The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1878-05-15
A RAILROAD TO TEXAS ASSURED.
The Act Granting State Aid to the New
Orleans Pacific Railroad
Declared ConsH-
tuticnal,

Orleans Pacific Railroad
Declared Const-
| tnticnal,
AND THE BONDS ORDERED 10 BE
ISSUED.
The following decision was render
ed yesterday by the Supreme Court
1t was read by Chief Justice Man
ming:
The State OK rel New Orleans Pacific
Railway Company vs.. F. T. Nichols,
Governor, ct als.-The General Assem-
bly, at its last session passed q law au-
thorizing the loan to the relator Of the
bonds of the State to an, amount not
exceeding two millions of dollars; tho
first issue of which should be for tho
sum Of two hundred and Fifty thousand
dollars only and providing for snbse-
quent issues upon certain conditions
being complied with. Acts Of 1873.
page 1860
The Governor, CD approving the act,
signifed his intention to provoke a ju-
dicial decision upon the constitutional
question involved, and accordingly re-
fused to sign and issue the honda,
whereupon the relatort took this pro-
ceeding BY mandamus to compel the
Governor, the Auditor of Public Ac-
counts and the Secretary OF State to
issue two hundred and City thousand
dollars of bonds Of the State in. accor-
dance with and for the purposes ex-
pressed in the act. aas esHs',sssss'zs
Correspondents aver that the;act is
unconstitutional in that it violates the
amendment to the constitution which
limits the debt to fifteen millions Gf
dollars, and because the constitution
prohibits the Legislature to contract q
debt exceeding one hundred thousand
dollars, except in some specified emer-
gencies, Of which this is moi, one, with
out at the same time providing ade-
quate means for the payment of the
annual interest and Of the principal
when it shall become due; ; and fur
ther, because it is an attempt to use the
taxing power Of the State. TO aid 9 pri-
vate enterprise. b afin FsnStia
The funding act was approved Jan
uary "a, 1874. Its object and purpose
was to reduce the floating and bonded
debt Of the State, and TO consolidate it
by authorizing the issue Of bonds
which should he exchanged for all va
lid outstanding bonds heretofore is
sued, and for all valid warrants drawn
previous to its passage, at the rate Of
sixty cents in consolidated bonds for
one dollar in outstanding bonds and
valid warrants. The 18th section en-
acted that the entire State debt prior
to the year 1914. shall never be in-
creased beyond fifteen millions Of dbl
lars, the intent aud object Of this re-
duciion and consolidation. being 10 re-
strict the whole Indebtedness of the
Stale to sum not exceeding that
sum, aud to agree with the. holders Of
the consolidated bonds that this in
debtedness shall not be increased be-
You'd that sum during the period mea-
toned in the act. s.s,ssa,..a..
On the same day an amendment to
the constitution was approved to DO
thereafter submitted TO tho people for
ratification, declaring that the cu,,soli-
dated bonds to be issued by the antllor-
! ity Of and in conformity to tho lsgisla-
tive act Of same date, created valid
contract between the State ard the
holders Of them, which the State
should in no wise impair; and chat
whenever the debt of the State shall
have been reduced below twenty
millions of dollars, the constitutional
limit shall remain at the lowest point
reached, beyond which the public debt
shall not thereafter be increa sel and
this rule shall continue in force until
the debt is reduced to fifteen millions
of dollars, beyond which it shall not
be increased. Acts 1874, PIP. 3-43.
This amendments has become a part of
the constitution BY its subsequent
ratification by the voters at the polls.
This legislation-the funding bill
and the act proposing the constitution
Eal Observation-Disclosures Immediately
upon the admission to the general
assembly of the Auditors report, dated
January l, 1874, wherein is this state
ment and information:
i "The present market valne Of the
actual debt of the State, funded and
floating, is about fourteen and . half
millions. I have tho assurance Of
large bondholders, at homo and in
Europe, that if the limit Of our debt
by constitutional amendment should
be fixed at fifteen millions Of dollars,
they would accept new consolidated
bond at its face value, and surrender
in exchange their old obligations
(bonds of all classes and outstanding
warrants) at their market value, say