The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-28

, trainers OF the act doubtless counted upon sue
an increase in the taxable value OF propert
as would have rendered the full performano
! OF the contract by the city possible Their
has been no such Increase; but does u follo'
that the contract is thereby cancelled an
avoded2 Has not every holder OF premium
bond the right to hold the city to the fuilll
ment of the contract to The epfed If us ability
think every bondholdef has such right. an
any attempt to set aside this contract, withou
the consent Of the holders Of the bonds, VII
surely involve the city In further .eSpensiy
and fnterminable suits at law. OF which J
has already enough on hand.
| Circumstances have arisen which, upon
superficial view, would seem to have brotlfh
the premium bond plan to n dead lock. ne
ls examine further and see II certain Dune
| conditions do not exist which enables the cit)
| to carry on the contract and satisfy every
| present legal demand OF every holder OF
premium bond.
City bonded debt. June 80, 1sT5..,. va ,95aile II
! From this deduct bonds redeemed.
| Waterworks bonds tfor No.
| Wharf bonds lby lesseesl 272.Doo 90
| Other bonds redeemed loi242 7s
Deduct also az not In
elnded In the premium
bond account:
Wharf bonds outstand-
Waterworks bonds out
standing .......t...'.. 2bo,soo oo- tl'blsIf2 ~
lbhNiHE W Ht tuhh'n "a btct
This amount has been further re-
by premium bonds re-
deemed under pre-.
MUM bond act ..... s5t8,6ts 90
Old bonds bought and
cancelled from pre-
MUM bond fund g.. 56s.3s3 53- " ,gs2, 00t SO
Leaving to be dealt with under pre-
MUM bond account. ......... ,sip 2ss, s72 4s
The total payments Ia cash by the
city under the Uranium bond act
for the years 1876. 1877 and 1878
amounted to....,.............,.- t,24s, $50 90
Owing to the fact that only portion
Of the bondholders ,eonyerted
their bonds into premium bonds
the city has with this sum been
enabled to redeem aud cancel of
premium bonds .........4........ s1s San 90
ot old bonds 800. ................. 56s, 9e3 50
And have bought and hold premium
bonds. ....t.+.........t.t....s... $50, 100 90
s36i2.s9s 80
Showing n net profit to the city Of . 7g9.57s 50
Have we not here a combination OF unfore-
seen circumstances which to some extent at
least eounterbalance the disappointment
caused by the failure of an increase In the as
sessed value OF property liable to taxation
Section Of the act of March 26, 1876, clearly
proves that said act was passed solely for the
benefit OF such OF the bondhDlders as chose
to convert their bonds into premium bonds,
for 1t expressly prohibits the levy or coIlec-
est upon any other than the premium bonds
The amount Of premium bonds In
existence Is +ss4s+.-..t..s...sss.... FL $50 1HO
OF which The city owns. or more prop
erly speaking. holds In trust for
the benefit OF the premium bond
holders. ......................... o.7eo
Leaving In the hands Of the public. go 3s9 800
The whole amount OF bonds entitled
to participate In this years draw
ings being ...t...........-........ ~, 9ss. $40
The city will participate In the draw
ings both of bonds and premiums
to the extent of-...........s......4 80 glp OtO
The total amount to be paid this year for
redemption Of bonds and payment OF pre- |
Diurns being s59s, 75O. by applying the simple |
-ule OF three we ascertain the amount Of |
actual cash necessary to carry out the prCvi- |
,ions Of act No. 81. In spirit II not TO the letter
10 be $500, 232, provided the city should draw
ts exact pro rata Of series and of prizes. II
nay however, be safely assumed that the |
lmount required would not exceed $3.50 OOO |
eaving a sum Of $4,000 to be invested by |
he city In the purchase of bonds 1t liz true
hat the Increased amount required for each |
successive year, or the conversion Of more OF
he old bonds into premium bonds, will at |
oine future day exceed the amount applica-
lie to this purpose When that occurs 1t will |
'e time enough TO meet the emergency, and
'enture the opinion that the bondholders will |
refer to allow distribution OF the available
und, by reducing the amount of the annual
rawlings, to any change in the form Of the
ecurity
1t is quite probable that the holders of
onds that have not yet accepted the pre-
angement, which would be acceptable to the
lily. In that event such an arrangement
ould be made with them and the drawings
.nder the premium bond net be reduced to
he exact pro rata they have to the. whole
eferred. or the holders OF the premium
onds might be allowed the option OF Joining
4 the new arrangement. In any event the con-
ent OF the creditors should be o condition
recedent to any arrangement, and when
lOnal amendment.
There Is one Objectionable feature in the
resent plan which should he eliminated,
rOrtded The assent Of The bOndhoidera can be
blamed. i refer to the annual distribution
I the sum OF 100000 In the form of prizes
his Is an Objectionable feature TO many on
moral grounds, as 1t partakes OF the nature
! q lottery. This amount could then be APP
lied 10. an increase Of the amount Of bonds
o be drawn and paid off i'm each year II
would secure the final payment at M earlier
ay. and would increase the ability OF the
ity to pay off the bonds. In considering this
ropositiOD, 1t should be borne in mind that
he creditor In all such cases has direct in
crest in strengthening his debtor.
Whatever objections may be urged against
ne adoption OF the suggestions have made,
think them preferable to any change In the
Drm OF the bonds. III so solemn q contract as
hat embodied In act No. 81 Is to be set aside
y the city at the first plausible opportunity,
vhat guarantee could be given that similar
curse would not be adopted with regard to
ny other arrangement that might be NADER
| must apologize for the length of this com
nunication, which Is due to the fact that nv
usiness engagements have not permitted me
o devote to Its consideration as many hours
$ 1t would require days to properly efucidate
mits. VI
remain, respectfully yours,
JOHN B. LAFITTg.
REAL Es1ATE TRANSFERS