The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-17
THE BONDS OF THE CITY.

We propose to write perhaps several articles
on this subject, and to state as clearly as We
can the ..acts of the Legislature authorizing
the creation of this bonded debt. Previous
to 1852 we had four cities, each with the usua
powers conferred BY law upon municipal cor
porations These four cities were the First
Second and Third Municipalities and the Cit,
of Lafayette. There were many inconveni.
ences resulting from this. The ordinances Of
one differed from the ordinances Of another,
There was no uniformity in the important sub.
jects Of police, health, streets, commerce, etc.
As the only dividing line Of these cities was q
street, disputes and litigation arose to settle
conflicting claims.
10 produce harmony and to insure an united
effort 70 promote the welfare Of the city, the
question Of the consolidation of four cities was
sS1tated and discussed. The people and the
press urged its importance and the pressure
was SO great that the Legislature by act No.
u OF 1852, consolidated the three municipal
tiles, and act No. y of the same year, an
nexed the city of Lafayette and named it the
the Fourth District From this time we had
but one city.
The first object was to establish the credit
OF the city, and never were the provisions Of
IN act SO carefully and wisely drawn up, for
the credit once was created and its bond
sold about par.
We now refer to some of the sections of the
act:
The Legislative power was vested in Com
mon Council, consisting of two Boards of
Alderme en- elected by the people, who received
no pay The executive power was given to
the Mayor, three Warders one Treasurer, one
and one Street Commissioner.
The deots Of each municipality of all de-
scriptioDs were ascertained, and their pay
ment assumed by the city. A commission,
called the Commissioners Of the Consolidated
Debt, was created This commission had
power to issue bonds at forty years these
bonds were called the consolidated bonds
The commission, after the ascertainment Of
The total Indebtedness, issued bonds equal to
he amount of tho whole debt, and sold them
upon the market.
1t is a fact well-known that the price bid
was above par. But to create confidence the
aw imposed exacting conditions, and made
hem imperative. The Common Council, says
he law, shall pass annually, in the month OF
January, an ordinance to raise the sum of
$3.50, 900, by special tax on real estate and
slaves, to be called the consolidated loan tax
TO enforce compliance. the law declares that
Ill ordinances, resolutions or other acts
passed by said Council, after the first day of
January in each year, shall be null and void,
Unless the ordinance imposing the consoida-
ed loan tax shall have been previously passed
Capitalists were satisfied with these condi-
ions. The tax to be levied was ample, and
he duty to levy the tax could not be avoided
The act further provided that at the end Of
ach year any surplus of the consolidated loan |
AZ after the payment Of interest, shall be
ppGed to purchase, from the lowest bidder, |
ny bonds to the extent Of the surplus, reject
ng all bids demanding more than the face of
he bonds. If this act had been carried out
d full, all Of the first issue Of consolidated
onds before this time would have been pur-
hased by the city below par, and now, with
be surplus, which should lie in the treasury,
considerable amount of the bonds could be
allied in at considerable figure below par.
We call attention to another restriction. It
as, that no obligation or evidence Of debt
nall be issued by the city, or under its au-
lority, nor shall any loan be contracted, I'M
,ss the same be authorized by vote of
lajority Of the qualified voters, and the ordi-
ance to be passed shall provide ways and
eans for the payment of interest and prin-
pal, and such ordinance, SO passed and rati-
I'd by the people, shall be irrepealable. The
syment Of the consolidated debt then was
'cured by an annual levy of $3.50, 900 to be
'plied exclusively to its payment. There
,uld be no diversion of this annual levy, and
either could there be diminution of the
" until, all the consolidated bonds were
lid. Il
Any other obligations Of the city, before !
icy could be created, were to be submitted {
the vote Of the people and means provided {
r payment. The outstanding consolidated {
,nds of 1852 mature in 1892 and bear six per
mt interest. As we progress we will see if {
o law creating this first debt has, in fact or 7
spirit, been violated, and if the special /
An tax of $65O,0OO has not been diverted
ON its sole cnd special use.
The Railroad acts of 1885,, Nos. 1OS, 100,
0, authorized the city to subscribe, upon
nditions, to the Jackson. Opelousas and I
o.tra;u Railroads RI the ovfent !.