New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-07

gallty OF COnelOeraOlo poFlOu "
our bonded debt is now being tested in the
courts. 1. has been my desire to have the
question thoroughly examined, and If any
part of the debt is illegal. to have it,
fraudulent character established in the Su
preme Court. Our efforts in this behalf
will be continued, notwithstanding I'M
founded assertions that this Is repudl
alton. If illegality is established, the
State will be Justly and properly relieved
of portion Of its heavy burden. If, on
the other hand, the bonds in question are
shown to be valid, there will be no further
doubt in regard to them, and they
the $2,5O0,0O0 issued to the Chattanooga
Railroad Company, now ia litigation
the State government feels justified in ex
hausting every legitimate means to defeat
the pay ment Of either principal or interest
unless the consideration on which they were
issued, that is the completion of the road to
Texas, is realized to the State. 1t that Is
secured it is conceded that the expenditure
will prove wise one. But until the
road is completed, those bonds should not,
and l think / am justified IN saying, Will
not be paid at all, if such payment can be
avoided.
NECESSITY OF ACTION.
am hot careful as to what name
luay Oo given 10 tnIS pTOpOscu lunulhs
scheme. To my mind it is only question
of a settlement in full now on these, the
best terms we can offer, or continued intoi-
cradle distress and perhaps ultimate en-
forced reputation. There should be
equity and justice for the debtor as well
as the creditor. l am not willing to
advise the continuance of a rate of tax
alton which is not far removed from con-
fiscation; especially in view of the fact that
for large proportion of our Indebtedness
the people of the State have received no
adequate consideration, and for some p0r-
ton 90 consideration at all.
Upon your judicious action in this matter
will depend, in great measure, the future
of the State With the debt and taxation
reduced within manageable limits, and with
the other reforms indicated realized by ap-
propriate legislation; with careful hus
bandry of our resources, and honest and
vigilant scrutiny of all laws passed by your
body, we may reasonably hope for "A speedy
return of prosperity, peace and good order
to this embarrassed commonwealth.
transmit herewith draft of such con-
stitutiOnal amendments as ] recommend in
connec ton with the proposed funding meas
ure. The details of the measure itself will
be laid before you at an early day.
Internal improvements.
Nh" ohAEANS, iHobiAh AMI IhAliANoOuA
RAILROAD. -.
regret to in form you that the liberal aid
and donations of the State to secure rail
road communication with Texas, have re-
suited in disappointment.
BY virtue of act No &c, approved Feb
ruary II, 1869, the State agreed to guarantee
inc second mortgage oohus Oh the new VT
leans, hloolie ana Chattanooga Railroad
S s,n pa 10 an amount not eHceedihg
SI2oW per mile OF It's main line OF railroad
III Aoulslana, "nicn saio company inlgnt
construct from new orleans westerly 10
1exas. Cnder this act S"oo,oVo OF the ponds
OF the company nave oeon guaranteed, ana
the State Is now, ana has Tor some time
oeen competed 10 meet the interest thereon.
.. by virtue or tne iourth sectlon OF act NO.
81, approved February Il, lS|O the State
agreed to guarantee for said company SINH
lar second mortgage bonds. not exceeding
VIZ by per mile tor each mile OF It's road to
Dc oulit rom tefmllonvlile 10 onreveport,
and which might be constructed within i've
years from the date OF the acceptance OF the
uo &c 49, VI 'no sno ao', q, on
railroad from New Orleans to Honston
made an absolute donation TO the comnanv
of 81 (t}O 600 in bonds. $50 600 To he issned
on the completion OF the railroad to Don
9iNSGnVIiip n
the road TO VermiIionyille. $50 900 ON the
competion of the road to the Sabine river,
and $3.50 600 on its comnletinn to Houston
The rlpht to this donation was TO ba for
feited unless the road was onened far
traf fic to the Sabine river in three Years
from the ate of the arcentanca of m. act
The State has issued TO the eo.nanr
4 80 600 of tbese subsidy bonds
Nv act No o. annrovsd Anil % 1871 81
was attempted to commute the obligation
of the State to ouarantee for said comnanv
it's second mnrtgage honda nv the ahsplm,a
issue of S.. 500. 900 of bonds in paynent of n
by the State ia o5 600 shares Of
the COMPANY of 500 each. Hinder this act
: 500. 600 Of bonds were delivered 10 the
Summary on the twenty.sec,nd of Anil.
1871
There il no record in the Auditor's or
or other offices of the State
# tbe issns of those bonds, nor ~
here any Teceint from the cnmnsnv
ror these bonds on file or evidence that
he conditions of the law under which
THE SALE OF THE ROAD
,.,r;l, III. ho ,aroo;,,oa tha+ +,o ~
49, M'S;1 90 ~, Tnres p pnas "a" NO"
ha ~; ,'1o on. o"u I'm
"a y - - ...fc, COO ON WIS, ioo9i'ou
,,a " =. euo - wJoo,oJt az "u l"u1
.',nUa ~ n,''..m,, aannas to 60, ~ ~; no
rnm ~ " 0raay ,b s ~ - nc iln1
ns-9 10" oon' ~ 'no '"''io ~ "i"ich
> 20
liz ,ha .he .oaG ~ ooha.Gson
axer w nj, III ma nant un'anso VI aooul
~ tha I;na trnn n pinai i 'o t c woA
~ eno l 4 ron pehaiusonvil'e 70 orana
haan. u ;n "Juas mfn,S n,nes .ne
ani 1G TO- ao"uuIuou lho
, 49,! anu IN ouhe, io'.i "as soil nhoer
', oa' pio.oeines ~ !ne Chiler ola,es
Ime",. oVur' mis saie' q saln, eheotaaiy
any nop. 20 5no oease as creulIor
h;o 1870 Ne ~. .no s1G'ooo .! suosluy oonos'
n,on, ps Jno prov sionS VI tue ac', were 10
o,nn,sta ,,o ~ n .s1e .rb iaileu 10
t ,,';, - !. ~ 1ne OF within
no e.'it u IL aiso "nn,hiiates the IN
oiCSt VI luo pldtt as ii sJOChuOlUtT, 10 tue |