The Opelousas journal. [volume] (Opelousas, La.) 1868-1878, 1874-01-16

it seems clear to me that we shall come
nearer exact justice to all parties by
making the consolidated bonds uniform
in the rate of interest as well aS in al
other respects, that is, making them al
bear interest at seven per cent pei
annum.
So far as I have been able to ascer.
tain no one considerable bondholdel
has refused, after due consideration, tc
regard this proposition in 4 friendly
spirit. 1t seems to be the opinion OF
all business men that such d settle
ment would involve no dishOnor to the
State and would be a positive advan-
tage to the bOndh0lder in this, that one
bond worth par and that can be readily
hypothecated is better for q capitalist
to hold than two bonds worth fifty
cents on the dollar, which can not be
readily sold or used.
DOUBTFUL BONDS.
Assuming that our whole debt is valid
and that it can be funded at sixty cents
on the dollar, the new debt will be less
than $15,000,O00. The legality Of con-
siderable portion of our bonded debt is
now being tested in the courts. 1t has
been my desire to have the question
thoroughly examined, and if any part
OF the debt is illegal, to have it's fraudu-
lentcharacter established in the Supreme
Court. Our efforts in this behalf will
be continued, Notwithstanding unfound-
ed assertions that this is reputation.
II lllegallty is establ lished, the State will
be justly and properly relieved Of por-
tion Of its heavy burden. If, on the
other hand, the bonds in question are
shown to be valid, there will be no furth-
er doubt in regard to them, and they
may be funded with the others. Of the
S2,50O,O00 issued to the Chattanooga
Railroad Company, now in litigation,
the State government feels justified in
exhausting every legitimate means to
defeat the payment of either principal
or interest unless the consideration on
which they were issued, that is the COM
pletlOn of the road to Texas, is realized
to the State: If that is secured it is con-
ceded that the expenditure will prove
wise one. But until the road is compile
ted, those bonds should not. and think
L am justified in saying, will not be paid
at all, II such payment can be avoided.
NECESSITY OF ACTION.
| am not careful as to what name NAV
be given to this proposed funding scheme
10 my mind it is only a question of
settlement in full now on these, the best
terms we can offer, or continued intol-
cradle distress and perhaps ultimate en-
forced reputation. There should be
equity and Justice for the debtor as we'll
as the creditor. | am not willing to ad-
wise the continuance of rate of taxa
ton which is not far removed from con-
tiscation; especially in view of the fact,
that for large proportion of our in
debtedness the people of the State have
received no adequate consideration, and
tor some portion no consideration at all.
Upon your judiCiOus action in this mat
ter will depend, in q great measure, the
future Of the State. With the debt and
taxation reduced within manageable
limits, and with the other reforms indi-
Gated realized by appropriate legislation;
with careful husbandry of our resources,
and honest and vigilant scrutiny of, all
laws passed by your body, we may reas-.
Dnably hope for a speedy return Of pros
perity, peace and good order to this en-
barrassed commonwealth. 1--
/ transmit herewith draft of such
amendments as / recon-
mend in connection with the proposed
funding measure. The details of the
measure itself will be laid before you at
IN early day.
Internal improvements.
NEW ORLEANS, MOBILE AND CHATTA-
NOOGA RAILROAD.
regret to inform you that the liberal
lid and donations of the State to secure
'ailroad communication with Texas,
have resulted in Disappointment, ,.
By virtue of act No.26, approved Feb
'uary II, 1869, the State agreed to guar
sntee the second mortgage bonds of the |
New Orleans, Mobile and Chattanooga
Railroad Company to an amount not
exceeding $4,000 per mile of its main
inc OF railroad in Louisiana, which said
company might construct from New
Orleans westerly to Texas. Under this
tct S750, 900 of the bonds of the company
lave been guaranteed, and the State is
low, and has for some time been com
1elled to meet the interest thereon.
By virtue of the fourth section of act
No. 81. approved February q, 1870, the !
state agreed to guarantee for said COM
lany similar second mortgage bonds, |
lot exceeding S12,500 per mile for each |
nile of its road to be built from Yer
nilli0nville to Shreveport, and which
night be constructed within five wears |
rom the date of the acceptance of the |
vet by the company. fr..
The seventh section Of the same. act, |
IS an lnduCement to the speedy compile |
ion Of the railroad from New Orleans
o Houston, made an absolute donation |
o the company of $4,000, ,000sin bonds;
s750, 600 to he issued on the completion |
il the railroad to DonaldsOnville, $780, /
90 on the completion of theroad to Yer
nillionville, $3.50, 900 on the completion |
# the road to the Sabine river, and /
1850, 900 on its completion to Houston.
The right to this donation was to be for
cited, unless the road was opened for I
raffic to the Sabine RIVER in three years
rom the date of the acceptance Of the
ct.s The State has issued to the COM
any $3.50, 600 of these subsidy bonds.
By act No. 95, approved April 20, 1871,
was attempted to commute the obi
alton OF the State to guarantee for said
ompany it's second mortgage bonds by
ne absolute issue of S2,500, 900 of bonds
a payment of subscription by the
tate to $4,000 shares of the company of
1O0, each. Under this act $2,50O. 900 of
onds were delivered to the company on
There is no record in the Auditors or
'reasnrer's or other offices of the State
+ the issue of these bonds, nor is there
ny receipt from the company for these
onds ON file or evidence that the con-
itiOns of tho law under which they were
Isued have been complied with,
THE sALE OF THE ROAD.
It will thus be perceived that the New
rleans, Mobile and Texas Railroad
ompany has, in subsidies or otherwise.
,ceiyed aid to the extent of S4,0OO,0O0
, an inducement to construct railroad
Texas. The company actually agreed
} finish the line from New Orleans to
le Sabine by March 5, 1878,
After completing the road to Donald
,nVilie, on the Lafourche, a distance of
bout seventy miles. and nerforynino