St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1909-07-17
report Of Town Attorney
On School Bond Issue
Covington, La. L,1lu 6 1910

ueheiemen-Having been reoueste
Dy 0ne Mayor for written report O
sA'stlng conditions of the school bon
.sHue' herewith render same as
appears to me. 80
-. Inc town of Covington, La, durin,
ehe year 1906, voted special tax o
TOUR mills for period of ten years
tor the purpose of building a schoo
mouse; they issued bonds on this ia,
oh Tour mills under Act "a Of 1905
erese bonds were subscribed for bv
new Orleans firm, and were for tn,
sum OF thirty-two thousand and som,
ouu dollars. The New Orleans firm
aiter looking into the legal side of tn,
question: refused to take up the bond.
On the grounds that the Act of Leeis
azure Wcs unconstitutional. The towr
u |oVlngton had already entered lnrc
a contract with I. C. CARRIER, Of Jack
son. Miss, for the erection of The
School house in question, and work
was progressing thereon before these
oonds were rejected by the New Or.
leans hrm; there being no money on
nano with which to meet the payments
uue under the contract, the work on
the school house ceased. After con-
troversy of several months duration
IL was decided by the Town Council
10 issue certificates of indebtedness
with which to pay /. C. CARRIER, in the
sum of $17, 500, and to pledge the
special tax of four mills to the pav-
ment OF these certificates. This was
an done prior to the time that | was
appointed Town Attorney, and on nv
taking up the Office, l was requested
oy the Mayor to look into this matter
closely, and see whether or not, a So
iutlon could be reached whereby bonds
could be fioated and the school house
completed.
| have looked into this matter close
ly, and find these conditions Of affairs
confronting US:
j There is an outstanding obligation
Tor which the four mill tax is pledged,
amounting in all with interest to about
$20, 600. Builders and contractors in
whom have confidence tell me that
it is impossible to complete the school
house, now in the course of consturc-
tion, under SIS, 900; this in itself, ne
cessitates at least $38, 900, if not more.
The law and common sense will not
allow us to issue $40, 900 worth of
bonds on tax of four mills which be-
gan on an assessment of $840, 600, and
even though we did, we would be con-
fronted by the same answer, we are
trying to sell our bonds as G. H.
Coffin, with whom | have had con-
siderable correspondence, answers me
as per the attached letter.
June 9, 1909.
Mr.. C. H. Coffin, 228 LaSalle ST.,
Chicago, Ills.
Dear Sir. Our town proposed issu-
ing school bonds at the amount of forty
thousand dollars. These bonds will
be issued under and in accordance
with an ordinance adopted on the :
day of ---- 1909, copy of which
| herewith enclose.
/ will first go into short and con-
densed history of this bond issue. In
1906, an election was held for the pur-
pose of voting on the. question of a |
special tax of four mills on the dollar,
in the town of Covington, La, and |
this election was carried by large
number. Acting under what he then |
considered the law, the City ATTORNEY,
issued bonds to the amount of $40, 90. 90,
as against this tax, bonding same. |
This bond issue was passed on by |
attorneys from New Orleans, stating |
that it was illegal, in that the town
of Covington had not called an election
ratifying the previous election and |
the issuance of bonds and
The special tax. In the meantime the
school building had been started, and
On account of not being able to sell
The bonds, the money could not be
paid on the contract in accordance
With the terms thereof. Litigation
was entered into between the town of
Covington and the parties who had
agreed to purchase the bonds, which
litigation has come to naught The
oarty having contracted with the town
1f Covington called upon the Town for
mis- money, and compromise was
antered into whereby the Town re-
,alled the bond issue of $40, 000 90, and
gsued in its stead, certificates of in
lebtedness, amounting to ST, 800 90,
q many payable each. yeor. | here
With enclose copy of the certificate
IA indebtedness. You will see by the
enclosed copy of the ordinance recent
= adopted, that we have called an
slection for the purpose of ordering
Ehe issuance of certain bonds, and the
terms, etc.
han S875, 000 90; this year it is one
million and fifty-five thousand dollars,
showing that the Town is in growing
ma healthy condition. Next year this
osssessment will be still further in
,reased, as since the beginning of the
year. in addition to the two railroads
nhich are now in operation to this
noint we have motor line, connect
Mr. This Town with the town of
on Lake Pontchartrain.
This fact alone will greatly tend to
Increase the property valuations, and
here is every reason to believe that
phe m town of Covington will continue to
increase year by year.
Won will note that the town of Cow
roton pledged the surplus over and
.As5 80 fha statutory expenses to be