New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-02-27
NEW ORLEANS REPUBLICAN, SATURDAY, FEBRUARY a. 1875
to meet the obligations of the State in favor

Section eight-Tbeir duty to apply the pro
ceeds OF all property sold TO satisfy stock
obligations exclusively to the redemption
OF the obligations OF the State.
Section twelve-Not to be construed t(
revive the charter or permit any banking
OR discount privileges forfeited.
Act No. pa Of iSJi-An act relative to tht
Citizsns Bank Of Louisiana.
Section one-p-ofiso of the eighth section
OF the act OF January 30, 1886, that nc
person or ptr-ons not a free white
citizen OF the United States ,iomiciliated in
Louisiana shalt be directly or indirectly
owner II any part o. the capital etCck be
repealed.
Section two gives stockholders the RICH.
to two additional directors
Act No ISS of lSj5-An act TO establish
branches of the Citizens Bank of Louisiana
at Baton Rouge and Shreveport, or branch
OF the louisiana Bank at Shreveport
Section One-Citizans' Bank is authorized
to establish branches at Baton Rouge and
Shreveport. and ii it does, the State Treas
urer shall keep his deposits with the Citi-
zens' Bank. The amount which tho bank
may loan through these branches shall not
be deducted from or deemed to diminish the
amount of loan to which it is entitled by its
charter. and that the condition of said bank
with respect to It's liabilities shall be
at ali times in accordance with sections
one and two of the act of fifth
February, 1882, to revise the charter Of the
several banks located in New Orleans.
Section two-That il said branches shall
be established. the deposits of tha State
Treasurer shall be kept in the Citizens
Bank until the expiration of its charter.
Act No. 100 of S57-An act,imposing pen
altiea upon the president aud directors of
the Bank Of Louisiana, Louisiana State
Bank, New Orleans Canal and Banking
Company and Citizens Bank of Louisiana.
Section one-Imposespenalties upon the
president and directors of the Citizens
Bank for failure to comply with tie provis-
ions Of act OF February 5. igi2. which re-
Guire one third Of its cash liabilities to be
represented by specie ana two-thirds by
satisfactory paper
Act No. 40 Of 1874, an act to amend and re-
enact section thirty of an act entitled an act
to incorporate the Citizens Dan1 of Louisi-
ana. approved April |, Is 3, to extend the
charter of said bank and to authorize the eX-
tension of the State bonds and interest wa
rant falling due after the passa.,e OF this
act.
Section une-Charter extended for twent--
five years from date of expiration from act
of April l, 1888, to wit until II.
Section two-The dire ctOrs are with the
consent of the holders thereof authori ed to
extend all the State bonds issued in favor
of the bank under second section of act of
January So 1856, now outstanding as we'll
as all interest warrants issued By said ban
and falling due from and after the passage
Of this act, to such time and on such cond-
ton as may be agreed upon between the
bank ami the holders of said obligations:
rOvidef, that said extension be IOr g. period
aot exceeding twenty-five years from the
maturities and at no higher rate
,t interest than the said bonds now bear
Your committee find that the Citizens
Bank was Incorporated in 1893 for the first
Tine. bur failed to secure subscriptions
sufficient to enable it to enter upon bust
ness. BY an act passed in 1885, amendatory
md supplementary to the act of ihcorpOra-
ion. the State subscribed its bonds to the
AMOUNT of S3000.000, authorized to be in
,reased to ST. 900, 900, upon which the bank
'eceived s. 900 coo, and these were issued
o 1t IN 1886. According to testimony of
resident Game. we also find that the Coy
rnOr OF the State was forbidden to issue
my portion OF said bonds until it had been
certified to him by the president of the
,ank; that mortgages to an amount of one
18th more than the amount OF the bonds
lad been subscribed. We further find that
Z ,0O00,0 State bonds were negotiated for
ash at par value, mostly on the Bourse of
II
Exchange; that Sl4 100000 were given by |
he stockholders as security on stock and !
hese bonds, and that s. 200 900 of bank stock |
VAS issued to Stockholders On these mort |
ages; that fifty per cent was loaned to |
tOckhOldtr5 as q bonus for mOrty aging |
heir property tor the security of the bank, |
nd that they were allowed fifty wears in |
Which to pay these loans at the rate of five |
er cent ger annnm, with interest.
That it was not contemplated at the date
t these transactions that the stockholders
hould ever actually pay tor their stock
ut that the profits Of the business derived |
cle'y from the capital realized upon the
redit rt the State, should finally pay up
he stock, or leave a handsome dividend !
)r the Stockholders thereon. at the expira-
ol q the charter (see reply of President
iaines 10 question ten, document "a By,
nd that only 50 per share on the stock has
yer beer paid or called up. aud this to
lake UP losses incurred prior to 1851, the
az OF the .irst call.
We further lind that % Geo shares rs, 600
lO) have been forfeited to the bank tor
allure On the part Of stockholders to pay
le annual dues On account of stock loans
This ia held By the bank and consti.
ties nearly one-third OF the capital stock
g find that thirty-eight years of the
iarter of this bank has expired. and that
any Of the present stockholders are in
Tears on the same account, TO wit: annual
les on stock loans.
That there are yet outstanding 81, 100 600
State bonds and remaining unpaid of !
e original issue of s. COO tj1 and Your
lnmlttee have not seen any evidence that |
the property bound by these mortgages
security therefor. was sold at this time
at it would realize fifty per cent of the
Mount Of indebtedness stated. We tiua |
at the bank now owns about Ell ghty MAN
tons III the State OF Louisiana, from |
HE l. derives d eyeDue, and valuable !
operty in the city of New Orleans, the |
eater part of which has been forfeited on |
count Of stock loans, and II ia a question |
your commltteo whether, unae: the leg
alton had IN the past, this property has
tuailv been forfeited to the bank or to I
G State Of Louisiana. We find that in 1853
G corporation obtained cash subscriptions
new stock to the amount of 5 i.000, COO
til which new capital was established a
Tx within the old Institution established
d guaranteed by the State), known as
e Banking Department of the Citizens
NIX.
Ii is the opinion OF your committee that t
Is new corporation within the Old institu-
q will. by the expiration OF the charter | |
We exhausted to IL large extent the Sc I
rity and profits of the original corpora
Il, and that the Cne-twelith interest Of
, State in the profits and the interest of
, stockholders will have no better salts
,tion than a knowledge that they did 8
CO and still ought to exist.
By section seventeen of the act of Jaau. &
' 3d. $50, the s. 600. 600 bonds issued to
, bank were to be negotiated at par, and c
thin TWO years from the date of their G
ission, otherwise to be null and void.
5y the fifth section of act No. II OF 1899, | '
proved March 10 of that year, section @
sen,een Of the act of January 30,
rs, was conditIonaliy repealed. Your s
nnittee have no evidence that r
, conditions OF repeal were ever
iy complied with. and as the repeal was Il
than a rnar ftar fh1. lnnal rullitrr nf | r