New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-08-01

LEGALITY Of STATE BONDS ESTABLISHED

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LEGALITY Of STATE BONDS ESTABLISHED
Important Decision Of TIC Supreme cous
Governor Kellogg last evening received
tt following decision of the Supreme
Court, rendered at the Monroe term:
State of Louisiana sex rel. Oscar j. For
one of act No. 3. session sets of 1874, page
Thirty nine. provides; That for the pur-
pose Of consolidating and reducing. the
bonded and faatipg debt Of the StatA tt
Governor, LieuteAant Governor, Auditor,
Treasurer, Secretary Of State and Speaker
of the House of Representatives, are hereby
authorized to cause to be prepared, and to
issue bonds, to be known as consolidated
bonds of the State of Louisiana. of the de-
nominations Of 500, $500 and $1,000, to the
amount of $4,000, 900, or so much thereof
as may be necessary, all payable forty
years after the. first day of January 1874,
and all to be Mum eHed consecutively, and
| made payable to bearer, and to bear inter-
est at the rate of seven per cenAper annem.
payable semiannually in the city of New
| York and city of New Orleans, on the first
day of July and January of each year, and
| coupons for such interest shall be annexed
thereto; said interest and principal to be
! payable ID lawful money Of the United
| States
Section three provides: "That the bonds
| authorized by section one ehall be signed by
the Governs, Auditor and Secretary of
| State, and the coupons shall be signed by
the Auditor and Treasurer; and when 20
prepared said bonds shall be exchanged by
tho board of liquidation for all valid out
standing bonds OF the State, and all valid
| warrants drawn previous to the passage of
| this act by the respective Auditors of Public
| Accounts of the State on the Treasurer
thereof, except warrants issued by the Aud
| itor in payment of the constitutional officers
| of the State, 6t the tate of sixty cents in
consolidated bonds for one dollar in out
vided that the holder Of any bend or valid
warrant rejected bysa majority of said
board may, apply by petition to the
proper court for relief, and if final
payment shall be rendered in his favor
against said beard, it shall be the duty Of
said board to 1und hid claim IN bonds at
the rate provided ~ this aca''
The sanse Legislature, at thessame SEES
sion, proposed an amendment to the cO1Dti-
tuition a the State. The first of this
amendment is as follows: 1.-THE issue of
consolidated bonds authorised by tAe Gen
eral Assembly Of the State, at its regular
session, in the year 1874, is hereby declares
to create a valid contract between the,
STATE epd. each and every holder Of said
bonds. which the State shah by no means
and in no wise impair. The said bonds
kNor of any holder thereof, and no court
shall enjoin the payment Of the principal or
interest thereof, or the levy and collection
of the tax therefor; to secure such levy,
collection and payment, the judicial power
shall be exercised when necessary. The
tax required for the payment Of the prin-
cipal and interest Of eaid bonds shall be
assessed and collected each and every year.
until the bonds shall be paid, principal and
interest, md the proceeds shall be paid by,
the Treasurer of tho State to the holders Of
the bonds as the principal and interest Of
the same shall fall due, and no further
legislation or appropriation shall be re-
quisite for the said assessment and collec-
ton and for such payment from the treas
ury;"s., $500
forms par of the orgauie law of the State.
The Legislature, = an extra session heldin
1875 fact No. IL, p. A0), enacted: THAT the
board of liquidation constituted by the
second section of act No. 3, approved Jan
nary "a, lS74,'enttled an act to provide sfor
funding Obligations, Of the STATE by ex-
change for sbonds, etc, is hereby pro-
hibited from Issuing any bonds in exchange
for any outstanding bQads Of the State or
warrants drawn psevious to the passage
of said act by the respective Auditors Of
the State on the treasury thereof, form
ing items of State indebtedness, the le-
gality or validity of which may have
been or may hereafter be questioned, until
said bonds or warrants shall first, by Aual
decree of the Supreme Court OF the State u
Louisiana, have been declared legal and
valid obligations against The State Of Lon.
isiana, aRd that the same were issued IN
strict conformity to law, and not in viola
ton of the constitution of this State or of
the United States, and for valid consid-
Grafton. That any person assessed for State
taxes is hereby authorized, in his own
name, to institute suit, or to- intervene in
any suit which may now or hereafter be in
stituted in court of competent jurisdiction
in the parish of Orleans against said board
of liquidation, to test the legality and va
warrants drawn previous t0the passage of
said act No. 3 by the Auditorof Public Ac-
counts fon the State treasury, the legality
and validity 6which may have been or
nay hereafter be questioned, and to inquire
intoahe consideration for which said bonds
or warrants may have been issued, and IN
his own name to prosecute such suit or suits
to q final termination; and until the legality
AID validity Of each and every issue Of
bonds and warrants aforesaid shall have
bee1 finally passed upon and deteroined
BY the Supreme Court of the State of Lou
isiana; and that in order % facilitate and |
bring to a,speedy determination all matters |
n controversy as provided foreh this act, |
every suit hereby instituted shall have pre- |
cedence in all courts ever all other cases, !
and to be fixed BY motion Of either party; |
the day of trial to be named in the motion |
ilng such cases f6f trial to give way
Thereto; that all costs incurred ii any suits I
under this act, to the extent of one suit
carried to f0al issue as to each separate |
fBue of bonds or warlants, the legality, |
validity or consideration of which are ques-
toned, if the court shall go determine, ehall }
be born9 hy the State of Louisiana; and
which coste. on approval of the
courts, shall hG warranted for by
the State Treasurer. 10 be paid out Of
any funds in tho treasury not otherwise
provided that any holder or
holders of bonds OF warrants. whose lega1i-
ty, validity or consideration is questioned
in any suit or suits brought under the pro-
visions Of tbissa act, may intervene in said
suit or eGits. and that the costs Of such in;
terventions shall abide the results of tfi6
ut. nit in whiaesuch interventions 'hsi b
sseotisn tw. provides ss:that tho following
ssue OF bonds and warrants, so far as the
'ame may be new outstanding, are de-
,lared, questioned apd doubtful as to their
Validity and legalitys and said board of
liquidation are hereby prohibited from is
uing bonds authorized by Dotion one of
vet No. 3 Of 1874; in exchange therefor,
l1til'ths legality, validity and considesa-