The Natchitoches enterprise., 1912-10-03

House Bill No. 433. BY Mr. Fontenot
JOINT RESOLUTION


amending Article 46 of the Constitu-
ton of 1898, as amended by Act No
303 of the Acts of 1910 ratified by
the people at the November election
OF 1910. so as to authorize the Board
or Liquidation of the State i 1T to
issue new bonds to retire or refund
the State Bonded Indebtedness due
January LIST. 1914; to provide for a
tax for the payment of the interest
on said bonds and d sinking fund to
retire the same to provide for the
payment out of the said sinking fun
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 Cen
eral Assembly of the State of Louisiana.
two-thirdS of all the members elected to
each house concurring, That an amend
ment 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 LOU at its session held in the year
1910, ratified by the people at the No
vember election of 1910. be submitted
to the qualified electors of the State for
their approval or rejection at the con-
first Tuesday next following the first
Monday in November of 1912, said pro-
posed amendment to read as follows:
Article As. The General Assembly
shall have no power to contract or to
authorize the contracting of any debt
VI 1iiDll1lE, Ol DeIdII Oh the state, or
to issue bonds or other evidences of
indebtedness thereof. except for the
purpose of repelling invasion or for the
suppression of instruction. Provided.
uidating or refunding the present State
bonded Indebtedness of Eleven Mil
lion, One Hundred and Eight Thousand
Three Hundred Dollars. maturing jan
centum per annum interest, the Board
OF Liquidation of the State Debt Of
Louisiana is given authority to issue
Eleven Thousand, One Hundred and
of Louisiana of One Thousand Dollars
each, to be numbered No. L to No.
l1,1OS. bearing a rate of interest not
exceeding four per centum per an
due and paid in fifty years from JAN
uary 1st, 1914. The form of said bonds
shall be prescribed by the Board of
Liquidation of the State Debt and they
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 sole
they may be exchanged at par by the
Board of Liquidation of the State DeDt
The excess of Three Hundred Dollars
of the bonds due January 1st, 1914.
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 spec
fled, the Board of Liquidation of the
State Debt is hereby given full power
and authority to carry out the provi.
stons of this amendment.
beginning with January 1st. 1914,
there shall be and there is hereby lew
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
the payment of the interest due on
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
Mechanical College Fund, to the pay
ment of the proper expenses of the
Board of Liquidation Of the State Debt,
and the residue to the constitution OF
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. II
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
amount so invested, or deposited In
solvent banks furnishing adequate Sc
curity to the State, to be approved by
sss SEQ 6oarq; e. - rate IS & inSsrsss
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
for each One Hundred Million Dollars
increase in assessments until the said
tax shall 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.
In case the present system of taxa
ton shall be changed before the said
bonds shall have been paid. there shall
be levied annually a tax sufficient to
produce gross sum of not less than
Six Hundred and Fifty Thousand Dol
one and two-tenths mills and its re.
auctions.
1.-THE Board of Liquidation Of the
State Debt shall have power to settle
under the conditions and limitations
hereinafter provided, the following
claims of Indebtedness made by vari-
Gus persons against the State, to-wit:
"a The outstanding bonds known az
Baby Bonds excluding all Baby Bonds
fraudulently issued by any official Of
the State"
(2) AUDITORS warrants issued for
school, certificates of indebtedness I'M
der Act 1875 of 1880.
(3) Certificates issued under Act %
of 1880 for costs and fees due to the
officers of the State.
% Warrants drawn prior to 1880
and fundable but not funded into Baby
Bonds.
of 1880 against 1878 and previous years.
Provided, however, that the owners
or the duly authorized trustees Of the
owners of said claims may prior to
proceed against the Board of Liquida-
ton of the State Debt by rule, solely
and exclusively in the district court OF
the Parish of East Baton Rouge, to
their validity and the Indebtedness dus
thereon determined, which court 10
hereby given jurisdiction for that pur-
pose.
only to the determination Of the mere
legal liability Of the State on any OF
said claims, but also to the determine
ton of any equitable liability Of the
equitable liability. Appeal shall lie in
all cases. irrespective of the amounts
involved, on the original record, to the
Supreme Court of the State of Louisi:
ana The definitive DEGREES Of said
courts shall not have the effect of judy
ments against the State or the Board
of Liquidation of the State Debt. The
Board of Liquidation of the State Debt
shall have the exclusive power to set
tie the claims. thus approved by the
courts of the State, out of the sinking
fund above provided for as funds are
available. but they shall not be paid
otherwise or out of any other fund.
Nothing in this amendment shall be
construed as q recognition by tho State
of any liability, whether legal or equt-
table, to the owners or the holders OF
any of the said above designated bonds.
warrants or claims. and the burden of
proof shall rest throughout on each OF
such claimants to show such liability.
Out Of the first surplus accruing in
the sinking fund, there shall be paid in
full the amount of principal and inter-
est due on the bonds of the State, the