The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-09-01
THE FUNDING BOARDS DOINGS.

In The New Orleans TINES OF Sunday morn
ing was published List Of The bonds whic
have been fuDde by the Board Of Liquidatio
appointed under Act No. 3 Of tho kellogg
Legislature
We have ffo.n ..ao % time given to IL
public sunh fsots concerning this act and thi
hoard A. have been in our possession, an
have sss@ted that nothing good coul
bo oxp0Aci from the enforcement O
law which cmanAted In frAu,, an,
the cxecaioo Of which has bee,
entrusted 10 mon. most Ct whom are notori
ously incApsble and dishonest, and who ar
disqualified. Or should lie. from sitting on th
board. BY season az their official positions
Notwithstanding our exposures and the mani
fest lank Of confidence felt in the scheme b,
the people and bondholders, the Board O
Liquidation have proceeded to fund such
bonds AZ hsve been presented for exchange,
and We isopose in This article TO examine into
the nature OF those bonds, 10 zoe how careful
the board has been f the interests of the
State in Vic discharge Of their duties
This Funding Bill is Objectionable, in what
ever light you may regard it, The bonds to
be funded are TO be reduced by the State more
than onelAnd OF their face value. not only
without the consent. hut against the protests
Of ue boilers. thus violating the essential
principle q our law relating TO contracts
which requires tot their validity that the
parties he both able and willing to contract
The bonds 10 Nc issued bear per cent per
annum, when RI the ~ spries of bonds out
standing. bears per cont, and 1G bear
per cent per annum. making difference
against The State on the interest account. that
goes fS towards neutralizing whatever
advantage Is 10 be derived from repUdiating SO
ngo'a par Of tho principal Of the old bonds
The determination of the question, what
series Of bonds shall be approved and that re-
ected, Is cOnfded to the executive officers of
the State ASIDE from the fact that nearly all
the persons now filing those Offices are usur-
perI; Eithta,t a shadow Of lawful title to their
posses s.ios. The exercise of such function by
even those lawfully entitled to those offices,
would BE- unconstitutional. The question as
70 As sdld.y or invslidity Of any Of the old
bonds IL plainly judicial one; and by the
ConsGtn lion Of This State the judicial power
IS vested exclusively in a Supreme Court, in
District Courts. IN Parish Courts and in JUS
ticeS q the Peace The eecton of this Fund
ing Fin. which provides that some two mil
hons. moro or less, Of outstanding warrants,
shall be taken up with new bonds, is palpa-
m hn It.tS, val
amendment of 1870 iorbidding any in
crcase II the debt rs it then existed prior to
the ye~ 1900. and nothing IS more certain
than Thai Inc Nse could. hereafter, lawfully
refuse The payment Of bonds issued for such
purpose and under s.ch circumstances Had
Tho stac Object Of Tins Funding Bill been the
payment n these outstanding warrants 10y
nov isnc a .sia,c bonds. a schoolboy in the
primSy classes would not fail TO perceive the
legal iml'o~,,i'iiy of carrying 1t into effect, |
and ihat which cannot be done directly. can
moi b. done indirectly A reduction of the
debt on tbe one hand, viii not Justify is IN
crease on dc other,
This fad hss been apparent 70 all intelligent |
and dsinL1cstcd Dsnds that the Funding Bill |
Was con ,eivej in desire TO convert ABOUT
-. .0oD Of warrants. and some s.. 0Oo, 900 |
Of fraudulent Or illegal bonds, into new
bonded obligation Of the State But the intrin-
sic objections TO the law creating these new
obligations will he sufficient eventually to rem
der IL H,ilbty. while the character of some
OF The old obligations will neither be improved
nor forgotten ny their exchange for the new
c0as
In Oe adveItised list of the bonds funded
and destroyed. we find one hundred and forty
seven bonds issued under Act No. los Of 1870
far the 'eaief ofP. J Kennedy. These bonds
were issued under these circumstances: Mr.
IN the years 1866 and 1867 entered
into contract with the State, through tho
Board Of L.vce Commissioners, to construct
certain hvss. it being stipulated that he
should - paid il cash
Tbs 6tsGc however, when the work was
,cmpeeted. tendered Mr.. Kennedy bonds in
,aymcus therefor. which he accepted. These
,cnds we've paid to him At the rate of 80 cents
n tAe dollar to the amount of $1S4, 900.
They. therefore. Melted him $l47, 900, so tina.
he lost on the sale of the one hundred and
iSsA'y fou bonds. sl34. 4O8 O9. it is plain lie
nnSt have disposed Of them at the ridiculous
isur, of cents on the dollar.
These bonds were enjoined upon the petit
ion Of hcting Attorney General Fellows. who,
n bis siasement Of the funded debt (p 24l,
= The cass No. $685. State Of Louisiana W.
3hazies Clinton and Antoine Dubuc,et de-
ssared them 10 have been issued without con-
siasrsfios. and - . disguised donation, simi
No u,at a J. O. Nixon :
unfortunate for the Board Of Liquids
rs 'hAa nsAese bon Ia, the illeeality of which !,
~ c'eaf. sAould be the very first upon !
~ q those f&>sded. 9
- .4so worry unfofHsgnate. and we may say !
.'y "eSpacsb'e that dske board should re- :