sued under said act No. l0S of 1868, say
II go shares, or $l,l22,000 of the capital
| stock OF said company; and in consideration
| of the Issue and delivery of said stock the
said company shall be relieved from ali liza
bility for the aforesaid bonds of the State,
| SO that by the opera lions of the law tn e
| State, though only trustee in the original
| act of incorporation, becomes a subscriber
| in said comp my to the amount OF 81 IL,
| 600 and liable therefor in bonds already is-
| sued.
10. THE NEW ORLEANS, MOBILE AND CHAT
| TANOOGA RAILROAD COMPANY.
By act No. 26 entitled IAN act to expo
| dite the construction of the railroad of the
N W Orleans. Mobile and Chattanooga
| Railroad Company" approved February IL,
| 1869, it was provided "that said company
| be and is hereby authorized to issue from
| time to time its bonds, to be known as sec
ond mortgage bonds, guar anteed by the
| State, an amount not exceeding in the ag
| gregate Sl2,5 for each and every mile in
! length wt,in the State of Louisiana, said
bonds having not less than forty nor more
than fifty years to run from their date, bear
| ing interest not exceeding eight per cent
per annum."
To secure the payment of the principal
and interest of the bonds the law required
a mortgage of the road Second to a prior
mortgage OF the same amOnnt) to be
made by the company to the Governor as
trustee.
Under this act $75O,OOO of bonds have
BEEN issued. A recent sale of the road
uNder the first mortgage has left the State
without security for its bonds.
l6. THE MISSISSIPPI AND MEXICAN GULF
SHIP CANAL COMPANY.
By an act entitled "An act providing
State aid in the construction of the Missis-
sippi and Mexican Gulf ship canal, and for
issue of State bonds therefor" approved
March 8, 1869, being act No. lie of that
year. the State, by the first section Of the
law, authorized the Governor to issue the
bonds OF the State to an amount not ex-
ceeding 5000 600 in aid to said canal com
pany. An examination into this shows that
On the first of March, 1862 the Governor
Issued $48O,0O0 OF bonds to that company
payable thirty years after date, bearing
seven and three-tenths per cent per annum
The State holds first mortgage on said
canal, its appurf enances, fixtures, and all
lands acquired, either by purchase or grant.
IL. BONDS FOR STATE PENITENTIARY.
The General Assembly of 1869 under act
No. SIS, approved March S, ratified the lease
made by the Governor of the State with
Messrs. Huger & Jones, which lease had
been approved by military authority IN
1867, and authorized the Governor to issue
bonds to the lessees to the amount of $780,
0eO, If forty years. at seven per cent
interest, Tor the purpose of improving the
buildings and placing additional machinery
therein. The bonds were issued on the first
of November, 1869.
is. THE BAYOU BEUF AND CROCODILE NAyI-
CATION COMPANY.
During the session of the Legislature of
1869, al act WAS passed, entitled "An act
to grant the aid of the State to III, BBut
and Crocodile Navigation Company"
sx,h oh he To;
that company $4,000 of State bonds, pay
able in twenty years, and bearing eight per
C mt. per annum interest. The bonds were |
issued on the third of January, 1870. The |
second section of the act authorized the |
president and secretary of said company to
sell or pledge the bonds, as they might !
deem necessary. to raise money for the |
completion OF the work required to render
navigable the said Bayous Beuf and Gro |
cOdiie. In order to secure the final pay |
ment of the said bonds and the interest |
that may accrue thereon, the State holds |
a first mortgage on all the rights and privi- |
leges of said company; and by the third |
section of the law, the company is TO refund |
to the State, at the end of twenty years, all |
sums of money which she may have paid ON |
account of said bonds.
l9. BONDS ISSUED FOR WORK DONE AND TO
BE DONE ON THE LEvEEs
Under act No. 80, entitled San act to pro-
vide means for the payment of work done
Dr. to be done on the levees of the State. un
Ter contract by the board of public works, |
BY the issue of the bonds of the State to
,he amount of 100000, and to provide
'"r the redemption of said bonds, approved
February %, 1870, it was provided that the
Governor OF the State was authorized to
sue bonds, signed by him and counter
'igned by the Secretary of State. to The
amount of $3OOoOOO, payable in fire gears
rom the date of issue, bearing eight per
,ent interest per aDuum; said bonds to be
deposited in the State treasury. subject to
he order of the Governor, the president of
he board OF public works and the fiscal
.gent of the State. The law further pro-
'lded for the sale of these bonds at their
highest market value, but never at less
ate than ninety cents on the dollar, and
directed the proceeds to be paid into the
State treasury, to be drawn for by the
BOARD of public works. exc lusiveiy for the
of work done under contract with
aid board The books of tho treasury de- |
'artment show that the bonds We're sold at
ninety cents on the dollar, and the whole
'rocreds, less expenses, etc. were paid into
he State treasury, and the money was paid
nut by the treasurer on warrants from The |
'oard OF public works, as directed by law
he proceeds of the bonds announced to |
2 700, COO, less $l6,667 Al expenses.
Forty thousand dollars ct these bonds
'ave he, paid. leaving still outstanding
:, $50, 900 due March l, 1875.
0 NEW ORLEANS AND CHATTANOOGA RAIL
ROAD COMPANY.
By act No. 81 entitled IAN act relative to |
he New Orleans, Mobile and Chattanooga
sallroad Company" etc, approved Febru
~ 81, 1870. the Governor was authorized
D issue the bonds of the State TO he com.
any to the extent of 100000 payable
'r:y years from date, bearing eight per
emit interest per annum, upon condition
Il 70 rlI