The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-06-10
THE FUNDING BOAED.

The Funding Board met in regular weekly
session, Wednesday morning, at 10 o'clock
Present, 1.-THE Secretary of State, the Fiscal
Agent, President of the Cotton Exchange,
Auditor, Speaker of the House and Stase
Treasurer.
In the absence of the Governor, the Fiscal
Agent was called to the chair.
| A communication was received from Attor-
ney General Field, in response to call for
his opinion as regards the action of the Su-
Spreme Court in certain classes of bonds.
| The letter was as follows:
ATTORNEY GENERALS OFFICE,
State of Louisiana.
Hon the Board of Liquidation, State of Louisiana:
| Gentlemen-I have the honor to acknowledge
the receipt of a communication of your Secre-
tary, transmitting me a resolution OF your
Board, requesting me to furnish you with my
opinion whether or not the Supreme Court OF
this State has in decree or decision heretofore
rendered by that tribunal affirmed the valid
| itv of the bonds known as ''Levee Bonds, !"
issued under act of March l, 1870, and also
"Levee Bonds issued under act lis, ap-
proved March 26, 1870. or any other series OF
bonds included in act No. IL, called the Sup
Elemental Funding bill, approved May II,
1875, now pending an appeal before the
Supreme Court if any heretofore rendered
affecting the validity.
! I have quoted the substance OF your reso-
luton, and would remark it is rather difficult
to understand what the board desired under
the latter clause of the resolution, but pre-
sumo that they desired full history of the
action of the Supreme Court in relation to all
the series of bonds that have heretofore been
in contest before them. The law of the last
Legislature called the Supplemental Funding
bill, has imposed upon me vast deal OF labor,
and left no discretion in your board in regard
to the funding of a certain class OF bonds
and effectually enjoius you acting upon them
until they have been Endorsed by the highest
court of the State, and, therefore, for myself,
| I do not ell disposed to disregard the require
mepts of the Legislature as expressed in the
act.
The Supreme Court in the case of the
State Of Louisiana vs.. the North Louisiana
and Texas Railroad Company, in suit
brought to recover from the said company
the amount of bonds issued by the State for
the construction of said road, amounting to
several hundred thousand dollars, which will
be found in % An IS, the court in that case
Endorsed the validity of the bonds issued up
of the docke. of the Superior District Court,
the State of Louisiana VS.. Charles Clinton
and others, enjoining the payment OF the in
terest on certain bonds issued by the State,
including the interest on the levee bonds, is
sued under act No. 30, approved March 3lst,
1870. upon an Injunction filed in said suit by
Geo. A. Sheridan, claiming the interest on
some twenty bonds of said issue, was also de:
cided by the Supreme Court in 1874, after full
argument in favor of the validity OF said
bonds, which decision will be found IN 18th
Annual Reports, page SOL.
| 1t would seem, therefore, that unless the
Supreme Court should change their opinion
these series of bonds above referred to should
be regarded as valid, although act No. l
of the last session of the Legislature ques-
tons their validity and enjoins you from
funding them until another decision OF the
Supreme Court indorsing their validity. The
bonds referred to in your resolution as having
been issued under Act lis, approved March
26th, 1867 were never seriously questioned,
and have searched in vain to find any de-
tense that could be plausibly urged by the
State against the payment
| Upon the same footing stands the class OF
bonds issued before the war for the relief OF
the State treasury. The bonds issued to the
Opelousas and Great Western and the New
/ Orleans jackson and Great Northern Rail
roads have never been disputed, and 1t would
be waste of time and money to dispute theii
validity in a court of justice. The small
amount of these bonds set forth in the Sup.
Elemental Funding bill as having been pur-
chased by the State with the trust funds
under this administration, and again sold to
take up the obligations of the State, may
have been ill-advised and improvident,. yet
their validity could not be successfully
attached in the hands of the bona fde owners,
although it is made my duty, and In
tend to present the issue to the courts to de-
termine their validity. The school bonds
issued and sold under the provisions OF acs
81, of 1872, stands on the same footing, and
! nearly all of these have been funded, and
submit whether it be fair and just to fund
the balance.
The one million of bonds issued for levee
purposes in 1865 called per cent has been
and is now in controversy before the courts
and their validity is doubtful, and the SD
preme Court will have to settle their status.
The two million and half of Chattanooga
RAILROAD bonds, the Brackadile Navigation
bonds and the Second Mortgage Bonds is
sued by the New Orleans ana Texas Railroad,
Amounting to eight hundred and fifty thousand
dollars are now pending in the Superior and
I Supreme Courts for their decision, and shall
use every exertion to procure final decision
lin all these cases at the earliest period.
Since have been in Office have been dill
gent and unwearying in my exertions, witt
the aid of two prominent members OF Inc
bar, to scrutinize and attack ali doubtful
obligations of the State, and protect the tax
: payers against fraudulent and invalid claims
against the State, and I fatter myself the
SEQUEL will show that through these exertions
q saving to the State has been made to thu
amount of several million Of dollars.
In the case of Forstall VS.. Board of Liqui
dation, now on appeal to the Supreme Cour
at Monroe, which meets on the lst Monda!
lin July, will settle by their decision the class
. of bonds embraced in that controversy.
am, gentlemen, with highest respect,
Your obedient servant,
u A. P. FIELD, Attorney General.
The communication was ordered spread
upon the minutes.
| A. Eli