The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-02-20

OF two-sevenths OF the entire capital
amount OF stock owned by the city shall
be reduced below two-sevenths, the said
Mayor and Administrator of Finance
shall cease to be ex-efficio directors, but
in lieu thereof the city shall have
the right to vote at the election
OF directors. and at all meetings
of said stockholders, like any other
stakeholder; and the said city having
once lost the right Of its Mayor and Adj
ministrator OF Finance to be directors
ex-offcio, shall not be deemed to have
reacquired said right by subsequent in
crease of the amount of its stock. That
each share of stock shall be entitled to
one vote.
Sec. 7. The stock OF the city shall not
be liable to seizure for the debts OF the
city.
Sec. s. The stock of the company may
be increased one million Of dollars;
provided, that the new or increased
stock shall be paid In cash or in work
done for the company. In case OF nom
payment OF installments the stock SUBJ
soriked for to revert to the company.
Sec. Q. In addition the board of direc-
tors Of the company shall have the
right to issue bonds, for the purpose OF
improving, ETC., It's works, to an amount
not exceeding two million dollars, on
such terms and bearing such interest as
they may deem proper, and the payment
OF such bonds may be secured by mort
gage on the works, property and fran
ohises of the company, the mortgage to
operate on the property wherever
situated without transcription. Pro-
vided no bonds shall be issued without
the consent of the Council of New Or
leans, and said bonds shall not be sold
or disposed OF except on such terms as
shall be approved by the said City
Council.
Sec. 10. Said company shall not
declare or pay dividends, except in cash,
and then only out Of the net semi.
annual or annual profits OF the COM
pany, nor shall any dividends be de-
elared until the contemplated works are
completed and in use.
Sec. H.. The city shall be allowed
to use water free from the pipes or
plugs of the company for extinguishing
OF fires, cleansing Of streets. markets,
and public and charitable institutions.
The company shall place, free Of
charge, two hydrants in front Of each
square, where main pipe shall be laid,
for fire purposes, watering streets and
cleansing cutters. That in squares that
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be placed on opposite sides OF the
streets, at equal distances from each
other and from the corners. The COM
pany shall be exempt from State, mu-
nioipal or parochial taxes.
Section IL gives the company the right
to use streets and lands for laying pipes
and hydrants. In case the company
shall require any lot OF ground or lands
situated In any parish OF this State to
construct reservoirs or other works, or
for laying pipes, ETC., to condue6 water
to the city OF New Orleans, and shall
not be able to agree with the pro-
prietors of said land or lot OF ground,
the same may be appropriated in ac-
State. II the object of the company be
merely to lay pipes through a piece of
land, the appropriation shall be con-
fined to the serviture 1t may require
and not to the right OF absolute owner
ship.
Section IS. The company, Immediate
Iy after its organization, shall proceed
to the erection Of works sufficient in
capacity to furnish full and adequate
supply OF water, to be drawn from this
Mississippi or elsewhere; and the COM
pany snail from time to time, as the
wants of the population may require,
1Hu WACu blG C5bALuthbGu I'll baC
cost of such extension shall equal ten
per cent, extend their works through
out the entire limits Of the city and
suburbs east of the Mississippi. Any
failure to forfeit this charter.
Sec. Il. The city OF New Orleans shall
have the authority to apply the stock
subscribed for by said city to the re-
duetion OF the bonded or floating debt
OF said city on such terms as may be
agreed upon by the city and the holder
Of such bonded or floating debt.
Sec. Is. The said New Orleans Water
works Company shall have the right to
fix the rates of charges for water, pro-
vided that the net benefits OF said COM
pany shall not exceed ten per cent per
annum, and that the City Council shall
of not less than five, who shall have
access to the books Of the said COM
pany and make such extracts from the
same as they may deem necessary; and
In case said profits shall exceed ten per
cent, the City Council shall have the
right to require said company to reduce
the price OF water in such manner and
proportion that the profits shall never
exceed the above named rates; and in
case said company shall refuse to COM
ply. the demand OF the city may be en-
forced by writ OF mandamus.
Section Is provides for penalties for
obstruction or destruction OF the works,
etc, of the company, interference with
it's employees, the pollution Of water,
etc. Fines at the discretion OF the
courts, to be paid and applied to tho
use of the company, and Imprisonment
not to exceed seven years. IA gs4..--,t
Section II. Until other works are con-
structed, by which the present works
may be dispensed with, the same shall
remain under the control OF the City
Council, and the superintendent there-
of remain In the hands OF the Admins
traitor of Waterworks and Public Build
ings, but the said company shall be au-
thorized to collect the revenues thereof
and apply them to the expense Of oper-
ating and extending the werks.
River News.