The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1874-01-31
AN ACT

To provide for funding obligations of the
State by exchange for bonds; to provide
for principal and interest of said bonds
to establish a board of liquidation; to a,I-
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 con-
tinuing tax and provide q continuing APP
preparation for said bonds to prohibit in
functions in certain cases; to limit the in
debtedness 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 receipt of
certain warrants tor certain taxes, and to
repeal all conflicting laws.
SECTION. l. Be itenacted by the Senate and
House of Representatives of the State of
Louisiana in General Assembly convened,
That for the purpose of consolidating and
reducing the floating and bonded debt of the
State, the Governor, Lieutenant Governor,
Auditor, Treasurer, Secretary of State and
Speaker of the House of Representatives are
hereby authorized to cause to be prepared, and
to issue bonds, to be known as |" consolidated
bonds of the State of Louisiana, of the de-
nominations of one hundred five hundred
and one thousand dollars, to the amount of
fifteen millions of dollars, or 30 much there
of as may be necessary, all payable forty
years from the first day of January, 1871, and
ali to be numbered cOnseeutively, 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
tho city of New Orleans, on the first day of
July and January of each year, and coupons
for such interest shall be annexed thereto !;
said Interest and principal TO be payable in
lawful money of the United States.
SEC. 9. Be it further enacted, etc, That
the parties designated in the foregoing Sec
ton shall constitute board of liquidation,
and majority of said board shall elect tis-
cal agent for the State, who shall be a men,
Der of said board.
SEC 8. Be it further enacted, etc, That
the bonds authorized by the section one shall
be signed by the Governor, Auditor and Sec
rotary of State, and the coupons shall be
signed by the Auditor and Treasurer; and
when SO prepared said bonds shall be ex-
changed by the board of liquidation for all
valid outstanding bonds of the State and all
valid warrants drawn previous to the pass
age of this act by the respective Auditors of
Public Accounts of the State Gu the Treas
urer thereof, except warrants issued by the
Auditor in payment OF the constitutional off
GERS of the State, at the rate of sixty cents in
consolidated bonds for one dollar in out
standing bonds and all valid warrants; pro-
yided, that the holder of any bond or valid
WHfTdItJ EGJCCtCd ny % Vi hstlu DuHTu
may apply by petition to the proper court for
relief and if final Judgment shall be rendered
III his favor against said board, it shall be
the dnty of said board to fund his said claim
in bonds at the rate provided by this act
and provided further, that if any member of
said board of liquidation shall knowingly
audit and fund any illegal claim against the
meanor, 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 to the same penalty.
SEC. 4. Be it further enacted, etc, That
the exchange of the bonds or valid warrants
authorized by this act shall be effected 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 Ii
quidatiOn 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 induce any person or
persons to use said bonds or any of them for
any other purpose or purposes shall on con-
viction thereof, be punished by a fine of not
less than five thousand dollars and by inn
prisonmcnt 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 by said board in one or more jour
mails of New Orleans, New York, London,
Paris and Amsterdam.
Sec. z. Be it further enacted, ETC., That
tax of five and half mills on the dollar of
the assessed value of all real and personal
property in the State is hereby annually
levied, and shall be collected for the purpose
OF paying the interest and principal of the
consolidated bonds herein authorized, and
the revenue derived therefrom is hereby set
apart and appropriated to that purpose, and
no other. And that it shall be deemed a fell
ony for the Fiscal Agent or any officer of
the State or board of iguidators to divert
the said fund from its legitimate channel as
provided, and upon conviction the said party
shall be liable to imprisonment for net more
than ten years, or less than two, at the dis
erection of the court. If there shall, during
any year, be 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 DO made by
the said board of liquidation, from the low
est offers, after due notice; provided, that
the total tax for interest and all other State
purposes, except the support of public
schools, shall never hereafter exceed twelve
and half mills on the dollars. The interest
tax aforesaid shall be a continuing annual
tax until the said consolidated bends shall
be paid or redeemed, principal and interest !;