The Colfax chronicle., 1904-07-30
Opposes the Million Dollar Bond
Issue.

Opposes the Million Dollar Bond
Issue.
We publish the following letter In
order that our readers may under
stand the kind Of clap-trap sophistry
that Is going to be used to get them
to vote against the million dollar
bond issue to build school houses:
New Orleans, July 8, 1904.
To the Editor of The Times Democrat:
Our Governor has apparently he
come SO enthused over the public
school question that very much fear
he is proposing to sacrifice the public
interest and give away two dollars
to get one for schools. Now, no one
would for one moment question the
proposition that the support OF free
schools constitutes one of the great
est objects OF our fostering care, and
should receive every cent the State
can possibly spare In aid Of such a
worthy cause-nay more the State
should strain a point to still further
materially assist primary education.
But has the Governor and the Gen.
eral Assembly adopted the wisest
course to secure the necessary funds?
We think not. The proposed bond
issue to he voted upon by the people
| is In the interest Of the large banks
and financial corporations OF LOuisi-
ana. sugar-coated by the broad asser-
| ton that is to he expended for public
schools. Why do l say it Is In the
| interest Of the banks? Because the
act has a distinct provision that the
amount of all bonds held by uny
bank or corporation shall be deduct
ed from the capital stock Of such
| bank for assessment purposes. Take
a bank with a capital stock Of 500,
600. On which it pays taxes to the
State, to the parish and to the city
wherein it Is located. That bank
can puy 500. 900 worth OF bonds and
escape all taxation for either State,
parish or city purposes, and. In ad-
tlitiOn, not have to pay a local or
special taxes that might be voted by
| the people, which everybody else
would have to pay, and, In addition.
| the bank would every every six
months would draw it's regular
per cent per annum interest In the
State and contribute nothing to the
State. Besides the bank buys the
| bonds with the money Of the depOsi-
tors, and the Supreme Court has held
that state bonds SO held are to
he deducted from banks capital
for assessment, as 1t IL the shares,
and not the capital of the bunk, that
| is assessed. For that reason this act
made special provisions that these
| bonds were to be deducted, making
the same directly in the interest OF
the banks and other corporations,
as heretofore stated. 1t Is equiva-
lent to floating per cent bond. In
stead OF a per cent bond, as the
public has been led to believe.
| Take New Orleans for instance.
| where 1t is probable that most OF
these will he fiOated. She will lose
taxation on about 81. .OOO, QUO that she
Is now receiving from the banks.
which viii amount to nearly $50, ,O00
per year, and the state will lose -. 900
per year while she pays the holders
Of the bonds $4,000 per year for Is
years, equivalent to $76O.OO0, and
still we owe the principal OF 81, ,OOO, 100.
cannot conceive that such scheme
is in the interest of the people, who
will very likely never hold any Of the
bonds, but is directly In the interest
Of the banks, trust companies and
other corporations that VIII buy
them up, How much better Y would
HosC OcCu ~ W = ..s- :. !. = - g.