New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-03-24

Consolidated Association OF fIanvoIs OA
louisiana"
Section ~ approves the securities on tho
guarantee shares on landed property In
New Orleans and its suburbs; ~ estso-
fishes q committee of exchange for busi
ness with "the United States, Europe and
other parts;' q and A removal Of officers;
(5) that payment Of State bonds may be
postponed to June 80, lS4S; (6) two years
DELAY from then for liquidation, and ~
that the directors should notify the Gov
ernor of the acceptance of this act.
Supplemental to this is the act OF March
!, 1886, page ninety-fve, which ~ limits
the loans in New Orleans to 81 ,OOO,ooo; '4'
sllews notarial copies instead of originals
in COURT (5) provides for effect Of act oy
acceptance of directors, and by section TWO
says:
In case the board Of direction shau re-
tard the payment of the bonds OF t1o
State. "a said hoard is authorized to do, the
Governor shall deliver the bonds OF tne
state AZ fast as the board shall give him no
tice of the negociation OF said bonds.
And in section three provides that tne
board, in the case Of seizure OF properly
NAV sell the shares that rest upon it.
Act of March 2l, 1885, page 1913. amends
the acts Of the Consolidated Association oy
sllowing ~ all holders Of immovable prop
erty to own shares; (2) directing the presl'
dent to be elected every two months; (3)
defines causes of removal; az fills vacan'
cies; (5) postponed the payment OF bonds
to june 30, ls4s; 10y allows two years moro
for closing up the affairs, and az the act to
be accepted by the stockholders.
Act No. 90, Of April S, lS43, page fifty
six, is of general effect on all chartered
property banks, and was passed ito faclll-
tate the liquidation" Mortgagors ~ could
have their property released by returning
the bonds and receiving certificates; ~
debts to liquidating banks could be paid
by bonds of the State in favor
of such bank; (3) the assets OF
the Consolidated and Citizens Banks
were to remain in possession of the State
till final payment Of al bonds issued to
them; (4) crops of stockholders might be
pledged; (5) permitted the stock to be trans
ferred on security of city or country prop
erty indiscriminatcly; l6) allowed the bank
| to purchase stockholders property on se'z'
ure and sale on suits by the bank; ~ reg
| ulated the adoption of the mode Of iquida-
ton; 81 prohibited the issuance OF notes
for circulation, modifying section twenty
nine of act No. SO, of March IA, 1872, page
234.
This act is the arch on which the whole
foundation of the States present liability
rests. 1t spans the gulf between the solid
foundation of loans on twenty per cent
appreciation of real estate and security o,
one.third of the debts incurred.
It is entitled IAN act to provide tor the
foundation of banks" First, forfeitures Of
charters are to be tried, on petition OF the
Attorney General, without jury. Volun
tary liquidation, meetings Of stockholders
notaries' duties, opposition, judgment, ap
peal, stay Of proceedings, appointment Of
! commissioners, bonds, duties inventories
distribution, redemption, table aus, money
received BY commissioners; how taken care
ot," records and pay are all arranged simi
| lar to the usual schemes of bankrupt acts
There are some peculiar provisions. Section
fourteen says that the sale of public workf
belonging to banks seized and sold on TIN
power given the commissioners may include
the power to exact tolls, provided it be
limited to the extension Of the charter.
And provided further, if such bank shall
| have granted indulgence to it's debtors IL
pursuance of the seventh section OF the
| act entitled ian act to revive the charters
| of the several banks located in New Or
leans, and for other purposes" the works
and improvements constructed by it shall
not be sold, unless such sale be necessary
for the payment of it's debts.
| This act is No. % of February 5, 1872
page thirty four. All the charters Of sll thu
Incorporated banks are revived by the pre-
amble. Fundamental rules are prescribed
which are still followed. Loans on capital
| and on deposit are separated, on paper t.
that payable in full at maturity and dead
weight" and movement of the banks
defined. A board of currency, three citi
| zens of four years. residence, not bankerl
or brokers, was estsbl ished, to be ap
pointed every year in the last week O
January. The Attorney General was or
dered to sue any member on his bond, OF
the affidavit of q citizen Of neglect Of duty
Failure to obey this vacates the office
| Specific directions are given OF loans snG
mortgages. Section seven, above referred
| to, reads
That any bank, voluntarily or otherwise
entering into liquidation under TINS act; OF
| it's passage, or any time thereafter, shall bt
| relieved from the payment of any bonus t.
| the State or corporations not yet due, o.
| from the further performance of any pub
| lie work and improvement not yet com
| pleted imposed by it's charter; provided
| that this privilege shall not apply to any
bank in which the State is Q stOckholder
or for the debts or obligations Of which the
| State is liable.
Statements under oath must be furnished
The circulation of liquidsting banks wa
ordered to be received by other banks moi
in liquidation, in q proportion contained
| in section eight, distributed among four
teen banks, making . total Of $3.50, 900;
the assets to be divided by the ratio Of cur.
rency distribution, the board OF currency to
direct the whole of the operations. The
act was to be accepted in twenty-five days
Fines and penalties were provided, meet,
ings arranged, country banks given share
of the loane, notes restricted to IS IS q
minimum, and all banks prohibited from
tr aiding in cotton, produce, or stock of any
incorporated company. Section seven, on
extension of time, does not "apply to the