The Natchitoches enterprise., 1912-10-17
ACT MO. 2n3.
House Bill No. 433. BY Mr.. Fontenot
A IOINT RESOI .I-TION

the people at the November electlon
of 1910, so as to authorize the Board
of Liquidation of the State 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 funu
of an indebtedness due by the State to
the United States, and of certain other
claims against the State.
Section I. Be it resolved by the Cen
eral Assembly of the State of Louisiana,
two-thrds of all the members elected to
each house conrurring, That an amend
ment to Article 46 of the Constitution
of the State of Louisiana of 1898, as
amended by Act No S03 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 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, or
to issue bonds or other evidences of
indebtedness thereof, except for the
purpose of repelling invasion or for the
suppression of insurrection. 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 or
Louisiana is given authority to issue
Eleven Thousand, One Hundred and
Eight new coupon bonds of the State
Of icio nf Thou q
each to be Numbered No. L to No.
11,108,' bearing a rate of interest not
exceeding four per centum per an
mum, payable semi-annually and to be
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 sole
they may be exchanged at par by the
Board of Liquidation of the State Debt
for the bonds due January 1st 1914.
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.
said bonds shall also be paid out OF
the said fund.
"In 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
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
a ssinking 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 in
solvent banks furnishing adequate So
curity to the State, to be approved by
the said Board, at a rate of interest
mot less than four gns psT iee ssntS eer untii ai
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 salo
tax shall be reduced to six-tenths OF
v,a;I1 hn coi1 70 hn
part of the six mills of taxation per-
mitted to be levied by the Constitution
In case the present system of taxa
tion shall be changed before the sald
bonds shall have been paid, there snail
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-
ductions.
"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:
% The outstanding bonds known as
Baby Bonds excluding all Baby Bonds
fraudulently issued by any official OF
the State"
(2) Auditors warrants issued for
school. certificates of indebtedness un-
der Act 1875 of 1880.
CD Certificates issued under Act SO
of 1880 for costs and fees due to the
officers of the State.
a. Warrants drawn prior to 1880
and fundable but not funded into Baby
Bonds.
(5) Warrants 1rawn after January
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
January 1st 1915 but not thereafter
inc hn I.in a.
| ton of the State Debt by rule. solely
and exclusively in the district court OF
! the Parish of East Baton Rouge, to
have the said claims examined and
| their validity and the indebtedness due
| thereon determined which court II
| hereby given jurisdiction for that pur
pose
This jurisdiction shall extend not
| only to the determination Of the mere
| legal liability of the State on any o,
| said claims, but also TO the determine
| ton of any equitable liability OF tn.
| State thereon and the extent of sucf
| all cases. irrespective of the amounts
| involved on the original record, to tht
| Supreme Court of the State of Louisi
| ana. The definitive DEGREES OF seie
ments against the State or the Boart
| of Liquidation of the State Debt. Tht
| Board of Liquidation of the State Deb
| shall have the exclusive power to set
| tie the claims, thus approved py th'
courts of the State, out of the sinking
fund above provided for as funds ar:
available, but they shall not be paid
| otherwise or out of any other fund.
Nothing in this amendment shall bt
| construed as a recognition by this STATE
| of any liability, whether legal or equi
| 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 II
the sinking fund, there shall be paid II
| full the amount of principal and inter
| est due on the bonds of the State. thu
| face values of which aggregate Thirty
| Seven Thousand Dollars, and which
| are held by the United States as trus