New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-03-22
COURT RECORD.
SATURDAY, MARCH II, 1874.
United States Circuit Court.


John l.. Macaulay er al. vs.. William Pit
Kellogg, Governor. Charles Clinton, Aud
itor. ct al.-Judge Woods rendered the fol
lowing decision on complainant's motor
for an Injunction
The bill is filed by John l.. Macaulay, O.
the State of New York, on behalf of him
self and all others who are similarly stu
ated and who are willing to make them
selves parties compliments against
William T. Kellogg, who is Governor Of the
State of Louisiana; Oh aries Clinton, who is
Auditor Of Public Accounts of the State OF
louisiana; Antoine Dubuclet, who is Trea-
surer of the State of Louisiana, and the
Louisiana National Bank. all of the defend
ants being citizens OF tine State OF Louis
lana.
The bill AYERS. in substance. that com
plainant is the holder and owner of certain
bonds of the State of Louisiana, purchased
by him in open market before the maturity
thereof. to wit: Eighty bonds Of the par
value of $4,000, with interest coupons at
tached, issued by virtue of an act of the
Legislature, No. Is, approved February II,
1866; eleven bonds of the par value of
$ll 900, known as the North Louisiana and
Texas railroad bonds, with interest coupons
attached, issued by virtue of an act, No.
l0S, approved September &c, 1868. and the
acts amendatory thereof, and Endorsed in
accordance with section twelve of said act
by the president and board of directors of
said railroad, SO as to pass by delivery;
fifteen bonds payable to bearer OF the par
value of $4,000. with interest coupons at
tached, known as floating debt bonds. issued
by virtue of act No. GO, approved March l6,
1870.
That said act No Is of the year 1866 pro-
vided that on the first Monday OF January
of each and every year, after the passage
of said act, the Auditor and Treasurer un.
der the direction Of the Governor, should
set apart the sum Of $4,000 from the re-
ceipts of the treasury, to be applied to the
purchase of said bonds. and that on the
first Monday of January of every year.
until the final payment of said bonds the
Auditor and Treasurer, under the direction
Of the Governor, should set apart the sum
necessary to pay the current interest on the
same, and that on the faith of these Fro.
visions of law, complainant purchased the
bonds issued under said act.
That complainant purchased the bonds
issued under act No. l0S of the year 1868,
upon the faith of the contracts therein con-
tanned, as well as upon the faith of the con-
tracts contained IN act No. 90 of the year
1870, and approved March l6, hereafter re-
ferred to.
That complainant purchased the said
bonds issued under said act No Co.
approved March l6, 1870, upon the faith
OF the agreements therein contained, to the |
effect that the Auditor of Public Accounts |
should annually lay tax upon the total |
assessed value of the real and personal |
property of the State sufficient to pay the |
annual interest and one-fOrtieth part of the |
of said bonds; that said tax should |
''be collected in currency and paid into the |
treasury OF the State" and should be cred
tied to special fund to be known as the !
floating debt bonds fund" and the
amount so credited from year to year was
thereby annually appropriated to the pay
lnent of the principal and part of the inter
eat of said bonds. Said act further pro-
vided that latter April /. 1870, lawful
money OF the United States only should be
receivable tor taxes and licenses due the
State"
That complainant purchased ali of said
bonds after the enactment of act No Is. |
approved March 10, 1870, and upon the faith
If the contracts therein contained That
~ section nine of said act it was provided
hat the Auditor of Public Accounts should,
It the close of each year, estimate what
um levied upon the entire taxable property
# the State would be sufficient to
Jay the interest on all bonds issued by
he State, and that the sum SO ascer-
aimed was thereby annually levied upon
he taxable property of the State: that the
AK SO levied should be collected az other
axes and should be known as the interest
AK, and when paid into the treasury
hould be credited to fund to be called
he interest tax fund, and should be held
acred for the payment of interest upon the
,onds of the State.
That complainant purchased all Of said
'onds on the faith of article la of the con-
titution OF the State of Louisiana, adopted
n 1864, and of article l,of the constitution
adopted in 1868, which provides that when
'ver the Legislature shall contract a debt
exceeding IN amount 100000, unless in
'ase OF war, to repel invasion or suppress
nsurrection, they shall in the law ere ating
ne debt provide adequate ways and means
or the payment OF current interest. and of |
ne principal when the same shall become
Tue. ana the said law shall be irrepealable
lntu principal and interest are fully dis |
'harged. unless the repeating law contains |
'ome other adequate provision for payment
II principal and interest of the debt, |
md also on the faith of article 10 |
u the constitution OF 1868. forbidding the
passage OF any law impairing the obligation |
If contract or divesting vested rights.
nd upon the faith of the provision of the ,
constitution OF the United States prohib-
ting State to pass any law impalring
ne obligation OF contracts. That more |
han 100000 of bonds have been issued |
nder each of the laws under which the
onds held by complainant have been put
orth.
That none of the foregoing contracts have
'een performed, but, on the contrary, de-
endants, Kellogg, Clinton and Dubuclet,
ave given out that no interest maturing
tter December 81, 1873, on the bonds Of |
he State issued before that date shall be | |
aid, nor shall any principal Of said bonds
. redeemed, and haze given out and de-
AIRED that they viii not levy and collect |