The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-03-18

injunction asked for by McComb to restrain
the Funding Board FROM issuing bonds to th
Levee Company. The decision, which W
append in full, will be read with con,idera
BILE interest. 1t prohibits the Funding Boar,
from issuing bonds to the Levee Company 70
the sum claimed by the Levee Company, an,
allowed by the committee appointed to fix il
amounting TO one million seven hundre,
thousand and odd dollars.
The following is
TIE OPI>IONs
United STATES Circuit Court. District Of
Louisiana.
HENRY :. u COMB IS. TIE BOARD OF LIQUIDA
TON AND OTHERS.
March 16, 1875.
This was bill in equity, which was hearc
upon the motion of complainant for a pre-
iminary injunction. At the same time was
heard demurrer to the bill filed by defend
ants.
The bill is filed against VIM. p. Kellogg G.
&. Antoine, Charles Clinton Antoine Dubu-
clet, Z. q. Deslonde and Michael Hahn, who,
1t Is averred, constitute the Board OF LIQUID
alton OF the State of Louisiana, and against
the Louisiana Levee Company It alleges
IN substance that complainant is the owner OF
three consolidated bonds OF the State of
Louisiana for one thousand dollars each, is
sued by virtue of the provisions Of an act OF
the General Assembly, approved January 81,
1874, entitled 'An act to provide for funding
obligations of the State by exchanging for
bonds, etc.
That by the provisions of said act the natr-
raj persons above named as defendants. who
were respectively the Governor Lieutenant
Governor, Auditor of Public Accounts, Treas
urer Secretary of State and Speaker of the
House of Representatives of the State of
Louisiana, were constituted Board Of Liqui-
dation, which was empowered to exchange the
consolidated bonds which they were author
IZed to issue by the act for all valid bonds
and warrants outstanding at the passage of
the act at the rate Of sixty cents on the dol
lar.
The bill further alleges that under and by
virtue of an act of the General Assembly
passed February 20, 1875, the Board of Liqul-
dation is authorized and required to issue to
the defendant the Louisiana Levee Company,
cons lidated bonds at par for such sums as
may be found due tor work done by the com
pany up TO the first day of October, 1913,
after deducting credits and payments, and
that unless restrained, the Board of Iiquida-
ton viii issue the bonds accordingly
The complaint Of the bill is that this action
of the board will be in violation Of
the contract OF the State, and will
necessarily decrease the value Of the
bonds held by complainant; that the
act OF the Legislature authorizing the issue OF
the bonds to the Leyee Company is uncon-
stitutiopal and void, and the bill therefore
prays that the defendants who constitute the
Board Of Liquidation may be enjoined from
issuing consolidated bonds to the Leyee Com
pany.
For better understanding Of the case made
by the bill, it will be necessary to recte more
fully the provisions of the constitutional and
statute laws of Louisiana eftrred to in the
bill
Section of the act Of January y, 1875,
popularity known as ''the Funding Bill, pro-
vides that for the purpose of consolidating
and reducing the floating and bonded debt Of
the State, the Governor, Lieutenant Cover
nor, Auditor, Treasurer, Secretary of State, |
and Speaker Of the House of Representatives |
are authorized to prepare and issue bonds to
be known as consolidated bonds of the |
State Of Louisiana, to the amount of
fifteen millions dollars, or SO much thereof as
may be necessary.
Section ordering that the officers desig-
mated should constitute Board of Liquid4-
ton
Section provides that the consolidated |
bonds shall be exchanged by the Board of Ii
quotation for all valid outstanding bonds of the
State, and all valid warrants drawn previous
to the passage of the act at the rate
of sixty cents in consolidated bonds for one
dollar in outstanding bonds and all valid
warrants
Section provides that 1.-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 ether pur-
pose or purposes than authorized by this
act, and imposed penalties on any member
of the Board OF Liquidation using or at
tempting to use them Tor any other purpose.
Section of the act declares that "a tax of
FIVE and half mills on the dollar Of the as
sessed value of all real and personal property
in the State is hereby annually LEVIED, and
shall be collected for the purpose of paving
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.
Aud it shall be deemed felony Tor the
Fiscal Agent, or any officer OF the 5 ate. !.
Or Il card of Liquidators to divert said fund !.
from its legitimate channel rs provided. /;
IF there shall during any year be surplus !.
arising from said tax after paving all interest
due in that year such surplus shall be used !.
Tor the purchase and retirement OF bonds
authorized by this act.
Section II Of the act declares "That each !,
provision of this act shall be and is hereby :
declared TO be contract between the State Of y
louisiana and each and every holder OF the :
'onds issued under this act
Amendments Il. the Constitution Of the :.
tate OF Louisiana were proposed by the :,
legislature On the 9th OF January. 1874, and !
dopted at the general election il November, :,
S74 These declare, among other things, >
hat 1.-The issue OF consolidated bonds au-
horned By the General Assembly OF the
tate at its regular session in the year 1874, is -
ereby declared to create valid contract :,
etween the State and each and every holder :
said bonds which the State shall by no
leans and in no wise impair. n;
The act of February t, 1870, of which the :,
i'll complains as passed in defiance of the 7