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

bones OF the STATE lseued IN favOrof tn
, bank, and due in 1850, by Endorsement o
l otherwise. one, two, three, foUr and tiv,
. years; provided there is no increase in tn,
rate of interest.
Section fve-To set apart sutf;oien
amount from the assets, to pay
: all interests now due ca bond,
of the State, issued in favor OF tn,
bank, and to paylce same with the leas
possible delay compatable with the inter
.ests Of the State. and to proviae for the
punctual payment of all interest ia the
future.
Section six-To provide independently O.
their stock obligations for fund sufficient
to meet the obligations Of the State il favor
of said bank.
Section eight-Tbeir duty to apply the pro
ceeds of all property sold 10 satisfy stock
obligations exclusively TO the redemption
! of the obi cations of the State.
Section twelve-Not to be construed 10
revive the charter or permit any Banking
or discount privileges forfeited.
kct No. 2li of ISJi-An act relative TO the
Citizens Bank of Louisiana.
Section one-Proyiso of the eighth eecrion
Of the &C: of January 80, 1886. that no
person OF persons not a tree white
citizen OF the United States domiciliated in
owner Of any part Of the capital stock be
| repealed.
Section two gives stockholders the right
to two additional directors.
! Act No. 1873 of lSj5-An act 10 establish
branches OF the Citizens Bank Of Louisiana
at Baton Rouge and Shreveport, or branch
OF the Louisiana Bank at Shreveport
Section One-CitiZens' Bank is authorized
| to establish branches AZ Baton Rouge ard
Shreveport, and it it does. the State Treas
| urer shall keep his deposits with the Citi-
| zens' Bank. The amount which the bank
| may loan through these branches shall not
be deducted from or deemed 10 diminish the
amount of loan to which it is entitled By its
| charter, and that the condition of said bank
with respect to its liabilities shall be
at all times il 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 ;wo-That if said branches shall
be established. the deposlts of the State
Treasurer shall be kept in tie Citizens
Bank until the expiration of its charter
Act No 100 of l857-An actin posing pen
alties upon the president and directors of
the Bank OF Louisiana, Louisiana State
Bank, New Orleans Canal and Banking |
Company and Citizens Bank of Louisiana. |
Section one-lmposespenalties upon the |
president and directors OF the Citizens |
Bank for failure to comply with the proyis- |
ions of act Of February 5, 1912, which re-
represented by specie and 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 Bank of Louisi-
ana, approved April |, 1888, to extend the
charter Of said bank and to authorize the ex-
tension of the State bonds and interest war
rants falling due after the passage of this
act.
Section one--Charter extended for twenty
five years from date OF expiration from act
of April F., 1888, to wit: until 1911.
Section twO-The directors are with the
consent of the holders thereof authorized 10
extend all the State bonds issued in favor
of the bank under second section of act of
January 30, 1886, now outstanding as we'll
as all interest warrants issued by said bank
aud falling due from and after the passage
ot this act, 20 such time and on such cont-
tlon as may be agreed upon between the F!
bank and the holders OF said obligations:
provided, that said extension be for period
act exceeding twenty-five years from the
respective matu,ities and at no higher rate
IT interest than the said bonds now bear
Your committee fad that the Citizens
Bank was Incorporated in 1893 for the first
line. but tailed TO secure subscriptions
sufficient to enable it to enter upon bust
less. By an act passed in 1886, amendatorv
md supplementary to the act of iLcorpora-
ion. the State subscribed its bonds to the
AMOUNT of s. 100000, authorized TO be in .
to ST.. OO0. 600, upon which the bank !.
eceiyed 100000. and these were issued !,
Q It in 1886. According to testimony of 8
resident Gaines. We also find that the Gov q
rnor OF the State was forbidden TO issue
ny portion of said bonds until it had been
ertiied to him by the president Of the |.
'ank; that mortgages to an amount of one
tth more than the amount of the bonds | r
a han his aril, {,,r& H., - Ia
: ,000O, 600 State bonds were negotiated for
ash at par value, mostly on the Bourse of j,
and A few on the London Stock =
Exchange; that Sli 100000 were given BY +
he stockholders as security on stock and ;,
hese bonds, and that s. 200 GOO of bank stocl. -
'as issued TO stockholders on these mort
ages; that fifty per cent was loaned to =,
tockholders as bonus for mortgagiug =
leir property tor the security Of the bank, c.
nd that they were allowed fifty years in =
h!ch TO pay these loans ct the rate of i've | q.
er cent per annum, with interest.
That it was not contemplated a. the Date y
these transactions that the stockholders .,
lonld ever actually pay Tor their stock.
lit that the profits Of the business derived n
,le)y from the capital realized upon the :"
edit OF the State, should finally paw M J.,
le stock. or leave a handsome dividend -
r the stockholders thereon, at the expira- q
On of the charter (see reply of President E,
alnes to question ten. document "A, b. re
III that only - per share on the stock has
'er been paid or called up, aud tbs to sr
axe up losses incurred prior TO 1871, the bI
~ Of the frs. call. =; -.
We further find that - 00G shares ~, 200,- Wv
o have been forfeited to the bank for ~,
lure on the part of stockholders to pay W
g annual dues on account of stock loans.
This is held by the bank and consti- ~
ties nearly one-third OF the capital stock
, find that thirty-eight years Of tie
arter OF this bank has expired and that in
any OF the present stockholders are in
rears on the same account, to wit annual
les on stock loans. 70
That there are yet outstanding Si,l00, GOO
State bonds aud remaining unpaid of on
@ original issue of s. 100000 and YOUR ''n
mmittee have not seen any evidence that mn
the property bound By these mortgages -
security therefor, was sod at this tine f..
at it would realize fifty per cent Of the ~,
lount of indebtedness stated. We fua | Ln
1t the bank now owns about eighty plan an
ions in the State OF Louisiana, from 80
lch 1t derives revenue, and valuable | ca,
Dperty in the city of New Orleans, the | -.
eater part of which has been forfeited on | H.,
count OF stock loans, and 1t is a question go
your committee whether, under the leg ho,
alton had IN the past, this property has M
ually been forfeited to the bank or to 80, 80
} State OF Louisiana. We find that in 1853 8
corporation obtained cash subscriptions ~
new stock to the amount of 81 COO. geo, 10y
n which new capital was established q he,
ak within the old institution established 20 :.
guaranteed by the State). known as bo,
banking Department of the Citizens ~,
nk. *
t is tee opinion of your committee that the
new corporation within the old institu- ha7
4 will. by the expiration of the charter hol
q exhausted to g large extent the Sc to
IL.