The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-04-04
s.rr.E NEW ORLEANS, MOBILE AND.TExAs RAIL-
ROAD STOCK SUBSCRIPTION.


debt. act No. 95 OF 1871 released the State from
the obligation Of guaranteeing the second
mortgage bonds OF this road to the extent OF
s12,50O per mile for such as it should there
after build, Say from Vermillionvllle TO
Shreveport, 200 miles, and in consideration OF
this assistance to the State in reducing it's
debt the State agreed to subscribe for $4,000
shares Of stock and 70 issue to the company
it's bonds, payable In forty years, with s per
cent interest, to the extent OF $500, 600. This
Clinton as Issued April 81, 1871, and rs an alb
solute bonded debt Of the State. ITS consttta.-
tionality is contested and is non (Jaly !, 1879
IN the Supreme Court
"A special tax Of one mill Is imposed by
section of the act, or say at presant S25O,oOo
per year to pay the interest, now $2O0, 900, and
finally the principal, which, when collected,
liz also set apart as special fund. Ihe re-
ports Of The Auditor shon no application ~
accordance qpnh td,D of this sinking tuna,
though The taG is leuied and collected.
"BoNDs OF THE CONSOLIDATED AND CITIZENS
BANKS.
"The State guaranteed the payment Ct the
bonds issued BY the property banks at the
time Of their charter, OF which there are now
outstanding and for the payment Of Whlcn Inc
State Is liable In case of the failure oil the
banks to redeem the same
To the Consolidated Bank.......... 500. SO 90
10 the Citizens Bank. .............. 4.2s7. 2s3 80
Total contingently to these banks. 81. so3633 81
ITO other of the funded debt for which the
State Is contingently liable, and as to which
there is no question, are:
The New Orleans, Mobile and Texas oo I.
Railroad Company. per CENT: Stoo.ooo w
The Mississippi and Mexican Gulf
Ship Canal Company, $40 per .,o M
cent. ......-.-- 46oouo w
Total outstanding funded debt. and
for which the State Is contln-. =. ~, an, a,
~
The contingency as to The bank debt may 6e
considered quite remote; as to the rnar0dGs
and canals almost certain, unless the bonds
should be declared null and uotd
| "RECAPITULATION OF FUNDED DEBT SINCE
RECONSTRUCTION
| The North Louisiana and Texas Rail-
road Company, per cent. due l9o5 a.. m,
and 5l,lzo,ooU
The State eni -entiary.7 per cent. due ~,
The Bnuf and Crocodile Navigation
Company, DR. g ut. due 1890 49,. So.oo'
The New Orleans. Mobile and Texas
Railroad donation bonds. per cent. r.o ~,
nc cent. due 1916 49,. 49, 1850 ooC
Relief Of z, J. Kennedy. 8 per cent. due 80, ~,
1890. l34,out
ane 1ei 10 1850 oot
Railroad stock subscription. per
cent. due 1911 Observation-Disclosures. $500 oof
Total absolute debt since recon-
StructiOn- OBSERVATION-DISCLOSURES I'll, oOoo o'
| "The above contains the absolute funded debt
| issued by the State since reconstruction, mucf
/ of which is contested or illegal, with what re-
suit cannot be known until after serious
contest.
"The whole debt, as hereinbefore detailed, l.
as follows:
Ante belum debt Observation-Disclosures. $s.928.oo o.
Contingent debt .....-.----...--... 6,033. 633 u
Reconstruction debt. ......... 6,228 800 o.
Grand total funded debt ....... .s27, ,433 8
/ "1He bonded debt Of the State az 1t should be
had the laos creating it been strictly compiled
ayith and gere that portion declared null and O
no effect, the ld,ys creating ,chiCh are unCoBsts
t,tional, or Wherein the bonds aoere iHegau
issued and achhout consideration aC0uld be d
follo,Cs:
Ante bellum debt 10 reported ..... $3923. ooo 0
Less deductions claimed, say ..... 1.2i2.500 0
s2.71o.5o0 Q
Reconstruction debt. ss228. 800 co
Less deductions as
Post reconstruction
debt. ............. II 100000 90
Less deductions and
contested portions. 100000 o. 3.43o, 900 q
$16 463. $50 {
Total bonded debt as rep orted. .$27, ISL, 43a q
above. . :. $40 es3, $50 90
Less contingent debt. 6033 633 90 1916, 1888 8
Total absolute funded debt
at or all p ,ssible deductions $40 1853 $50 0
"The foregoing Is what the funded debt shoul
be and would have been If the finances OF tn
faf df,rf In 1an4 atfphf fan n