New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-02-24

l
drawn and the commercial prospects OF tn
city become materially overcast. To remed,
| these evils the plan, OF which the bill I'm
fayorably reported on was the exponent
has been presented by the city government
The examination Of its details at present il
unnecessary, because the majority hav'
thought proper to overlook them and t.
predicate their report upon supposed q ues
tons of law. The results to be accom-
pli-hed by the plan may be succinctly ststet
as follows:
l. The immediate reduction of taxation
to point nearly 100 per cent below the rat
of the past year, and security against lnor
dinale taxation in the future.
9. The curtailment Of the amount TO bt
paid by the city by 81 100000 this year, and
| the reinforcement of the sinking funds, q,
we'll az bv the regulation of the sums to bt
paid in the future within reasonable limits
g. The payment to the creditor Of the entire
principal Of his debt, calling upon him 70,
partial remission of interest and extern
sion of principal, rendered necessary by
the dep!0rable condition of the city, and
consonant with his interest by augmentinG
the sOlvency OF the debtor, and hence en-.
HANGING the value of his security.
4. BY providing rateably for the pay
ment of principal and interest, thus secur
ing the gradual extinction of the debt and
saving the transmission to posterity of toe
great burden. while protecting the present
Your minority deem we'll to say that the
bill thus calculated to relieve the commu
nifty has been matured by the city govern
ment, has received the practical sane
tion of an already happy execution
amount OF over slOOO,OOO has been
recommended by the executive, Endorsed by
the Chamber Of Commerce, approved by
the Property Holders Union, and sanctioned
by the unanimous voice OF the House Of
Representatives. Under These circum-
stances, your minority feels that grave in
deed would be the responsibility assumed
by him did he join in the untavorable re-
port. The presumed reasons of law by
which the committee deemed it necessary
to report unfav orably are as follows:
l. That the larger portion of the city debt
now outstanding was without consideration,
| or for q consideration of Confederate
money.
2. Because this being the case, was avail
able even against a third innocent holder.
3 Because the entire debt, except the
$4,444 900 consolidated bonds were with
| out legal authority for their exstence
Your minority is at loss to know upon
what tho majority base the first PROPOSE
ton. The entire debt, as previously
| shown, has express legislative sanction.
The cen :Olidated bonds. it seems, the ma
jority do not question. The railroad bonds
were authorized by legislative act, and rati
fed by q vote of the people. The munich
pality bonds preceded the consolidated.
The POntchartrain bonds likewise were
voted for and authorized. The seven per
cents OF 1869 wer" issued under the sanction
of legislative authority, and used in retir-
ing the city notes and outstanding floating
debt of the city which had accumulated
during the United States military govern.
ment and subsequently. The seven per cents
OF 1870 were issued for like purpose. Ifthese
two series are those intended to be animal
verted on by the committee, it need only be
remarked that the impression or opinion of
the committee is wholly without foundation
of fact The first series we're entirely issued
by the Southern Bank, the then Fiscal
'Agent, and bear almost entirely the sigma
nature of Thomas Layton, Esq, its presi-
dent, who then, as now, was the agent or
representative Of large number of holders
sf consolidated bonds. The second series
zens' Bank, under like circumstances, for a
few city notes yet outstanding for arrears
due school teachers, Firemen's ARsocia.
ton, etc or the first series $6l2, 600,
which had been given to pay debt due
TO the trustees OF the Fink and Nc
Doncgh school funds, were issned to
Thomas Layton. Esq. president, and sold
by him. under the authority of the Council
and the proceeds applied by the Southern
Bank to the payment of debts due the Fire
mems Association, Gas Company, etc. The
Jefferson City bonds result from snnexa
ton, as do the CarrOlltOn. The street i'm
prOvement and assessment bonds were aU-
thorized BY legislative act. and represent
work done or property paid for under con- |
tract. The ten per cent bonds likewise rep |
resent judgments, contracts. etc. The gold |
A4H. i
mems Association. the Gas Company, judy |
ments. and large amount Of railroad |
bonds which had matured and were thus |
The Fink and McDonogh school |
bonds represent balance due these funds.
The million loan, that amount actually bor-
rowed by the city. All the foregoing honds
were issued at or about par, and they
constitute the total amount of the city
bonded indebtedness. The recapitulation
facts assumed by the maj orily of the con-
nlttee. If the committee intended to say
that in the past many acts of extravaganza
lad been committed; that the government
lad been conducted with too much expense,
hey were justified in many particulars
II they intended to confound the act of ex-
ravagance with the evidence OF debt issued
or tho purpose OF paying not the con-
ractOr, but third party, they were. in the
~ |
70 say that q fraudulent contract can be
lnnuled would, under proper restrictions,
,e correct; but to say that the obliga-
ions issued to third party to
btain money even although used
or the payment of the contract.
re null, violates in the opinion of the IN
ersigned the most elementary notions of
equalization. All the bonds are now in the
ands of third holders and are, hence, if
riginally authorized by legislative act, re-
bowed beyond The question of fraud. Nego-
liable in their form, they carry the immuEi-
= of negotiable paper The majority have
expressed an opinion to the contrary,
Dunded upon the case of police jury vs..
'ritton. Is Wallace. page $40. IL this case,
owever, the bonds we're held not good be-
he court expressly saying that even
fraudulent when issued under the
OF legislative act they could (
g enforced by third holder. Thus, the
ommittee have mistaken the case of
police jury issuing bonds without
uthority with the case of bonds issued by
10 city under the express authority of the
legislature. In this connection the minor
y deems it well to say that his opinion il
official opinion because of the Importance
{ the subject, aud the fact that the entire
onds now etigmatized by the majority as J
audulent, were issued by the direction OF
legislatures almost entirely Republican; i
lat at the extra session of 1875, a bill was
sported from the Finance Committee
trough tho Hon. w. w. Wharton,
len chairman and now reporting with the 6
ajority, making it obligatory on the city I
pay her entire bonded debt with gold in &
rest, and the bill was voted for by the
on. M. H. Tw'tchell, now reporting with
le majority bsreir.
The third objection stated by the major
= is the existence of claim alleged by l
re holders of consolidated bonds as to the