New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-03-28

bouds were charged with notice Of the authority
The STATE. But for the constitutional amendment
the Endorsement ofguarantee would bind the State
As to restor or any bona nde tnifo nooeI 0t o oco
had been complied with OF not BY said company De'
cause section ten Of said act provides that the
guarantee shall be conclusive evidence in favor Of
the holder of every bond 90 certified that the CON
dltions Of this act have been complied with on the
part Of the company and that said b0nss have
been duly made and regularly certified and issued
pursuant to the provisions Of thls act, and every
sssii b. VsiiS and biz ding oosssi,n Of the safe
of Louis ana in favor of whom soever shall from
time to time be the holder Of the bonds bearing
pledges it's public faith and credit to the pe' FORM
anoe of sucn guarantee aco oraing to its terms"
The constitutional amendment, however moai- ac
fed and restli cted the powers conferred on the
it went into operation neither the Governor in the
General Assembly itself could create debt. There
was no power in any Of the departments to create
q debt, because the Limitation OF twenty-five mil
lions had already been reached.
The Governor could only give the certificate OF
guarantee in evidence Of valid subsisting obliga
lio1 OF the State arising from the Perior ey 3
of 1869.
That part Of the act making the certifcation CT
guaran zee by the Governor conclusive PROOF that
the col ditions had been complied with by the
company and that the bODds had been duly ma 1e,
regularly certified and issued; that they shall %
held valid snd binding obligations Of the State,
and p'edsng ths public faith and credit for the
perfoI Nj Ance OF such gu arantee, we regard as re-
stricted BY the constitutional amendment, aud al!
holders OF the bonds are charged with notice OF
the existence and effect of that amer d nent.
lhe Governor who certified the guarantee was a
ducisry, and he could exercise no greater po ~ers
than his principal. the General Assembly, could
exercise.
declare a certifcatiOn Of guaranty conclusive
proof of an indebtedness of the State; 6' cause
Il it was not given in evidence OF q subiistlng
valid obligation, it would be the creation OF new
debt in contrayeutOn of the constitutional
amendment. And the Governor could exercise no
greater powers, under authority OF the Gene TAI
ASSEMBLY than that body possessed at the time lie
The New orleans, Mobile and Chattanooga Rail-
road Company had failed to comptt the rSan % asa 81
and the obligation Of the state to their
bonds had lapsed. The cert,fcation OF guarantee
new debt under authority given by the General
Assembly prior to the adoption Of tho constltu'
Sna But this pSwSr 70 create e;ven 'h1 h1
the General Assembly ON the day the certificate OF
guarantee was signed by the Governor
ext ercised powers delegated by the General As
se mbly al we'll all the powers not delegated, IN
rexasd t. the ,ight to create debt beyond
II the General Assembly could not create debt
when the bonds in question were guaranteed, ana
cation Of guarantee shall be conclusive PROOF OF
sn indebtedness by the state and thereby cnt On
what can not be done directly can not be &c.
compished indirectly.
could not be bound beyond the Limitation Of
e25 900 900 by the act Of the General Assembly or
General Assembly; it matters no: when the author
ity was given to him.
The extent Of this suthority must be dete rmined
by the extent Of the powers OF the General A.
ernor. because the mandatory can not exercise
greater powers than are possessed BY his principal
AZ the General Assembly could not create 2 debt
or grant a certificate. and make 1t conclusive
evidence of . debt at the time the Governor
guaranteed the bones Of the New Orleans, Mobile
Railroad Il the me-
Assembly. The date Of the certificates Of guar
antee wss subsequent to the adoption of the con-
said bonds were charged with notice Of the au
| thority Of the Governor to sign the guarantee
and with notice Of the existence and the effect o
| the constitutional limitation of the authority
| given to the Governor BY the act OF 1863.
