New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-02-27

| u
seulbly,
j. X. ALEXANDER.
Chairman;
ALLEN GREENE.
JACQUES A. GLA.
THEOPHILE T. ALLAN.
DOCUMENT a.
CaMMITTgK BANKS AND BANKING.
| new Orleans February e. 1873.
ihe committee was called to order a
Al:3O A. NJ, Senator Alexander in the chair
John G. Gaines was called and sworn.
]. Are You president of the Citizen
! Bank of Louisiana
Answer am.
| :. w hen was YOUR bank first Incorporated.
Ans wer-lo3;' and lc36
.. When did your bank go into operation
Answer-lS5G
/. What amount OF bonds were issued b,
the State to the bank and at what time.
Answers. 100000 in 1856
| q. On what terms we're the bonds issueC
| by the State?
Answer-Iier bonds were loaned to the
bank IN order that it might use them abroa6
as security for a loan OF cash capital
| -. What proportion OF tho funds re-
! ceived were loaned to the stockholders and
! on what terms
+. Answec-Filty per cent or SO per share
payable in fifty years at 81 per annum.
| I. What portion of the bonds of the
State have been paid
| Answer-About $1,000, 900.
| s. How much in stock mortgages did the
bank take to secure the State9
! Answer-Gach olantatiOn was taken at
! its value entire-so many acres OF land, so
/ manT sugar houses. so many slaves. ETC.;
and there to the amount of SI4 400 coo to
F.. secure the issues of stock
9. Did l understand you to say that these
S7,0oo.C0O Of bonis were issued TO the bank
in 1886!
| Answer-Nes
10. OF the s. 700 900 stock for which
$l1, 100000 were given as security of the
State on its bonds, how much has been paid
up
Answer-it was not originally intended
that any part thereof should be paid. But
the same remained subject to call; the profits
We're intended and expected to create a
fund to be divided among the stockholders
at the expiration of the charter.
III. What proportion of the mortgages
given for the security of stock have been
1OreclOseu.
Answer-None. When the stockholders
failed to pay their annual dues foreclosures
were made
II. State how the s. 900, OOO of bonds were
negotiated, aud to whom. and at what
price,
Ahs"tF-N eg"titfeti lor money at par
mostly on the BUurse OF Amsterdam a few
on the London Stock Exchange
IL. How much of these bonds now remain
unpaid!
Answrr-Four millions one hundred thou
sand dollars.
H. How much profits has the State re-
ceived and wien was it paid!
Answer-None. The State was TO receive
a one-tweltth interest il the profits at the
expiration of the charter
ID. Out of what funds has the bank paid
the $3,000,GG01
Answer-tut OF collections from stock
holders On accoun1 Of fifty per cent loans Oh
stock.
i6. Did the STATE receive one sixth of said
funds from time 10 tine as the bonds were
received.
Answer-The State has never received
anything at all. Neither State or stock
holders can receive anything until expira-
ton OF charter, now fixed at 1911.
IL. Who are the present holders of the
outstanding bonds
Answer-Cau not say. Mostly in Holland.
IS Do bonGholders hold any of the stock
OF the bank
Answer-Only very trining amount
II. low much OF bank stock now remains
in first hands,
Answer-l possible for me to tell.
20. How much of stock has been forfeited
to the bank. for pon-payment of loans'
Answer-Twenty two thousand shares,
to s. 100000.
u. Have these loans on stock been paid |
up promptly as they fell due!
Observation-Disclosures are paying up as
fast as they can. Stock loans do not al fail |
due for fifty years from date of loans. They |
bad that time allowed for repayment. Bal F,
ance OF shares have been generally paid up |
sQ far tJrtv -t4IpEt thnuu
some are III arrears.
-. W hat advantages were gained by the |
bank by the act OF lS7I'
hnswt:--Ilo extension of the State |
bonds falling due and which the bank was |
unable to pay for further period oftwenty-
i've year,.
80 What were the advantages gained by
the Slater hy the same act
Answer-Siata gains all extension of her
ooRds
u. What advantages were gained by the
By this act ~!
Answer-Iiad the bondholders ATTEMPTED
o torecl0se or compel the bank to do so,
he property mortgaged as security would
lave gone at large depreciation, the bond
FOLDERS would have been compelled to look
o the STATE Of Louisiana for payment
%. What Is The present value of these
ponds,
Answer-Fnrty-tlve to fifty cents.
%. What advantages did the stockholders
gam by the act OF 1874
Answer-They were protected from beng
old ont.
q. How did the bank pay off S3.OOO,OOO
VI these bonds without declaring a dividend
# one-twelfth in favor of the State!
ApsWer-They were no dividends. This
vas d debt paid to the bOndhOlders abroad
nut Of the assets of the bank.
.S. How do you calculate that 81 ,00O, 900
hould be paid up before the State should
eceiye her one,sixth quota of the protits9
Answer-It is fixed in the charter that
either the State nor stockholders should
eceive anything until the expiration of the
harter. The stock, if the business had
bliged to be paid the loss of mortgaged
laves obliged the banks TO await the grad
al increase in the value of real property
~. Have you stated that the only cash by |
7hch the bank was started was derived
Y the proceeds Of the bonds issued by the
tate.
An5Wer-1cs.
80. st any time since has there been sny
ash subscription to the stock of said bank? |
Answer-In 1888 Sl,000000 cash stock
;as subscribed. which comprises the pres
ut banking department.
81. Now. as the State put up s. 900 600 in |
Onds. and real estate owners put up Sill
DO, goo OF Inortgaged property. as security
or these bonds, and drew $7,20O,0 900 in
took, on which they drew fifty per cent in |
ash ont Of the proceeds of the 100000 of
tate bonds, what right have the stock
o!ders to complain. or to call upon the
ate Tor leniency in any SHAPED
Answer-They had no right, but exten-
on was the interest Of all concerned
y. How many plantations are now owned
Y the bank
Answer-Nearly eighty.