The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-08
plying with any Of the previous conditions Inn
posed By the thirty seventh section oil the oct OF

plying with any Of the previous conditions i'm.
posed by the thirty seventh section Of the act OF
| 1851.
Ii, THAT In fact the city had previously begun
to issue illegally these bonds Il excess Ct The
pct Of 18Th and eoptn s TO 40 So NOTABLY
known noSs a as wRarf bonds 81 which Tie amount
outstanding on June 30. 1876 was $685. 900
| wthsfanding The act Of 1859. and abdicating its
| right TO exercise Its own discretion In making
or refqsng to make CONTRACTS s N to the
q 1871, reuuifing an oner9ua contract with the
| Mississippi and Mexican Gulf Ship Canal Com
pany for the drainage of the marshy land with,
| In the city, whereby great debt was created
and heavy tax imposed ON property, which
| debt 80 created Is set down In The statement Of
thirtv-flrst December 1875. as amounting to ST.
10. That again. the increase Of the floating
| debt continued as before and from the same
twenty sixth April, 1872; the Legislature by act
of that date. No. 49, page 127 section ID, In neg
alive pregnant terms authorized the issue Of
more bonds IDS by limiting the sum total OF all
4. That The city submitted to and complied
with tho acts of the Legislature, No. ~. page
1885, OF 1870 No. 90, page 1874 OF 1871, and No. 8,
page 1o4, Of 1875, and accordingly has. levied and
continues to levy tax TO pay an inordinate price
9T s S the
lag administered by another and distinct. body.
This tex amounts to about s7g 900 per annum, il
special tax, and It's proceeds are get apart to
meet the acquisitions Of the Park Commits
sioners.
IL. That the result of this enormous debt I'm.
proyidently and illegally incurred was pre-
cisely what the eheck s and conditions Of the
37th section OF the act OF 1869 were manifestly
said ys asfs lis ssyy e
pair the credit Of the city and the value OF the
bonds, issued under said s7th section.
49, That from 1859 to 1865, the bonds Of the
Consolidated Debt were sold at premium, but
from that period they declined.
The details appear from statement No, %,
d dollar arc ~" 'uo'eu ~ 'o''' Genus Oh 'ne
H.. That notwithstanding the impossbility of
debtedness, the city Of New Orleans has re-
Trained from. contrasting its legality or eonstitu-
tionality and on the contrary admits It's validity
to perpeuate the came has devised new plan
to fund the whole without diserimiuati2n into
series Of bonds known aS Premium Bonds
the debt into fifty yearly instruments, the first
Of which instruments ls made payable in. Janu-
to each bond a particular term for payment.
but making this depend upon the drawing of
lots. more specific description Of this scheme
appears in statement No, 80, hereunto annexed
and made part of this report.
And finally. on the eleventh inquiry the mas
XXI, On all the points OF inquiry generally,
report: |. That the act of 1859 was designed as
an irrevoeable check and safeguard for the
benefit and advantage Of the holders of the con-
solidated bonds. No, debt could be contracted
except according to its provisions. The hold
ers of the bonds are entitled TO precedence In
the collection Of taxes on lands and slaves. and
of any subsequent debts that would Interfere
with or prevent the payment of the consolidated
debt. unless such subsequent debt was con-
traoted upon compliance with the terms and
conditions of the act of 1855, which In no in
stance has been done"
n ia very nIaar than TINT NJ tbia All ,o
called present indebtedness, footing up s24 22o-
es3 81, not more than 81 39l 900 is valid and
binding on the city I, all the rest having been
imposed upon her Regardless of the oblga-
tons created by the act of 1851"
G. II. TABAULT,
President Real Estate and Taxpayers Union.