The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-02-24
CITY DEBT.
THE PREMIUM BOND BILL.


Senator White submit tho following minori-
| ty report on House bill No. 327
| New ORLEANS. Feb. 10. 1875.
| TO the Honorable President and Members Of the
| Senate:
| The undersigned member Of your Committed
| on Finance begs leave to report by minority o.,
| bill The magnitude OF the interests involved.
the gravity Of the financial situation Of the city
Of MY 0eans Hr so fse, o. w1e #" ,
| ton of the burdens resting upon the taxpayer,
to whom the bin affords present and peranen,
creditor and the future prosperity Of the entire
people Of the city Of New Orleans. impel the mi
nority to state fully, his reasons for dissenting
| from the unfayorable report OF the majority Of
me necessity Of some Legislative relief for the
| city In her embarrassment Is universally CON
| lied by various Legislative acts, Is as follows;
CONSOLIDATED bonds, issued Ia ls52,
under authority Of section thirty
| seven act No. II. approved Fobru-
AIRY ~, 1852. maturing in 1872, ss.44,w'
Municipality ngnds ias ,,i.l n ISL y;
m,,njcjpnlities, maturing in is76 $3.50
I,ailroad bonds. issued In 1854. under
authority Of act No; i0e approved
| March IT, 1854, maturing In ts14.... 2s5b 900
| Pontctartrain railroad bonds, issued
in 1854, under authority Of net No.
10. approved March IL. 1884, matur- -.
Seven W.. !, pe aps cent bonds of Iseg. issued
| In 1869, under AUtnOrlty OF SetuOn
| one, act No. ~. approved February
81 is6g. maturing In 1894 .....4... 2s4p.5Oo
Seven pcr cent bonds Of 1870. issued
I'm 1910 under authority OF section
forty-one, net No. 7. approved
| March 1G, 1870. maturing In 1890. 5000 900
jefferson; City Gonds ynIFHns %n an
thirty-six. act No 7. approved
Street Improvement bonds. issued in
1871. under authority Of section thir-
| teen, act No. 40, approved March 10.
1871 maturing In 1911 ga. ......n:.,. Ae,po
Street assessment bonds. issued In
1874 under authority Of section thir-
teen, act No. 40, approved March 10.
>, 1871 maturing In 1884 :;.;. .,, 1850
under authority Of act No. 100. ap-
proved May I, ls7i. maturing IN 1881. 1,l4o.eoo
ries. issued in 1879. under authority
of act No. 70. approved April ~. 1877.
Gn %a'" aonse.Iaaied bonds drainage A''''"
series. issued In 1879, under authpri-
ty Of net No. 10. approved April 10.
1872. maturing In 1922 $50. ......... 1.665.ooo
| Waterworks bonds. issued IN 1869.
under authority Of act No. 20. APP
proved April !. 1883. maturing In
Carroliton bonds. issued in is72. un.
1874, No. II. maturing IN 1892. 49,. 19t.25c
McDonogh school bonds. issued In
1864 under authority Of net No. Ill,
approved March 10, 1891. maturing
Fink Asylum bonds. issued in 1904. ''y0'
under authority Of net No III. mp
proved March 10. 1861. maturing In
Million loan bonds, issued in ises
under authority Of net No. 30. ap-
proved September 8. 1863, maturing
In 1s72 Northumberland. 215t
Total. ....... ......... s2i. iOa Got
Making q total aggregate Of SAT 10000
The certified debt to about s1.000O0o the float
ing debt to si.ooooOo making about . total IL,
aentinR on lie rolls Of is1a to sio sS Sos and
| from this amount is to be deducted u large sun
of property moi. properly the subject matter Of
taxation. and tho .assossmcnt 1t It's Just value
would probably not exceed soooo.oo0. Tho in
} terest alone Us required by law amounts annu
ally TO 81 100000 year. which, joined TO the sink
Ing funds and amounts required to pay maturet
bonds. would compel the levy on tho property 81
tho taxpayer OF u tax 81 certainly six. and prob
y" Rsp ts city has b s sry crp
. Piled, her flnances involved In almost bankrupt
cy. her obligations. dshonored. Her govern
ment struggling under impossible legal duties
has endeavored by every legal means to carry on
tho necessary functions OF municipal existence
The property OF the taxpayer. oppressed by too
lost or is gradually losing It's capacity for pay
mont. Tho creditor. with the suspension .o
Of inter interest nh ha T. found his security n
enpital has been withdrawn. and the commercial
prospects of the city become materially overcast
To remedy these evils the plan. of which the bill
unfavorably reported on was the exponent, has
} been presented by tho city government The
} examination Of It's details ut present Is unneccs-
sary because the majority have thought proper
to overlook Them and to predicate their report
upon supposed questions Of law. The results
! to be accomplished by the plan may be succinct-
1. The Immediate reduction of tnxation to u
point nearly 100 per cent below the ratio Of the
past year. and security against inordnate taxa
.. The curtailment Of the amount to bo paid by
the city by &ioU,o0O this year. and the postpone
| 4, f,vs Ia.
gulation Of the sums to be paid in the future
within reasonable limits
Tho payment ,. to the creditor OF ne entire
partial remission OF interest and extension 81
principal rendered necessary by the deplorablt
condition of the city. and eonsonant with his
interest by augumenting the sovency Of the
debtor and hence enhancing tho value OF his
security
principal and interest. thus securing the gradual
extinction Of the debt and saying the transmits
sion to posterity OF too great burden. while
Your minority deem well to say that the bill
thus calculated to relieve the community has
ceived the practical sanction Of an already
happy execution has been accepted by creditors
TO the amount Of over $4,000 has been no.
/, commended by the Executive, indOrsed by the
Chamber Of Commerce. approved by the Prop.
' erty Holders Union. and sanctioned by the
unanimous voice OF the House Of Representa-.
tives. Under these CIRCUMSTANCES, YOUR minor
sibility assumed by him did he join In the lfnfa-
vorabe report, The presumed reasons OF law
by which tho committee deemed 1t necessary e
report unfavorably are as followsi
/. That the larger portion of tho CITY debt now
outstanding was without consideration. or for a
consideration Of Confederate money.
2. Because this being the case. was available
3. Because the entire debt, except the A.44f O0f
consolidated bonds. were without legal authority
for their existence.
Your minority is at q loss to know upon what
the majority base the first proposition. The en-
tire debt as previously shown, has express legis-
iative sanction. The consolidated bonds, il
seems, the majority do not question. The rail
road bonds were authorized by Legislative act
and ratified by vote of the people, The NUM-
cipal bonds preceded the consolidated. The
! Pontchartrain bonds likewise were voted for and
authorized. The seven per cents OF 1860 were
issued under the sanction of Legislative authori.
ty, and used in retiring the city notes and out
standing floating debt Of the city which had accu
eminent and subsequently. The seven per cents
two series are those intended TO be animadverted
on by the committee, 1t need only be remarked
that the impression or opinion OF the committee
Is wholly without foundation of fact. The first
series were entirely issued by the Southern
Bank the then Fiscal Agent. and bear almost
entirely the signature OF Thomas Layton,
Esq. its President. who then. as now, was
the agent or representative OF q large number OF
holders OF consolidated bonds. The second series
were issued by the New Orleans and Citizens
Bank under like circumstances. for II few city
notes yet outstanding for arrears due school
teachers, Firemen's Association. etc. OF the
a iaI, had bnn,,