The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-24
THE CITY DEBT.


To the HonorabIe Members OF the Senate and
nouss OF Representatives ~ In General As
sembiy convened:
Through the public press It appears that
the Legislature Of the State will, at an carly
day, be requested to give Its sanction to q
financial scheme now being prepared by the
Mayor and Council Of New Orleans on the one
hand, and tho Capitalists" or business
men" of the city on the other.
Your petitioner has, through q long series
of years, watched the movements Of these
combined architects Of the financial ruin Of
this unfortunate city, and no now comes Tn
pray You TO give heed TO the plain and houest
statement of q representative of those suffer-
Ing, and who must continue TO suffer in stiIl
greater degree, under the shocking system
fastened ON them.
Your petitioner begs TO direct your attention
to the annexed document--belng the official
report Of ex-Judge r. Wharton CoIiens, mas
ter In ehaneery, to the United States District
Court In the case Of Maenhaut versus the
city a New Orleans. This document ema~
mates from thoroughly judicial mind. act
Ing under official stimulus 30 present the
facts Of the case TO the court, and you will
sec that the master ciearl y shows that far the
greater part Of the so-called debt Of New
Orleans has been fastened on ns In utter yio-
latiOn Of law.
Your petitioner also begs to remind you
that few years ago~when the city debit
was I'm round numbers) $4,000, ,0oo-a City
Council and some Capitalists" or ''busiueaa
men, approached a Kellogg Legislature and
had the premium bond law passed, which
law authorized the funding Of this whole
debt into premium bonds at fifty cents on
the dollar; that by no means all Of the debt
is so funded, and that such premium bonds as
do exist are worth In the market only--say
thirty cents ON the dollar; which means that
an unfunded original bond ID to-day worth In
the market but thirty per cent Of fifty per
cent. OF It's face, or seventeen cents on the
dollar. Supposing the whole "debt" were
funded into premium bonds, the market
value of these bonds to-day would be thirty
per cent Of Si1, 100000, or s3,s3s,s3s.
Your petitioner also begs to remind you
that this vast depreciation Ia the value Of
city bonds does not stand az single fact be-
fore the business world. On the contrary.
n, houses n lands. stocks, meat bread, clothes.
Your petitioner most respectfully begs to
say, then:
1, That the larger part Of the "debt' Of New
orleans being officially branded as Illegal.
and it's iilegality being a matter Of general
Dotoriety among the people, 80 far from your
honorable body lending Il self to the schernea
Of combined councils and business men" for
riyeting the debt upon the peopIe and en-
hancing the value OF the paper held by the
bondholder, it becomes your duty 10 use your
large powers In the direction of law and to
order judicial determination OF tne whoIe
question.
2, That the patching up 0, such arrange
Inents as have been foreshadowed from the
Mayors Office shows, first, that the holders
OF bonds are entirely conscious of the iIleRal-
ity of their claims; second, that they would
have the value OF said claims enhanced by
legislative enactment that a
done for no other class Of the community.
b. That the very fact that the holders Of
these bonds never invite the Industry" or
the taxpayer" OF the community into their
sively that they are conscious Of the weak
ness OF their claim, or else that they would
use the official servants OF the people TO fur
ther schemes that are illegitimate.
4. That the people Of New Orleans are over
ment, and for the benefit OF holders OF bonds
that are Illegally issued.
5. That our public schools Iinger and the
teachers go unpaid; that the efficiency Of the
police is almost utterly destroyed In conse-
quence OF large arrearages to the force and cur
rent irregularity OF payment; that our streets
and landings are In deplorable condition, and
our sanitary condition unsatisfactory; In
deed, that ruin stares as In the face, while
the premium bOndholder Ii paid his interest.
and gets his prizes" In the disgraceful lot
terry that Is regularly drawn In our CITY Hall
with relentless regularity.
Your petitioner prays that your honorable
ilzation, law, justice and economy, as con-
tradstinguished from the barbarity, reckiese-
ness and rapacfty OF the Radical rulers
who inaugurated this system that has well
nigh destroyed us, and, coming freshly froms
people who believe and feel that honest ir-
dustry has not only some rights which "the
money power" is bound to respect, but that
1t 10 the cornerstone on which material So
ciety rests, will turn deaf ear TO the siren
song Of Councimen and "capitalists," and
give the case Of our people a fair and impair
tial hear1ng-thus presenting to the world Q
spectacle long unknown In Louisiana-a Leg
lslature free and Intelligent governed by
law. and making laws only for the general
welfare. V0rER.
After giving desired information fn relation
10 other matters concerning the consolidated
bonds Of 1852, the master In chancerY says:
On the point Of inquiry next properly IN
order, to-wit:
Whether the conditions Of the thirty-seyenth
by the issue OF other bonds or evidence OF debt?
! report:
l. That under authority, the Legislature,
to-wit: Act No. 100, page ", OF 1854, the city
issued to the New Orleans, Jackson and Crest
Northern Railroad Com pany series Of bonds.
amounting to s20oO,ooo, for subscription to
the caDItal stock Of said company; after pass-
nc an ordinance to levy special tax to pay
the annual interest on said bonds, but without
providing by such previous ordinance wavs
and means for the full and punctual discharge
at maturity OF the principal OF the debt 30 IN
CURED.
Q. That under authority of the Legislature.
10 wit: Act No 1O6, page GO, Of 1854, the city
ssued to the New Orleans, Opelousas and
Treat Western Railroad Company a series of
,onds, amounting to s1,5O0,O00, for subscrip-
ion to the capital stock OF said company,
without providing by previous ordinance
OF the principal of the debt 50 In
urred.
8. That under authority Of the Legislature.