The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-03-13
OFFICIAL.
LAWS OF THE STATE OF LOUISIANA.
PUBLISHED BY AUTHORITY.
REGULAR SESSION, 1878.
No. 6s.l

No. 6s.1 AN ACT
TO authorize the loan Of State bonds to the
New Orleans Pacific Railway Company;
TO provide means for the payment of the
principal and interest; to authorize the
company to nuke its mortgage bonds
and secure them by first mortgage OF
present and future property; to provide q
pledge OF said mortgage bonds to the
State and the terms thereof; and to regu-
late the use OF the proceeds Of said State
bonds.
SECTION 1. BE IL enacted bv the Senate and
House of Representatives. Of The State of L0Mis-
is.nm. IN General Assembly Convened, That
the Governor be and he Is hereby authorized
and required to issue to the New Orleans Pa
cific Railway Company, u corporation de-
scribed in act No. ID VI 1876, bonds of the
State Of Louisiana, to an amount not exceed
visions of this act. Said bonds shaIl be of
$1,000 each, shall have forty years to run,
shall bear interest at the rate of six per cent
per annum, payable semi-annually, aud shall
have semi-annual coupons attached, They
shall be signed by the Governor of the State,
and countersigned by The Auditor and Secre-
tary of State, and shall havo the seal of the
State affixed The coupons shall be payable
to thu bearer, and shall have the engraved
signature Of the Auditor In Office at the time
said bonds shall be engraved
SEC. .. 10 provide for and guarantee the
prompt payment of the interest on said
bonds, as 1t shall mature and OF the princi-
pal Of said bonds, on or before the expiration
the New Orleans Pacific Raj way Company
shall deposit with the Auditor OF Public Ac-
counts and pledge to the State for that pnr-
pose Its first mortgage bonds, secured by q
first mortgage OF oil its property real and
neraonal. both present and future, and wheth-
or now constructed or hereafter to be built,
and such deposit and pledge shall be OF an
amount exceeding In each case by one-fourth
tine amount of State bonds delivered to said
company The said company, on resolution of
It's board of directors, Is authorized to make
such q mortgage, and the same shall cover
and affect as a first mortgage all property OF
said company, whether real or personal, pres
ent or future, now owned or hereafter &C
after constructed. The amount OF bonds So
cured by said mortgage shall not exceed five
millions of dollars it being intended hat one
half OF the same may be pledged TO the State
as aforesaid, and the other half disposed OF to
other parties. The said mortgage bonds shall
have forty years to run; shall bear interest at
six per cent per annum shall have semi
annual coupons attached, and said coupons
shall fall due ut orprior to the time at which
the coupons Of the said State bonds shall fall
duo, and the interest paid on its said bonds
by the company to the State as pledge
shall at once form u fund and be used
to pay the interest on the Stateoponds
which shall have been issued :, to g the me
.
bind itself in said pledge to exlingush an
nually fifty Thousand dollars OF said State
bonds, commencing five years after the COM
pletion OF it's line to Shreveport and continue
che extinguishment at such annual rate up to
five years prior to the maturity of said State
bonds, and during the last live years it shall,
under the same pledge, agree to take up and
extinguish one-tifth each year of the amount
Of said State bonds then outstanding; 1t being
understood and agreed, however, that wheli,
oiI hal icb ~
the said State bonds, 1t may withdraw from
said pledge and deposit and the State will
surrender to the company the proportional
amount Of the ccmpany's mortgage bonds
said; and further, that the said railway COM
pany may at any time redeem and deliver to
the State any valid State bonds equal in value
to those herein authorized to be issued, and
may thereupon withdraw from such pledge,
and the State shall then return to said COM
pany the proportional amount of the COM
said. ~ :
SEC s. To further secure the punctual pay
ment Of the interest on the State bonds to be
issued hereunder it is provided that In any
case when sufficient sum is not provided by
the railway company, as aforesaid, to meet a
maturing coupon, it shall be the duty of the
State Auditor, or other officer having custody
of the mortgagssbonds pledged by the compa-
ny, to sell at public auction sufficient OF said
mortgage bonds, after ten days advertise
ment, to pay the said coupon and the ex-
penses of sale.
Sec. L. The first issue of State bonds under
this act shall be made rs soon as the act shall
take effect, but shall be for the sum of
$25O,0O0 only, represented by the work already
done on said railway. Thereafter all issues
of said State bonds shall be at the rate of
$4,000 per mile for every section of ten miles
of road graded, bridged and metHled, to be
shown by the certificate of the engineer of the
company and one OF the State engineers, or,
LII the Office OF State Engineers shall no longer
exist, of a civil engineer detailed by the Gov
ernor. IL the said company shall acquire any
railway on it's line, already constructed, in
whole or In part, such acquired railway, when
found or put in fair running order shall be
taken as part of the railway of said COM
pany, with reference to which State bonds
$4,000 per mile of the same, whenever the
same shall be certified as aforesaid.
SEC 5. The proceeds realized from said
State bonds by said company shall be applied
strictly to the construction and work Of said
railway; and the Governor may from time to
time require an account from the said rail
way company of the application of said pro-
ceeds.
SEC. g. This act shall take effect from and
after its passage.
tSigned) LOUIS BUSH,
Speaker of the House of Representatives.
(Signed LOUIS A. W1LTZ
Lieutenant Governor and President Of the
Senate.
Approved March II, 1878 ..
tSignedl FRANCIS T. NICHOLS,
Governor of the State of Louisiana
WILL. "A. STRONG,
Secretary of STATIC
i,nNcJrppENT prCoT r-rroN