The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-04-04
THIN NEW ORLEANS DEMOCRAT, FRIDAY, APRIL 1879.

i TT
oomnanv the company agreeing to refund
the amn11nts paid by the State on account o.
GAIA bonds. The full amount q SAID DondS
Ara renorted in the last three Auditors d IT,
nnrta III having been issued January y, Ivy,
t Ra = vary day The act was approved. what
the value Of the assets OF this Navigation
company is or who are It's managers OF pro e
prfetors, does not appear. 1t Is located III the
parish Of st. Landry.
| THE NEW ORLEANS. MoBILEAND TEXAS RAIL-
ROAD DONATION BONDS.
"The last two Auditors reports, January ! !,
1879 and 1873 exhibit rs part OF the aDsol.iee
debt OF the State 5000, issued TO tne ap1se
railroad company, In accordance VIII sscsloh
7 OF the act No. 81 I'D. 81 OF 1870 dateu yu.y
1870 at forty years. and bearing PCT csmJ ~
terest. These bonds acre part o. &C n oon W..
bonus for the completion Of the road from Ne M
Orleans to Houston, TEXAS. 1,ayaote ~ enst0st
| nlents Of $3.50, 900, on me c0ngpetson q eacN y
four sections of the road Ihe tirst section W
Dona dsonviie was c9mpleseo ana Tue I pInus
| 1870. Should the company fall TO complete
| the road to Sabine In three years, or to Hous-
! ton. Texas within six months thereafter, then
the donatIon to cease and the bonds atready
II
which they were sold, II disposed OF.
"To secure the interest and principal q
| these bonds q tax OF one mill was leviaf on all
! the property OF the State, the interest to be
| first extinguished and then the excess to be
applied to the reduction OF the principal.
This tax has been levied and paid, ratably
with the other taxes, and must net about
$3.50, 600 per annum for the past two years and
the present year. The interest on this issue
Of bonds is 100000, making $4,000 due up to
T,,1. fuxx fhfsa p@ ri n
solutely required BY the law, will net $3.50, 900.
This entire debt should, therefore, be ertis-
Ouished during The gear 1874 The reports shou
that not one dollar has been pdid0f the pTanca.
pal debt. notwithstanding the taxation, and
although the Jag requires the moneys dera r
from this tGD to be paid into the treasury Of THIS
State az distinct fund and Kept Gs q separate
account, The amount Ut bonds issued should
be recovered from the company and should
have been nearly extinguished by means OF
the one mill tax levied for that purpose
TOR WORK DONE AND TO BIB DONE on THE
LEVEES.
| Auditor Graham. In his reports for 1870
and 1871 reports. to defray expenses
for bnilding levees, act No. 30 OF
1 1870. bonds issued March 1.... -. $50 DOC
1 Auditor Clinton, January /, 1873. re-
pOrls..... ...'.......' z,SoV.ue
Showing reduction of............. $40 DOC
"Act No. 49, approved February Is, 1870, au-
thorized the Governor to issue bonds to the
extent of $3,00O,000, payable In five years,
/ with per cent interest, dated November J.
/ 1870, OF denomination Of $500, to be deposited
Ia the treasury, subject TO the order Of the
Works and the Fiscal Agent, or q majority oil
Them the president of the Citizens Bank to
be deemed the Fiscal Agent. These bonds
were to be sold for not less than ninety cents
on the dollar, and only as claims to be salts.
fled by their proceeds may accrue; For the
payment OF the bonds q special tax OF two
and half mills on the dollar was to be levied
each year until they should be fully paid
This tax should bring 900 per year; the
interest Is $24O,oo for thu first year; the tas
has been levied and collected In great part
and yet the principal was only reduced $40,0 Ot
during the past year instead of $400, 900, as
might have been. When collected, it shout
have been set apart and Used for the redemp
ton Of this debt by the terms OF the act
This contract with the bondholders has beer
violated.
The Auditor for 1870 reports. 81 1855 6e5 o.
AS the proceeds OF the sale OF this
Issue Of bonds. The report OF
Il sales Of these bonds for 1871 is oS6707 I
Total. .............--.. ..--..-.. s., 643 373 D
or on an average net Of lightweight cents ol
the dollar.
In 1871 there Is reported as collected
ot the two and q half mills tax am, mn ,
II the sum OF. $483. 1888
J Yet no reduction OF the debt 10 re-
ported or was made.
The payments reported "-
are. to tax collectors. SIS $40 76
To interest. ..........-... 237 $40 90 313.810
Leaving for reduction Of debt. s169 SAT 2
This wos diverted from ats proper
use.
! Auditor Clinton reports as received
into this fund In 1872. ............ $50 o39
Il $3.50, 4s7 4
And az having been paid
III out to assessors. Sic. 443 18
Interest on bonds--...- 239,998 40
10 redemption Of bonds. $3.50 O0- 2ss 491 {
Leaving still uninvested.. s16i .975 {
which, at the rate Of the other investment
would have reduced the debt about $4,000
more. This whole issue Is claimed to be I'LL
nal as beyond the poager of the Legislature
make.
. "RELIEF OF P. j. KENNEDY.
sThe Auditor reports as outstanding bond
, issued January l. 1870. to p. J. Kennedy, as
, payment OF Indebtedness under act No. 10
/ of 1870, having twenty years to run and bear
ing per cent interest, $4,000. He was
contractor on the levees, aud claims that b
had suffered loss on the warrants and cert
; ticates OF Indebtedness he had received Ii
payment, and received these bonds In conse
quence under act No. los OF 1870. II ,ua
. sin,iLur to the Ni.con loss, declared creation
of a new debt, and therefore q donation. IN
PERCUSSION for the payment of these bonds Wa
The setting apart annually by the Auditor an,
Treasurer q surplus amount to pay the sam
IN full at maturity. This has not been done
and the arhole amount of the bonds are still re
ported as outstanding, They are enyoined a.
having been issued Without consideration, an.
as a disguised donation.
"FUNDING THE FLOATING DEBT OF 1870.
"Under acts No. and Is Of 1866 bonds wer
issued to the extent OF 81 ,247, 800 mos. IL an
10 OF this statemepD for the purpose OF pay
: ing the current expenses and exchange 70
coupons past due and bonds then due, aud t.
:, | M In 1897 Y1nn nniIlsna, Rao hun