The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-24
TIE CITY DEBT.


! TIE CITY DEBT.
PROPOSITION OF THE LONDON BoSDHoLDEHs'
The City Council had under consideration
yesterday the draft Of bill entitled:
An act to settle and fund the outstanding
bond Indebtedness Of New Orleans. 70 eA.enu
the time OF payment, to reduce the rave o.
| interest, to create q sinking fona' y pun1sa
misdemear to relieve officers OF certain pen
allies. and to secrre to the holders ana own
era of the funding bonds the prompt ana
certain payment OF interest ana prlnslpal'
For public information we present the lead
, ing features Of tho bill.
/, Section first is preamble IN when the
fact Of the bonded indebtedness OF the city IS
recited and the desire Of the American Bond
Funding and Banking Association of London,
which represents large portion Of the bonds
Of the city Of New Orleans, is expressed OF
obtaining . new form of bond in exchange
for outstanding bonds, as well as the desire OF
the CITY to extend her bonded debt and re-
duce the rate Of interest.
2 The Mayor and Administrators OF Ac-
counts and Finances are appointed commits
sioners to meet in June next, who are to pre-
pare a report stating the number and amount
of outstanding city bonds, the laws under
which they were issued and the interest which
would be due On such bonds from January !,
1875 to January /, 1877.
| 5. Section third requires the said commits
sioners to prepare and execute new bonds
and exchange them at par for the old bonds
and interest. The new bonds shall be dated
January l, 1877, to run forty years, payable
in gold and gold interest semi-annually ct
the rate Of five per cent per annum. The
right to fund in these new bends is extended
to holders Of all city bonds.
4. A proper registry Of new bonds is pro-
vided
| S. Provision is made for the levy Of sufi-
Gent annual tax to meet the interest on the
new bonds. the rate to be fixed in December
Of each year.
6, M. A sinking fund tax Of two mills on the
dollar is to be assessed and collected in the
same manner and at the same time with the
above registered bond tax, both to be set
apart for the payment of the interest and
principal of the new bonds.
s. The sinking fund Is to be invested in
United States bonds until it amounts to fifty
thousand dollars, when it is to be employed
in buying and retiring the registered bonds.
| 8, 10. Fifteen days before the 14th July and
the LIST January in each year money is to be
transmitted for the payment of tho interest
on the registered bonds Expenses of pre-
pairing and issuing the new bonds are to come
from the sinking fund.
II. Penalties are prescribed against officers
refusing to execute or hindering the execu-
ton Of this act
II. The act is made an irrepealable con-
tract between the city, the association and the
holders Of registered bonds, Of whom the off,
GERS of the city are made trustees with refer
ence to funding and registration Of bonds
and the collection Of interest tax and sinking
fund tax.
Is. A remedy by mandamus is provided to
compel tho agents and officers Of the city to
perform their duties under the act
IA. The debt Of the city is limited to twenty
three millions until the bonds issued under
this act with interest are paid.
Is. The faith and integrity of the city are
pledged as guarantee Of good faith to all
holders Of the bonds provided for in this
act.
1G. Existing penalties and punishments
imposed on city officers for failing to levy
and collect interest taxeson any bonds except
those required in this act and for the now or
registered bonds aDe expressly repealed, an
nuled and abrogated.
II, 10. All contrary and conflicting acts
are repealed and the act is made to take effect
from and after its passage
The bill seems to have been prepared with
scrupulous care and with due reference to the
rights Of holders Of city bonds, as well as to
the present embarrassed condition of the city
and her finances.
The association named in the bill already
owns or controls more than half the outstand-
ing bonds of the city and comes forward as
IN authorized and interested representative
Of the citys largest creditors Offering terms
which are as liberal as could reasonably be
expected The American Bond Funding and
Banking Association are very largely engaged
N the business Of buying, amusing and con-
solidating tho securities Of Southern States
and cities, and it can, therefore, control al
most all of any line Of bonds in which it may
| invest its funds.
After the debt of the city shall have been
reduced by the sale or lease Of the Water
Works and other property, the city can, in the
opinion Of good fnanciers. pay five per cent
interest on the remainder of her bonded
debt without embarrassment OF inconveni-
ence.
This bill does not conflict with the bill
which passed the House on Wednesday, en-
towering the city to sell her property and
receive her bonds and obligations in settle