The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-05-07
THE RAILROAD.
THE SUPREME COURT DECIDES THE
STATE AID TO THE n, O.
PACIFIC Is VALID,
A Railroad to Texas Now Certain.

The General Assembly at it's last session
passed an act authorizing the loan TO the relator
of the bonds of the State to an amount not ex-
ceedng two millions of dollars. the first issue
Of which should be for the sum Of two hundred
and fifty thousand dollars only AMI providing
for subsequent issues upon certain conditions
being complied with Acts 1878. .. 1o5.
The Governor. In approving the act. signifed
his intention to provoke Il judicial decision
upon the constitutional questions involved and
accordingly refused to sign and issue the
bonds, whereupon the relator took this pro-
cseding by mandamus to compel the Governor.
the Auditor of Public Accounts and the Secre-
tary Of State to issue s9so.Ooo OF bonds OF the
expressed in. the act.
The responde nts aver that the act is unoon-
stitutional. In that IT violates the amendment Of
the constitution which limits the State debt to
sl5 900 ooo; and because the constitution pro-
hibits the Legislature to contract debt exceed
gencies, Of which this is not one, without at the
same time providing adequate means for the
| payment OF the current interest and of the prin-
| because 1t s an attempt to use the taxing power
OF the State to aid q private enterprise.
,o7. The ~ funding dda act was approved January a.
| floating and bonded debt of the State and to
consolidate It by authorizing the issue Of bonds.
standing bonds Heretofore issued, and for all
valid warrants drawn previous to its passage.
| for one dollar in outstanding bonds and valid
| warrants. The thirteenth secrion enacted that
the entire State debt prior to the year 1914 shall
and object OF this reduction and consolidation
being to restrict the whole indebtedness of the :.
agree with the holders of the consolidated
| bonds that this indebtedness shall not be In
n that dng Rs the period 1
an amendment to the constitution was
approved, to be ), thereafter submitted to
consolidated bonds to be issued by authority of
az and IN = conformity to the Legislative act OF
State and the holders of them. which the State
should In no wise impair: and that whenever
the debt Of I the be, State shall have been reduced
remain at the lowest point reached, beyond
which the public debt shall not thereafter be
force until the debt Is reduced to s5 100000, be-
yond which it shall not be increased. Acts of
1874. pp. 80. 43. This amendment has become
a part Of the constitution by its subsequent
ratification at the polls.
This legislation funding bill and the act
lowed Immediately upon the submission to the
General Assembly of the Auditors report dated
January !, 1874. wherein is this statement and
The present market value of the actual debt
OF the State, funded and floating. is about
holders, at home and in Europe, that Il the
limit Of our debt by constitutional amendment
bs sa m s hgy z wcad Ts
and surrender In exchange their old obliga-
tions tbonds OF classes and outstanding war
cents on the dollar. The plan Of this funding
OF the & Sate at DEBT Is being t prepared In detail
during the present session.
The sequence of the events and the conform
ity OF the legi-Ia i to the idea Of the report.
show that the plan thus referred to Is the act
shortly afterwards passed.
The same report states the debt OF the State
ut that time to be-
Bonds outstanding January l. 1874 s22 43s. 800 90
Auditors warrants told).>----....... 565 7o2 o8
Auditors warrants tneWl ...........- 225 051 "a
Certificates of indebtedness ... 13i,785 40
Total. .s24 356 1893 u
In tabular statement appended to the re-
port and forming n ,h one beaod Of the sh exbs X the
for which the State is actually liable, Is fixed
at the figures. above set forth, and there are
then itemized the bonds for which the State is
con'ingently liable. amounting to 81, ,so3 ess 80.
which, with q sum stated as the miscellane.
ops debts of the State; make NJ. a sum total
of $4,000 600 In exact figures 1t is that sum.
less $S,217 II.
The funding of that sum at the rate suggested
will create consolidated debt of sls. .0oOooo
The funding Of the sum m Sta. stated BY the Auditor
solidated debt Of a little less than SIS 900 ooo
1t is obvious that the plan" both of the Au-
ditor and of the Legislature, embrace only the
the bonds loaned to the Ctisens' Bank and the
Consolidated Planters Association, which
stated as debt for which the State was only con-
tlngently liable. We have. therefore, to consider
whether the expression in the act Of 1874. which
restricts the whole Indebtedness OF the State to
| q sum not exceeding sl5o0000O; and the express
sion in the constitutional amendment. which
declares that when the debt has been reduced
to that sum 1t shall not be Increased beyond it.
so control and define the meaning Of the Legis-
lature in passing the one. and OF the people In
adopting the other. as to constitute an unauali-
fed inhibition OF any increase Of the debt OF the
State, after the whole. both actual and contin-
gent, has reached the prescribed limit
A statutory construction. the
ness of which Is attested by long use, and the
| frequent and continuing appreciation of Judi
maker is to be asesrtained by inquiring what was
his motive In egislating, what was the mis-
what the object or good to be attained. Con-
| temp oraneous history may be- resorted to. and
the discussions at endant upon the progress Of
| the legislation through its various stages as
| well as the Drojet Of the law. in order to dis
c yer the meaning and scope Of the law itself.
| Subsequent legislation also upon the same
subject. or upon cognate matters. is useful as
| furnishing an Interpretation Of previous words
| and in fixing their import.
Now, If separate the expressions referred
| to from the act, and ignore the general tenor OF
the law. and disregard or refuse to consider its
history and the circumstances attendant upon
| and which provoked its bir h. so to speak there
could be given but one construction Of the phras-
sOlOgy of the thirteenth section OF the funding
| act And that construction is opposed by the
| history OF the legislation, by the intent Of its
| trainers as disclosed at every anterior stage Of
| It's progress. by the reasons and motives which
were assigned as inducements for its adoption,
and by arithmetical demonstrations Of the basis
upon which the consolidated debt WAS calcu-
lated.
| 1t is impossible that the contingent liability
of the State upon the bonds loaned to the Cit
izen' and Consolidated Banks should have en-
tered into the plan" because funding them
with the other liabilities will produce a sum
total greatly exceeding that fixed by the act and
| the amendment
1t is equally Impossible that the State should
have contemplated and provided for the COM
pulsory funding OF bonds upon which her lia-
bility had not attached, but which must neces-
whole process Of funding should have been
pleted. And we shall advert to this feature
further ON. In addition to this we know the
exact figures. taken basis upon which new
bonds issued at the rate adopted BY the funding
bill will produce the debt limit also adopted.
You cannot reach the end set in view by the
funding legislation by any other road than that
In LILO q a.