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

10 Al doc. 600, and which were sold to rails
money To meet an excess OF current expenses
This issue was entirely In violation OF act {
1852
q g. That besides mourning the debts crea to
BY these bonds, and Notwithstanding the prc
hibitions contained In the acts of 1852 and th
act Of 1866, No. l7a, page 22s. the city Of Ne,
Orleans continually contracted debts an
made appropriations In excess of revenue
from taxes end other resources go az to ere
ate outstanding obligations, the total ~ whc
amounted In December, 1869, to 80. tyo6. 900, py
elusive OF a sum OF s7s8, 4os due for arrears o
Interest on the same.
Z, That S2,O40,400 Of this last mentione,
debt outstanding IN 1869 was evidenced b,
notes In the form of bank notes of the demon
tnation OF $40 each. The total Of this illega
Issue OF bonds previous to 1867, amounting Il
s3,500,00n, was sanctioned by the Legislator
by act of 1867 No. 80, page III, regardless O
the obligations created BY the act of 1859.
3. That, under the authority Of the Leqisla
tiire via. Act of 1869 No. 40, page As. the city
In order 10 fund said notes and other iloatins
Indebtedness, incurred as aforesaid In excess
of taxes and other revenue, issued a series O
bonds amounting to "a, 500, 900, without com
plying With any Of the previous condition.
required by the thirty-seventh section Of th
..e. That afterwards notwithstanding TIL
thirty-Heyenth section of the act Of 1862, ano
the act Of 1866, and the eighth section OF thu
act OF 1869, aforesaid, she continued to create
debts by mourning liabilities and making ap-
preparations In excess OF revenue, partly on
her own motion and partly by direction OF the
Legislature, requiring, payment Of sums iol
metropolitan police, public schools and public
park independently and beyond the tax col
lected for those purposes.
10. That In consequence OF this Illegal In
crease OF debt, and IN violation OF all previous
Legislation providing restraints against such
Increase, q new floating debt arose, which, In
1870, amounted to $2000000 over and above
The debt of 1869; which new floating debt was
nevertheless by the Legislature sanctioned
by act of 1871, No. 100, page 239, authorizing
the issue Of a series Of bonds amounting TO
e20U0OgO and bearing 10 per cent interest;
but without complying with any Of the pre-
vious conditions imposed by, the thirty
seventh section of the act Of 1852
II. That In fact the city had previously be-
gun to Issue illegally these bonds In excess of
the act Of 1871, and continued to do 90, nota-
bly, bonds In payment OF cost OF repairing
wharves known as wharf bonds" of which
the amount outstanding on the thirtleth Of
June, 1875, was $6s20oo
H. That the city Of New Orleans in 1871,
the act OF 1852, aud abdica-
ting Its right 20 exercise Its own discretion In
making OF. refusing to make contracts, sub
No. 80, page 70, Of 1871, requiring an onerous
contract with the Mississippi and Mexican
Gulf Ship Canal Company for the drainage OF
The marshy land within the limits of the oity,
whereby great debt was created and a heavy
lax imposed on property, which debt so
created is set down IN the statement OF the
thirty-frst Of December, 1875, as amounting to
b, 6e5,OlO.
Is. That again the increase tof the floating
debt continued as before and from the same
and other above stated causes
I'LL the twenty-sxth Of April, 1872 the Legis- |
|ature by act OF that date, No. rs, page i27, |
section 13, In negative pregnant terms au-
thorized the issue OF more bonds by limiting
The sum total of all issues to s2s, 100000.
IA. That the city submitted to ana COMPLIED
With the acts Of the Legislature, No. "a, page |
loo, OF 1870; No. SO. page 1874, OF 1871, and No |
J, pare 104, OF 1876, and accordingly has levied
md continues to levy tax to pay an inordi- |
late price for park, without acquiring any
consideration, such title being vested In
md the property being administered by
mother and distinct body, viz: the Board Of
of the Parks. This tax
TO about $4,000 per annum. Is a
'peclal tax, and it's proceeds are set apart to
meet the acquisitions OF the Fark Commits |
,ioners.
u.s. That the result of this enormous debt
mpruvidently and illegally incurred was pre- |
iseiy what the checks aud conditions OF the
hirty-seventh section of the act Of 1859 was |
imposed to prevent, viz the taxes |
to pay said new debts rose beyond |
he ability of the taxpayers, and TO such an |
xtent as TO impair the credit Of the city and |
y-seventh section.
10. That from 1852 to 1855 the bonds of the
debt were sold at premium.
ut from that period thew declined.
The details appear from statement No %.
age Is, and statement No. 90, page 10. The
onds are now quoted at forty cents on the
olar.
IL. That Notwithstanding the impossibilitv
1 raising the means for paying the supposed
Indebtedness, the city of New Orleans has re-
La.
and, on the contrary, admits its
ability in every particular and in general,
nd in order to perpetuate the same has de-
ised new plan to fund the whole. without
iscrimination, into a series of bonds known
. premium bonds, according to scheme
ividing the payment of the debt into fifty
early instailments, the first of which INSTALL
lents Is made payable In January, 1876, and
he last In 1925, without assigning to each
ono q particular term for payment, but
laking this depend upon the drawing of lots.
more specific description Of this scheme APP
ears In statement No. 36, hereunto annexed
nd made part of this report.
VII.
On the point of inquiry, viz:
whether the causes of the defaults in the
objection and payment Of the sinking fund is
ornament or transitory?
i report:
That they are permanent, so far as the In
sntion manifested by the city and State, the
OF the City Council and acts III the
can make them so. Ieannot trace
l any Of these disposition to return to a
appliance with the thirty-seventh section or
1e act OF 1859, or the least attempt to retract
attracts entered into In violation of that
ection.
VIII.
On the point OF inquiry, viz:
Whether the city of New Orleans are par
ee TO any impeachment to the collection and
pplication OF the taxes arising from the pro-
sions of said section
/ report:
1. That they are; and refer generally to
,e preceding articles of this report, and par
cularly Cd the action taken by the city in
appliance with the act OF 1874, suspendtng
70 collection of taxes to pay the principal oI
le consolidated debt; (21 the attempt OF the
ty In July, 1875 and January. 1776, to COM
81 the holders OF bonds to accept half inter-
rest. go the manifestly Intentional omis-
on subsequently to pass an ordinance pro-
ding specially even for the interest Of
10 consolidated debt; az the cessation
| ell payment whatever into the sinking
md since first Of January, 1876; 81 the d.
N pt -.lk |