The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-12
CONSTITUTION on 1852.

ART. 100. The Legislature shall have power
to grant aid to companies or associations of
individuals formed for the exclusive purpose
Of making works OF internal Improvement,
extent only OF one-fifth Of the capital Of such
companies, by. subscription OF stock or loan
Of money or public bonds; but any aid thus
granted shall be paid to the company only III
capital shall be. actually paid in by the
stockholders OF the company; and, Id case
OF loan, such adequate security shall
be required as to the Legislature may
seem proper No corporation or indi-
State, as herein provided, shall possess bank
Ing or discounting privileges:
ART. 40. No liability shall be contracted
by the State. as above mentioned, unless the
same be authorized by some law for some
fled therein, which shall be passed BY q ma
jority OF the members elected to both houses
Of the General Assembly, and the aggregate
amount OF debts and liabilities incurred under
this and the preceding article shall never, att
any one time, exceed $8,000,000.
Murray VS.. City OF Charleston, s Otto 445:
"The truth is, States and cities when they
borrow money and contract to repay 1t with
come down to the level Of ordinary individ-
uals." Also Planters Bank VS.. United States
Bank, Wheaton 907.
A sovereign State and one Of the States Of
the Union, II the latter were not restrained by
constitutional prohibitions, might In virtue OF
sovereignty act upon the contracts of Its citl-
zens," etc. Suydam vs. Broadnax, Ia Pet. "A.
In Wallace vs.. Shelton, a A. .498, Judge
Land concurred 10 the opinion Of the COURT
which held the taxing power could be used to
protect the people from overflow.
1.-THE constitution OF the United States de-
clares that no State shall pass law impair
Ing the obligation OF contracts. The consti-
the meaning Of this prohibition" B. B. vs.
Mcclure, 10 Wall. 515; Dodge VS.. Wooley, IS
How. 357.
ssAny enactment from Whatever source ori-
u 70 stse evs tne force O.
Ing OF the clause cited relating to the jnTis-
detion Of this court Williams ys. BruHy, 8
Otto 1873.
RAILROAD BONDS.
In the case OF Morris Ranger vs. City Of
New Orleans, the Supreme Court OF the
United States said that: "Ths act OF 1854
provided that the railroad company should
issue to the city certificates OF stock for an
amount equal to the amount OF bonds re-
eeived; and that the stock should remain
forever pledged for the redemption ct said
bonds. 1t is plain that this language was
intended only to create statutory pledge 81
way OF collateral security for the payment 81
the bonds. Ii does not import that the hold
ers Of the bonds were to be thereby precluded
from looking to the city. or that they were
to the pledge" z77 u
Same doctrine, 6 Otto, 214 and 210:
"Ihe city, by the terms OF the bonds. was
primarily liable; and nothing In the language
liability. The bondhoIder il not compelled to
look to the security, but may proceed directly
against the city, without regard to 1t. Be-
sides, as was justly observed By counsel II We
could seek the intention of the Iegts-
lature from other considerations than the
words OF the statute, 1t would be
still palmer that no such construction could
be given 10 its Language. The object o1