The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-17
THE NEW ORLEANS PACIFIC.

By reason Of the delay occasioned by the
legal proceedings taken to test the eonstitu-
tonality OF the act NO. Gs Of 1879 authorizing
the loan to the New Orleans Pacific road o
State bonds to the amount of S2,0o0,000. that
road was deprived of whatever practical ben
eft might otherwise have enured to It
Eventually the validity of the act was sus-
tanned, but other difficulties and delays super
vened. and the result Is that the road has
been com PEELED, SO far, to fu1pgo all the hene-
| fits that were contemplated at the time the
measure passed the Legislature.
The act, as 1t now stands, Is of no posi-
BILE advantage to the company. To have
suspended work on the road would have been
fatal, and the company was forced to look
elsewhere for the means OF continuing It, In
this emergency 1t had nothing else than its
own credit to depend upon and was, In eonse-
auence. compelled to use Its own bonds This
the company did. and with the means 50 OBJ
tanned It has pushed forward the work on
! the road with vigor far beyond the antici-
pations Of its most sanguine friends
| But, for this reason the com
pany can no longer pledge TO the State
| Its first mortgage bonds which are in the
| hands Of the capitalists who have been In.
duced to take hold Of this work. In order not
| to deprive the road Of the benefits Of the act
| of 1878. ii is necessary to amend It 50 as to
substitute second mortgage bonds in place Of
| first. as security for the issue of the State
bonds. We understand that M amendment
| to this effect will be introduced, and we hope
1t will pass the Legislature.
The early completion Of this road Is Of tile
utmost Importance. not to this city alone
but to O large portion Of the most productive
regions OF the State. and we trust that the
aid asked for will not be withheld through
any misapprshension In the minds Of legisla-
tors as to the conditions Of the loan. Tie
proposition is MT an unconditional Issue OF
81 000. 900 In State bonds to the road. For
every bond issued by the State correspond
Ing second mortgage bond Of the road on the
property Of the road, which represents the
first mortgage bonds. Ia delivered On the
work already completed. one-eighth Of the
full sum, or about S25O,00 In State bonds are
to be issued. Thereafter bonds to the amount
Of $4,000 per mile are to be issued on every
section OF ten miles completed graded
bridged and ironed." Before the last
instalment Is paid thereon. the road
will be In actual operation over It's en-
tire length. AS further security to
the State against all liability for accruing
interest on Its bonds, 1t ID authorized to sell
the mortgage bonds Of the company deposit
ed with 1t to pay the same In case Of default
on the part of the road. The ability of the
road, after completion, to meet the interest
on It's securities cannot be questioned 1t
runs through one Of the richest regions
Of our State, and, besides, affords direct
intercourse with Northern Texas. in whose
valuable trade we scarcely participate
at all Mt this time By reason of Its
unusually easy grades the expenses Of ope-
rating the road will be comparatively light
but, in any event, the increased revenues OF
the State from the enhanced value of prop
erty all along its route will more than COM
pensate the State for whatever risks 1t may
incur In this respect. The State could not
extend its aid to q more mertorious enter
prise. or to one Of greater commercial i'm
portance, or on better security.