The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-03-31

toH Text Of Judge WOODS Derisf0u n,
The Premium Rnnh l'ase

; 81 Louisiana. Morris Ranger VS.. the
J city OF New Orleans and others. IN
equity heard on motion for injunction
The bill states in Substances that tho
complainant is the owner and holder of
live bonds Of $1,000 each. dated Nav
1854, payable in twenty wears after date
issued by the city of New Orleans. nv
authority Of act No. 100 of tbs acts n
1854, authorizing the city to subscribe to
the. stock Of tho New Orleans. Jaekson
and Great Northern Railroad Company.
approved March IA, 1854. and also ~
one bond for $1,000 dated February /.
1914, due in twenty years nfter date and
issued by the city Of New Orleans bv
authority OF act 10s Of the nets of 1884.
approved March IL, 1854. authorizing
tie CITY OF New Orleans to subscribe to
'he stock OF the New Orleans. Opelouaas
ana treat Western RaiIroad Compnnv
complainant has brought an action 5f
NV against the city on the law side of
tnfs court on these and other bonds Of
ehe same issues. and the coupons at
| tached, and received judpmenta tbarenn
amounting IN the aggregate to 500 900
on which executions have been jssuei
and returned nuHa bona.
by the thirty-scventh section of nm
act approved February %, 1862. To CON
| solldatc tho city Of New Orleans and
provide the government and admins.
tration OF its affairs, which act was in
foree when sad acts 108 and 100 wore
passed, ana said bonds issued, it was
| provided that no further debt or loan
should be contracted by the city unless
the same should be authorized bvn vote
of the majority Of the voters of the eity.
ana no ordinance creating IL debt or loaf,
should be valid unless for sotne sinole
work or object distinctly specified there
In. and unless such ordinance should
provide why's aud means for the paw
| tnent thereof, and such ordinance should
not be repealed until the principal aud
interest Of the cauititl borrowed
should be fully paid aud discharged.
BY the above named acts 1Og and 100
under which the bonds held by com.
plainant were issued, il was provided
that the subscription to the Stock Of
said Iaiitoad companies should be pny.
able in the bonds of the city having
twenty years To run. That u speciaj ink
on re9l cstates and slaves should bc
levied IN January Of each year sufficient
10 pay thehnnual interest on said bonds.
to be collected in the same manner as
the consolidated loan tax of the citv
aud that all ordinances, resolutions Or
other acts passed after the first day of
January, except an ordinance for the
consolidated loan lax, should be unde
null and Vol 4, unless q resolution i'm.
posing special tax for the payment of
the Interest on the said two series of
bonds should be first passed [Acts of
1854, PIP. 6970
The same provisions were maae bv Act
ITO OF the acts Of 1854, for n tax Ia INV
the interest on bonds issued to psy for
stock on Pontchartraiu Railropd Com
lHny subscribed by the City Of New
Orleans
he bonds issued by the CITY to bur.
chase the Water Works, having been
issued IN conformity to the provisions
OF an net passed in 1894, were not
required to be issued in the manner
prescribed by the consolidation act Of
1852.
These, except the -four classes Of bonds.
to wit: those issued to take up the con.
soidated debt Of the city, those issued
to pay for stock in the New Orleans.
Jackson and Great Northern Railroad
Company, those issued to pay for stock
in the Pontchnrtraiu Railrond Company
and the the Waterworks bonds are the
only bonds issued by the city, which
have been issued in conformity with the
aforesaid act, and the provisions OF said
acts formed a part Of the contract be-
tween the city and the holders oil said
bonds; that all bonds subsequently, is
sued having been put forth In vi lation
JI said act OF consolidation are as re-
CARDS the complainant and those hold
ing similar bonds, null and void and OF
40 effect in law
The bill then specifies five acts Of the
Legislature, commencing with act No.
~ Of the acts OF 1866, passed in direct
OF the 9th section OF the
act Of 1852, by which the city has issued
bonds To an amount greater than
10000, 900.
The complaint Of the bill is then told:
/. That the city Is about TO divert to
other purposes the tax levied ano col
lected for the PURPOSE of paying interest
upon the issues to which the bonds held
by complainant belong.
2. That the city has by ordinances
the reception OF city scrip In
payment Of the uncolcctcd taxes be-
longing TO the railroad fund for the
years from 1860 to 1873 inclusive.
3. That the city has adopted what IL
calls the premium bond plan whereby
il proposes to pay the principal of
bonds not yet due, leaving the bonds Of Z
and others Of the same
issue and which are now due and pay
able, unpaid And the motion now Is
that an injunction may issue to restrain
the city from doing either Of the acts
OF.
Now. in the case Of Rosalie Maenhaut
ct ais. VS.. the city Of New Orleans, de-
cided during the present term Of this
court, j allowed the injunction 10 re-
strain the city from diverting to other
purposes the tax levied and collected for
the purpose Of paying the interest upon
the bonds Of the city and the case made
by this bill In substantially the same In
this respect, as made by the case OF
Maenhaut ct ais, and as no injury
could result to the city from allowing
that part Of the injunction prayed for
in this case, am disposed and decide
that / will allow the injunction to 20 TO
restrain the city from dvertiDg the fund
raised to pay the interest of the bonds
held by the complainant and others OF
the same class, TO any other purpose.
The second branch OF the Injunction
prayed for by this bill Is TO restrain the
city from receiving scrip in payment OF
the uncollected taxes belonging to the
railroad interest fund from the year 1860
TO the year 1878 inclusive.
The law under which this fund was
raised provided that there should be
levy made each year by the city author
tiles, sufficient 10 pay the railroad bond
interest tax of that year, aud II - mace
to appear by affdavits filed in tlgS~
case that the interest upon these bus ,eds
has been paid for every yearnddon;i, !, iopo
mp to 1873 inclusiyg6ar that tho ~
made further t9rnQ 10 the railroad
unpaid taxes btbe9. yn.rs i! Vsid