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

THE CONSOLIDATED ASSOCIATION
OF PLANTERS.
THE LAW AND THE FACTS

THE LAW AND THE FACTS
Within . very short time bonds known
- those of the Consolidated Association
of Planters" have been presented for liqui-
dation to the Funding Board and rejected,
Or it might be more properly stated, action
ON them postponed. 1t is here proposed to
show what the lave, in relation to these
bonds, are and the liability Of the State for
them. To do this it is necessary to present
the enactments which relate to both the
Consolidated Association and the Citizens
Bank.
April Is, 1911, act No. %, page eighty-six,
was approved by Governor William c. c.
Claiborne, and the purpose Of it was to
establish bank of discount, deposit and
exchange" by the name of the President.
Directors and Company of the Planters
Bank" or LA Banque des Hsbitants." In
the preamble, which is not to be found in
Martins Digest, it is recited that a number
of persons etc., have associated and
.'have eignifed to the Legislature their
desire to obtain charter, to the
end that the individual stock
holders should not be bound or sew
orally or personally responsible for any
debts or engagements entered into by said
bank"
The act n) gives the usual powers of
corporation; ~ confirms the election of
directors January q; (3) orders advertise
ments Of election of eleven directors, and
restricts them to certain qualifications; az
regulates the rates; (5) directs elections for
the first Monday of January; (6) authorizes
cashier; ~ rules and regulations, and di-
rects dividende: (s) limits the capital to
$6o0,o in shares of $500 in specie; (sj au.
thorizes the calling in of four-fifths of un-
paid subscriptions; tl0) makes five directors
. quorum; Ql) allows postponement Of
election; Q3) regulates transfers of stock
u4) gives negotiability to its notes; 15)
allows general meetings to be called, and
n6) establishes the duration at fifteen
years. The twelfth section 10 as follows:
That the said corporation shall not di.
rectly or indirectly deal or trade in any.
thing except promirsory notes, bonds, bills
of exchange, mortgages, gold or silver bull.
lion, specie, houses, lots, lands, stocks in
the public funds: or effects pledged fol
money lent, or in the produce Of such houses
or lands.
March l6, 1897, page ninety-six, an &C,
TO incorporate the "Consolidated Associa.
ton of the Planters of Louisiana" was ap
proved by Governor II. johnson. The cspi
tal was to be g., ,00O, 600, to be obtained by
loan, to be secured by $2,50o,ooo of sub
scri ptione, the shares to be $500 each
81 Planters only were allowed to subscribe
IA Bonds were to be given for the loan .,
fve ten and fifteen years. (5) The sub
scribers were to give mortgages on theil
real estate equal to the amount of theil
subscriptions, and all profits remain in the
custody of the bank ss . guarantee fund
(6, Private accounts showed each stock
holders earnings. ~ The charter wa.
extended to June 80, l842. One share gave
6 7o:e, the number being limited to fifty
nus altering the previous law, which re-
orired four shares for one vote, and allowed
no member moro than thirty votes. Two
partners could not be directors, and ten
shares were q necessary qualification. No
dividends were allowed, these being (l3)
deposited till the expiration of the char
ter, when they were to be di
vided. (l2) Mortgages were to be
on cultivated lands entirely and
only for half their value. (l2 to 23) Spe
cial rules were established almost as minute
in detail as bylaws. (23) A wife was su
thorized to bind herself with her husband
l24 to 26) Insolvency of stockholdert
could not prejudice the association. ~
Managers were to be elected in the parishes
and (2s) stockholders were prohibited from
making certain Endorsements. This act wat
repealed by section eight of act No. l9 o.
1923.
By act No. 10 of February 10, 1923, page
thirty, the loan authorized was ~ increased
to g, 1000; ~ the capital increased te
$3,oOO.OoO; (3) the faith of the State il
hereby pledged for the reimbursement o.
the capital and interest Of said sum Of
&2,5OO,OOO;" l4 State bonds were sub
scribed; (5) to be transferred by iDdorse
ment; (6) the bonds and mortgages to be
deposited in the institution as guarantee
"a the State made q stockholder; 70 to l3
security for loans and bonds provided; a.
the charter extended one year more to JUNE
30, ls43; (l6) and the directors were in
creased to twelve, the Governor to sppoin,
six. By section fifteen the association wat
prohibited from lending money on property
outside of Louisiana.
Act No. 20 of February %, 1928, page
thirty-six, directs the Governor to appoin,
the six State directors by the first Monday
in March.
The act of March Is, 1880, page sixty
eight, makes ny five directors, with the
president, competent to make discounts
loans, ETC.; ~ provides for filing vacancies
~ alters the LIQUIDATION of the first series
of bonds from five to ten years; (6) extendf
for two yeare, from January 30, ls43, the
States obligations, it being understood nc
new bonds shall be contracted, and pre-
ecribes certain duties of officers.
SEC. a. That the twenty-sixth and
tventy-eiphth sections of the act to incor,
norate the subscribers to the Consolidated
A..nn;o+,or of the Planters of Louisiana be