The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-04-04
MANDAMUS REFUSED.
JUDGE ROGERS DECIDES AGAINST
THE PACIFIC RAILROAD BILL.

JUDGE ROGERS DECIDES AGAINST
THE PACIFIC RAILROAD BILL.
The case Of the State ex rel. New Orleans Pa
cifc Railway Com pany vs. Francis T. Nichols.
Governor. came up yesterday In the Fifth Dis
trict Court, and Judge Walter Fl. Rogers read
the following decision:
The General Assembly. by an act Of 1878, ap
proved March IL. entitled an act to authorize
the loan of State bonds to the New Orleans Pa
cific Railway Company. etc. provided for the
issue OF bonds of the s ate to the extent Of two
millions Of dollars. to be made In amount aud
condition as specified In the provisions of the
By the fourth section OF this act the first issue
OF State bonds is provided to be- made as soon
rs the act shall take effect. to the amount Of
s25o.O0o, represented by the work already done
on said railway.
The Governor. Secretary of State and Audi
tor Of Public Accounts having refused to issue
this act. this application is made to order the
performance of duties prescribed under the
said provisions.
The Attorney General, In defense. alleges
that the act of the Legislature making this
grant Is unconsti u ional and null for several
reasons one Of which Is betan.e 1t Violates
the debt Of the State to SIS. 900, 0Ou."
By act Of the Legislature. approved January
oane and bonded T debt a and az an
exchange Of bonds under the act for outstand-
ing obligations at the rate of sixty cents in con-
solidated bonds for one dollar in outstanding
bonds, Section 10 of this act provides that
the entire State debt prior to the year of our
Lord 1914 shall never be IL creased. directly or
indirectly. beyond the sum Of 5000 OOO hereby
authorized, it being the intent and object of
thus net. and Of the exchanges o be effected
hereunder. to reduce and restrict the mI.ole in
debteGlesS OF the State to q sum not eGCeediUg
s15 900 ooo and to agree 'cHt The holders Of tte
consolidated bonds 10 be issued hereunder that
said indebtedness shall not be increased JeYomd
SAID Sum dn1tng said Deri0d
Of even date was naet. d an act proposing
amendments to the constitution of the State
confirming the funding act above recit d. and
which amendments were approved by vote of
the citizens of the state.
When these several acts OF 1874 were passed
Auditor Of Pubic Accounts for the year ending
December 81 1873. and this exhibited
Total amount OF the absolute debt
Total amount Of the deb for which 'N'''''''' 90
the State is cOntingeutly liable. 500 Al
Total absolute and contingent ,s29 991. 1872 81
Also, acts of the General Assembly granting
it is commended by counsel for reator that the
funding act and constitutional amendment OF
1874 in reducing and restricting The debt did not
mplate this contingent liability and this
court Won err Ii cons deKs as Il part OF the
debt Of he State this con ingent liability OF
5000 900; that this amount represents bonds In
dorsed by the State ia favor Of the associated
banks and CrizeDs' Bank: that the bonds OF
these banks are secured beyond peradventure
and the State will never have TO pay them: that
the Legislature have not deemed 1t proper to
include them in her schedule, and as the SOW
eregn cannot be held to u responsibility tor
Legis lature contemplated reducing debt OF
nearly $4,000 600 to s5 600 900 by laying sixty
on hs dgE Is tbs m h
of 1874 rs q su fflcent answer:
When yer the debt OF the State shall have,
been reduced below s25 900 600 its cnnstitut onal
limit shall remain ut the lowest point reached,
b .yond which the public debt shall not there
after be- increased This rule shall continue Ia
operation until the debt is reduced to 900 600
beyond which 1t shall OF be increased"
In response to the other propositions. 1t is TO
be said first. the bonds OF the Associated Bank
have en- decreed by my brother Of the Third
District Court to be- valid and binding obliga
lions If the State. and bis opinion has been
affirmed by the supreme Court,
Twenty third Annual Report. D. 404, by d unani.
nous court, Of which one of the lrarne counsel
who has favor,d Wt BRIT i'll n eeaf 81
Il Is contended that the bonds issued IN favor
OF The property banks. amounting to 1882 1913
should not be computed as debts OF OF ne statf
the banks and because the accrued interests
thereon have been promptly paid by the banks
persons ma ural and tifici il frequently fail in
business and from affiuence are suddenly re-
duced 10 insolvency. The present ability OF the
property banks to meet their Liabilities is no
guarantee that the Safe will not eventually
have to pay her bonds issued to aid said banks
and much l.ss. is IT a reason to say that the said
bonds should not b. computed as part OF the
debt of the State. Ii 1t had been Intended to
exclude these bonds, or others, in the computa-
ton of the debt of the State limited by the con-
1t would have been done in cypress
terms"
This decision was rendered in 1871 and the
of the act # 1874 in reference to
the State debt or its computa ion. PASSED with
tho full knowledge of the judicial expression
and definition of the subject matter will bs pre-
sumed to have been enacted in harmony with
the law laid down by the courts.
1t IL true counsel have argued that the con-
clusion Of the court Ia that case was bad law,
bu certainly find 1t most reasonable and clear,
and better than that its wisdom has been proved
by the fact that the holders offs me- ofthese very
bank bonds have 8 ught for and OBJ aimed Judi
cial recognition OF their claims against the
State as holders of it's oblga ions.
In making an extract from the Auditors re-
1913 900 not issued these. of course are VI virtually
annulled by the constitutional AMENDMENTS.
and can serve in this connection only as pur
pose showing as much as anything else a mo-
tive in submitting the amendments restricting
further Indebtedness.
1t seems TO be conceded that, If the bonds of
the property hanks" are held as debts Of the
Their and can see no reason for making fur
Their exhibit of facts, which. as far as have
even cuI sorily examined, convince me would
take nothing from the pnb'ic burden.
Mandamus refused with costs.
ID. ID. O'BRIEN ARRESTED.