The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-19
TIE BONDS OF THE CITY.

i LII 0V0OO w ILL VA
We concluded in our last article with th
Jackson Railroad. The Legislature. April
1870, passed an act to authorize the sale
the stock in the Jackson Railroad, held b
the State and city. The city, by this act, wa
authorized to sell in such manner as tn
Common Council might determine, the stoc
acquired by the act of 1854. The purchase
to execute bond in favor of the Mayor i
the sum of 100000, conditioned to maintain
the pledge in favor of the bondholders VIII
might desire to convert bonds into stock. tn
bond to remain in force for one year, and a
the expiration of said time the sureties wer
to be released upon producing a certi6cat
from the Mayor that no opposition had BEEF
filed in his Office.
This act received the approval of H. G
Warmoth. The Administrators, by ordinance
May 81. 1870, authorized the sale of $1,000
shares Of stock of the jackson road, foreue
pledged, to be made to MI. NJ s. McComb TO
$4,000. We give the facts and make NJ
comments at the present time.
| In 1855 the Legislature prohibited any in
crease of the city's liability beyond s12 OOO, COX
and enforced cash payments.
| The next act in order is that of 1856, No
166, which amended the consolidated act O
1852. This law is lengthy, and was drawn NJ
with great judgment. 1t was the City Charter
until revoked by Radical legislation. It re.
tanned the two boards of Aldermen, and gave
pay to two chairmen of two committees, viz
Finance and Streets, each $500 per month. Il
limited the salary Of the Mayor to 5000
Treasurer 5000; Comptroller, Surveyor and
City Attorney to $4,000, and Recorders $500.
All the conditions of Act 1852 relative to the
consolidated and railroad bonds were retained.
This act also created the Fiscal Agency, the
duties of which were confined to the receipt
OF the taxes for the consolidated and railroad
bonds and to the payment of the interest on
the same.
The Act No. 3, Of 1860, exempted the con-
solidated bonds of the city from taxation.
Act No. 50 Of 1868, authorized the city to
procure the loan Of money to meet its current
liabilities, to the extent Of 81, OOO 600 at rate
Of interest not exceeding ten per cent, and for
such time as the Council might prescribe. The
act does not compel the levy of any tax, and
neither does it provide for the payment of the
loan,
The next in order is act No. 40 of 1862
which was passed to enable the city to fund its
floating debt, and to iquidate its indebted
ness.
This act authorized q loan of So, OOO,-
600 at rs years, with seven per cent interest,
to be secured by bonds, which were to be
given in exchange, exclusively, for what is
known as "city notes." and to identity the
bonds the Fiscal Agent was to indorse on the
back of the bonds that they had been given
in exchange for "city notes." And, second,
. loan Of $4,000 900, at seven per cent, and
at Is years, to iquidate the balance of its
floating debt. To secure the payment of the
bonds issued for these purposes, it was made
The duty of the city to appropriate, out Of the
revenues of the city, monthly, during Pc
rod of thirteen years, the sum of $29, 1864.
At the expiration Of thirteen years, Or when
he consolidated debt of 1852 will have been
oaid, this loan was to be secured and paid in
he manner provided in the act Of 1852.
We now come to change or revolution in
he management of city affairs. We refer to
'ct No. Z Of March 16, 1870, annexing the
ity of Jefferson. This act repealed the act of
S52, and all acts amendatory thereto. Itabol-
shed the Common Council and provided for
be appointment first, by the Governor, who
hen was H. O. Warmoth; and afterwards BY
lection Of the Mayor and Administrators.
he Mayors salalary was fixed at $500 and
he salary CT each Administrator at $4,000.
Ve do not know exactly the cost Of the admin
tration of the city under this law. All we
now is that by the report Of Mr.. Calhoun.
administrator Of Accounts, for six months
ading Sd June, 1874, that the Office expenses
the Administration were $4,000 and salaries {
$4,000, which for one year is equal to '
FOG, 900. Z
Under this act consolidated bonds were to {
9 exempt from taxation and all previous laws I
Eating to this debt were specially reserved =
AAos0 SAAAS 0PoSA0AAy, OCSouoC t0c 0ISt law l.
eating this consolidated debt could not only S
ot be repealed, and because the constitutions Z
the United States and Of the State protect !
and preserved for ever the sanctity Of obi f
Itions. Under this last act all the liabilities n
Jefferson City and Of the Police Jury of the t
ght bank (Algiers) were assumed by the city. G
be act also compels the destruction of any t
'rtion of the s5,OOO,OOO bonds of 1869 on p
md and not delivered to the parties entitled Q
the same. The act then provides for the s
sue Of $4,000 900 OF bonds at 25 years and
per cent interest for the payment of its q
'ating debt. Il
Those bonds were to be sold or exchanged. 6
sold the proceeds were to be applied to the s,
'yment Of certificates and evidences of debt. q
be sale or exchange never to be less than at il