The herald., 1912-09-19
ACT NO. 2O3.

House Bill NO. 400. by tOntenOt.
\ JOINT RESOLUTION
Proposing an amendment to the Con-
stitution of the State of Louisiana,
amending Article 46 of the Consti-
tuition of 1898, as amended by Act
No. 303 of the Acts of 1910. rati-
fed by the people at the November
election of 1910. so as to authorize
the Board of Liquidation of the
retire or refund the State Bonded
Indebtedness due January 1st, 1914;
to provide for a tax for the pay
ment of the interest on said bonds
and a sinking fund to retire the
same; to provide for the payment
out of the said sinking fund of an
indebtedness due by the State TO
the United States. and of certain
other claims against the State.
Section l. Be it resolved by the
General Assembly of the State of Lou
isiana. two-thirds of all the members
elected to each house concurring, That
an amendment to Article 46 of the
Constitution of the State of Louisiana
OF 1898. as amended by Act No. 303
of the Acts of the General Assembly
of the State of Louisiana at its ses-
sion held in the year 1910, ratified by
the people at the November election of
1910. be submitted to the qualified
or rejection at the congressional cleo
ton to be held on the first Tuesday
next following the first Monday in No
vember of 1912, said proposed amend
ment to read as follows:
Article 46. The General Assembly
shall have no power to contract or to
authorize the contracting of any debt
or liability. on behalf of the State, OF
to issue bonds or other evidences of
Indebtedness thereof, eXcept for the
purpose of repelling invasion or for the
suppression of Instruction. Provided,
that for the purpose of retiring. Ii
quidating or refunding the present State
Bonded Indebtedness of Eleven Mil
lion. One Hundred and Eight Thousand,
49, Ill
uarY LIST. 1914. and bearing four per
centum per annum interest, the Board
of Liquidation of the State Debt of
Louisiana is given authority to issue
Eight new coupon bonds of the State
of Louisiana of One Thousand Dollars
each. to be numbered No. L to No.
los bearing a rate of interest not
mum. payable semi-annually. and to be
due and paid in fifty years from jan
uary LIST, 1914. The form of said bonds
shall be prescribed by the Board OF
Liquidation of the State Debt and they
shall be signed by the Governor, the
Auditor and the Treasurer of the State.
Said bonds shall be sold to the highest
bidder at not less than par after three
months of advertisement by the Board
of Liquidation of the State Debt in
New Orleans, Chicago and New York;
and in case said bonds cannot be sold
they may be exchanged at par by the
Board of Liquidation of the State Debt
for the bonds due January 1st, 1914
The excess of Three Hundred Dollars
over the bonds authorized by this ar
ticle. shall be paid in cash out of the
current interest funds of the State.
The cost of engraving and advertising
said bonds shall also be paid out of
the said fund.
I'm all other respects not herein spe-
Gifted. the Board of Liquidation of the
State Debt is hereby given full power
and authority to carry out the provi-
sions of this amendment.
Beginning with January 1st, 1914,
there shall be and there is hereby lev:
led on all property on which general
state taxes are levied an annual tax
OF one and two-tenths mills, the net
proceeds OF which shall be devoted to
said bonds. to the payment of the in
terest due on the Indebtedness of the
State to the Free School Fund, to Sem
mary Fund and the Agricultural and
ment of the proper expenses of the
Board of Liquidation of the State Debt,
and the residue to the constitution of
a sinking fund to be applied annually
except as hereinafter provided to the
purchase of said bonds by said Board
at price not to exceed One Hundred
and Three and accrued interest. If
bonds cannot be purchased as afore-
said. the sinking fund shall be invest
ed by the Board of Liquidation of the
State. Debt in sound. interest bearing
securities, producing not less than four
per centum per annum interest on the
amount so invested. or deposited in
solvent banks furnishing adequate Sc
curity to the State. to be approved by
the said Board. at a rate of interest
not less than four per centum per an
mum. Said tax shall be levied until
all OF said bonds shall have been re-
tired. but after the assessments of the
state reach the sum of Six Hundred
and Fifty Million Dollars. said tax shall
be reduced to one mill and shall there
after be reduced two-tenths of one mill
Tor each One Hundred Million Dollars
increase in assessments until the said
tax snail be reduced to six-tenths of
one mill; The said tax shall constitute
a part of the six mills OF taxation per-
mitted to be levied by the Constitution.
I'm case the present system OF taxa
ton shall be changed before the said
ponds shall have been paid. there shall
be levied annually a tax sufficient TO
produce a gross sum Of not less than
Six Hundred and Fifty Thousand Dol
lars to take the place of said tax of
one and two-tenths mills and it's re-
auctions
"The Board of Liquidation of the
state Debt shall have power to settle
under the conditions and limitations
claims of indebtedness made by vari-
Gus persons against the State, to-wit:
% The outstanding bonds known as
Baby Bonds excluding all Babv Bonds
the State.
t2) Auditors warrants issued for
school. certificates of indebtedness I'M
der Act 1876 Of 1890
tS Certificates issued under Act 90