The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-20
SPURIOUS AND DOUBTFUL STATE
BONDS.

Act No. IL of the General Assembly, passed
Ut the late special session, supplemental to
the Funding Act Of January "a, 1874, has
been approved and promulgated
The first section provides:
That the Board of Liquidation is hereby
prohibited from issuing any bonds IN ex'
.change for any outsta ading bonds OF the
State or warrants drawn previous to the pas
sage Of said act by the respective Auditor Of
Public Accounts Of the State on the treasury
thereof, forming items of State Indebtedness,
the legality or validity of which may have
been. or may hereafter be, questioned, until
0id bonds or warrants shall first, by final de.
cree of the Supreme Court Of the State OF
Louisiana, have been declared legal and valid
obligations against the State Of Louisiana,
and that the same were issued in strict con-
& lormity to law, and not in violation of the
of this State, or of the United
Estates, and for valid consideration.
That any person assessed for State taxes is
hereby authorized, in his own name, to insti-
tute suit or to intervene in any suit which
may now or hereafter be instituted in court
u Orleans against said Board of Liquidation,
to test the legality and validity Of any issue
Of bonds of the State, or warrants drawn
previ0us to the passage of said act No. by
\ Che Auditor of Public Accounts on the State
treasury, the legality and validity of which
may have been or may hereafter be ques.
toned, and to inquire into the consideration
for which said bonds or warrants may have
been issued, and in his own name to prose
cute such suit or suits to final termina-
1inn and until the legality and validity
Of each and every issus of bonds and
Wart6nts as aforesaid shall have been finally
passed upon and determined by the Supreme
Court of the State of Louisiana; and that,
in order to facilitate and bring to speedy
termination all matters in controversy, as pro-
vided for in this act, every suit hereby lnsti-
tuted shall have precedence in all courts over
all other cases, and to be fixed BY motion OF
either party; the day of trial to be named IN
Il the motion, and all other cases fixed for the
X day named in the motion fixing such cases fol
3 trial to give way thereto; that all costs incur
#1ed in any suits under this act, to the extent
of one suit carried to a final issue. as to each
#separate issue of bonds or warrants, the leg Atty
<mlidity or consideration of which are ques-
Hons, If the court shall so determine, shall
borne by the State of Louisiana, and
ich costs, on approval Of the court, shall
II warranted for by the Auditor of Public
accounts on the State Treasurer, to be paid
out of any funds in the treasury not other
wise appropriated; provided, that any holder
|or holders of bonds or warrants whose legal
Eity, validity or c01oid eration is questioned in
(sSv suit or = >ght under the provi
ns of this 4ct mSy intervene in said suit OF
oits, Md that theAcosts of such intervention:
hall abide the result of the suits in which
Gnch interventions shall be fled
The second section declares and designatef
rs questioned and doubtful as to legality and
Validity bonds of the State to the amount Of
S14, 800, 500, divided into two classes.
n /. Bonds considered and held as belonging
to the redemption of the State debt funds and
the free school funds, being bonds of the
State of the various issues which had been
Eredeemed or never issued, and which have
been reported by the Auditor of Public Ac.
counts as missing, or which were sold unde,
bet No. 81, approved May %, 1872, and issued
roiaarod no una1u.