New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-03-22

also given out that for all delinuuen
taxes OF the State accrued prior to Januar,
l, 1914, including taxes Heretofore leyiet
for the interest and sinking fund of sal
bonds, except to the amount of two mills
the outstanding warrants of the Stat
. drawn TOR other purposes will be receive,
| IN payment to the amount OF two million
of dollars, instead of the lawful none,
specially contracted to be collected as nov
set forth. That ono and half millions O
said delinquent taxes belong to the fund
set apart for the payment of the interest OF
said bonds and the redemption of the prIn
cipal.
That said Kellogg, Clinton and Dubucle
give out that their past and proposed viola
tons OF the contracts of the State, as abov
set forth. have been and are intended to h.
done under plan to fund the State debt
That In pursuance OF this plan they hay,
persuaded the Legislature to pass an &C
known as the funding bill, being act No. 3
approved January "a. 1874.
This act provides in substance that tn
Governor, Auditor, Treasurer, and othe
State officers therein named shall prepar,
and issue bonds. to be known as consoli
dated bonds OF the State OF Louisiana. {.
the amount of $4,000 900. if necessary
payable in forty years. with interest paya
BILE selni annually in United States Lawful
money.
That said bonds shall be exchanged BY
the officers aforesaid for all valid bonds
and warrants Of the State issued previous
to the passage of the act, at the rate OF
sixty cehts III consolidated bonds for one
| dollar in outstanding bonds and warrants,
and that the consolidated bonds should be
used for the purpose of such exchange and
no other.
The bill further provides that tax OF
five and half mills on the dollar shall be
In., sd nAtla y
and interest of said consolidated bonds and
| that the total tax for interest and all other
State purposes, except the support of pub
| lie schools, shall never hereafter exceed
| twelve and half mills on the dollar. and
that until July |, 1874. all valid Auditors
warrants issued for debts due prior to Jan
| uary l, 1874, shall be received for all back
| taxes, licenses and interest and penalties
| thereon due prior to January |, 1874. exceDt
two mills for school fund, three mills for levee
construction and repair fund, and two mills
to the interest fund for the purpose of pay
ing any interest in arrears accruing on the
bonded debt of the State prior to the pas
sage of the act.
This act, the bill of complaint alleges, the
defendants propose to execute, and pretend
it is their duty to do SO; whereas the said
act is nulity, because it is a violation of
the constitution of the State of Louisiana,
as above shown, and of the constitution Of
the United States. in that it impairs the
obligation of the said contracts made by
the State of Louisiana with complainant
and other holders of the bonds Of the State:
that said act No. 3 of the year 1874 purports
at once to do away with all taxes heretofore
levied and agreed to be collected for inter
est and principal of compliments bonds
and other bonds heretofore issued and TO
substitute tax OF five and a half mills
only for the payment of the principal
and interest OF said consolidated bonds,
whereas the bonds of the State here
tOfore issued amount to the sum of
go, 433,SOO, and to comply with the con-
tracts under which they have been issued,
would require an annual tax of eleven and
half mills on the dollar.
That it is the unlawful purpose of said
act and the defendants to so cOnstrue and are
about to execute it, to repudiate all of said
contracts made with complainant and other
holders OF the bonds of the State with refer
ence to the levy and collection of taxes for
the principal and interest of said bonds to
nulity and hold for naught the said laws un-
der which the outstanding bonds have been
issued; to collect in future only five and |
one-halt mills of interest tax, which is less |
than half what is' required to fulfill all the |
contracts under which the bonds outstand- |
ing have been issued. and to apply the pro-
ceeds OF this inadequate tax not to the |
bonds held by complainant and others. but |
to the socalled new consolidated bonds to
be hereafter issued to the extent of |
Sl5,oOo,0OO, and to receive Auditors
warrants heretofore issued and re.
naming unpaid for upward of |
5 il ,2OO,O 900 of delinquent interest taxes
which the State had agreed should be col
lected only in lawful money and applied
to the payment of the principal and interest
OF the outstanding bonds, and that the re-
ceipt of warrants for said delinquent taxes
is In violation OF the contract of the State
to collect said interest and sinking fund
taxes in lawful money. under which said
bonds were issued, and on the faith of which
they were purchased and are now held by
and others.
The bill further alleges that there is now
N the treasury $500,000 interest tax funds.
and large additional amounts belonging to
'aid tax funds should be received monthly
md quarterly; but defendants give out and
ieclare that they will now have no further
Use for said special funds as they will pay
10 more interest maturing after December
81, 1873, on the outstanding bonds of the
state, but, as complainant is advised, will |
lot only receive Auditors warrants for said
Jack taxes, but will direct all cash interest
unds to the payment of other expenses of
he State.
That these acts and declarations of de-
endants are with the intent to coerce com.
ainant and other holders of the bonds of ,
he State to acquiesce in the said funding"
cheme; that unless restrained they will ;
ctlyely and passively violate the obliga-
IONS OF the several contracts herein set '
Drtb, and will collect about 81 .25O,OO of
Interest taxes in warrants worth 6
'ss to complainant and other holders of I
Onds; will divert the interest funds now I
the treasury to the payment OF other ex- | |
enses OF the State; will refuse payment of q
Y coupons maturing after December 81, c
SIS, Oh outstanding bonds, and suspend @
nd refuse the redemption of said bonds. I
The bill prays that defendants may be re- {
rained from executing said act No. of c
'|4; from reducing the tax, the interest tax | h
eretOfOre agreed to be collected for the i
resent and future years for the interest ! q
nd principal of the State bonds now out. | C
andlng IN anywlse, except in strict accord v
ace with the laws under which they were is n
led; from collecting and receiving any de- t
nquent or other interest taxes under said '
VS. in Auditors warrants or in anything t
1cept lawful money: from hindering or de- a
ying the estimate and collection of taxes t
+ interest and sinking funds under the G.
I'd laws OF the General Assembly No. Is. u
1866; No. 1893, of 1868; No. 6S. of 1870.
ID No: "a, of 1870; from paying any inter O
t funds now in the treasury, or hereafter II
come into the treasury, for any purpose G.
We upon the principal and interest of ii
'nds as provided by the several contracts
'relnbetore set forth; from in anywise ii
ndering or delaying the payment of any e,
terest coupons Of any of the said out O
anding bonds of the State under any of a
e pretences or devices of said act No. 8; | g,
Id from in any way hindering or delaying cl
e estimate and collection of interest and | u
nklng funds provided for by law prior to o
q adoption OF said act No. 3, of 1874, the Ii
lyment OF the interest Hereunder. or the | il
demption of the principal of said bonds. e;