The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-22

principal and interest, and then to bond tn
debt In long bonds. On this came the ques
ton, what kind Of bonds and what Interest
In the preparation Of the bill he proposed t
: OF the city. The face value of the funded deb
OF the city is, In round numbers, $4,000 DOC
and on this there is an accumulated interes
OF something over $3,0OO, 900. making the tota
funded debt about $22, O00,OO
The assessed value of property Is $40, 900.
900, and on this tax Of TX per cent would
enable the city to set aside S55OOO0 for tn,
payment OF interest: but great many esti
mate that the assessment will be reduced tc
$50 600 00O, and this would admit OF but $3.50 OO(
as an Interest fund, and It was necessary to
come within this figure II the face value o.
the city debt, $751; 100000, alone Is funded, the
city can pay 2% per cent interest, but II the
entire debt, S22. DOC, 900. is put into new bonds
bill proposed 10 drawn to make the bonded
debt $1S,000,000. It is absolute In its proyis-
ions; limits the total taxation for all pur-
poses poses TO 5 per cent; provides for the pay.
1890, requiring $450,OOO, and per cent after
that time. requiring $3.50, 200.
MIR. Morris then read the bill The follow
ing Is synopsis OF Its provisions:
Section authorizes the issue of new bonds
by the city In exchange for outstanding legal
bonds at their face value, but no new bonds
snail be issued for any amount of matured
and unpaid coupons, or for the amount of in
terest due on said old bonds, 1t being required
tnat the holder SHALL consent to make re-
mission and surrender of said unpaid cou-
pons and interest on receiving q new bond
for the principal only Of an old one
Section provides that the interest shall be
"a per cent per annum from date OF passage
final payment, and that taxes previously i'm
posed, II collected, deposited as sinking
fund for the redemption Of the new bonds.
section 3, that after the act became law
all payment OF principal or interest of pre-
vious issues Of bonds of the city shall be
paid.
Section limits the taxation OF city prop
erty Tor all purposes to TX per cent, and pro-
vides that $450, 900 shall be annually set aside
I0r Inc payment OF the interest up to 1890;
aside. 800 'o'
Section makes it the duty Of the CITY a,,-
thorities to levy the tax required ry the act,
ana the failure to do 1t an offense punishable
Office. -
Section provides for board Of liquida-
ton, composed OF the Mayor, the Admins
traitor OF Finance and Accounts, and three
holders and owners OF the consolidated bonds
ana PRESIDENT OF bank, In which should be
.epoSlted the money set aside for interest:
the board to control the exchange of bonds
etc.
Section makes 1t the duty of the city to
pay the necessary expenses of the board, in
Guiding the salary Of secretary, and defines
the duty of that officer
Settion 8 provides that, after setting aside
sufficient OF the appropriation made, to pay
the first installment OF interest, the remainder
shall be devoted to the purchase OF valid out
standing bonds.
Section II provides that hereafter no bonds
or coupons heretofore issued by the city shall
be paid or extingushed otherwise than In
conformity with this act.
Section II enacts that the remedy by in
junction or mandamus shall not exist or be
granted to enforce the provisions Of any act
OF the Legislature heretoiore passed to create
or authorize any funded debt.
Section IS authorizes the board OF liQuida.
ton to contest the legality Of any bonds pre-
scented for exchange.
Section IA provides for the registration of
the old bonds and the issuance of certificate
shall be paid as the board OF liquidation
may provide.
Section Is, that the consolidated bond and
the certificate OF registration shall only be
used for exchange.
Section 16 provides for a semi-annual state
ment, showing condition of debt, interest
fund, etc.
Section II directs that the Administrators
OF Finance and Accounts shall furnish the
board such information from the records,
books, ETC., as the board may desire.
Section IS provides that no new bonds shall
be exchanged for anything except the funded |
debt and that the new bonds shall not exceed
SIS, 100000.
act Is contract between the State of Louis
lana and city of New Orleans, and provides |
that any holder Of the new bonds can proceed |
against the city In any manner |
prescribed by law.
Section 20 is the enacting and repeating
clause.
Mr.. Morris then compared the premium |
bond plan and the one embodied in his bill, |
and showed that the execution Of the premium |
bond scheme ia ten years would cost the city |
81, 900, 900 more than would the execution Of |
the provisions of the BILL and that while by
the premium bond plan the debt would be re-
dueed $4,000, 000.by the plan of redemption pro-
vided for In the act the reduction would be |
between S9,000,o00 and S10,OO0,OOO, estimating
The price paid for bonds at forty-five cents on
The dollar.
Mr.. l. N. Marks, as representative of the
holders Of a large amount OF the floating debt,
said he saw no provision in the bill covering
Mr.. Morris Ereplied that the constitution
prohibited its funding, but he had no doubt
If the ability to pay it in the end, being
,onfidentithat large amount OF the outStand-
ng taxes would be settled.
Mr.. Glynn stated that the total amount OF
ioating debt unprovided for was $1,OS3000.
Mr. Marks wanted to know if provision
Gould not be inserted in the bill authorizing
he funding, the provision to be subject to
he approval OF the constitutional convention.
Mr.. McCaleb called attention to the fact
that within a wear and half the franchises
81 the city railroads would be sold and a
large amount of money would, through the
81 saie, come to the city; that the amount due
~ " me park would soon he paid, and it could
oaea Dc realized on by the city and the pro-
floating debt. = 80 eA''As' 1'sA'
+,a MI. MARKS wanted to know what guarantee
Piled. VIC l1ouey "ouiu Do sau' "p
nj. McCaleb called his attention to q proyi- !