The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-03-31
CONSOLIDATED BONDS.
THE VIEWS AND PURPOSES OF THE
HOLDERS or THE CONSOLIDATED
DEBT OF THE CITY.
To the Taxpayers of New Orleans.

the holders of consolidated bonds TO appeal
In utter self defense, for protection aud relief
to the judiciary
To ascribe such recourse on their part to
any other motives than those which should
inspire the administrators Of public pr operty.
and which should control all freemen and
good citizens in the maintenance OF tho legal
and equitable rights, and the defense Of tho
honor and good faith of the corporation. and
the true interests of the taxpayers aud the
people, is to reflect upon class of citizens
who have given as strong evidence OF fidelity
to their duties as citizens, as any other of our
community.
Their motives and rights are fully vindcnted
by the judgment just published by the Judge
of the Third District Court. No upright
soul, no enlightened mind, can fall to approve
the impartial conclusions OF the learned and
honest judge. The attacks made against the
constitutional validity Of the law relative to
the consolidated bonds and their safeguards,
SO wisely framed by tho founders Of our
present city government, have been so com
pletely repealed as to leave no hope for those
who sought through the Legislature to drive
the holders of unquestlonable claims, secured
by solemn contract executed quarter of q
century ago, and during that period uniform
ly acauiesced in. either to convert the evil
dences OF their debt into lottery tichets or to
resort to judicial protection for the recognition
and enforcement Of their rights. They have
preferred the latter course, and were con-
firmed In Its propriety by the attempt made
by the legal advisers of tho administrators
to impeaeh the constitutional validity of the
consolidated debt. Hence the appeal TO the
judicial authority to determine these ques-
tions. The decision just made In their favor
does so much honor to the integrity, learning
and independence Of The judge. who rendered
1t. OF its atiirmance by the Supreme Court,
there can be no doubt in any impartial. legal
mind, or In that Of any DISTINGUISHED person
who has read it. This decision accords to the
consolidated bondhplders nothing BEYOND their
strict rights. 1t has no further scope or effect
than to command the city administrators to
levy the tax provided In the act Of 1861 to pay
the interests required for tho consolidated
debt, to wit: the tax for the years 1876 and
1877 and in addition, that for the present
year. As the city has paid interest only for
1874, 1875. and 1876, without curtailing the
principal, she ia ordered by the court to per-
form nor, that which she failed to do season
ably during those years.
The omission to perform duty does not
operate its remission or extinction. Fortu-
nately for taxpayers, the total tax to be
levied under this Judgment does not reach the
figure published in some Of the newspapers
These bondholders will not, as insidiously
charged, claim their pound of flesh;" on
the contrary, they will, as cheerfully, now-
as before this judicial adjudication in their
favor, when they emphatieaiiy and frequently
declared their desire to do so-make it their
duty to facilitate an honorable understanding
with the city and the taxpayers. The sub
stance Of what would prove acceptable was
embodied In the projet of an act indorsed by
a large number of prominent taxpayers and
presented to our last Legislature, but which
received no attention from that body or from
The representatives of the city.
Deprecating the involvement Of this u,les-
ton in political discussion and for political
the representatives of taxpayers. as the par
ties mainly interested, Is still acceptable
Entitled under the decision. to levy of
tax of $650,OO0 per annum, up to the year
1892, the bondholders are willing to reduce
their claim, so that it will not exceed a levy
OF $2750O0 per anpum, provided the interest
on their bonds be faithfully and punctually
paid for the future, and the coupons for the
years past and for the present one be ex-
changed for bonds to mature in 1899. and to
bear interest. By this means, the extinguish-
- .l,t ,Jx
poned till after 1892. The tax to be raised in
the meantime 1rouid be to meet the maturing
coupons only
Certainly this proposition would not impose
O CRUSHING TAXATION on this city. And If
such disastrous result should follow, 1t would
not be fastened to the creditors whom we rep
resent, but would have to be saddled upon the
legal representatives of Taxpayers who
should, by all legitimate and proper means.
seek to reduce the apprehended burdens
which we seek to tighten, and not 10 augment.
Whether these representatives will be justi
fled by the taxpayers for yielding to political
or any other considerations, in opposing and
preventing such an adjustment, and SO fail
to rescue their constituents, is question
which public opinion will, no doubt, solve as
1t should be solved.
Very respectfully,
e. BERMuDEz.
Counsel for the Southern Bank.
p. SIN the event that the case decided
should go on appeal by either party to the
Supreme Court, the REALTORS would claim not
only the atfirmance of the judgment, so far as
it makes the mandamus peremptory, but also
an injunction TO prevent the application 10 ann
bonds of any tar, raised on real estate, to their
injury.
TRERVILLE PARISH
The Crops - The seed Cane Poor The
Lumber Trade of PIaGuemine.
Correspondence Of the Democrat