The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-25
THE NEW ORLEANS PACIFIC.
\ PROPOSITION FOR STATE AID FOR
THE ENTERPRISE.
Ter Thousand Dollars Per Mire secured
by FIRST MOri gage.

by Pirst Mort gage.
Z An act to authorize the loan OF State bonds to
the New Orleans Pacific Railway Com
pany; to provide means for the payment
Of the principal and interest: to authorize
the company TO make its mortgage bonds
sind secure them by a first mortgage OF
present and future property; to provides
pledge OF said mortgage bonds to the
State and the terms thereof; and to reg,I-
late the use Of the proceeds Of said State
SECTIoN /. Be IL enacted the Senate and
House of Representatives. of the State OF Lou
isia,a, II, General Assembly convened, That
the Governor be and he Is hereby authorized
and required to issue, 10 the New Orleans
Pacific Railway Company corporation de-
scribed in act No. IA Of 1S76-bonds of the
State of Louisiana to an amount not exceed
Ing IN az sooooo accd9rdd ding to the hp pro-
$1,000 each; shall have forty years to run;
shall bear interest at the rate Of per cent
per annum, payable semi-annually, and shall
have semi-annual coupons attached. They
and countersigned by the Auditor and Secre-
tary of State and shall have the seal of the
State affixed. The coupons shall be payable
to the bearer, and shall have the engraved
signature of the Auditor In Office at the time
said bonds shall be engraved.
SEC. Q. To provide for and guarantee the
prompt payment of the interest on said
bonds, as 1t shall mature, and of the principal
Cf said bonds, on or before the expiration of
the period during which they are to run, the
New Orleans Pacific Railway Company shall
deposit with the Auditor Of Public Accounts
and pledge to the State for that purpose its
first mortgage bonds, secured by first mort
gage OF all its property, real and personal,
both present and future, and whether now
constructed or hereafter to be built, and such
deposit and pledge shall be of an amount ex-
ceeding in each case by one-fourth the amount
Of State bonds delivered to said company.
tsr. Tsfd nNrn ,arnxt tfx,t - TIC,
board Ut directors, Is authorized to make
such o mortgage, and the same shall cover
and affect as q first mortgage all property Of
said company, whether real or personal,
present or future, now owned or hereafter ac-
quired, and whether now constructed or here
after constructed.
The amount OF bonds secured by said mort
gage shall not exceed five millions of dollars,
1t being intended that one-half Of the same
may be pledged to the State, as aforesaid, and
the other half disposed OF to other parties.
The said mortgage bonds shall have forty
years to run. shall bear interest at 6 per cent
per anntim, shall have semi-annual coupons
attached, and said coupons shall fall due at or
prior to the time at which the coupons of the
said State bonds shall fall due, and the inter-
est paid on its said bonds by the company to
the State as pledge shall at once form fund
and be used to pay the interest on the State
b0nds which shall have been issued to the
company.
The said company shall further bind itself
ID said pledge to extinguish annually $4,000
of said State bonds, commencing five years
after the completion of its line to Shreveport
and to Marshall, Texas, and continue the ex-
tinguishment at such annual rate up to five
years prior to the maturity of said State
bonds, and during the last five years it shall,
under the same pledge, agree to take up and
extingulsh' one-fifth each year OF the amount
of said State bonds then outstanding; it being
understood and agreed, however, that when
ever said company shall SO extinguish any of
the said State bonds, 1t may withdraw from
said pledge and deposit, and the State will
amount OF the eompany's mortgage bonds
heretofore deposited and pledged as aforesaid;
and further, that the said railway company
may at any time redeem and deliver to the
State any valid State bonds equal in value to
those herein authorized to be issued, and may
thereupon withdraw from such pledge, and the
State shall then return to said company the
proportional amount of the eompany's mort
gage bonds SO pledged as aforesaid.
SIC. 3. To further secure the punctual pay
ment OF interest on the State bonds to be
issued hereunder it is provided that in any
case when sufficient sum is not provided by
the railway company, as aforesaid, to meet a
maturing coupon, it shall be the duty of the
State Auditor, or other officer having custody
OF the mortgage bonds pledged by the com
pany, to sell at public auction sufficient Of
said mortgage bonds after ten days adver
tisement; to pay the said coupon and the ex-
SEC. 4. The first issue Of State bonds under
this act shall be made as soon as the act shall
take effect but shallsbe for the sum OF $3.50 900
only, represented by the work already done
on said railway. Thereafter all issues of said
State bonds shall be at the rate of $4,000 per
mile for every section of ten miles of road
graded. bridged and metaled, to be shown by
The certificate of the engineer of the company
and0ne OF the State engineers, or If the office
OF State engineers shall no longer exist, of a
civil engineer detailed by the Governor
II the said company shall acquire any rail
way on its line, already constructed in whole
or In part, such acquired railway, when found
or put in fair running order, shall be taken as
apart Of the railway Of said company, with
reference to which State bonds shall be issued
under this act at the rate of So 900 per mile of
the same, whenever the same shall be certi-
fed as aforesaid.
SEC g. The proceeds realized from said
State bonds by said company shall be applied
strictly to the construction and work Of said
railway; and the Governor may from time
time, require an account from the said raik
way company of the application of said pro-
ceeds.
SEC. s. This act shall take effect from and
after its passage.