New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-27
LAWS or the STATE OF LOUISIANA
PUBLISHED BY AUTHORITY.
SOs
An ACT

TO nror;de for funding obligations of the
State by exchange for bonds; to provide
for nrincipal 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 a continuing tax and provide a con-
tinuing appropriation for said bonds: TO
make a contract between the State and
holders of said bonds; to prohibit injunc-
lions in certain cases; to limit the indebt-
ednees of the State, and to limit State
taxes; 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 warrants 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-
fiyes are hereby authorized to cause to be
Orepared, and to issue bonds, to be known
"a 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 so
much thereof as may be necessary, all pay.
able forty years from the first day OF JAM
uarv, 1874, and all to be numbered consec.
utively, and made payable to bearer, and
TO bear interest at the rate of seven per
cent per annum, payable semi-annually,
In 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.
ierest shall be annexed thereto; said inter
est and principal to be payable in lawful
money Of the Emitted States.
Sec . BE it further enacted, etc, That
che parties designated III the foregoing Sec
slon shall constitute a board OF liquidation,
and majority of said board shall elect a
fiscal agent for the State. who shall be a
member of said board.
SEC. 3. 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
1reyious 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 APP
plyy by petition to the proper court for re-
lief and if final judgment shall be rendered
in his favor against said board, it shall be
the duty of said board to fund his said
claim in bonds at the rate provided DIV Tbs
l.,I Il, hat nyt
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,
be 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 d. Be it further enacted, etc, That
the exchange of the bonds or valid war
rants authorized by this act shall be eft
fected 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
lied by this act, and any member OF the
board of liquidation using or attempting to
use. or attempting to indulge any person or
persons to use, said bonds or any OF them
for any other purpose or purposes shall. on
onviction thereof, be punished by a fine
of not less than five thousand dollars ard
bv Imprisonment at hard labor for not less
than one wear.
SEC. q. Be it further enacted, etc, That
notice OF the adoption of this act shall be
publshed bv said board in one or more
Journals of New Orleans, New York, Lon
don Paris and Amsterdam.
SEC. T. Be it further enacted. etc. That
a tax of five and half mills on the dollar
of the assessed value of all real and per
sona property in the State is hereby annu-
ally levied, and shall be collected for the
purpose of paying the interest and prin-
ciple of the consolidated bonds herein au-
thorized, and the revenue derived there
from Is hereby set apart and appropriated
to 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 lid uiGatOrs to divert the said fund from
its legitimate channel as provided, and
upon conviction the SAID party shall De
liable to Imprisonment for not more than
ten wears or less than two, at the discretion
of the court If there shall, during any
wear, be surplus arising from SAID tax
after paving all interest falling due in that
wear, such surplus shall be used for the pur-
chase and retirement OF bonds authorized
by this act. said purchases to be made by
the said board of liquidation, from the
lowest offers, after due notice; provided.
that the total tax for interest and all other
State purposes, except the support of public
sch ools, shall never here after exceed twelve
and half mills on the dollar. The interest
tax aforesaid shall be a continuing annual
tax until the said consolidated bonds shall
be paid or redeemed, principal and interest;
and the said appropriation shall be con-
tinuing annual appropriation during the
same period, and this levy and approprla'
ton shall authorize and make it the duty
of tbs Auditor and Treasurer. and the said
board respectively, to collect said tax an'
nualIy, and pay said interest and redeem
the said bonds until the same shall be fully
discharged.
SEC. s. 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
for in section seven of this act, shall be cam
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.
Structl0D, III eacn case, pToCoS oipa' Va
the same shall be published and report
made to the General Assembly on the FIRST
Monday of every year, by said board.
SEC 9. Be it further enacted. etc.. That
it shall be the duty of the Auditor in his
next annual report TO give detailed &C.
count of the proceedings had under this act.
including the amount of new bonds issued.
the amount of old bonds and valid warrants
Cancelled, the amount of the same outstand'
ing, and the cost of the exchange; and an.
nually thereafter full and exact statement
of the condition of the public debt under