New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-02-25

Office we found a we'll bound and legibly
written account book, IN WHOM we're
recorded the obligations OF the State
which had been funded, and the nun
bers and amounts of the new consola.
dated bonds Of the State which had
been issued in exchange therefor and to
whom issued, but even this book was found
to contain errore, some Of which were sub
sequently corrected by interlineations.
The Funding Board minute book is kept
is the secretary of the board-althOugh be
did not act as such at first-but the bonds
and other obligations of the State. when
passed upon to be funded, are assorted,
listed and arranged in packages ready for
burning, in the State Auditors Office. and
entered in the Auditors record book, TO-
/ gether with the numbers and amounts OF
the new consolidated bonds exchanged
therefor, as before stated.
| The general appropriation act OF 1919,
No. II, regular session, provided for an ap-
preparation of 100000. out Of "all moneys
received for taxes still due and uncollected
for any year or years prior to 1874, that
have been levied for any and all special
funds, the claims of which fund for that
year have been paid, and for the general
fund for said years." aud for the creation OF
Board of Audit to determine and
liquidate the indebtedness of the State" 6y
issuing their approval OF "the hoatlng
| debts ana ODllpdIlOU6 uOU WdKAdAlCu lOA Va
funded, which have accrued or become due
prior to the first day Of January, 1874. 1t
was made the duty of the State Auditor to
| issue his warrant for the amounts approved
by the said Board of Audit. payable out OF
he fund appropriated for that purpose as
above. The sessions of this Board OF Audit
we're limited to ninety days from the 1ourth
of March, 1875.
The Auditor warranted for $3.50 % OF
claims approved by the Board Of Audit
See exhibit annexed in appendix.
The Attorney General had an injunction
issued to restrain the Auditor from warrant
, ing for the debts and obligations approved
, by the Board of Audit, and, therefore. but
S6Sl6 65 of warrants were issued
No report of the proceedings OF the Board
of Audit has appeared, and your commit ee
has not been able to obtain access to It's
+ | records, but it's functions ceased on the
. fourth Of June, 1879.
9 The Funding Board was charged with the
responsibility Of scrutinlziDg the character
: and determining the fundability of the
f valid outstanding bonds of the State and
l. | valid warrants drawn previous to the pas
= sage of this act No. g. approved January
"A, 1874, by the respective Auditors OF Pub
1 lie Accounts of the State on the treasurer
/. thereof. except warrants Issued by the Au-
ditor in payment of the constitutional otii-
n GERS of the State, at the rate OF sixty cents
in consolidated bonds for 81 in outstanding
l., bonds, and all valid warrants, provided
}. that any holder Of bonds or valid warrants
d rejected by a majority OF said board may
apply by petition to the proper court Tor
= relief, and if final Judgment shall be rem.
y dered in his favor against said board, II
1. shall be the duty of said board to fund bis
sai d claim in bonds at the rate provided by
= | this act" The act further provided that II
apy member of said Board of. Liquidation
r shall knowingly audit and fund any illegal
claim against the State, he shall be deemed
ouilty Of a misde meanor, and shall. on
conviction. be fined not less than $1,000
AMI he imprisoned not less than two years
at the discretion of the court. And any
person knowingly procuring the same to oe
n done shall be subject to the same penalty
These consolidated bonds OF the State
u of LOUISIANA were to be OF the denonlna
tons OF 500, 500, and Siooo ana tht
g whole issue was limited to S,o.oOO,OOo, or 81
- much thereof rs may be necessary Ito funt
10 tho debit of the State" The bonds are al
PAYABLE forty years from January l, lo' !
r with interest at seven per cen1, payaoi
semi-anuually on the first day OF Januar.
a and July OF each year.
III The act provides that the exchange o
Of honda s,hall be effected by said Board o
to foundation in the cities Of New Orlean
y. and New York
The constitution now provides that Their
y exists ga valid contract between the Stat
and each and every holder OF said bonds
70 which the State shall by no means and
no wise impair.
Nv the act No. of 1874. the Governor
ce Lieutenant Governor, Auditor, Treasurer
o. Secretary of State and Speaker Of tn
,a House Of Representatives. were made
'o constitute the Funding Board y
By act No. IL, approved May ~, 1919
is the president of the Cotton Exchange
n New Orleans, and of the Board OF Trad.
when established, were added to the Func
he mo Board, and certain classes OF bond
ed "a well az those sold under act No. {
w of 1872. were prohibited from beng iunoe
until the final rendering OF decree las
their legality. validity and consideration
N, The "Funding Board was required t
cancel and destroy all bonds and vail
No warrants "outstanding at the passage
no this act.n No. 8, Of 1874, which were r
ceiyed and exchanged for consolidate
re- bonds. and to make a report thereof Ito IL
act General Assembly on the first Monday
he every year.
Your committee feel bound to state, tn
:. notwithstanding the great Importance
III rhe duties imposed upon tne unuil
Iisi Board" and the necessity for methodic
and accurate registration OF every boz
and warrant funded and destroyed, u
'eh ARRANGEMENTS for carrying out the id
to were. prior to our investigation, SO lmpt
bo- feet az to make it well-nigh impossible
,.d | the records, to determine precisely wn
bonds aud warrants had been funded,
'ho classes and numbers, and what had De
pal destroyed, sufficiently to correct errors
tix record or even of the funding OF bon
and warrants more than once, II present
for a second funding.
w This duty, that of classifying and
all ranging the lists of obligations funded
our DESTROYED. which should have been p
tho .ormed by the Funding Board for its o
nrotectiop, devolved of necessity up
'nai your committee, and it has proved to be
7ide work of very great magnitude IL COZ
,ase | n,,t he avoided, however. and 1t was lmpe
- ively necessary to enable us to arrive
VA a correct understanding OF what had OF
done. No such classification OF the Dol
ON and warrants funded, by series and mum
lin, had been made. The board had only reco
cd hands and warrants as the same were
sented and passed upon and exchang
the with the names of the persons present
them and to whom the consolidated Dol
'ect- were issued. Bonds OF different series
the warrants we're mixed indiscriTlnately
ESQ 80 recorded, without an effort at classlh
last ton by series and numbers.
8 by The frat thing done by the commit
oers early in May, 1875, was to take an invent
of the then undestroyed bonds and v
rants. which had been funded since the
n; burning in March, 1875. There wer'
large number Of packages in the Audit.
milo vault. each containing the obligations OF
nersOn presenting them, with q list the
Endorsed upon the outside.
ittee Then copies were made of the minute
1875. | the Funding Board, from it's organiza
to date, and copies OF the Auditors b
p. record book, and of the several process
Inc balls of the burning of bonds and warr