The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-04-18

Absolute prohibition TO the lneorporators q the
city Of New Orleans. and Gays 70 dnem
You shall not increase your rh' debt d "n NY
ths taxation which you already owe. IN orderp
respond to the Legitimate demands OF tne muhi
Of he State debt that the State debt shall not be
Increased. tho Legislature made an appropria1,
ton to Mr. Nixon Of some forty Or iity tnons ana
was not N an iSH acssase ~ debt there
bonds issued but who was to pay that debt u y
ess %ss ps was BE- taxed
pay that debit Ths State Is nothing but q poit-
lca legal entity ls resources ana its aoi n; 70
perty paws the debts, and the debt Of the Stnte
"n 'e Of that debt
rily compels IN Increase q taxation. -, .,o ann
TO attempt to dstngul.; between or ,ne swo Gun
| The reasons why these constitutional amend
ments we're adopted to limit the state and city
| debt we're identical the same necessity anu OK
igeney demanded their adoption. u
say. Therefore may plsase '1hI ,s a monoT.
come come now no to The question Of the premium bond
law. which, we claim repeals tha pti ,sA
| for MI purposes whatsoever. to ono ana nail
v do not SUPPOSE air. in the history Of any
co,,ntry has there ever been such a financial
Officers, presented by the sc, Gond LIZ Hs %
Orleans. Here sir. was a corporation with Z!
debt Of twenty-five to twenty three millions Of
d93aas f sr the s ornary municipal
government. required an enormous amount Oh
money to be collected every year; here, SIR; WIS
a corporation within whose limits ana whose
taxing power represented only one hundred
and eighteen million dollarsas9 that yo o,,
hal delt In tho city Of New Orleans which
amounted to nearly % per sent OF the assessable,
property owned BY the taxpayers Of the city OK
New Orleans. In addition to this. mxpapets
Ia, n
William Pitt. Of Colbert and Turgot. in apanci 4,
snnn wa financial Ssa II problem Is were tho ad
| mjnistrators OF the city of New Orleans with re-
gard to this condition OF financial embarrass-
n contract more debts than am abe to pay,
i I 20 into the bankrupt court aud there ia an end
| eornoraton contracts more debt than they are
able to pay. they 80 into tho BANKRUPT court anu
special fund is gyon to the creditors anu thsre
! ia nm and of that II State contracts more debt
than she is able to pay. she scales her debt. ana
thore IL an end of that because o state cannot DO
s tees tho sate ths cir individual and ali public
poratons. and tho only corporation that 10 len
out In the cold is a municipal political corpora,
ton and the theory IL, that oil the property. 81
expectations and labor OF present and future
generations are pedgsd nypoineiii;uvgn n nd
mortgaged to discharge TINS munlcipai ihuep'ou
Now your Honor will perceive this to be very
creditors foreign bondholders. who were Hing
in procession in tho United States Court and
obtaining narassmg dng , n ths
property OF the citizens shall be taxed In order
to discharge these Judgments: therefore. may IL
please the Court. 1t was necessary to bring 10
bear extraordinary means and extraordinary
legislation In order to solve this difficult
What did they do. l. sir do not own n pre-
MUM bond. and 1 do not know anybody who
does: but venture to say, sir. that the salvation
and future prosperity Of this city will be due to
this premium bond plan. i i is allowed TO pc
prosecuted and consnmmated az demanded by
tho creditors Of the cy the taspayers and "a .he
pressed in this premium bond act: Six millions
Of dollars have already been funded In the pre-.
Which hI., operates both ways,you avoid repudia-
ton and you offer inducements TO the credi.2r1s
, to come forward and become parties TO thls
| scheme which they are doing in large numbers
and for large amounts. and on tho other hand
| you give certain and irrevocabe guarantee "
ns " New Dreams and which invites The
! taxpayer to come up and pay the taxation. By
! this operation the whole Indebtedness which
: was appalling and gave every property hoiae'
} Why, sir. it looks like dream when mnI
goes np to pay bis taxes Now; ne can hardly
, gician had been at work. and when he takes m
tax receipt. instead Of feeling like slave 70 tht
those who could. after reading the proelaina
ton OF the Government by which they wer'
70 IS ts cahg .na
i Finance. no longer like grim-visaged tax OK
: tortioner. but rather like roseate cherubim sit
= golden wand OF hope over diseDthralled PEG
= pie. Shall these expectations and aspirations
q springing from this premium, bond plan. be de
: crush and destroy our only hopes9, For i i
! amount fixed by the premium bond PLAN ineyi
y tably renders that we'll matured scheme u fail
\ ure, a fraud and fallacy.
o made by my learned friend. when he said thu
q tho limitation Of this corporation tax was due :
the nattnde OF the fney d
: passed this premium bond bill. On the thir
they passed law imposing 2 railroad tax 9
!, a law to which will call your honors attention
Section six provides as follows: The said tn
y to be raised shall be denominated the premium
bond tax and shall be separately, menti9med
n taxable power OF the corporation Of the city {
It New Orleans for all purposes. including genera
: Of officers, court expenses and every other pur
l. pose Of government. including the sum to q
f ee n thg @ 81 sGSs
s coed the rate Of one and one half per centum Q
subject to taxation within the limits Of the sal
l. city Of New Orleans: The above Limitation Q
the taxable power OF the corporation is hsreb
Il holder Of the said premium bonds. but also wit
" all residents and Taxpayers of the said city, 8
Is as TO authorize any holder Of said premium
q. bonds resident or taxpayer. TO legally object
n any rate OF taxation In excess OF the rate herei
e limited. It being also part Of the considera
II ton OF this contract that the city of New Orean
IL shall be incompetent to incur any debt or obi
cation. as now provided by the constitution
2 this State until the final payment and extinctio
= of the premium bonds aforesaid.
diton to the obligation Of the said city to provid
1If fart tt,v,
n the premium bond plan. at least tax Of one
s. half OF one per cent annually. to be used in tn
} execution OF the provisions Of this act and
the) product of said half OF one per cent be NOR
d than adequate for the payment OF the draw
l. premium bonds. and the premiums as abov
1t provided then the surplus to be used in retirn
/ the outstanding bonds; provided said half {
10 one per cent taxation BIO considered rs part {
J. the one and half per cont taxation to whic
ir the taxing power Of tho city is limited in thi
l. act the intention Of this section being to lim
a the city taxation to one and one half per cen
IF annually until the entire extinction Of tn
W bonded debt; to authorize tho Council to lev
20 annually out Of the one and e-haf per cen
taxation q sum adequate to tho annual execu
3 ton of said prem um bond plan, and after tn
l. year 1881 to lew at least ehalf of one per cen
. for the carrying out OF said plan. and to distr
y butte the surplus realized therefrom, il any, i
: retiring the outstanding bonded debt.
r Sec. IL. Be it further enacted, etc. Ths
l. whenever under the operations OF this act tn
% bonded debt Of the city OF New Orleans shall b