The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-02-02
A CARD.
CITY CONSOLIDATED BOND MATTER

Abstract from the decision rendered by Judge
Woods, in the cause Of R0salis Maenhaut
and others vs.. the city Of New Orleans and
others.
II am Of opinion that the act Of 1869, above
| mentioned, contains @ contract yaltd and
binding on the city, and that the bondholders
| are entitled to exact the substantial perform
anee OF the CONTRACT have 81. held upon the
or tba afarng e. ths Was et
The thirtyseventh section Of the act Of 1864,
constituting, as 1t does, q contract between the
city and the bondholders, stands unaffected
ty any subsequent legislation that seehs 10
impair or repeal its prOyisions But the rem
edy Of the coInpanants to enforee their CON
tract is clearly not III equity. bit at law, by
the. recovery Oh u Judgment On their coupons
and bonds, and by The writ Of Inandamus
tax required by law, Tie relief al laa a. 10 d /.
ptoin, adeqtate and complete and equity cans
not be res0rted to-
ABSTRACT
from the decision rendered by Judge Billings
In the case Of Morris Ranger VS.. the Mayor
and Common Council Of New Orleans, dated
But among the statutes d the State with
among the general statutes OF the State. are
found acts that give the absence Of any par
nance creating Q debt. u special significance
"The act Of 1869, No. 81. entitled An art to
consolidate The city Of Ne,0 Orleans, and pro-
uide for The governnent,' ETC., section 81. page
81. contains the f0tio1eing propision:
'''And no ordinances tof the city OF New Or
leans creating debt or loan shall be valid
unless for some single object or work dis
tfuctly specified therein, and unless such or
ddnance shall provide. ways and mears for
during the whole time for which said debt OF
loan shall be contracted, and for the full and
punctuai, discharge at maturity Of the capital
borrowed or the debt incurred
ABSTRACT
from the report Of judge r. Wharton Collens,
Especial master in chancery' approved by
Judge Woods.
XXI. On all points OF inquiry generally, /
report:
a. That the act of 1859 was assigned as an
irrevocable check and safeguard for the bene-
fit and advantage Of the holders of the com
solidated bonds. No debt could be contracted
except according to it's provisions. The hold
ers OF the bonds are entitled to precedence In
the collection OF taxes on lands and slaves,
and to the suppression OF any demand for
payment Of any subsequent debts that would
interfere with or prevent the payment OF the
consolidated debt, unless such subsequent
debt was contracted upon compliance with
the terms and conditions of the act Of 1856"
IN THE CASE or MAENHAUT VS.. NEW ORLEANS,
before the United States Circuit Court for
Louisiana, Judge Woods, in the written rea-
sons assigned by him for Judgment, uses the
following language:
"In the argument upon the motion for in
junction 1t was claimed by counsel for the city
that the act of 1862 was In violation Of the
constitution of 1916, which was In force when
that act was passed, and which declared larti-
clio 1871 that taxation shall be equal and uni
form throughout the State. The provision OF
this act of 1862, which Is deemed to contra
vt7sfee- tts constitutional rennrernent ID this:
The rate per cent Of said tax In each munich
palty shall be in proportion to the indebted
ness Of each can,tot see any conflict be-
toee7 the lar and tjse constitution. As at pres
ent advised, do not think the objection To
the law well founded"