The herald., 1912-09-26
ACT NO. 2O3.

y JOINT RESOLUGION
Proposing an amendment to the Con-
| Stitution of the State of Louisiana
amending Article 40 of the Consti-
| tuition OF 1898, as amended by Act
No. 303 of the Acts of 1910, rati-
| fled by the people at the November
| election of 1910, so as to authorize
| the Board of Liquidation of the
. State Debt to issue new bonds tC
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
electors of the State for their approval
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:
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 insurrection. 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,
Three Hundred Dollars. maturing jan
uarY 1st. 1914. and bearing four per
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.
l1.10S' bearing a rate of interest not
exceeding four per centum per an
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 LIST. 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
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-
81 Dc
Beginning with January LIST, 1914,
there shall be and there is hereby lew
led on all property on which general
state are Levied an annual ts tax
proceeds of which shall be devoted TO
the payment of the interest due on
said bonds. to the payment of the in
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
and the residue to the constitution of
a sinking fund to be applied annually
except as hereinafter provided. to the
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
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
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
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
ponds 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.
lars to take the place of said tax OF
one and two-tenths mills and its re-
''The Board of Liquidation OF the
State Debt shall have power to settle
under the conditions and limitations
hereinafter provided. the followine
claims OF Indebtedness made by vari
Gus persons against the State, to-wit:
I'd 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 I'M
der Act lZ6 of 1890