New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-04-18
laws OF the STATE OF LOUISIANA.
PUBLISHED BY AUTHORITY.
REGULAR SESSION OF 1876.
No. SO.

AN <AOA
To prohibit the funding of and the issue Of
consolidated bonds in exchange for any
portion of the unlawfully guaranteed
6onds of the New Orleans, Mobile and
Chattanooga Railroad Company, and Of
the two and . halt millions of bonds issued
uIconstituti0nally for stock in said CON-
paAy.
WassEAs, The act No. 26. approved Feb.
ruary II, 1869, creating IN obligation Of the
State to guarantee the second mortgage
tonds Of the New Orleans, Mobile and
: that 'snone of said second mortgage bonds,
for or upon that portion Of the main line Of
eaid railroad not constructed within the time
limited shall be guaranteed by the State of
Louisiana" and that in case of failure to
comply with the conditions precedent the
obligation Of the State to guarantee bonds
should 'cease and determine" and
Whereas, Said railroad company did not
comply with the conditions prescribed in
the law, and the State executives did. in
disregard of the forms of the act and of the
0onstitutional limitation of the State debt,
ind0rse eight hundred and seventy five
thousand dollars of said second mortgage
bonds, and issue two millions five hundred
thousand dollars of State bonds to said
company for stock in lieu of guarantee of
bonds, when the right and obligation to
guarantee bonds had ceased and deter
Whereas, Efforts are now being made
under the forms of law to perpetuate these
illegal claims cpon the State by procuring
tho funding of these illegally indOrsed snd
unconstitutionally issued bonds.
SecrI0N I. Be it enacted by tine Senate
and House Of representatives Of the State
Of Louisiana In General Assembly con-
vened, That the Board of Liquidation con-
al kGA hs,< nE n.y., .
approved January "a, 1874, entitled an act
to provide for funding obligations of the
0tste. BY exchange of bonds, etc, il hereby |
prohibited from issuing any consolidated |
bonds Of the State In exchange for the |
second mortgage guaranteed bonds Of the |
New Orleans, Mobile and Chattanooga Rail- |
road Company, or any Of said honds, it be. |
ing hereby declared and proclaimed that
said bonds were Endorsed by the Cover
nor of this Stste illegally and without
authority under tho act, and that, there
FORE. said unlawful Endorsement could
not end did not create debt of
tho State which il fundable. And,
also, tho said Board of Liquidation is here
BY prohibited from funding and from issu-
ing any consolidated bonds of this State in
exchange for any portion of the two and
Daid railroad company, under act No. IS,
approved April 20, 1871, it being hereby de-
plared and proclaimed that the State re-
Deived no consideration Whatever for said
Issue Of bonds; that the obligation of the
5tate 70 indorse bonds in favor of the said
company had ceased to exist before the pas
Dage said of act No. IS Of 1871; that said act
Dould not and did not create q debt of the
State which IL fundable, and that the fund
ing Of said unlswfully issued bonds would
violate the letter and spirit of said act
No. 3. approved January "a, 1874, impair
he STATES credit, and thereby less
N the value of State securities to
% the prejudice Of the holders thereof.
SEC. 2. Be It further enacted. etc., That
u laws and parts of laws contrary to or
with the provisions of this act
10 hereby repealed, and that this act shall
Axe effect from and after it's passage.
(Sigued) e. ID. ESTILETrE,
Speaker Of the House of Represen tatives.
lSigned) C. C. ANTOINE,
lieutenant Governor and President of the
Senate. .,..
Approved April II. 1876.
(Signed) WIN. p. KELLOGG,
Governor of the State Of Louisiana.
A true copy: IL
p. G. DEsLoNDE,
Secretary of State,