The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1878-04-10
NO RAILROAD.

! We seem to be doomed and nearly
damned in Louisiana, and now that
our Courts stretch the law so eager
ly and unjustly against justice, VIC
are forced to make the admission.
The following decision against our
Railroad was rendered, on the Sd
inst, in New Orleans, by Judge
Walter H. Rogers, of the 9th Dis.
trict Court:
"The General Assembly, by an act
of 1878, approved March II, entitled
an act to authorize the loan of State
bonds to the New Orleans Pacific
Railway Company, ETC., provided for
the issue Of bonds of the State to
the extent of two millions of dollars,
to be made in amount and condition
as specified in the provisions of the
act.
BY the fourth section of this act
the first issue of State bonds is pro.
vided to be made as soon as the act
shall take effect. to the amount OF
$25O,0O0, represented by the work
already done on said railway.
|
| The Governor, Secretary Of State
and Auditor Of Public Accounts
having refused to issue the bonds re-
quired by the said fourth section of
this act, this application is made to
order the performance of duties
prescribed under the said provisions.
The Attorney General, in defense,
alleges that the act of the Legisla.
ture making this grant is uncousti.
tuticnal and null for several reasons.
one of which is "because it violates
the amendment to the constitution
limiting the debt of the State to
$l5,O00,O0O."
By act Of the Legislature, approved
January "a, 1874, provision was
made fer finding the floating and
bonded debt, and authorizing an ex-
change of bonds under the act for
outstanding obligations at the rate
of sixty cents in consolidated bonds
for one dollar in outstanding bonds.
Section ID of this act provides that
"the entire State debt prior to the
year of our Lord 1914 shall never be
increased, directly or indirectly,
beyond the sum of SIS, 0O0, 900 here
BY authorized, it being the intent
and object of this act, and of the ex
changes to be effected Hereunder, to
reduce and restrict the whole indebt.
edness of the State to sum not ex-
ceeding $l5,000,000, and to agree
with the holders of the consolidated
bonds to be issued hereunder that
said Indebtedness shall not be in.
creased beyond said sum during said
period"
Of even date was enacted an act
proposing amendments to the consti
tation OF the State confirming the
funding act above re cited, and which
amendments were apirovel by vote
of tie citizens Of the State.
When these several acts of 1874
were passed the Legislature had he
fore it the report OF the Auditor of
Public Accounts for the year ending
December 81, 1873, aud this ex
hibited:
Total m on Mt Of the
absolute debt of the
., state $M SOC, $50 SO
Total amount of the debt
for which the State Is
contingently liable. 5,4S3, 6O2 AZ
Total absolute and contin-
gent debt .s2e, sel, 1882 IS
Also, acts of the General Assem-.
bly, granting State aid to various
corporations, bonds not yet issued.
$l0,7Ss,ooo.
1t is contended by counsel for re
Iator that the funding act and con.
stitutional amendment of 1874 in re.
ducing. and restricting the debt did |
not contemplate this contingent liza
bility, and this court would err if it
considers as part, of the debt of tho
State this contingent liability of
$5,00O,0O0; that this amount repre-.
sents bonds Endorsed by the State in
favor of the associated banks and
Citizens Bank; that the bonds of
these banks are secured beyond per.
adventure, and the State will never
have to pay them; that the Legisla-
ture have not deemed it proper to in.
cluie them in her schedule, and as
the sovereign cannot be held to a re
sponsibility for them by her own
courts, that is to say that the Legis-
lature contemplated reducing a debt
of nearly $so,ooo,ooo to s15,ooo,ooo|