New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-04-20
LAWS OF THE STATE Of LOUISIANA.
PUBLISHED BY AUTHORITY.
REGULAR SESSION OF 1876.


consolidated bonds in exchange for any
portion of the unlawfully guaranteed
bonds of the New Orleans, Mobile and
Chattanooga Railroad Company, and OF
the two and Q half millions of bonds issued
unc0nstitutionally for stock in said com.
pany.
WHEREAS, The act No. &c. approved Feb.
Euary II, 1869, creating an obligation of the
State to guarantee the second mortgage
bonds of the New Orleans, Mobile and
Chattanooga Railroad Company, provided
that "none of said second mortgage bonds,
for or upon that portion of the main line of
said 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 "cesse 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 terms of the act and of the
constitutional limitation Of the State debt,
indOrse 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
mined; and
Whereas, Efforts are now being made
under the forms of law to perpetuate these
illegal claims rpon the State by procuring
the funding of these illegally Endorsed and
unconstitutionally Issued bonds.
SECTION 1. Be it enacted by the Senate
and House of Representatives of the State
of Louisiana in General Assembly con-
vened, That the Board of Liquidation con-
stituted by the second section of act No. 3,
approved January "a, 1874, entitled an act
to provide for funding obligations of the
State, by exchange of bonds, etc, is 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 bonds, it be-
ing hereby declared and proclaimed that
said bonds were indorsed by the Cover.
NOR of this State illegally and without
authority under the act, and that, there
fore, said unlawful Endorsement could
not and did not create q debt of
the State which is fundable. And,
also, the 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 .
half millions of bends issued for stock in |
ssid railroad company, under act No IS,
approved April 20, 1871, it being hereby de- |
clared and proclaimed that the State re.
Ceived no confederation whatever for said |
issue Of bonds; that the obligation of the |
State to indorse bonds in favor of the said |
had ceased to exist before the pas
sage said of act No. IS of 1871; that said act |
could not and did not create debt of the
State which is fundable, and that the fund
ing of said unlawfully issued bonds would
violate the letter and spirit of said act
No. 3, approved January "a, 1874, impair
the States credit, and thereby less
On the value of State securities to
to the prejudice Of the holders thereof.
SEC. 2. Be it further enacted. ETC., That
all laws and parts of laws contrary to or
inconsistent with the provisions of this act
are hereby repealed, and that this act shall
take effect from and after it's passage.
(Signed) E. d. ESTILETTE,
Speaker Of the House of REPRESENTATIVES,
s(Signed) c. C. ANTOINE,
Governor and President of the
Senate.
Approved April II. 1876.
(Signed) VIM. P. KELLOGG,
Governor of the State of Louisiana.
A true copy:
p. G.. DEsLONDE,
Secretary of State.