Richland beacon. [volume] (Rayville, La.) 1869-1890, 1889-09-28
THE ILLEGAL BONDS.
NO STATE SECURITIES SOLD ON CHANGE.

NO STATE SECURITIESS OLDON CHANdE.
Times Democrat
There were no new developments in
the matter of the fraudulent Issue Of
State bonds yesterday. Every one is
anxiously awaiting the result of the
investigation at Baton Rouge, and
those holding State securities, es-
pecially bank officials and brokers,
are not disposed to talk until the re-
port of the investigation Is made
public. There have been no TRANSACT
tions of Louisiana securities on
Change since the announcement that
a large block of illegal bonds were on
the market. There seems to be a
mutual understanding of withdrawal
between buyer and seller.
A rumor was current on the streets
yesterday that a large number of
State warrants had been improperly
or fraudulently funded into Louisiana
3s or baby bonds, and that great
many more of these bonds were in
circulation than was contemplated by
the Constitution, which called them
into existence. 1t was also insinuated
that a number of these bonds had
been issued without the extinction of
any outstanding obligation Of the
State. This latter rumor was prompt
ly set at rest by the subjoined tele-
gram of Auditor o. B. Steele to the
City Item:
Baron RouGE, La, Sept. 2l.-Proces ver-
BAL published in official journal in May, 1882,
and of record in the bond book.
No doub, the bonds were destroyed. The
only consolidated bonds that can be illegally
outstanding are the A. and NJ. and the Semi
nary bonds and the $4,000 surrendered in
exchange for constitutional. Correct mum oers
Of constitutional bonds, legally outstanding,
you have.
Umssued consolidated and baby bonds are
here. y. b. STEELE.
In an interview yesterday Attorney
General Rogers replied to the ques-
tons propounded by a Times-Demo-
crat reporter: 81 have no official in
formation on the subject, but suppose
that the baby bonds will be examined
into, so as to report to the Legislature
After the Constitutional Conven
ton had gotten through with the
bonded debt, the question came up al
! to the outstanding floating debt Of thu
State represented by warrants
ordinary, charitable institutions, etc
1T was decided to devote all bacl
taxes to the payment of these war
rants, and, as there would be delays
it was enacted that certain class o
these warrants were to be funded int
/, baby bonds, the interest to cease afte
, certain time. The theory was tina
by the time the bonds accrued Their
would be sufficient back taxes to pa,
back baby bonds and interest.
: II think there were about ,O00,00'
warrants thus made fundable, witt
, about SIS, 100000 back taxes due.
1.-The idea has been put out 70
some time that greater number O
baby bonds have been issued thai
ever contemplated. resulting from tn
fact that improper warrants an
obligations of the State not contem
plated by the Constitution, have bee
funded into baby bonds"
; who by law is made the custodia
of these bonds?'
. "The Auditor
"Who would be responsible for tn
funding of the bonds?"
- The Funding Board. The Bah
Bond Funding Board under the la'
was composed of the Auditor, Urea;
> urer, Secretary of State, Attorne
General, president of the Cotton Ez
change, president of the Stock En-
change and the fiscal agent. Th
secretary was Mr.. A. W. Cockerton.