New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1877-05-26
NEW ORLEANS SATURDAY, NAY 26, 1877.
The Funding Board.

Ehe FundIGg Beard.
Wednesday the Board of Liquidation
'adopted resolutions, on motion Of Mr..
Bash, to the following effect:
Reciting act No. IL of April IL, 1876,
supplemental to act No. 8, the funding
bill Of january "a, 1874, aud the decision
of the Supreme Court Of April 80, 1877,
that every bond enumerated in the act
must be passed upon by direct and de-
Tended action in court before funding:
Therefore, it is now ordered that all
the bonds and claims enumerated in said
act No. II, hereafter given in detail, are
hereby declared not fundable until they
shall have been adjudicated and passed
upon by the Supreme Court of the State,
in direct action instituted, in which
they shall have been questioned, and the
said court shall by final decree declare
such bonds and claims legal and valid
obligations against the State of Louisiana;
that the same were issued in strict con-
formity 70 Law, not in violation of the con-
stitution of this State or of the United
States, and tor valid confederation, to
wit; 3
3 FIRST CLASS.
The bonds Considered and held as be-
longing to the redemption of che State
| debt funds, and the tree. school funds,
especially the latter, which are held by
this board as inslienable, because they
were made such by article 1877 of the con-
stitqtion of 1852; by section thirty-one of
act No. .32l, approved March Is, 1856,
page 429 stat utes Of 1856, and by article
la of the constitution of 1854, and by
articlel39 of the constitution of 1868,
andy therefore, could not be sold or con-
vertSd, as ordered by act No. 81 of 1872
thatis to say, bonds of the State OF the
various issues which had been redeemed
or never issued, andswhiOh. have been re-
ported by the Auditor of Public Accounts
as missing, or which were sold under act
No. 81, approved May 25, 1872, and is
sued or reissued, comprised in the first
class viz:
I. Bonds, Of the New Orleans and Nash
vilie Railroad Company. 4.
q, Bonds OF the Mexican Gulf Railroad
Company.
3. Bonds of the Nen, Orleans jackson
and Great Northern Railroad Company.
4. bonds of the New Orleans, Opelousas
and Great Western Railroad Company.
5. Bonds Of the Vicksburg, Shreveport
aud Texas Railroad Company. -.
6. Bonds of the Baton Rouge, Crosse
Tete and Opelousas Railroad Company.
7. Bonds for the relief of the State
Treasurer.
8. Bonds issued for the free school
fund ..
The total number of bonds of the free
school fund was stated to be S529, O00
SECOND CLASS.
9. Bonds issued under act No. IS, ap-
proved December %, 1856, for expenses
Of building levees.
TO- Bonds issued under act No. lis, ap-
proved March 26, 1867, for expenses of
building levees
IL. Bonds issued under act No. .32, ap-
proved February rs, 1870, for work done
or to be done on the levees.
II Bonds of the New Orleans, Mobile
and Texas railroad, issued under act No.
26, approved February II, 1869
f13 Bonds issued to the New Orleans,
Mobile and Texas Railroad Company,
under act No, 95, approved April 20, 1871.
IA. Bonds issued to the North Louisi-
! ans. and ITavos Raiikno1 C----s--y- -
act No. 81, approved April 10, 1870, and
act No. l09 of 1865.
Is. Bonds issued to the Mississippi and
Mexican Gull Ship Canal Company, under
act No. ll6, approved March S, 1869,
16 Bonds issued for the relief of P. j.
Kennedy, under act No. 405, of March
25, 1870.
IL. Bonds purporting to have been is
sued for redemption Of certificates of in
debtedness, under act No. 5, of 1866.
. 18. Bonds issued under act No. LAG, ap-
proved January 3, 1870, for aid to the
Bnuf and Crocodile Navigation Company.
| NO. 2--NEw ORLEANS, MOBILE AND CHAT
TANOooA RAILROAD COMPANY.
Whereas, act No. Sc, approved April
IL, 1876, page l30 statutes of 1876, pro-
hibits this board from funding any Of the
! guaranteeing bonds Of the New Orleans,
Mobile and Chattanooga Railroad Com
pany, and of the two and half millions
OF bonds issued for stock in said compa-
ny, on the grounds that said bonds are
| invalid, illegal and unconstitutional, and
that the funding thereof would violate
the letter and spirit of act No. 8, ap-
proved January "a, 1874, impair the credit
of the State, and thereby lessen the value
of the State securities to the prejudice Of
the holders thereof; and, whereas, the
said act No. 81 is imperative and leaves
to this board no discretion whatsoever;
II is now ordered that this board will
not receive for funding, and will not fund
any of the second mortgage guaranteed
bonds OF the New Orleans, Mobile and
Chattanooga Railroad Company, pre-
tended to have been issued under act No.
36, approved February II, 1869, nor any
portion of the two and Is half millions of
bonds pretended 10 have been issued tor
stock in said railroad company under act
No. 95, approved April 20, 1871, the said
act No 81 declaring and proclaiming that
the State had received no consideration
whatever for said issres of bonds, that
they had been Illegally issued, indorsed
and delivered, and tuat they had been is.
sued in direct violation to the constitu.
tion. ~ u fCa .e1g go 3
NO 3-7EEIATIyE TO zEEE szELLoGc BOARD.
WEEREAs, We are informed that rumors
are circulated to the effect that this board
Rill review and attempt to cancel and
.nullify consolidated bonds issued by the
old board. whereof William Pitt Kellogg
Eas president, in exchange for bends,
waErants OF coupons, ia the category OF
these above enumerated, and likewise oi
other series and issues; and bieg
Whereas, This board Is BY laAE entisely
oonRned to review and examination OF
/ the bonds, warrants and coupons not get
funded, and 60 an exchange ct these,
whan declared enneable, Cor consolidated
bonds authorized to be issGsd by act Ne.
| 3 of 1874:
| IT is now Utdeasd that this boapd will
u a - -. /. a..