New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-28
LAWS Of the STATE OF LOUISIANA
PUBLISHED BY AUTHORITY.
AN ACT

AN ACT
TO provide for funding obligations of the
State by exchange for bonds; to provide
for principal and interest of said bonds;
10 establish board Of liquidation; to au-
thorize certain judicial proceedings
against it; to define and punish violations
Of this act to prohibit certain officers
diverting funds except as provided by
law, and to punish violations therefor; TO
levy continuing tax and provide con-
tinuing appropriation for said bonds; to
make d contract between the State and
holders of said bonds; to prohibit injunc-
tons in certain cases; to limit the indebt-
edness of the State, and to limit State
lakes; to annul certain grants of State
aid: TO prohibit the modification, nOvation
or extension OF any contract heretofore
made for State aid; to provide for the re-
ceipt of certain W variants for certain taxes,
and to repeal all conflicting laws.
SECTION |. Be it enacted by the Senate
and House of Representatives OF the State
OF Louisiana in General Assembly con-
vened, That for the purpose of consolidating
and reducing the floating and bonded debt
of the State, the Governor, Lieutenant Gov
ernor. Auditor, Treasurer, Secretary OF
State, Speaker Of the House OF Representa-
lives are hereby authorized to cause to be
prepared, and to issue bonds, to be known
as s'consolidated bonds of the State of Louis
lana" of the denominations of one hundred,
five hundred and one thousand dollars, to the
amount of fifteen millions of dollars, or 80
much thereof as may be necessary, all pay
able forty years from the first day OF jan
uarv. 1874, and all to be numbered consec-
utively, and made payable to bearer, and
10 bear interest at the rate of seven per
sent per annum, payable semi-annually,
an the city of New York and city Of New
Orleans, on the first day of July and jan
uary OF each year, and coupons for such in
terest shall be annexed thereto; said inter
est and principal to be payable in lawful
money Of the United States.
SEC 3 Be it further enacted, ETC., That
the parties designated in the foregoing sec
ton shall constitute a board OF liquidation,
and majority of said board shall elect
fiscal agent for the State, who shall be
member of said board.
SEC. g. Be it further enacted, ETC., That
the bonds authorized by the section one
shall be signed by the Governor, Auditor
and Secretary of State, and the coupons
shall be signed by the Auditor and
Treasurer; and when 80 prepared said
bonds shall be exchanged by the board OF
Liquidation for all valid outstanding bonds
of the State and all valid warrants drawn
previous to the passage OF this act by the
respective Auditors OF Public Accounts Of
the State on the Treasurer thereof, except
warrants issued by the Auditor in payment
of the constitutional officers Of the State,
at the rate of sixty cents in consolidated
bonds for one dollar in outstanding bonds
and all valid warrants; provided, that the
holder of any bond or valid warrant re-
iected by a majority of said board may ap-
ply by petition to the proper court for re-
lief, and if final Judgment shall be rendered
in his favor against said board, 1t shall be
the duty of said board to fund his said
4 al % xJnd hvv% hyy
act: and provided further, that if any mem
Der of said board of liquidation shall know
ingly audit and fund any illegal claim
against the State he shall be deemed guilty
Of a misdemeanor, and shall, on conviction,
he fined not less than five thousand dollars
and be imprisoned not less than two years
at the discretion of the court. And any
person knowingly procuring the same to be
done shall be subject to the same penalty.
SEC l. Be it further enacted, etc, That
the exchange of the bonds or valid war
rants authorized by this act shall be Ell
tected by SAID board of liquidation in the
cities of New Orleans and New York.
SEC. 5. Be it further enacted, etc, That
the consolidated bonds herein authorized
shall be held and used by said board OF
liquidation only for the purpose of exchange
as aforesaid; said bonds shall be used for no
other purpose or purposes than as author
ized by this act, and any member OF the
board of liquidation using or attempting to
use. or attempting to induce any person or
persons to use, said bonds or any of them
ior any other purpose or purposes shall. on
cnviction thereof be punished by fine
OF not less than five thousand dollars and
by imprisonment at hard labor for not less
than one year.
SEC. 6. Be it further enacted, etc, That
notice of the adoption of this act shall be
published bv said board in one or more
journals of New Orleans, New York, Lon
don, Paris and Amsterdam.
SEC. Z. Be it further enacted, etc, That
tax of five and q half mills on the dollar
Of the assessed value OF all real and per-
sonal property in the State IS hereby annu-
ally levied and shall be collected for the
purpose Of paying the interest and prln-
chile of the consolidated bonds herein au-
tnorized, and the revenue derived there
from is hereby set apart and appropriated
50 that purpose, and no other And that 1t
shall be deemed felony for the Fiscal
Agent or any officer of the State or board
Of liquiGators to divert the said fund from
8ss legitimate channel as provided, and
g.pon conviction the said party shall be
Stable to imprisonment for not more than
Gen wears or less than two, at the discretion
ST the court. If there shall, during any
scar, be a surplus arising from said tax
after paying all interest falling due IN that
year, such surplus shall be used for the pur-
chase and retirement OF bonds authorized
by this act, said purchases to be made by
ske said board of liquidation, from the
lowest offers, after due notice; provided,
shat the total tax for interest and all other
State purposes, except the support OF puohc
sci ools shall never here after exceed twelve
and half mills on the dollar. The interest
tax aforesaid shall be continuing annual
9ax until the said consolidated bonds shall
4 nal ON nj
and the said appropriation shall be con-
tinuing annual appropriation during the
same period, and this levy and approprIa-
zion shall authorize and make 1t the duty
of ths Auditor and Treasurer, and the said
board, respectively, to collect aaid tax an
nually and pay said interest and redeem
the said bonds until the same shall be fully
discharged.
SEC, 5. Be it further enacted, etc, That
the bonds and valid warrants outstanding
at the time of the passage of this act, shall.
as fast as they are received in exchange for
consolidated bonds, be Cancelled and de-
stroyed by the said board of liquidation, and
consolidated bonds purchased as provided
Cor in section seven of this act, snail DE can
celed and destroyed after public notice has
been given of the same in the official jour
nal of the State, in the presence OF as many
citizens as may desire to be present, In Ike
manner. and within ten days after such De.
struction, in each case, process verbal OF
the same shall be published and report
made to the General Assembly on the first
Monday of every year, by said board.
SEC g. Be it further enacted. etc. That
i shall be the duty of the Auditor IN his
next annual report to give "a detailed &C
count of the proceedings had under this act,
Including the amount of new bonds issued,
yhe amount of old bonds and valid warrants
Cancelled, the amount of the same outstand-
ire, and the cost of the exchange; and an
gually thereafter full and exact statement