New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-02-28

,
partial report may be laid on the desks
senators prior 10 the close OF the session
herewith respectfully submit their repor
With the recommendation that the entir
subject receive the early attention of Sci
ators at the next session of the General Al
selably.
j. K. ALIEN AMBER.
Chairman;
JACQUES A. OLA.
THEOPHILE T. ALLAN.
DOCUMENT A.
GoNxIrTBR ON BANKS AND banning.
New Orleans, February \, 1873.
The committee was called to order a
| 1880 \. NJ, Senator Alexander in the chair
John G. Gaines was called and sworn.
!. Are you president of the Citizen
| Bank of louisiana
| Answer am.
| =. When was your bank first INCORPORATED
Answer-lS33 and 1886
.. When did your bank 60 into operation
| Answer-lS3o.
| = What amount o. bonds were issued by
| the State to the bank and at what time!
Answer-S7 zoe. 900 in 1886.
,. On what terms were the bonds issued
| by the State.
Answer-Her bonds were loaued to the
bank in order that it might use them abroad
as security for loan of cash capital
t. VIVA. proportion CT the funds re-
| ceived We're loaned to the stockholders and
or what terms
Answer-Fitty per cent or $50 per share.
payable IN fifty years at 81 per annum.
Z. What portion of tie bonds OF the
State have been paid!
Answer-AboEt $4,000, COO.
s. How much in stock mortgages did the
bank take TO secure the STATED
Answer-Each plantation was taken at
us value entlre-so many acres of land, so
many sugar houses. SO many slaves. etc:
and there to the amount OF $li,400.000 to
secure the issues Of stock.
=. Did understand you to say that these
S'oOV,UUU OF bonds were issued 10 the bank
in 1886!
Answer-Yes
10. Of the S7,100,00o stock for which
Sli, i00,C0 were given as security of the
State On lis bonds, how much has been paid
up
Answer-It was not originally intended
tnat any part thereof should be paid But
the same remained subject to call; the profits
We're intended and expected TO create
at the expiration OF the charter.
II. What proportion of the mortgages
given fer the security Of stock have been
toreclosed!
Answer-None. Wien the stockholders
failed TO pay Their annual dues foreclosures
were made.
Il. State how the s.. 600, 0O0 OF bonds were
negotiated, and 10 whom, and az what
price.
Answer-Negotated for money at par
mostly on the Bourse of Amsterdam. lew
On the London Stock Exchange.
u. How u.Uch OF these bonds now remain
unpaid!
Answer-Four millions one hundred thou
sand dollars.
II. How much profits has the State re-
ceived ard when was it paid!
Answer-None. The State was to receive !
4 oDe-t welfth interes. in the profits a. the !
expiration Of the charter.
-. Ont of what funds has the bank paid |
he 100000 |
Ans xer-tlt OF collections from stock |
holders On account Of fifty per cent loans on
stock.
II. Did the State receive one sixth of said
unds from time 10 time as the bonds were
eceived!
ArsweT-The State has never received
.nything Ct ALL Neither State or stock.
FOLDERS can receive anything until expira-
ion OF charter, now fixed at 1911.
II. Who are the present holders OF the
bonds,
Answer-Can not say. Mostly IN Holland.
IL. Do bondholders mold any of the stock
+ the bank!
Answer-Only very trihing amount?
~ How muca OF bank stock now remains
o first hands,
Answer-lmpossible for me 70 tell.
20. How much OF stock has been forfeited |
o the bank. for non payment OF loansi
Acknowledgements thousand shares, |
to =, 200.0 COO
II. Have these loans on stock been paid |
p prompt Y as they fell due!
Observation-Disclosures are paving I'D as
asst as they can. Stock loans do not ali fall |
lie tor fifty years from date of loans They |
ad that time allowed for repayment Bal
nee OF shares have been generally paid up
lar as thu sF-eighr years exter d, though !
)me are in arrears
-. What advantages were gained by the
ank by the act OF 1872
ArsNer-lhs extension of the State
onds falling Cue and which the bank was |
nable to pay fer further period oftwenty- !
We years. ,
%. What were the advantages gained by
le Slater by The same act
Answer-Stace gains an extension CT her !
onds.
II. What advantages were rainel hy tine .
ondholders by this act!
Answer-Had the bondholders ATTEMPTED |
} foreclose or compel the bank to do so.
'e property inortgaged as security would | {
ave gone at large depreciation. the bond .
2lders woaid have been compelled 10 look
the State OF Louisiana for payment.
-. W hat $ the present value Of these | i
,nds !:
20 fifty cents.
". What advanta yes did The stockholders {
IN by the act of 1874
Answer-They were protected from being | 2
ID ont. ::
:. 40" d!d the bank pay Oh 100000 -.
these bonds without declaring dividend |
one-tweltth n favor OF the Slater t
We're 10 dividends This
IS debt paid to the bondholders abroad
I OF the assets Of the bank.
:. How do you calculate that 81 100000 | a
ould be paid up before the State should s.
ceive her one-siSth quota of the profits! n
Answer-ir is fixed N the charter that
ither the State nor stockholders sbonld
ceiye anything until the expiration of the
arter. The stock, if the business had b
en- successful. would never have been | il
liged to be paid; he loss of rnortraoed
ives obliged the banks to await the Grad
Increase in the value Of real property.
=. Have yon stated that the only cash by | b
llch the bark was started was derived | 81
the proceeds Of the bonds issued by the -
atel o.
30. At any time since has there been apy
ID subscription TO the stock of said bank | =;
Answer-ln 1853 81 ,00O,0 cash stock :,
IS subscribed, which comprises the pres +
banking department. n
Il, Now. as the State put up g, 600, 600 in