The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-11
THE GREAT CONSOLIDATED BOND
CASE IN THE THIRD DIS
TRICT COURT.

The suit OF the Southern Bank and other hold
ers Of consolidated bonds against the city was
fixed for trial yesterday at IL O'clock
The case was called, but on an agreement OF
counsel the hearing OF the argument was post
poned to the 21st OF the month on the issues AL
ready made between the city and the bondhold-
ers.
We have already given these issues as set forth
in the petition of the REALTORS and in the answer
of the city, which have been published in full in
| these columns.
After agreeing to the postponemsnt, Judge
| Howe moved the court for leave to file an inter
vention in behalf of certain property ht lders in
the Fourth, Fifth, Sixth and Seventh Districts,
opposing the mandamus and joining the city In
its defense against the claims Hereunder. Mr..
Bermudez, for the REALTORS opposed the fling of
this intervention, and Judge Munroe, after some
discussion, decided that he should have permit.
ted the Intervention matter of RICH If it ad
| not been opposed in open court by counsel on the
other side but he would reserve his decision af-
ter argument onatbe admssibilty of this inter-
ventioD, which he fixed for the 14th If january
MIR. d. W. Huntington. appearing for the At
torney General, and who is also attorney for the
School Board asked to file an Intervention for
the State, joining the REALTORS in the suit to en-
force the validity OF the consolidated bonds, OF
which she claims to own large number, as set
forth in the following petition:
The State Of Louisiana through the Attorney
General and L. w, Huntington, attorney for the
School Board, files an Intervention In this suit in
which they join the REALTORS in their demand
against the city, and allege that they have an
interest in the enforcement OF the validity
for the reason that the State claims to
be the lawful owner Of 2lS of these bonds, which
were purchased with the proceeds OF the sales
Of tire iands donated By the Uaited statea, under
an act of Congress of l843 that under that act of
Congress the State obligated herself to apply the
proceed of the sales Of these lands to free
school purposes, and to pass laws making the
same q trust fund, to be kept and used exolu
svely for the support OF the free schools that
the State did, in 1855 and 1857 pass laws creating
this fund, and authorizing the investment of the
fund in certain State and city bonde; that among
the later were 218 consolidated bonds of the
character and series OF tue bonds sued on in this
oaee That these bonds were part of sacred trust
fund made inaleDable by the law and the consti-
tuition OF the State, which were to be KEPT in the
custody OF the Secretary of State and Treasurer
OF the Stae that in 1872 an act was passed by the
Legislature, directing the trantfer and sale of
these bonds, and they were accordingly sold in
June, 1872; that such sale was an act OF spola-
ton and has been 30 declared by the Supreme
Court OF the State, and that no title was con-
veyed by this SALE and due police had been CIV
en- of the inyaldty of such title, and the city has
been notified not to pay these bonds to any other
but the lawful owner. which is the s ate OF Lou
isiana, and that they will be seized by the st b
as her property in whose hands soever they may
be found. That the State has therefore large
interest in enforcing and collecting the interest
on these bonds, which can only be applied
to the support Of the public schools, wherefore
the State through her Attorney General inter-
venes and supports the demand of the REALTORS
in this suit.
The intervention offered by Messrs Howe,
kenDard and Prentiss is that of certain property
holders and taxpayers, residing in the Fourth, |
Fifth Sixth and Seventh Districts Of the city, who
adopt the several pleas of the city, contesting
the title Of the consolidated act, affirm that i
violates the constitutional principle of uniform.
ty OF taxation, and sets up the special defense of
the petitioners, as residents and property hold
ers in the districts which have been added to the
city since the adoption Of the consolidated bond |
aw.
The interventions were adjourned over to the |
18th, for hearing on their merits.