The Natchitoches enterprise., 1912-10-24
ACT NO. 2o3.
House Bill No. 433. BY Mr.. Fontsnot
A JOINT RESOLUTION

303 of the Acts OF 1910, ratlrled py
the people at the November election
Of 1910 so as to authorize the Board
of Liquidation of the State i 1t to
issue new bonds to retire or refund
the State Bonded Indebtedness due
January 1St 1914; to provide for
tax for the payment of the interest
on said bonds and a 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 as of the Constitution
of the State of Louisiana of 1899. as
amended by Act No 303 of the Acts of
the General Assembly of the State OF
Louisiana 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-
gressional election to be held on the
first Tuesday next following the first
Monday in November of 1912, said pro-
posed amendment to read as follows:
Article IS. The General Assembly
shall have no power to contract or to
authorize the contracting of any debt
or liability. on behalf of 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,
that for the purpose of retiring, liq-
uidating or refunding the present State
BOnded Indebtedness of Eleven Mil
lion, One Hundred and Eight Thousand,
Three Hundred Dollars, maturing jan
uary 1st, 1914, and bearing four per
centum per annum interest, the Board
Of Liquidation of the State Debt yof
Louisiana is given authority to issue
Eleven Thousand. One Hundred and
Elitrbf bonds State
of Louisiana of One Thousand Dollars
each, to be numbered No. / to No.
11,10S.' 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
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 solo
they may be exchanged at par by the
Board of Liquidation of the State Deut
for the bonds due January 1st, 1914.
The excess of Three Hundred Dollars
of the bonds due January LIST, 1914.
over the bonds authorized by this ar
ticle, shall be paid in cash out of the
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.
sions of this amendment.
beginning with January 1st, 1914.
there shall be and there is hereby lev
led on all property on which general
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 or 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. II
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 80
solvent banks furnishing adequate SCI
curity TO the State. to be approved ny
sasamzsess "a Aasaf taTRs$
| not less than four per centum per an
mum. Said tax shall be levied unit
| all of said bonds shall have been re
| tired but after the assessments or tnt
State reach the sum of Six Hundred
| and Fifty Million Dollars. said tax shall
| be reduced to one mill and snail there
after be reduced two-tenths of one mil
| for each One Hundred Million Dollar:
| increase in assessments until the sale
cha1 no SiX-tpnthS
one mill The said tax shall constitute
| a part of the six mills of taxation per
mftted to be levied by the Constitution
| In case the present system OF taaa
bonds shall have been paid, there sinai
| be levied annually a tax sufficient. II
| produce a gross sum of not less thar
| Six Hundred and Fifty Thousand Dol
| lars to take the place of said tax o.
one and two-tenths mills and its re
| auctions.
1.-THE Board of Liquidation of thu
| State Debt shall have power to settl'
under the conditions and Limitation
hereinafter provided, the following
Gus persons against the State, to-wit:
| % The outstanding bonds known al
| Baby Bonds excluding all Baby Bonds
| fraudulently issued by any official O.
| (21 AUDITORS warrants issued 70
school. certificates of indebtedness un
| der Act 1875 of 1880.
90 Certificates issued under Act 81
| of 1880 for costs and fees due to tn
officers of the State.
as Warrants drawn prior to 18S
and fundable but not funded into Bah
| Bonds.
(5) Warrants drawn after Januar,
of 1880 against 1873 and previous years
Provided, however, that the owner
or the duly authorized trustees or tn
owners of said claims may prior t
| January 1st 1919 hut not thereafter
| proceed against the Board of Liquida
ton of the State Debt by rule, solei
and exclusively in the district court 0
the Parish of East Baton Rouge, t
have the said claims examined an
their validity and the Indebtedness du
thereon determined. which court ]
hereby given jurisdiction for that pun
pose.
This jurisdiction shall extend no
only to the determination of the mer
legal liability of the State on any. Q
said claims, but also to the determina
ton of any equitable liability or tn
equitable liability. Appeal shall lie !
all cases, irrespective of the amount
involved, on the original record, to tn
Supreme Court of the State of Louis
courts shall not have the effect Of Judl
ments against the State or the Boar
of Liquidation of the State Debt. tn
| Board of Liquidation Of the State DEB
shall have the exclusive power to SCI
tie the claims. thus approved by til
courts of the State out of the sinkin
fund above provided for as funds al
available but they shall not be pal
otherwise or out of any other fund
Nothing in this amendment shall b
construed as a recognition by the Stat
of any liability, whether legal or ecu
table. to the owners or the holders {
, any of the said above designated bond
warrants or claims and the burden {
, proof shall rest throughout on each {
such claimants to show such liability.
Out of the first surplus accruing
the sinking fund, there shall be paid
| full the amount of principal and int
: est due on the bonds of the State ii
face values of which aggregate Thirty
Seven Thousand Dollars. and whic