The Ouachita telegraph., 1880-12-17
REMITTEp INTEREST FUNDS.
From New orleans Democrat

Orleans, IOucnIng the money IN the
State treasury sued for by holders of
coupons of bonds issued under act No.
5, of 1874.
The sum in the treasury is $29f 900.
The funds in question were transferred
to meet the expenses of the State gov
ernment by the following article of the
constitution of 1879, viz:
ART. 8. BE it further ordained, that /
the coupon of said consolidated bonds /
falling due the first of January, 1880, |
be and the same is hereby remitted,
and any interest taxes collected to meet
said coupon are hereby transferred to /
defray the expenses of the State govern
ment.
Twosuits were brought in the United
States District Court TO compel the
auditor and treasurer to disregard the
provisions of the constitution in respect |
to this money and to cause the same to
be paid to the bondholders.
Attorney General Ogden, Assistant
Attorney General Egan and Messrs.
Kelly and Lazarus defended the cases
in the United States Court, mainly
upon the ground that the suit against
the auditor and treasurer in the per-
formance of executive duties imposed
by tho constitution was, in fact, suit
against the State; this view was sus.
tained by Judge Billings, who refused
the mandamus.
Soon after the adjournment of the
Legislature suit was brought TO have
the funds applied to the expenses of
the State government for back years,
and the treasurer resisted the demand,
alleging, with other defenses, that the
order of the constitution intended to
apply the money to the expenses in
cident to putting the machinery of the
| new government in motion.
Under an injunction issued by Judge
Rightor, in this suit, the treasurer was
restrained from applying the funds as
required by the constitution, and in the
meantime the bondholders brought the
suit recently decided by Judge Monroe,
which will be carried to the Supreme
Court. There can be no doubt as to
the intention of the constitutional con-
vention to apply this fund to the ex-
penses ofthe State government for 1880
and subsequently, as will be seen by a
brief reference to the financial estimates
of the State. The amount of warrants
issued against the general fund of 1880
is about 5000, 900; the expenditures for
the balance of the year will not exceed
$50, ,000-say total of $3.50, 900. The
| following revenues We're considered
applicable to the payment of these
expenditures, viz:
One mill tax on $I76 900, 900 of real
| and personal property, less % per
cent for expenses and delin-
quency..... 900
Estimated licenses ses...................... 100000
Remitted interest 300, 900
Total $3.50 600
| The withdrawal of the funds in
question from the general fund creates
a deficiency of about $27O,000 in the
payment of the expenses of 1880, but
this loss to the warrant-holders is trif7
ing compared to the far reaching effects
of the decision in other respects. The
| bond-holder cannot rest upon a deciS-
ion which gives him pay for the coupon
of January because his bond, minus
that coupon, cannot be stamped for
reduced interest, or be funded in con-
stitutional bonds.
If the act of 1874 is decided to be a
contract which cannot be impaired, and
the ordinance of the constitution touch
ing the debt is declared null and void
as to the January interest, it is to be
expected that the entire debt ordinance
will fall to the ground, and the next
move of the bondholder will be to
compel the collection of the 81 mill tax
and payment of subsequent coupons
according to his contract.
! The following articles of the constitu-
ton were relied upon by the defense as
prohibiting the judiciary from assum-
ing jurisdiction over matter confided
by the constitution to co ordinate
department of the government:
EXECUTIVE DEPARTMENTS.
ART. 5S. The executive department
shall consist of n governor, lieutenant
governor, auditor, treasurer and secre-
tary of state.
DISTRIBUTION OF POWERS.
|. ART. II. The powers Of the govern
ment of the State of Louisiana shall be
divided into three distinct departments
and each of them be confded to n
separate body of .magistracy, to wit
Those which are legislative to one,
those which are executive TO another,
and those which are judicial to another.
ART. 10. No one of these depart
ments, nor any person or collection OF
persons holding office in one OF them,
shall aNprciSa mower nronhrIy haIanp-