The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-05-29
FUNDING BOARD.
RECONSIDERATION OF ITS ACTION DE-
CLARING FUNDABLE THE PLANT
ERs. ASSOCIATION BONDS.

ENs ASSVGlAH1VN bVNDSs
In Round Figures, $3.50, 900 saved TO
The state Opinions Of the
state Omcers.
The State Board of Liquidation met yester
3day Gov Nichols presiding. and present the
(I,eutenant Governor, Secretary of State, State
8Auditor State Treasurer Speaker Of the House
and Fiscal Agent and absent. the president oil
Z the Cotton Exchange.
4 The Governor stated that the reason he called
| the board together was to consider what course
Twas best to pursue in regard to the bonds OF
the
CONSOLIDATED PLANTERS ASSOCIATION
of Louisiana. His own opinion had not been
changed since the bonds were first offered,
when he took the ground that,
THEY WERE FUNDABLE
and he believed go still. We have. he said, the
Judgment of the Supreme Court, and after thai
II had become final another judgment Is rendered
| which from appearances would seem to indi-
cate that the court had receded from Its action.
| That did not, however. prove to be the case. as
q portion Of the late decision had been ex-
plunged.
He believed it the duty of tho board to go
ahead and fund the bonds first, because the
State would have struck off 40 per cent from
II that Indebtedness: and second. because a suit
was pending In the United States Court. on
= which the action Of the board would have some
bearing. Application bad been made there to
have the association placed in the
HANDS A RECEIVER,
aud he did not believe there would be any
change for. the better. He thought the State
should have control of the association, and II
the bonds were funded the State would appear
! IA q holder Of the assets OF the association
hence the case for the State would be strength
ened.
He did not think that tho holders Of consols
would be interested in the least. and the only
persons interested would be the receivers and
Mr.. Kennedy, and nobody else was interested
In not funding them. The State was inter-
estsd In funding them and he 1.-THE Governor)
believed it to the interest OF the State and eve
rybedy else to fund them.
Mr., Bush asked If he alluded to the bonds
before the board or the entire series.
The Governor replied that he spoke of the
whole series.
Lieut.. Gov. Wiltz stated that as one OF the re-
Hceiyers of the Consolidated Planters Associa-
ion he desired to preserve only the interest Of
the State, an,h turning to Gov. Nichols. he
sad) You misrepresent me- rs far as the
RECEIVERS ARE INTERESTED.
Neither Mr.. Eustis nor myself have made the
slightest objection to the funding OF the bonds.
Those interested In the liquidation of the af-
fairs Of the association were the parties who
are the stockholders. AZ far as our trying to
prevent the association going into the hands OF
the State, you mis- epreaent us, Governor"
Gov Nichoils-As far ~ you are concerned,
Governor, am satisfied that you went there as
receiver only to represent the interests OF the
State. You misconstrue my language. | did
not refer to you but to the other receivers par
ticularly Mr., Planters.
Some discussion epsued when Mr. Les .sssier
Uyh n M q mr. Fh hn hnA
Withdrawn the bonds OF the association that he
had presented for funding. He had been offered
price for them which would not more than
they would had they been converted into con-
soils.
s Auditor yumel did not see exactly what the
Popped from one side to the other. They init
Mated one thing aud charged, by the expression
IN the order expunging = part OF their late de-
csion. that the Attorney General had
NOT PERFORMED HIS DUTY
in not presenting something that they did not
Lieut.. Gov. Wilt moved that the board recon-
slider its action in ordering. at previous meet
ing. that the bonds be funded.
Mr. TO ea tRe Attention
the board to few facts. and inquired II tAey
we're familiar with the law creating the Funding
member for thu funding Of any bond not valid
obligation Of the State. He thought that Judge
~ Ms hs en4s the pending
OF the State. and believed he would render his
decision wholly upon the merits OF the case.
Gov. Nichols thought the action Of the board
might have some bearing on the case
The Secretary Of state thought that by fund
sets Of the ASSOCIATION II possession could Be-
obtained without funding he would voc
against funding them.
special committee of the board. consisting of
MIR. Bush lchairman). the State Auditor and
al ms edw dsed o' sad that s as s5t eG po
ultimate authority to
EXTEND HER LIABILITIES
and, therefore. we believe In this instance that
to their reimbursement. see that they are prop
erly and legally administered and applied, and
8 oud these prove Inadequate. they In the
neantime having pursued all their legal rem
eles, then apply to the state for the fulfllment
aid redemption, of her promises
Respectfully submitted
ALLEN JUMEL.
The following resolution was offered by Hon |
Louis Bush. and, on motion Of Mr.. Black. sec |
onded by Mr.. Kennedy. was adopted
tie report Of the Special commte ss Of Which
Louis Bush Is chairman, made part hereof. we
decline to fund bond G. NJ 46t. ISSUED, by the
state O. Louisiana. presented for funding by
Lesassier Binder, under statute No. Of |
1874.
Speaker Bush said he would take the same
position now he did then. and would maintain |
the resolution already passed by the board. Ia |
point 1t of s policy he thought it would be better
ton. though it would be better to adhere to the |
decision and fund those which had already |
been presented and receipted for If that was
not done, 1t would place the agents here of
foreign. bondholders in false position with
their clients.
Mr.. Kennedy thought If the board did not re-
scind the resolution to fund the board would
nave 10 fund all thai was presented. He read |
then the following copy Of that portion of the
record in the
SUPREME COURT DECISION
relating to the expunging of a certain part of |
that decision. as follows:
The Supreme Court on Saturday the eight
zenith OF May. 1879, on an Application OF an