The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-02-10
THE CONSOLIDATED BOND CASE.

The case of the consolidated bondholders
having been thoroughly argued by some Of
the ablest members Of our bar. and tho legal
questions involved passed beyond the sphere
of discussion in the newspaper, wo do not
propose to discuss them here But. in jus
tice TO all parties. we regard it duty to cor
rect an erroneous or imperfect comprehension
of tho object Of Tho suit and OF the defense set
up by the city.
The object of this suit on the part of the re-
lators IL not to Cypress and vex tho city and
tho Taxpayers. nor is it the purpose of tho
city. as we understand, to release itself from
q debt whose validity Is fully recognized
by it. and has been 80 recognized for more
than twenty-five years.
The whole issue between these ltigants Is,
whether the mode Of payment provided in
section 81 Of the act Of 1869 can be enforced by
the writ of mandamus.
The consolidated bonds having been issued
to take up valid debt incurred by the mu-
inequalities and assumed by the city. the latter
does not pretend that they are invalid. The
counsel for the city in their arguments ex-
pressly and emphatically disclaimed anysuch
purpose or idea on the part Of the city gov
ernment
They only deny the power Of the court TO
compel them to pay this debt in the manner
and under tho conditions prescribed In the
act Of 1862, which, they say. is unconstitu-
tional; not that the bonds are unconstitu-
tional OF invalid but that the mode Of en-
forcing their payment and the collection Of
the tax therefor is.
RI tho courts should decide that this pro-
vision of the act of 1859 Is unconstitutional,
these bonds would still remain legal and
valid debt Of the city, and, added to the bal
ance. would make the total debt of the city
some tnentp-t,ro millions. which the city
must, some day or other, pay, principal aud
interest.
Should the act of 1852 be maintained Us con-
| stitutonal. this crushing load Of debt would
| be reduced to four millions Of dollars.
Besides the unanswerable construction OF
| the law which makes this the only legal debt
of the city. we have d strong public sentiment
| in favor of the preservation and enforcement
Of the valuable and defensive provisions of the
| net of 1852. and which adopts tho report oi
that able jurist, Judge 7. Wharton Collens
| recognizing this as the only legal debt of the
4
city. and all other bonds as illegal by virtue
Of their being issued in violation of the act Of
1851 So strong is this sentiment that some
of our largest taxpayers have employed dis
tinguished counsel to defend this act of 1852
Whilst its maintenance by the courts woult
| thus reduce the legal debt of the city to foul
millions. instead of twenty-five millions, II
| would place tho city III n position to make ar
equitable settlement with the other creditors
| And In this it would have the support OF the
large majority Of tho citizens and taxpayers
For, although a large proportion of the city
bonds issued during the war, and since, under
Radical rule, were to fund warrants for which
the city had received little or no considera
| ton, yet the present holders Of these bonds
have, in many instances. an equitable claim
which ought to be recognized and adjusted b,
the city on q fair and equitable basis.
| The bill proposed by some of our taxpayers
to take effect in the event Of decision IN
favor OF the consolidated bonds should set al
| rest any apprehensions Of excessive taxa