New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-11-19

jackson RAILROAD Company, az ln0Orser, 1or
the face of the bonds and interest.
The first question to be considered is the
liability of the city of New Orleans. The
city issued these bonds. and pledged the
faith Of the city to redeem them at ma.
tulity.
If there is no provision in the act TO pro-
vide for the redemption Of these bonds at
maturity they become an absolute debt,
which it is obligatory on the city to pay at
maturity. She assumed the obligation at
the time OF the issuance Of the bonds. to
pay them at maturity, in current funds, IN
money. This gives the holder right OF
amount Of the bonds at maturity. The
plaintiff, therefore, is unquestionably enti'
tied to judgment, as against the c!fy, tos
the amount OF the bonds.
The next question to consider is the ooli-
cation or liability of the jackson Railroad
Company. That company was chartered
by law by the State of Louisiana in 1893 as
o common carrier. A railroad has been de-
fined to be, and the purposes for which it
was created show it to be a common carrier.
l. was authorized then 20 build a railroad
for the purpose Of transporting goods. pas.
sengers and anything else Of the kind. This
act has n public significance. The city OF
New Orleans occupies the third rank as a
commercial city on the Western continent.
and this railroad. since its construction.
connects it with all parts OF the Union. 1t
must have been in the contemplation OF the
Legislature TO enhance the interests OF the
State and city. and tor that purpose the
State authorized the city to pledge her
credit. That was the moving cause. The
construction Of the railroad could not have
been done without a company. The COM
panv organized themselves to NEE: the
objec: desired by the city and State. The
citv and the State both had the same thing
in yiew-the protection and enhancement
Of the interests Of the people Of this locality.
The bonds can not be as q general thing
assimilated to commercial paper. The law
governing commercial paper is founded on
custom and usage. and has seldom received
the sanction of courts. The British gov
ernment has never enacted any comner'
cial code. In France at one time It was
attempted to enact one, bu. Il was aoan'
doned. The commercial law OF England Is
that which is founded on usage and GUS
tom. ard that is also the commercial law OF
the United States. And it is well known IN
commercial law what constitutes CONNER
cial paper. bills and notes and bills OF ex.
change. A bill of exchange IN commercial
Law has been defined 60 be a request by one
party TO another to..pay at such a time or on
demand a certain sum. A prOunssOry note IS
q written promise to pay money. these are
|
qualities are well understood in commercial
circles. There are other species OF obliga-
tons that have acquired certain degree
OF commercial character, such as b0ads
The laws Of prescription apply by decisions
of our own courts to all paper that Is trans
ferred from one to another. Although 1t is
not commercial paper, it has some OF the
attributes Of commercial paper. BONDS are
made payable to the order OF company,
and <bo, hoonma commercial fianep in so
far as negotiability is concerned. But the
liability is different question. and the rules
which control that are founded on statutes
and contracts. Usage has sanctified no Jaw
in this respect.
A promissory note, when Endorsed ia
blank, carries with it the obligation Of the
indorsor to pay. So it is with bill OF ex.
change. But l can not see how that RUE
can be applied to bond issued by com.
monwesith The court does not question
the authorities cited. So far as the holder
is concerned, his right Of action can not be-
gainsayed. So far as the Endorsement is
concerned, there may have been twenty
persons intervening between the Present
plaintiff and the original holders. The
court will take no notice OF that, and viii
not permit any question to be raised as to
his title. He is entitled to recover. The
question then recurs from whom ehOuld
he recover! Did the jackson Railroad
Company, by placing its signature on
the back of the bonds, become respon-
sibie for the payment OF the taco OF
the bonds, in case the maker failed to
paw The answer to that question depends
upon the fact whether this bond ~ OF
ia not assimulated to a promis.ory note. II
IL is. tnen there is 10 question as 10 the
| liability.
will consider, for the purpose OF els
>Ln paouIaHlv in.
| dorsed, and then discuss whether the bond
| is q promissory note. TO become a
| nromissory note it must have the ingredi
ents of a promissory note. Having already
determined that it's title asslnilates to That
| Of prOmissory note, what was the obJec'
| in making these bonds Was it to facilitate
| commercial transactions Was 1t tor tie
purpose Of making it a negotiable instru
ment in the commercial usages OF the
world The obligation or bond was issued
! foc the purpose of facilitating pubic
work and regulating il by law. In tina,
case the common law would&supersede, and
nut an end to all controversies. But the
| State of Louisiana, when she authorized
| the construction of this road, and author
| lied the city to raise the money, or a por
| ton Of it necessary for the purpose, dld no.
contemplate anything of the kind. She con
templated the construction of public work
| the bonds with interest from the date, or al
soon as therein stipulated from the time IN
terest should mature, and these bonds were
| negotiated They were sold to capitalists
CAPITALISTS could alone invest in them
They we're not like an engagement given 10
bill to pay in sixty or ninety days, put 1
was loan of an obligation to pay at
future time. The necessities were snci
that the State of Louisiana wanted thu
road, and was willing that tie city of New
! Orleans should execute these bonds. be
| cause the city of New Orleans had the mos
eminent and direct interest in the road
The State profited very little by it compared
TO the CITY, But the city itself may be con
sidered as having been vitality interested
Hence she obtained the authority from tn
Legislature. A directly similar case wa
presented by the city of Cincinnati Sh'
She has been laboring for number OF year
| to build a road from the city Of Cincinnati
TO the gulf.
The constitution of the State of Ohio pro
| hibited the State from giving aid to rail
| roads outside of the State, but it was fount
that there was no prohibition against tn
civ of Cincinnati. So the State OF Oh!'
authorized the city of Cincinnati to SUB
scribe 10000, 600 to aid in the construction
of that road. The bonds were issued. Nov
would it be maintained that that railroad
company that received these bonds woult
be liable! The bonds were negotiated fou
weeks ago, and portion OF the m negotiated
at par. 1t makes no material ditterenc
whether the bonds were drawn to the orde
Of the railroad company or not; it is tn
substance we look after and not the form
Tie purpose and object of that enabling
act was to enable the city Of Cincinnati t
furnish the means by which this railroa'
could be built. The city of New Orlean
had the identical purpose IN view-to pre-
| riaa means To huild this railroad here