The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-06-04
OLD CITY OoNsoLs.

the interest now taken in the suit OF holders
of old consolidated bonds, instituted IN inc
q. S. Circuit Court against the city OF New
O,,eans as we'll as for the information OF all
nersons interested, we have thought proper to
nublish in full the section Of the act OF 1852,
nnon which the plaintiffs in that suit rely, and
| bv the force Of whose terms they expect TO
establish claim which shall supersede the
claims of the holders Of bonds of the city Of
New Orleans amounting to eighteen millions
of dollars.
Act No. II of 1852 consolidated the three
municipalities into one corporation, and was
intended to have the force and effect Of char.
ter. When it was enacted the Constitution Of
1916 was in force, of which article 118 was:
Erery la,o enacted by the Legislature shall
embrace but one object, and that shall be embraced
in the title. The Constitution of 1852 super
seeded that of 1S45 only in 1853, or late in
1852.
The title of Act No. II, approved February
%, 1852, is as follows:
An act to consolidate the city Of Neac Orleans
and prouide for the government and ddministra'
ton Of its affairs.
It contains forty.two sections, filling
thirteen pages Of the statutes, as printed II
| 1852, some of which relate to consolidation
government, and some of which, in oul
opinion, do not relate to any of these objects
By the twenty-second section the new city
is "yested with all the powers, rights, priv
leges and i'm munities incident to a municipal
corporation and necessary to the proper gov
eminent of the same.
Sec. 81. That the debt Of the general sink
| ing fund, commonly called the old city debt and
the debts of the three municipalities, whether
| in the form of bonds, notes, interest coupons,
cash warrants or any other species OF ooliga'
ton whatever, shall be assumed and paid by
the city of New Orleans, and said city IS here
by declared liable therefor. The Mayor, Con.
trolIer and Treasurer, and the chairman Of
the finance committees of the two boards o
the Common Council shall constitute com
mission to be called the commissioners of the
| consolidated debt of New Orleans; and they
shall have power to issue bonds of the city o.
New Orleans, having not more than forty
| wears to run, with interest payable at such
| place as may be agreed on between said com
| missioners and the parties to whom the bonds
are issued, in semi-annual coupons in ex
change for any bonds, obligations or debts Of
the old corporation, or of any OF the munich
palities whether matured or not; or to sell the
new bonds and apply the proceeds to the pay
ment of the matnred debts of the old corpora
ton, or of the municipalities, but to no othe
purpose
The bonds thus issued shall form stock
TO be called the Consolidated Debt of New
Orleans. At the time this act goes into opera
ton an exact and detailed statement OF thu
indebtedness of the old corporation and o
each municipality shall be filed in the ot1ic'
of the Controller by the Secretary of thu
Board of Liquidators, and the municipa
Controllers, respectively. when the Commis
sioners of the. Consolidated Debt shall pro
coed to divide the debt Of the old corporation
between the several municipalities, in pro
portion to the assessed value of real estat
within the limits of each, according TO tn
State assessment roll Of 1851. The amour
thus apportioned to each, together with it
individual Indebtedness at the time this &C
goes into operation, shall constitute the eep
crate debt of each municipality, and shal
be known as the debt of Municipality No. !
No. 2 and No. 3.
The Common Council shall annually, in tn
month of January, pass an ordinance to rals
the sum of 100000 by special tax on rea
estate and slaves, to be called the consoli
dated loan tax; and the rate per cent OF sai'
tax in each municipality shall be in proper
ton to the Indebtedness OF each. All ord
nances, resolutions or acts passed by the sal
Council after the first day Of January in eac
wear shall be null and void, unless the ordi
nance imposing the consolidation loan ia
shall have been previously passed. At tn
end Of each and every year any surplus OF tn
consolidated loan tax remaining in the treas
ury after the payment Of all the interet
: and the expenses of the management OF sal
: debt, shall be applied to the purchase, fror
the lowest bidder, of such bonds issue
under this act as have the shortest period t
run; and the Common Council shall have tn
right of rejecting all bids demanding NOR
than the face of the bonds, for which purpos
public notice shall be given by the Cor
troller. in the official gazette for thirty days
inviting proposals from bondholders for tn
sale to the city OF the bonds herein described
From and after the passage of this act n
obligation or evidence Of debt Of any descril
ton whatever, except those herein authorized
shall be issued by the City of New Orleans, o
under its authority; nor shall any loan
contracted, unless the same be authorized D
vote of majority of the qualified voters {
said city which shall be taken in the name
prescribed by the City Council, after ten day
proclamation by the Mayor, in the newspape
chosen by the Common Council; and no ord
nance creating debt or loan shall be valit
unless for some single object or work distinct
ly specified therein, and unless such ordinanc
shall provide ways and means for the pune
tual payment of Running interest during tn
whole time for which said debt or loan sha
be contracted, and for the full and punctus
| discharge at maturity of the capital borrowe
or debt incurred, and such ordinance sha
not be repeated until principal and interes
Of the capital borrowed or debt incurred al
fully paid and discharged.
Referring cow to the title of the act, th
reader will see that the imposition of del
upon the city, the raising of means to pay i
! the creation of sinking fund to pay tn
interest and portion Of the principal, th
distribution of the debt among the munic
palities are objects entirely separate and dii
tinct from the one embraced in the title.