The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-12-30
THE CONSOLIDATED BOND CASE.
THECITY ASKED TO LEVY A SPECIAL
TAX.


THECITY ASKED TO LEVY sPECIA
TAX.
The following petition, interesting to oil th
citizens of New Orleans, was filed yesterda
evening 10 the Third District Court:
TO the honorable the Third District Court for th
parish of Orleans:
The petition Of the State OF Louisiana, on tn
relation OF the Southern Bank, corporatio
created under the laws Of this State, domicile
and doing business ia New Orleans, respectful
represents:
That, ia The year of our Lord, eighteen hun
dred and fftytwo, during its regular session
the General Assembly Of the State OF Lou'sisns
passed an ao en- tiled, IAN act to consolidate thu
city OF New Orleans and provide fr the govern
ment and administration OF it's Affairs approved
February %, 1852, and promulgated as act No
II. the thirty seventh section whereof reads al
follows, VIE:
SEC. a37. Be H. enacted, etc., That the debt o.
the general sinking fund, commonly called the
old city debt, and the debts OF the three mu.
inequalities, whether in the form OF bonds, notes,
interest coupons, cash warrants, or any Other
species OF oblig .tiGn whatever, ehall be assumed
and paid by the city OF New Orleans. aud said
city IL hereby declared liable therefor. The
Mayor, Controller and Treasurer and
the charmen of the finance committees
of the two Boards Of Che Common Council shall
constitntee com mission to be called the Oommis
sion Of tbs Consolidated Debt u New Orleans;
and they shall have power to issue bonds OF the
city of New Orleans, having not more than forty
years to run, with interest payable ct such place
as may b. agreed on bet ween said ecu mtssioners
and the parties TO whom the bonds are Issued, iu
eemi.aDnual cGupons, in exchange for any bonds,
Obligations or debts OF the old corporation or OF
any of the municipalities, whether mstured or
not. or to sell the new bonds and apply the pro-
Deeds to the payment Of the matured debts of the
old corporation or OF the municipalities, but to
no other purpose. The bonds thus Issued shall
form stock to be called the consolidated debt
OF New Orleans. At the time this cot goes
into operation, an exact and detailed statement
OF the indebted ness Of the Old corporation and
OF each municipality shall be 6ed in the office
OF the controller, by the secretary OF the Board
OF Lqudstors and the municipal controllers
respectively, when the commissioners of the con-
Goidated debt shall proceed to divide the debt Of
the old coTpoiati between the several munich
paiies 10 proportion to the assessed value Of real
estate within the imita OF each. according to the
State assessment roll for 1851. The amount thus
apportioned to each, together with Its individual
indebtedness at the time this act goes into oper-
alton, shall constitute the separate debt of each
municipality, aud shall be known as the
debt Of municipality. No. One, No Two,
annually, in the month OF January, pass
m ordinance to raise the sum of $3.50 900
by special tax, on real estate and slaves, to be
called the consolidated loan tax, and the rate per
cent Of said tax, in each municipality, shsll be in
proportion to the indebtedness OF each. All or
dinances, resolutions or other acts passed by said
Council. after the let day OF January in each
year, shsD be null and void unless the ordinance
imposing the consolidation loan tax shall |
have been previously passed. At the end |
Of the consolidated loan tax remaining in the |
after the payment of all the interest |
and the expenses Of the management of said
debt, shall be applied to the purchase, from the
lowest bidder, OF such bonds issued under this
Act. ~ have the shortest period to run and the
Common Council shall have the right of reject
ing oil bids demanding more than the face of the
bonds; for which purpose public notice shall be
yiven BY the Controller in the official gazette
or thirty days inviting proposals from bond
lerein described, From and after the passage
Il this act, no obligation or evidence of debt OF
ny. description whatever, except those herein
authorized, shall be issued by the city of New
)rleans or under its authority; nor shall any
Dan pc contracted, unless the same be author
zed by vote OF majority of the qualified
oters Of said city, which shall be taken in
ne manner prescribed by the City Coun-
y, after ten days proclamation by the
layor, IN the newspaper chosen by the
ebt or loan shall be valid, unless such ordinance
hall prescribe ways and means for the punotusI !
isohArge at maturity OF the capital borrowed or !
ebt incurred; and such ordinances shall not be i
,pealed, until principal and interest Of the cap
81 borrowed OK the debt incurred are fully paid A
I'd discharged" !
That In the same year, the said General Az.
mby passed an act supplementary to the act a
st mentioned, which was approved on February a
! 1852, and promulgated ss act No. II, the fifth +
ction whereof reads % follows, viz; q
SEQ. 3. "Be II further enacted, etc., That the 8
bt OF the city OF Lafayette shall be assumed r
ID paid by the city Of New Orleans, and the said b
v n Naw 0rlaDna Ia harahv ,snd l;oht | n
srefor; and the amount OF esid debt shall be Q
and lite payment provided for, and Il
ade in the same manner, as the debt OF each {,
Of New Orleans is ascertained fe
ID provided for in the act to
lich this act 10 supplement; and in q
icing annually the consolidated loan tax for the u
yment OF the debt OF New Orleans, an addi- u
NAL sum of $50 900 shall be raised for the pur.
go Of providing for the debt Of the city of 81
fayette, now added to that Of New Orleans, SO b.
at the whole amount OF the annual levy of b.
xes for the payment OF the debt OF New Orleans ci
all be 100000 al
That in furtherance OF said section 81, as m
,ended by said section g. Of the General ASSEM- o.
y, the city OF New Orleans, municipal corpo- 81
ton created BY charter from the General As o.
mbly OF said State, established and existing &c
thin said State, has issued bonds according to re
tenor OF said law for some $40 600 OOO in ex- 81
ange OF the bonds, obligations or debts of the "a
rec municipalities in existence at the time of Ia
adoption Of said acts, for which said CITY of Ill
" Orleans was liable, and that all the bonds go 10
ued by said city were used for the purposes %
by said acts;
That by the provisions Of said section 81, as by
lended. the Common Council Of said city al
- commanded annually, in the month OF Janu- OF
7, to pass an ordinance to raise the sum of la
4, 600 by q special tax on real estate, TO be to
led the consolidated Joan tax. to be applied vi
1t to the payment of all the interest of sad TO
DDS, and any surplus to the purchase, from BY
J lowest bidder, Of such bonds as have the m
,rest period to run; AMI it was provided BY
law that all ordinances, resolutions or other Is
. passed by said Council after the first day of NJ
auary in each year shall be null and void, un- Is
8 the ordinance imposing the consolidated
n tax we're previously passed; hs
That the bonds so issued were negotiable &C. tn
titles, and by reason of the restrictions i'm an
led by the act providing for the issue and The Sc
ar and comprehensive provisions for the tn
Iment of the interest, the gradual reduction of dl
J number, through sinking fund, the bonds &C
70 negotiated at, and aboue par value, and have tn
N distributed, on the markets of EUROPE and Ut
he United Statee, in due course of business, tn
> secure, permanent aud trustworthy invest tn
MT; that the free banks of the state OF Lou nc
m, lted nv 1ovu to