The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-05-22

agreed TO fund, and also of those which may be
rejected, the bonds and coupons to DO authenu-
Gated thereafter.
question OF the utility Of this plan, Mr.. Black
contending in favor Of the old process. The
opinion OF
THE BorDHoLDERs PRESENT
was also taken on the subject. Finally the mo-
tion prevailed.
the State National Bank, was taken up.
Bonds and coupons issued under acts NOS. 10 OF
1866, 1l5 Of 1867, 50 OF 1870, and 55 OF 1869,
s34, GIT 76.
The first to be considered were thirteen seven
per cent larry bonds, $4,000, issued under
act No. 55 Of 1863.
Mr. Bush read from the report OF the commit
tee to examine into tho proceedings OF the Fund
ing Board and Board OF Audit in 1876. These
bonds were issued to the amount OF 100000, to
pay for SO 1000 Of machinery for the msnufac-
turs OF cotton goods in the State Pententiary.
The amount outstanding June 30. 1876, as per
debt statement, was t87, t00 recorded as fundabie
Mr.. Bush stated that he had carefully inquired
into the law, and thought that it would be neces
any objection could be urged.
Mr.. Wilt moved that the bonds and coupons
OF this series
BE DECLARED FUNDABLE.
Carried.
Five bondz, $1,000 each, per cent, issued
under act 30 OF 1866 expenses OF building ievees,
s5OO0
Mr.. Bush was Of the opinion that the bonds
ought not to be funded until they have been
legally adiudicated upon in conformity to act No.
ii Of 1875, as the opinion rendered by the Su-
preme Court OF the State in the case OF the State
of Louisiana, ex rel. Attorney General, vs.. Chas.
Clinton, Auditor, and Antoine Dubuclet, Treasu-
rer, Frank Morey, intervenor, only applies TO the
bonds then held and presented in litigation by
said Morey.
Mr.. Bush read the derision.
The Supreme Court decided in relation to the
Morey bonds: /. They were issued under COM
treasury to be appropriated for Legitimate pur-
poses. g. The law is not unconstitutional. 4.
They are in the hands of 8 bona fde purchaser.
Gov. Nichols was OF the opinion that the in
junction sued out by the Attorney General rs to
all other bonds Of the same series was still in
force.
MIR. Black said that with the exception Of the
Ludeling and Crocodile Bayou bonds, more
FRAUDS HAD BEEN COMMITTED
10 respect to these bonds than any other class.
He had opposed the funding OF them all through.
Mr.. Bush stated that by act 1l6 of 1867 the law
authorizing the issue OF these bonds had been
repealed and the bonds orderedto be cancelled.
This was in March, 1867. Up to January, 1867. not
one Of the bonds had been sold, but 300 were
pledged.
In spite of the repeal OF the act tho bonds were
negotiated. On June 80, 1876, the amount out.
standing was 1907 900, the being 81, 10000 600.
Mr.. Witt moved that the matter be
REFERRED TO THE ATTORNEY GENERAL,
but thereafter withdrew the motion.
MIR. Black read the minutes OF the old board in
regard to these bonds. In executive session, w.
p. Kellogg offered q resolution providing that
levee bonds Of this series, the authority of the
decision Of the Supreme Court referred to above.
This resolution was adopted as q
SUBSTITUTE FOR THE RESOLUTION
of Mr.. Black, who moved that the funding be
limited to the Morey bones, and protested against
the funding of any others OF the series.
Mr.. Bush offered the following
RESOLUTION,
which was seconded by Mr. Jumel, and adopted:
Resoloed. That the five bondsj Of $1,000 each,
eight per cent levee, issued under act No. 35 OF
1866 Nos 22O, 23o, 2l7 and 1885, with the five con-
pops thereto attached to the 1st January, 1874,
be and the same are hereby declared not
fundable under the statute No. OF 1874
until they have been legally adJualc sa1s
this board being of the opinion that the only
decision rendered by the Supreme Court OF this
State, to wit in the of the state OF Louisiana
ex rel Attorney General w. Charles Clinton,
Auditor, and Antoine Dubuclet, state treasurer,
Frank Morey, intervenor, only applies snd has
effect as to the bonds then held and presented in
the litigation by said intervenor, Morey, and
that the ipjuncti in said matter, sued out by
the Attorney General as to all other bonds OF said
series,
Is STILL In FULL FORCE
and effect; which, with sid act No. II OF 1875,
peremptoriy preclude this board from funding
any of said bends until adiudicated upon by the
Supreme Court.
MIR. Kennedy being present by invitation. the
matter Of the correction OF the basis was again
discussed and the amendment made according TO
the explanation given above, and ordered to be
introduced into the contract.
At 8 p. m. the board adjourned until Tuesday
at noon.