The Caucasian. (Shreveport, La.) 1900-192?, 1913-09-25
THE CERTIFICATE PLAN.
The City Has Authority i'll Law Tor
lis Proceedings-Thc Funding Is
Restricted to the Obligations III
Cured Preceding the Enactmeh'
Of This Statute, Juis 10, 1912.

During the forenoon Wednesday
the Caucasian received calls from
number of citizens, several beng
prominent in commercial pursuits.
who desired to know if the City
Commissioners had legal authority
to issue certificates With Which /"
liuuidate the Overdraft in the COM
mercial National Bank.
Each of the inqulIcrs expressed
the wish that the bank should he
fully protected, but We're apprrheh-
sive of the Councils action. The Slst
of their contention was that 1t thtI
CITY Commissioners could issue Ger
tificates to cover this oNerdI'tl1t
thev could also issue bonds ana
other obligations without reference
to the referendum, which beng one
of the cardinal principles OF the
commission form is designed to re-
strain the officials of the city within
legitimate bounds.
The purchase of the cemetery
site at Fort Humbug and the cltyS
investment in the Fair grounds
purchase following the defeat OF laie
proposed bond issue, were pointed
out with criticisms which it IS I'M
necessary to relate or repeat. Sui
flee it to say that the Caucasian
promised to inquire into the author
| ity OF the Commissioners for their
| action in the issue Of certificates 10
| liquidate this overdraft.
From one of its friends, a gentle
/ man we'll versed in law and one o1
the progressives of Shreveport,
there was obtained the information
which in substance is that Act 149
of the Legislature Of 1912 was IN
troduced by Representative Wen ol
Rapides for the purpose OF enabling
the town of Alexandria to issue
certificates with which to liquldatt
j obligations incurred by this mum
nicipality. The act when submitted
was designed to relieve Alexandra
only, but it was gcnerallzcd Ill 1t:
application to towns and cities o
the State.
AS provided by this authority the
. Commissioners have proceeded le
gaIly in their proposal to issue Ger.
titicates Of Indebtedness involving
the Overdraft due to the CONNER
: cial National Bank, which as pub
6 lished aggregates Sli6,l43. The Ger
! tificates when issued will bear pc
r cent interest per annum ana ma
: be issued for a term OF not NOR
:! than twenty-five years, but are re
deemable at the option OF the city
\ It is provided in this Act l49 tha
o no more than two mills OF the t,
: mills tax may be applied to the pay
: ment of principal and interest, an
there must be a sinking fund t
y protect these certificates and thel
9 cancellation when due.
oI It is specified in this Act 149 tils
apply to municipal indebtedness Il
\ CURED before the passage OF III
q Act l49 and approved July 10, i9l
: Such certificates can not be ISSUE
= for any obligation incurred ait
July 10, 1912. AS explained by Il
: Caucasian's friend, the gist OF who
opinion is "all that is required al
i2I can be done is to ascertain what ";
psi the overdraft by the city at the TN
SO this act was approved and It will
p legal for the city to issue certll
az Gates in conformity with the I
50 uuirements of the law to cover II
so overdraft, but the law does not co
46l template the issue Of certificates
28| cover an Indebtedness created
a. incurred subsequent to july
81 1912"