The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-03-15
rwo MILLIONS YfvE nUxpR1D

tion of the report Of the special commit
tee Of the House Of Representatives ap
pointed TO examine into the proceeding
oftbe Funding Board, etc. relating to tb'
act Of February II, 1870. granting
subsidy ~ the Chattanooga Railroad
Company and guaranteeing the secont
mortgage bonds Of its branch line :,
Shreveport, which we present this morn
ing. In another portion OF the repor
the committee very aptly designate thu
transaction based on this not ian IN
mitigated swlndle upon the State" The
portion Of the report which we print to-
day. sustained as II II by full and salts
lions Of the bill guaranteeing the bonds ol
the branch line to Shreveport at the rate
Of &tg,5O0 per mile. hever passed the
Legislature, but were fraudulently inter
polated In the Enrolling Clerks room.
The report states very clearly, and the
evidences shows very conclusively that
the original net was manipulated and
received additions in the Enrolment
Committee room to what was contained
IN II when the bill passed both houses
Or the General Assembly," The prin-
cipal addition to the bill thus surrepti.
tiously made, was the section extending
the State guarantee ~ second mort
gage bonds 10 the so-called branch
railroad to shreveport. The reader
win notice how glarng was the fraud
here perpatrated A subsequent act Of
the Legislature. 10 give n color Of 10
gality TO the swindle and enable the
ring 10 derive some practical advantage
from II, was passed. ito relieve the
state from its obligation 90 guarantee
tho second mortgage bond, etc." al
the same time authorizing II to sub
scribe TO the stock of the road 10 the
amount Of &9.bU0,0 900. and lss,ie, on cor
tain cobditiohs. State bonds to the com
pany 10 that amount. This was relieving
the State with vengeance.
Before the passage or the act Of April
~. 1871. authorizing this subscription
to the stock Of the road and to relieve
the State from the obligation ~ guaran-
treing the bonds Of the company. tho
obligation TO guarantee had expired by
the limitation Of the act creating
II. Under the latter act the company
were required 10 complete FORTY CON
tinuous miles" or railroad on OF before
January IL, 1871. and IN case Of failure
10 do 80 the obligation 10 guarantee the
bonds Of the company was to cease. Tho
company failed to comply with this con.
dition and the act Of April ~, 1871,
therefore relieved the State from no
obligation whatever. but really imposed
upon II n debt Of &2,500,O00, aud that,
too. when the company for whose inter
eets II was created had broken all its
pledges to tho State and given every
conceivable evidence that II waH u fraud
We should also remark that, ut the
time this entirely new obligation
against tho State was created. tho debt
OF the State. according Ia tho decision
Of the Supreme Court. had already ex
ceeded It's constitutional limit. Granting
that the acts OF the Legislature under
which this scandalous claim has boon
created were wise In their nature and
honestly passed, still every obligation
which they might have imposed upon
the State has become void. for In no
single respect has tho company per
formed their part Of the contract. They
failed 10 begin work at vermilionville
within ak months after tho passage Of
the act, and they have utterly failed
to complete the work TO Shreveport |
by May. 1876, M stipulated In tho law.
The whole thing, from beginning to end
in every respect, In its conception and
In its carrying out, has been n brazen. |
impudcnt and intolcrablc swindlc.
None OF tho bonds representing this
debt have M yet been funded. The At
torney General caused suit to be brought
In tho Superior District Court against
tho validity OF this issue and judgment
was rendered declaring them null and
void. Tho case IN now before
Tho Supreme Court on appeal and
. decision by that body ID
daily expected. We fear, however. that
The taxpayers have little hope of n res
cue from this heavy and fraudulent OBJ
legation from that source. The SUI
preme Court Is more likely TO be the in
strument Of the ring which holds these
bonds than the protector OF the unfor-
tunatc people who may be required TO
pay them. The fraudulent character OF
,he $i,l22.O0O OF North Louisiana Il
Texas Railroad bonds was M clearly es-
as that Of the issue now under
and yet the Court did not
hesitate to render decision requiring
he Board Of Liquidation to fund them.
We hope, however. that In this matter
he Court Is not the attorney OF tho
,ond holders and that the taxpayers of
he State may be relieved from this
leavy and Infamous debt.
The New York S'm thus puts the case