The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-18
MUNICIPAL.
AN ACT TO REDUCE THE DEBT OF
THE CITY.

AN ACT TO REDUCE THE DEBT Oh
THE CITY.
The City to Compromise ana COmpOun,
with Holders Of City Bonds ut tn
Rate Of Forty Cents on the Dollar.
day or two ago the DEMOCRAT announce
that the committee OF the whole OF the Cit
Council was considering a financial PROPOSE
ton. A conclusion has been reached. and yes
terday Mayor Patton presented to the Commit
tee on City Affairs of the House OF Representa-
tives bill. Of which we give the principa
features. with the request that it be acted upon
| THE PREAMBLE
OF this bill we give In full. as follows:
sEor1os 4. Be enacted BY he Senate an
House OF Representatives Of The State Of Louis
| lana. IN General Assembly concerned. That
whereas. grave doubts have arisen regarding
| he constltutionality and legality OF the bonds
heretofore issued BY the city, of New Orleans
| mapd and the obligation Of said city 70 make
payment OF the same; and whereas. litigation
uncertain aa res result u the end has arisen
concentrations Of long daTation oi and
doubtful ',b,t !, teerbmnation, involving the
taxation which 1t would be necessary to I'm
pose, ip order to pay the principal and interest
OF said bonds according to their tenor. would
II Is levied valueless or unstable and whereas,
the attempt to collect such tax must. In a large
proportion OF instances. either cause the ruin of
the proprietora. or leave so great a yearly def
cit az to render the. corporate city itself wholly
iEsolvent now, and as long as said alleged
enormous and disproportionate debt shall be
outstanding:
Therefore, the said city of New Orleans,
through Its Mayor and Common Council shall
have the right to compromise and compound with
the holders or bearers of said uonds and Of the
coupons Issued Herewith, for reduction of
their claims. respectively, without any distinc-
ton or exception. or reservation of any class or
series of such bonds; and such contract of com
promise and partial remission may be made
bonds.
SEC. 2. BE il further enacted. ETC.. That in or
der to facilitate and carry into effect such com
promise and remission. the city OF New Orleans
shall have capacity. and Is hereby authorized
and empowered to make. execute and issue
new bonds. with interest coupons attached to
any holder or bearer OF authentic bonds hereto
any previous act Of the Legislature upon the
surrender to the CITY and canceEent of such
previous bond: bu said old and new bonds
shall be exchanged ~ the rate of forty dollars
Of new bonds for one hundred dollars of old
bonds and matured coupons; and the Mayor
and Council shall prescribe the form, wording
be known as the Compromise Humiliation Se-
ries." and shall be made payable In not less
than thirty nor more than fifty years after date,
from the first OF January. 1879, with interest at
the rate OF four per cent per annum from date
payable semi. an nually. and represented by in
lerest coupons attached; and the said bonds
OF the city. and be signed by such special officer
as the Mayor and Common Council shall. by
ordinance create and authorize.
Sec. 8. BE ii further enacted ETC. That from
and after the passage OF this act all payment of
principal and interest of previous issues of
bonds by the city shall cease. and the taxes i'm
posed and levied tits year and previous years
for the payment Of the principal and interest of
any bonds heretofore issued. whether collected
and not yet disbursed. or uncollected, but which
snall hereafter be collected shall be retained and
deposited In the sinking fund hereinafter pre-
scrfbed. and shall be used and Appropriated to
the payment OF the principal and interest of the
this act.
SEQ. l. Be ii further enacted. etc.. That upon
the assessment and valuation OF property liza
Die 10 taxation. according TO the rolls In force
on the flrst OF january. 1879. the Common Coun-
Gil Of said city shall levy and collect a tax &C.
cording to such valuation. the rate of which shall
De, over and above a reasonable allowance for
the probable amount Of uncollectible ASSESS
mems. sufficient to pay the interest coupons of
Ssg q and such further sum as would be required
ne principal, which installment shall be ascer-
tanned by dividing the sum total of the bonds
e zen plated byts act number Of years
said bonds, shall have been fixed; and said as
'essnent levy and collection shall be made. |
'esp Dy ysa I'll tee matary 3; Of said bonds
non council shall. In each var. before the |
enth Of January. pass an ordinance for the |
evy ana collection OF the tax required by this |
tcC. ana IL IL neglects or omits to do So they
nay pc compelled by mandamus. and should |
hey disobey the judgment commanding them
o perform their duty. the court shall order
y to whom such neglect or omission
hall be impntable. to pay a fine of |
me thousand dollars and imprisonment during
lxty days for contempt and thereupon the
ffice Of each Of those adjudged thus guilty Of
ontempt shall be, pso facto vacant and with
= further proceeding. the tenure of office
ease. and on presentation of duly certified
opy Of the Judgment rendering. the manda-
1bieb ba Ps and declaring the conempt
rnor shall, according to law. fill the vacancy
Q created by the appointment of another per-
Section provides for the constitution of the
oard of Liquidation and prescribes their
uties, among which 1t is specified that thew
nall ascertain the present Indebtedness of the
Section refers to the archives of the board
nd the Office expenses. {
SECTION sd hsP provides that four members of the
oaru slall constitute quorum, and refers to
le penalties for absence from the meetings. {
section declares that after the passage of
lis act no bonds or coupons issued Heretofore
section 10 authorizes the Board OF Liouida-
on and the city Of New Orleans, or either OF
rem. 70 contest the constitutionalty. validity c
, ,, Oa any oonds or coupons heretofore
Section II provides that the bonds and cou.
ons authorized By this act shall be used only ,
y the purpose OF exchange as aforesaid
Section IL provides for semi an nual accoun ts :
be made by the Board to the City Council.
Section Is makes It the duty Of the Secretary
nance and Accounts to furnish the hoard
it'll copies OF records. ETC.
Section IA Is the repeating section
BIDS OPENED.
81 3 were opened yesterday In the Mavor,s mr.
n for rApairipO thp Rinp liz D., 80