The relator, however, contends that if there
Ss in " the o
| within the time limited in the act OF 1859, ob]ec
tlon on account thereof was waived by the &C
ton Of said section by said company, and this &C
| oues cence amounts to q rat fcation by the State
The difficulty s the State &c could not revive oy rat M
lapsed by the failure of the New Orleans. Aooii,
and Chattanooga Railroad Company to comply
with the stipulstions Of the act Of 1859 because =
tinnal amerdment was in force.
Tn. 5i.I Of exceptions to the evidence admitted
| tn proye the time when the first section OF tn
| railroad was completed WAS not well taken: II
| was the only means by which the fact could o.
whether tne new re ned vf
| the st.pulations Of the act of 1863. and, conse
auently, whether there was valid suosisting & OF
| antee6, and the determination OF the question wa
impsrta 1T in order to ascertain whether the do'
error had authority to gaassnss,ei. the bonds
| meut prohibited the guarantee OF tho bonds tn
obligation Of the State to do 80 under the act 9
leans Mobile and Chattanooga Rairos I'd Compan
to perform the slipulations thereof; also that sal
| bonds are not valid oblisationsof the State an
! can not be funded We aye el o Of the oplnio
that the funding of these bonds is not pro vide
f.r by the fuld "a act being act No. ) OF the ac'
VI That act provides for the issue of consolidate
bonds by the funding board; that when prepared
"eaid bonds shall be exchanged by the Board
Stste and all valid warrants drawn previous to I'll
| "a ,sage Of this act =, except warrants 1
sued cy the Auditor in S Of the co1stit
csnts in Consolidated bonds for Que dollar il
standiI bonds and valid warrants
that ne consSdassd ss hv s,id Boaed of
onIv far the purpose of exchange as aforesaid
said bonds shall be used for no other purp1:
or purposes and adAn that at the % bonds and val
warrants outstanding at the time OF the passa -
ais act shall, as fast as they are received Il e
| change for conscl lated bonds, Dc Cancelled AT
DESTROYED by taid Board Of Llquldstlon' !,
| In precise terms the act provides Tor fundlng II
Of the State and sey as bond
: be Cancelled and destroyed
From the language employed, the meaning
the act in regard to the bonds to be landed wi
. esidently tbs bonds iseued by the State-ets :
bonds: because when the SO bonds were received
exchange for consolidated bonds, tnev woula cea
hat thew should be INN nedstely cancelled and
stroyed by said Board Of Liquidation
: n would not. howe YER, DO prudent and right
cancel and destroy TIE second mortgage bonds
. | the New Orleans, Mobile and Chattanooga naliroi
, | Company which were guaranteed oy the SIaIe;
: they were received In exchange Aoe consoioA''
Surely the General Assembly would not dire
the canceling and DESTROYING sI ta,s ,, mor.sal M
the Board of Liquidation II they lntenoed the
| to be taken up in exchange for cOne0ldated Dono
| n ated. the Beard Of Liquidation would not ha,
| been required TO canoe! and destroy them, ~
thereby defeat the possibility Of recovery again i
r is therefore ordered that the judgment her
in rejecting the demand OF the lelAtof Do aniim'
,, Justice Howell concurrng. ,..p
In tho case Of the state ex rel rel Cltizens Saak
Bcard of Liauidat0rs, No. 1892, recsnty decree
, we hold that the funding act should be strict
construed and that only the valid outstandu
bonds OF the State and al valid warrants or. or.s
. EEsrrania deecribed, could be exchanged for bon
created By said act. and by the % lev the 9, .
dences of Obligations 60 exchanged q
!, | REQUIRED to bs destroyed. The bon
in th.s case are the bonds of the New Orleans,
/! | bile and ChattauO oga Railroad Company, and n
the bt nds Of the state, and are thel letore moi
4 funding act. The fact that the State has gu
! anteed their payment does not, in my opinlt
Z make them the bonds of the State. 1t only creat
q the obs alton Of the Stsse to pay them if t
comnany fails to do so; and the obligation IN
u | have become fixed without making them {
l Londa of the Sta in the contemplation Of
% Ead tha LAnialatuIA infAn0 I'D to