The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-28
OLD OONsOLs.

OLD OONsOLS.
The law fayors the vieilant. He who sets
up q judicial claim to sum, thing, franchise
lien or right of any kind, appears IN court
under q cloud, when it is evident TO Juoge
and Jury that with proper care and vigilance
be might have protected his own rights with
out legal procedure judges object to trihing,
and when their intervention is asked to do an
act, or to compel an act. or to prevent an act,
they naturally take note,of the litigant's delay.
If he has slept upon his claim for months and
wears when hislremedy was in his own hands,
they do not entertain with favor his attempt
to obtain by tardy Judicial procedure what he
might have had long before without trouble
or expense, by his own individual act.
It was about twenty.three years ago that
the old municipalities were by act of the
General Assembly consolidated into one civic
corporation. Each before owed debts in diff
ferent amounts and in different proportions
The law provided for the massing Of these
several municipal debts into one city debt at
q uniform rate of interest. Each municipality
was required to pay the interest on that part
Of the new or consolidated debt originally
owing by ITSELF The Legislature took great
care to make the bonds representing the new
debt as complete as possible. The City
Council was obliged to collect by tax debt
fund each year of 5000, 900, and out of it to
pay the interest on the consolidated bonds
and to apply the surplus to the purchase of a
part of the principal.
The consols amounted to some ten millions
of dollars, bearing interest at the rate of six
per cent, payable semi.annually. about four
and half millions remain unpaid.) They
sold when first issued at or above par, and
were then and long afterwards regarded in
market as choice securities. Their purchase
in Northern and foreign markets at full figures
was looked upon as one of the happiest omens
of the new and vigorous administration with
which the consolidated city set out Citizens
of Louisiana who kept their families in Eu-
rope sometimes provided for their expenses
by deposit of New Orleans bonds in London
where the half yearly coupons were punctu-
ally paid in gold. They declined afterwards,
and like all bonds showed the effects of the
contagion of panic. But until the spring Of
1861 they may be said to have held their own
in all home an foreign markets with the aver
age Of American securities.
Even during the war the interest on the
old consols was punctually and fully paid,
and with only temporary failure of few
months in 1869 or 1870 the holders of cou-
pons have been able to convert them into
cash on presentation. But Iof late years the
debt of the city has increased very rapidly.
What was ten millions of debt in 1852 has
become in 1875 about twenty.three millions.
Fully three-fourths of this increase has been
large proportion OF it under Radical auspices.
In prosperous times the holders of old con-
soils took little note of the actions of the City
Council, or of the Legislature. Bonds were
issued to railway companies to the amount
of several millions of dollars, but the old
consols did not murmur. Then the Water
Works were bought for another large issue of
bonds, but still there was no complaint.
Even when wharf bonds we're issued in success
sive sums of 100000, 500. 900, $500, ZOO,
and finally 5000, 900, the foreign and domes-
tic holders of the old Crossman bonds did
not protest or grumble. They attacked no
ordinance, they sued out no injunctions, they |
disputed no statute, but quietly presented
their coupons, drew their interest, and went
their way rejoicing
At length it began to be apparent even to
those who attach the highest value to the |
credit of the city, that the city deLt was
larger than it could stagger under. It be-
came evident to the holders of our municipal
paper that the impoverished city could no
longer pay the interest on her bonded debt.
Then began the amiable struggle among rival
creditors for preference. Then for the first
time the holders of the old consols make the
discovery that the later issues of city bonds
are illegal and in contravention of their
rights.
1t is our conviction that all of the bonds of
The city are, and ought to be, on the same
footing. All pledge the faith of the city. All
are issued in pursuance of law. All have been
taken in good faith and for all the city has
received consideration that was valid, even if
insufficient or inadequate. They all repre-
sent Indebtedness, and no class can have
other preference than SEINE peculiar and
special pledge and security, as in the case Of
The Wharf Improvement bonds. None Of the
bonds of the city have or can have any higher
sanction than the laws of the State. He who
holds bond can ask no more than his inter-
sst and principal when due; he cannot pre-
vent municipal government from contract
ing debt, alternating property or expanding
money. He cannot prevent the State from
egalizing new bonded debts. Courts of law