The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-11
HOW THE STATE HAS BEEN PLUND
Erred.


Democratic administrations since the wal
were, according to Mr.. Walker no admin strss-
I tons at all, or at best Heutenancies under
military rule. However, Mr. Walker says,
and We are glad to have him sayi that he has
no interest II protecting Democrats as such.
If Democrats have stolen, let them suffer the
penalty. And SO with Republicans. Gov.
Kellogg ought 10 admit the strength of this
position. The real issue before the people O:
Louisiana is whether they are to have "a gov.
eminent OF their choice, or be plundered bv a
company Of adept thieves. who began tneii
professional life by stealing the offices which
they now hold.
LETTER FROM Mr. CHARLES H. WALKER.
PATrEEsoEvILLE, St Mary Parish, La,
! Oct. "a, 1874.
To the Editor OF the Chicago Tribune
Sir-Goy. Kellogg, in {. communication to
your paper, dated Sept. so, says the Legisla-
lures Of 1865, 'G6 and 81 were entirely COM
posed Of Democrats, and that they appropri-
sted 100000, against $4,000, 600 receipts.
In 1865, J. Madison Wells succeeded
Michael Hahn as Governor Of Louisiana
Wells is q Radical. He was removed by Gen
Sheridan (; and in june, 1867, another Rad
| zeal, B. T. Flanders, was appointed to his
| place. In December, 1867, Joshua Baker
Conservative, Unsupported by Gen. Hancock
and was succeeded by Gov. Warnoth
| During this time the military of the United
States exercised quasi jurisdiction over the
State, through Gems Candy, Baird, Sheridan
and Hancock. Therefore the Democrats were
not in power duIing those years
But, if they were, and stole the peoples
money, they are not to be defended. 1t is not
question OF party. II is tle case Of the
people against thieves.
The New Orleans P;coy7tne has recently
shown, by the Auditors books, that the Leg
islatures Of those years expended only $685.
600 IN excess OF receipts, instead Of S14 0OO,-
900 as charged by Kellogg. True, he replied,
they appropriated, and not expended. This
Was also refuted by the Picuya,se with actual
figures.
Gov. kellogg, through cciminaity Or igno-
rance, has issued the following bonds, which
are total loss to the State. viz. /:
First On or about March IL, 1873, $685.
900 of second mortgage bonds were Endorsed
by the Governor IKellogSl Oh the ten miles
OF track laid beyond Donaldsonvi!le: but, as
the final limit of time, January, 1873, for the
completion Of the whole road had expired
nearly two months previously, and the law L.
self provided that None OF the said second
mortgage bonds tor Or loon that portion of
said main hne OF railroad, not constructed
within the time limited shall be guaranteed
by the State Of Louisiana, it is manifest that
said bonds should not have been indorsed."
Extract Of report OF Railroad Committee,
adopted by New Orleans Chamber OF Com
merce, June l, 1874; signed G. ". r. Bayley,
Chairman; II. 0. SeixaS, j. C. Norris L. 81.
Josephs. When he Endorsed those bonds, he
knew, or ought to have known. that the con-
tractors held tie road beyond Donaldsonville,
and that it did not belong to the company
until they we're paid The road is now under
seizure and sale on frsJ-mortgage bonds.
Second-Under Act No. 1OS, approved
Sept 6, 1865, entitled can act to Incorporate
the North Louisiana and Texas Railroad COM
pany," the Governor {Warmoth) issued to
that conpay, during the wear 1869, SAG bonds,
and in the year 1873 Kellogg issued SIC OF
$1,000 each, bearing per cent interest-tbe
State having second mortgage on the road.
The twelfth section Of the act provides
".hat said railroad company shall, on or be-
tore the maturity Of d,ty OF the interest coupons
on any Of said bonds, deposit the amount
thereof in the State Treasury for the payment
thereof; and in the even. Of the failure to
make such deposit, that no further issue OF
bonds skal be made, and tie State shall have
the right to secure the payment OF the bonds
and interest issued to said road, acc ording to
the provisions OF this act
The treasurers books snow that the only
deposit the company ever made to meet the
lHtcIcot On LIE 0tttte DOuuS was S1J, l-U,
during the years 1869 and 1870.
BY Act los, approved June 90, 1871, it WAS
authorized to issue first mortgage Of $25, ZOO
per mile. Subsequently, by Act No. 81, ap-
proved April 10, 1872, Ii was directed that, in
lieu Of the second mortgage to the State the
company might give its stock at par for the
amount of bonds issued or to be issued; and,
in consideration Of the issue and delivery Of
said stock, the company shall be reliered from
all liability for the aforesaid bonds of the
State.
The foregoing statements are copied from a
report made in 1873 to Gov. Kellogg, by
Committee Ct Auditors and Examiners ap-
pointed to investigate the State debt. See
pages 8 and 9.
It will be seen that the COMPANY had de-
faulted in providing the interest previous to
the Issue Of 1851, 600 by Kellogg; also, that
the contract had been changed from one of
security to a stock subscription, notwithstand-
ing the constitutional limits of State indebt-
edness had been previously reached. Il is
clear that the issue was illegal, and should
not have been made.
In a future article, will give your readers
q history OF that pet scheme OF plumber, the
funding bill, by which it is attempted to con-
summate and fasten upon the people of the
State all of the steals. without any redress
whatever.
By Warmoth Kellogg & Co., the State debt
has been increased to S53, GIL 5t5 81, contin-
gent and all (see Auditors and Examiners re-
port, pages Il, -, 16and II. The constitutions
al limit is s25, 090, 000), with absolutely moth
ing to show for it.
Gov. Kellogg cannot deny his completely
and copartnership, although the firm has since
quarreled over a division Of the spoiis. He
was part Of the Warmoth Government, and
by it was made Senator of the United States.
He was nominated tor Governor, and claims
bis election by that party. Warmoth has
since abandoned il. When they came into
power, the State debt was not burdensome
property was in demand at advancing prices /;
the people were both hopeful and cheerful.
Now, the State is bankrupt, property unsala-
bic, homes and plantations deserted, lerees
down, and the people respondent
Gov. Kellogg cannot dodge the responsible
Try, nor can he separate himself from his
party, or his administration from that of his
They are both part and parcel
Of the same great wrong that has ruined a
L 49,