New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-03-07
~ O. 81
AN ACT


To adjust, regulate and provide for the
bonded debt of the city of New Orleans;
to authorize the exchange of bonds of
the city of New Orleans for other bonds
to be issued on the plan known as the
premium bond plan; to adopt and give
legislative sanction to the said plan, as
set out in ordinances Nos. 3l3O and 1898,
Administration series of the city of New
Orleans, approved on May % and August
81, 1873; to provide fund to meet the
sem-anndal payments of the said bonds
known as premium bonds; to create q
commission in the interest of creditors,
and to give said commission the direction,
control and management of the semi
annual alIOtments under said premium
bond plan; to limit by contract the con-
tracing of debt by the city of New Or
leans; to limit taxation for all purposes
therein, and to give relief to arraar tax
payers; to provide for the exchange of
said premium bonds for other bonds in Q
certain contingency.
WHEREAS, The total debt, bonded and
floating, of the city OF New Orleans. has
accumulated to an amount exceeding
twenty three millions of dollars, resulting
from the occurrence of the civil war, and
from reckless expenditures of public
moneys.
Whereas, Under the depressing influence
of the consequences of the late war, and
the disasters produced by the 0vertlows in
this State, and other causes. the taxable
property Of the city of New Orleans has
become so reduced in value as to require
taxation at the rate of at least five per cent
per annum to liquidate the debt as estab'
lished by the acts authorizing the various
issues of the same; and
Whereas, The levying of tax at so ex
orbitant rate renders the collection i'm
possible.
Whereas. The continuation OF the levying
of a tax 10Y vnu the ability Of the property
to pay, leads to further destruction Of the
assessable property of the city, and the
consequent shrinkage of the common pledge
of the creditors, tending to continuation
of the present embarrassment of the city
affairs. and ultimate practical bankruptcy.
Whereas, The City Council of the city of
New Orleans have adopted a plan for the
liquidation of the city Indebtedness, looking
to the payment of the creditors in full, OBJ
tanning thereby the indulgence Necessary for
the public wellbeing and the maintenance
of the public honor; therefore,
SECTION l. Be it enacted by the Senate
and House of Representatives. of the State
of Louisiana in General Assembly con-
vened, That the May or and Administrators
of the city of New Orleans, or such other
officers, alderman or administrators as
may hereafter be ordained and established,
be, and they are hereby authorized and d.
rected to exchange all recognized and valid
bonds of the city of New Orleans and the
late cities Of Jefferson and Carrollton tor
bonds known as the premium bonds of the
city of New Orleans, in accordance with
the plan adopted by the City Council and
approved by the Mayor, on the twenty-ffth
May and thirty-frst August, 1873. The said
premium bonds shall be dated the first OF
September, 1875, and bear interest at the
rate of five per cent per annum, from the
tiftee nth of July, 1875; they shall be signed
by the Mayor, the Administrator OF FL
nance, and the Administrator OF Public
Accounts, as commissioners OF the con
solidated debt, and countersigned, when
issued, by such parties as the Council
have designated heretofore, or may here
after designate, with the authorization OF
the supervising committee hereafter named.
SEC. 2. Be it further enacted, ETC., That
all outstanding bonds bearing interest shall
have the interest computed up to the hrst
day of July, 1875, and thereafter the said
bonds, when exchanged, shall bear interest
as provided in the ordinance above ratified,
which provides for the premium bonds:
SEC. 3. Be it further enacted, etc., That
the allotment of series and premiums which
have been made by virtue of ordinance NO.
1888, Administration series, adopted Au-
gust 81, 1875, by the City Council are hereby
ratified and approved, and that further
allotments shall take place on the hfteenth
day of April and the fifteenth day OF Octo-
Der of each year, end of premiums on the
fifteenth day Of January and the fifteenth
day of July of each year, or on such other
date as the Council may prescribe; pro-
yided that payments be not made later
than the fifteenth day OF March and the tif-
teenth day of September of each year.
SEC. 4. Be it further enacted. etc., That
q permanent committee of six citizens is
hereby created to represent and supervise
all matters and interest under the opera
ton Of this act; they and their successors
shall at all times have free access to the
records of the consolidated debt, and may
exercise control and supervision ever the
allotments and premiums. the registry, and
of bonds - they may deem
necessary, when not in conflict with the
PROVISIONS of this act; they shall fill all
vacancies in their number by death resigna-