The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-08
rHr INDEBTEDNESS OF THE CRY.


Resale Maenhaut and others vs. the City o
New Orleans and others-in equity,
now proceed to quote him, as follows
Previous to the 23d of February, 1852, the
city of New Orleans was composed Of one gen,
eral municipal organization, which comprised
ment Of It's own. and each Of which, az well as
the general municipal body, had contrra. v,
debts, for which they were Respectively llable;;
At the date first named an act OF the General
Assembly Of Louisiana was approved, when
established municipal corporation to be called
the city NeE 70 be bs p IL ,ha
Mayor and Common Council. The act declared
that the estate aud title Of. the several muniei-
Wharves, markets, salls. landing places, build
ings and other properly should be vested In the
city OF New, Orleans. Section 81 Of this act pro
commonly called the old city debt, and the deb!
Of the three municipalities, should be assumed
s End sd sy h s sty q Nw tb otsaas fye
officers Of the city, including the Mayor,
were :, constituted c?mmnssionne a,s OF the
sz d+ debt g to Nsw te bonds II
run. with interest payable. semi annually, The
these bonds Tor any bonds, obligations or debts
Of the old corporation, or any Of the municipall-
ties. or TO cell the same, and with the proceeds
bonds thus issued should form o stock to be
called the. consolidated debt OF New. Orleans.
mon Council sss SIss9 e. oGws ,o The e 9 i
January, pass an ordinance TO raise the sum Of
q 600 BY Special \, tar 81 real estate and slaves
rate per cent of said tax in each municipality
shall be In proportion to the debt of each.
All ordinances. resolutions Or other acts
January In each year, shall be null and. void
unless the ordinance imposing the consolidated
loan tax shall have been previously passed. Az
the end Of each and every year any surplus OF
the consolidated loan tax remaining in the
treasury, after, the payment OF al the interest
shat be Applied TO the purchase from t Il. low,
aslhave the shortest period to run. The fourth
section provides. Nor shall any loan be CON
vote Of the majority q the qualified voters Of
said city; and no ordinance creating debt or
loan shall be, valid unless for some single OBJ
less Buch ordinance shall provide ways and
means for. the punctual payment OF running in,,
terest during the whole time for which said
ed the same day az the act Just mentioned, the
amount to be levied In January of each year to
pay the principal and interest on said bonds
this act and upon the faith thereof about
s1o,o0o,ooo Of bonds were issued. which were me-
go.atesd above par and sola II ths money mar
Again. in a later decision of Judge Woods
and in, the. same, cause, this language is EN-,
e 81 e a va
and binding on the city, and that the bondhold-
ers are entitled to exact the substantial perform
former f hearing s q the case Maenhau ct al vs..
The City Of New Orleans, Woods. 1os The
37th section Of the act OF 1864 constituting, as IT
holders, stands Unaffected by any subsequent
legislation that seeks TO impair or repeal its
provisions, But the remedy OF the complain
ants to enforce their contract Ia clearly not in
equity, but at law, by the recovery OF aiudg
ment on their coupons and bonds. and by the
writ IF mandamus commanding the levy levy epd
Inn hp tnx rad Inv IA iGf
at law is plain. adequate and complete, and
equity cannot be resorted to-"
mha a Geo a e this the s
valid and binding on the city and stands un-
affected by any subsequent legislation that seeks
TO impair or repeal its provisions"
twill be remembered that under the orders
of this same court and Judge, q special master
in ehaneeery, was appointed IN the person of
report to this said court upon several specific
points OF Inquiry connected with this same
cause,
The masters" report has been handed in
and has been approved by Judge WOODS; The
eretal order made in this CAGE on April 20, 1876,
i, the subscribing special master of this court |
IN this case, having been attended at several
times by counsel for the complainanta and for |
the defendants, and having. examined the
records preaented) and taken the testimony Of |
several witnesses produced before me upon the |
der, and considered the same. |
l.. On the first pvint of inquiry. TO wit: What |
fs the amount and number of the bonds issued |
tunder act 1882 which remain unpaid | re-
port; /. The number of bohds outstanding and |
900. etc.
On the point of inquiry next properly In or
!, Whether the conditions Of the srth section OF
The act of 1852 have been violated by tho issue of
other bonds or evidences OF debit
report:
!. That under authority the Legislature. to
10 the New Orleans, Jackson and Great North
Urn Railroad Company series of bonds
amounting to s2,ooo,ooo, for subscription to the
,apital stock Of said company; after passing an
to levy special tax to pay the an
nual interest on sad bonds, but without pro-
riding by such .na PR previous ordinance ways and
maturity of the principal of the debt 80 in
'urred,
Q wit: Act No. 1os. page 90, Of 1854, the city is
.ued to the New Orleans, Opelousas and Great
Western Railroad Company series OF bonds,
to 81, 100000 for subscription to the
aptal stock of said company. without provid-
ng, by previous ordinance. ways and means for
he full and puncual discharge of the principal
II the debt SO incurred.
3. That under authority of the Legislature
liz: Act of 1854 No. Ito, page 10. the city issued
9 the Pontchartrain Railroad Company series
/ bonds. amounting TO s5oo,ooc. without pro-
|
or the punciual discharge OF the principal of
he debt SO incurred.
4. That under authorization Of the Legis-
ature. viz: by act of lat OF April, 1888 sections
and AZ, repealed by subsequent laws. but re- |
ewed by act of 1858. No. n. page 0, the city, |
hough under no obligation, purchased the
Waterworks. and issued a series of |
onds for the price. viz: 81 800 400 without full
ling any of the previous. conditions imposed
y the act of 1882 The OF 1889 did not create |
ny contract or obligation to make such pur- ,
base, and therefore 1t was not included in the
,nsolidated debt
8. That also under authority of the Legis- '
sture. to-wit: the act of 1868. No. 50. page co.
1e city issued series of bonds. amounting to | q
100000, and which were sold to raise money to
beet an excess of current expenses This issue il
1as entirely in violation Of act of 1862.
Q. That besides mourning the debts created =
y these bonds, and NOTWITHSTANDING the pro-
EDITIONS contained in the acts OF 1859. aad the
ct OF 1885, No. l73, page 2as, the city of New Or
sans continually created debts and made ap- Q
ropriations in excess of revenues from taxes
nd ether resources so as to create outstand-
NJ obligations, the total of which amounted, in
1869, TO 81. SOC, 200, exclusive of sum
$Gss,40S due for arrears of interest on the | Il
ame.
z. That $a,o4o,4o Of this last mentioned debt :,
in 1869 was evidenced by notes in |
..~tA.x -