The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-12-28
THE STATE FUNDING BOARD.
THE sIsg, ESQ SEMINARY THRUST FUND
BONDS RES ECTED.

bonds RES ECTED.
Mr.. BIgney Asks for Reissue Of $50, 600
He'd River improvement bonds.
The State Board OF Liquidation met yesterday.
Present. the Governor, Lieutenant Governor.
Speaker, Secretary OF State, the Auditor, Treas
urer and Fiscal Agent.
The Governor stated the object Of the meeting
10 be the consideration of The matter OF
FUNDING THE SEMINARY BONDS.
The Auditor moved that the application be re-
;seted. which motion Was seconded by the Beore-
tary Of State.
The Speaker said he did not understand who
had made the application.
Gov. Nichols then explained at some length
Che manner In whichithe bonds appeared before
Che board, stating that they were q trust fund
{s1se0O0 and that since the passage OF the fund
ing act no provision had been made by the Legis-
lsture for the payment OF the interest. He then
referred TO the action, published ct the time in
the DEMOCRAT, OF the Board Of Supervisors Of
the Louisiana State University ahi Agricultydra
and Mechanical College, stating that thsas poard
had passed resolution directing the. custodian
Of the bonds--the Secretary Of STATE and Treas
urer--to present the bonds TO the rs]oard OF Lqui
nor said, had declined to sct, when
A MANDAMus As TAKEN
and an order issued to thfe custodans to present
them; that the other board would not yield the AZ
per cent discount II .pae bonds were funded, but
would look TO The Legislature for relief
Mr.. push remarked that he did not believe
there wes.s any authority for funding the bonds
..ie action OF the custodans in obeying the order
OF court was correct. but he did not think that
the Board was vested with authority to fund, as
they were not part Of the State Indebtedness.
The Secretary Of State said The Attorney. Cen
eral considered II debt Of the State, and IL they
were funded IL would be release of that much
Of the state debt.
Mr.. Bush thought IL would be a violation Of the
constitutional provisions to take any action upon
them. This was trust fund, he thought,
AND WAS, THEREFORE,, INAbrENABIE.
The Governor said his idea was that the board
should reject them. He knew that there was
legal objection involved, and 10 would be better to
let the courts decide the question.
Mr.. Bush did not think the bonds any evidence
Of debt.
The motion to reject was then carried without
Mr.. M. +. Bigney, who was present, then pre-.
scented claim to the board for the improvement
Of Ned river, under Legislative act OF 1868, ex-
r.
was the chief State engineer, that the work was
divided into four sections, and that three were
completed while Mr.. Mccullough was in author
ity. they being the second, third and fourth geo.
hons. and that warrants amounting to $50 OCO
had been issued by Mr. Wickliffe, who was Audi.
tor, BY eome sort Of crookedness TO parties who
got the bonds without presenting the warrants
or certhcates. The fret section, he said, wac
completed when JEFF. Thompson was in author
ity, and for that $50 900 in bonds had been issued
BY Gov. Kellogg. or sent to the Auditors of1ioe,
Clfnt0ns. litigation arose as 10 the first issue.
In which the parties he tMr. Bigney) represented
were defeated, and those parties now holding
THE ORIGINAL CERTIFICATES
presented them TO the board for action. The
s5O,000 IN bonds issued had disappeared some
how and he supposed they must have been taken
away when the Auditors books and papers were
taken; there was no record Ut all events, showing
thAt they had ever been paid TO any one. In
view Of these facts he desired to know IL the
original certificates now presented would entite
him, ~ subrogee, to Reissue Of the bonds.
Lieut. Gov. Wiltg moved to postpone further
consideration Of the matter until next meeting.
Mi: Bush remarked that he thought the bonds
had been issued once, and, Ii he was not mig |
taken, the Auditors report, or some committee
report, stated ae much.
Mr.. Bigney said he understood from MFR. II. |
Conquest Clarke, Gov. Kelloggs private secre-
tary. tnat the $50,u00 bonds were signed by Gov.
Kellogg and sent to the Auditors office but were
Mr.. Bush thought the Auditors report showed |
the whole $4,000 to have been issued.
Coy Nichols remarked that the only way to do |
would be for the Legislature to authorize Mr.. |
Bgney TO eue the State
Lieut.. Gov. Wilt withdrew his motion to post |
,pone and moved that the
APPLICATION BE REJECTED,
that MIR. Bigney could 70 to tho courts with the |
case. Carried.
Executive session was then called, and soon
thereafter the board adjourned.