The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-09-09
A HEAVY SUM CLAIMED.
suit for Eight Hundred Thousand Dollars
Filed by tine Ciiy.

suit for Eight Hundred Thousand Dollars
Filed by the Ciiy.
Tho petition published below filed by the city
of New Orleans against the Southern Bank, Thos.
Layton and the State Treasurer, Antoine Dubu-
cet 10 one Of the largest fled in our courts.
The sum claimed, 100000, is heavy sum, and
is based upon an alleged misdireoton OF city
funds. We publish the petition in full:
To the Honorable the Judge OF the Fifth District
Court for the Parish OF Orleans:
The petition OF the City OF New Orleans, o
municipal corporation created by law OF the State
Of Louisiana, respectfully sboweth:
That by act No. %, OF the acts OF the General
Assembly Of tho state Of Louisiana, approved
February ~. 1869, petitioner was authorized and
empowered to issue certain bonds in the words
following;
SEQ. 8. Be IL further enacted etc., That to en-
able the city Of New Orleans TO fund and liqni-
date the balance Of It's floating debt now exist.
ing, such as judgments, outstanding warrants,
etc., said city is hereby authorized and empow-
cred TO issue bonds TO the amount OF ~, 000,-
0OO in sums OF $50, 500, $500 and $1,000, payable
twenty-five years from date, bearing interest at
annually in the city OF New Orleans or New
York, at the option Of the holders thereof, for
which interest coupons shall be annexed to the
bonds; which bonds. when issued, shall DO de-
payment ct par Of debts now due by said city,
other than those now evidenced by city notes,
q full and particular statement OF which debt
shall be prepared by the Controller and treas-
members OF the finance committees Of the Boards
OF Aldermen and Assistant Aldermen. and said
statement Of said debts, verified and attested as
aforesaid shall be furnished to the fiscal agent Of
the said city; and it shall be the duty OF said
fiscal agent TO give said bonds at par in payment
of the debts Of said city. to the creditors men
toned in said statement, or to their heirs or
assigns.
That the Southern Bank, a corporation, incor-
porated under the laws Of the State Of Louisiana,
and domiciled and doing business in the city Of
New Orleans, was elected on the 18th December,
1868, and pursuant to section lib Of the act
No. lG4 OF the acts OF the Legislature OF 1865,
fiscal agent OF said city, your petitioner, and so
continued to be and to act until some time in
October, 1862
That in accordance with the authority and di-
rections Of said act Of 1869, 81, 100000 Of said
per cent bonds wero Issued and deposited with
said fiscal agent, TO be used in funding, lquidat-
ing and paying exclusively at par, the floating
debt OF the city other than "city notes." upon
statements to be prepared as directed by law.
That .of said bonds s805,000, with z per cent
per annum interest in coupons, running from
March l., 1869, have been Illegally and wrong
fully retained, disposed OF or paid out by said
fiscal agent and others, as will more fully appear
herein below.
Now, petitioner alleges that under and by vir-
tue of act No. a. Of acts OF the Legislature OF
1s6srapproved September Il, ls6s, the board OF
portioned and assessed against the city OF New
Orleans, your petitioner, for the year ending Oc-
tober 1869, $500, 635, to be rails. by taxation
within The corporate limits and paid as collected,
and ia money to the State Treasurer Tor the said
Metropolitan Police.
That the requirements OF said police act No. "a,
as set forth above, were re-enacted in act No. 81
Of acts of 1862
That the Common Council of New Orleans. in
July, 1869, adopted ordinance No. 1491, new
series, authorizing what was therein termed s'the
proper officers !" to issne out of the said per
ceht bonds $500, 1000 to be disposed Of under such
rules as the finance committees and Mayor OF the
city might establish; provided the bonds 80 issued
be given by the fiscal agent at par, in payment 10
such creditors Of the city as might be determined
by those committees, and the Mayor to come
within the purview OF section three OF said act
That on the 18th July, 1869, the said finance
committees, contrary to the requirements Of the
act No. 40, determined, Ii possible, to use said
bonds deposited with said fiscal agent TO pay
and discharge said metropolitan apportlonment,
and to that effect resolved that the nscai agent
pay to the State Treasurer the bonds referred to
in ordinance 1491, for the purpose OF paying the
apportionment aforesaid; providing, however,
that said payment of the per cent bonds to the
Treasurer OF the State be made at the par value
of the said bonds; that no discount whatever shall
be allowed on them, and that the recelpt OF tne
from the face Of the bonds is to be made, and
providing further, that none OF said bonds shall
be paid to the State Treasurer as aforer aid until
he shall be legally authorized by resolution OF the
Metropolitan Police Board to receive them in flu
payment of all claims they might have against the
city of New Orleans.
that this resolution was communicated on OF
about the 10Th of july 1869, to the said fiscal
agent and the Metropolitan Police Board, and
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