The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-06-29
which litigated rights will BIO deter
mined during the tenure Of Office OF our
present Supreme Judges.
THE SUGAR SHED COMPANY.

The contract between Tleitas &c Do.
and the city for the use Of tho squares
Of property occupied by tho sugar sheds
provides that the city shall be paid ten
per cent of the gross receipts OF the
company.
Knowing that the eompany's stock
was considered among the best in the
city that 1t was quoted at Dg on GO dollars
paid up; that sugar dealers complained
very loudly Of the heavy charges i'm
posed by said company and that divi-
dend OF twenty per cent had been de-
olared and made by the company during
tho last two years, we were naturally
curious to know whether the city had
not receive % handsome contribution
from 30 promising source OF revenue.
On inquiry at the Treasurer's office
we were much surprised TO discover
that during tho last quarter, which
embraces tho largest receipts and
storage Of sugar and molasses
since the establishment Of this COM
papy. the eity's share OF the income
was only 1896 %, and that for the year
1876 1t was only $1e5e 70. This appeared
to be very small contribution or tax to
be paid by company with o capital OF
$4,000. upon which they made q di-
vidend Of twenty per cent. Twenty per
cent on capital OF $4,000 would give
Il gross receipt OF $4,000, ten per cent
Of which ought to give the city $4,000.
But since the expenses and interest are
deducted before q dividend is made we
take 1t for granted that tho gross re-
eeipts were much larger.
Whether the whole capital has been
paid up and expended In the buildings
OF the company we are not informed.
But as the stock, at the commencement
and before the expenses were incurred,
was held at twenty cents on the dollar,
and Is now held ut ninety eight, we
presume that the stock must have been
paid up and applied to the construction
Of the buildings, etc. II it has not been
80 paid up and the company has u.s.
sumed the debt, OF course tho gross re-
oeipts will be debited with the interest
on the amount thus due. Still, after pay
ing the city its ten per cent charge for
the use Of the property, on this as
sumption that the company owes for
the sheds, the income OF the city ought
to be much larger, and as the city
has the reversion Of this property
OF the expiration Of twenty five years,
upon payment OF half it's appraised
value, II has an interest in ascer.
tanning whether the cost of erecting the
buildings has been paid. But even
with this, and the payment Of the ten
per cent Of the gross receipts, the
amount appears to ben very small bonus
to be paid to the city for the exercise OF
80 large and valuable q privilege Of leas-
ing the commerce Of the city-especially |
since the right to impose and collect |
such tax has been denied to the State
by decision Of our Supreme Court and |
by an act Of the Legislature OF 1913,
which is still In force.
In precisely similar case the Sec
ond Municipality claimed such q right
and passed an ordinance Ia 1B43 provid-
ing for the collection OF o tax on every
bale Of cotton and hogshead Of sugar
and box Of merchandise, landed on the
wharves or levee. The Supreme Court,
in the suit of Worsley vs.. The Second
Municipality, 0 Robinson 337, expressed
the following opinion:
"The right to ask remuneration for
the use Of the wharves In the shape OF
tax upon goods and produce landed In
the city, rests upon implication and
since the passage Of the act Of March
30, 1843. to define the powers Of the Cor
poration OF the City OF New Orleans,
by which the collection thereafter Of
such tax, duty or charge Ia forbidden,
thereby giving Legislative construction
to the different laws relating to the
subject, must be considered as no longer |
existing"
II the city had no right to impose
such tax or charge, could it Invest cor
poration with that right? And why |
should the city make itself party to
such an oppressive and illegal imposi-
ton and share the same? Nay, more
than this, why should it allow the COM
pany, under its sanction, to collect an
even larger tax than, according to Its
charter, 1t is entitled to charge?
This Is the subject OF complaint
made by nearly all OF the parties inter-
ested in one Of the most valuable trades
of our city and by the producers in the
country Of the most valuable product OF
our State. In their behalf and in con-
domination Of such practices 1t behooves
the reform party Of this State and 1t is
certainly our duty as public journalists
to demand that this memorial receive
the prompt and favorable consideration
Of our city authorities.
OCTAVE FORSTAII.