Louisiana v. Jumel

107 U.S. 711, 2 S. Ct. 128, 27 L. Ed. 448, 1882 U.S. LEXIS 1268
CourtSupreme Court of the United States
DecidedMarch 18, 1883
Docket520
StatusPublished
Cited by198 cases

This text of 107 U.S. 711 (Louisiana v. Jumel) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana v. Jumel, 107 U.S. 711, 2 S. Ct. 128, 27 L. Ed. 448, 1882 U.S. LEXIS 1268 (1883).

Opinion

Mr. Chief Justice Waite

delivered the opinion of the court.

The legislature of Louisiana, at its session of 1874, by an act known as- Act No. 8 of 1874, provided for an issue of bonds, to be designated as consolidated bonds of the State, for the purpose of consolidating and reducing the floating and *713 bonded debt. The bonds were to be payable to the bearer forty years from Jan. 1,1874, and to bear interest at the rate of seven per cent per annum, payable on the first day ofJuly and the first day of January in each year. " The amount'was not to exceed in the aggregate fifteen million dollars. The governor, lieutenant-governor, auditor, treasurer, secretary of state, speaker of the House of Representatives, and a person to be elected by these officers as a fiscal agent of the State, w;ere created a board of liquidation, with power to issue the bonds and exchange them for all valid outstanding bonds and certain valid warrants on the treasury, at the rate of sixty cents'in the new bonds for one dollar of old bonds and warrants. The bonds were -to be signed by the governor, auditor, and secretary of state, and the coupons by the auditor and treasurer. •

Section 7 of the act is as follows: —

“.That a tax of five and a half mills on the dollar of the assessed value of all real and personal property in the State is hereby annually levied, and shall be collected for the purpose of paying the interest and principal of the consolidated bonds herein authorized, and the revenue derived therefrom is hereby set apart and appropriated to that purpose, and no other. And that it shall be deemed a felony for the fiscal agent or any officer of the State or board of liquidators to divert the said fund from its legitimate channel as provided, and upon conviction the said party shall be liable to imprisonment for not more than ten years nor less than two, at the discretion of the court. If there shall, during any year, be a surplus arising from said tax after paying all interest falling due in that year, such surplus shall be used for the purchase and retirement of bonds authorized by this act, said purchases to be made by the said board of liquidation, from the lowest offers, after due notice: Provided, that the total tax for interest and all other State purposes, except the support of public schools, shall never hereafter exceed •twelve ánd a half mills on the dollar. The interest tax aforesaid shall be a continuing annual tax until the said consolidated bonds shall be paid or redeemed, principal and interest; and the said appropriation shall be a continuing annual appropriation during the same period, and this levy and appropriation shall authorize and make it the duty of the auditor and treasurer, and'the said board, respectively, to collect said tax annually, and pay said interest and redeem said bpnds until the same shall be fully discharged.”

*714 By other sections it was provided that any judge, tax-collector, or any other officer of the State obstructing the execution of the act, or any part of it, or failing to perform his official duty, should be deemed guilty of a misdemeanor, and on conviction thereof punished; that each provision of the act should be, and was declared to be, a contract between the State of Louisiana and each and every holder of such consolidated bonds; that the tax-collectors should not pay over any moneys collected by them to any other person than the State treasurer, and that no court, or judge thereof, should have power to enjoin the payment of principal or interest of any of the bonds, or the collection of the special tax therefor.

Immediately after the passage of this act the State adopted an amendment to its Constitution, as follows: —

“The issue of consolidated bonds authorized by the General Assembly of the State, at its regular session in the year 1874, is hereby declared to create a valid contract between the State and each and every holder of said bonds, which the State shall by no means and in no Wise impair. The said bonds shall be a valid obligation of the State in favor of any holder thereof and no court shall enjoin the payment of the principal or interest thereof or the levy and collection of the tax therefor; to secure such levy, collection, and payment, the judicial power shall be exercised when necessary. The tax required for the payment of the principal and interest of said bonds shall be assessed and collected each and every year until the bonds shall be paid, principal and interest, and the proceeds shall be paid by the treasurer of the State to the holders of said bonds, as the principal and interest of the same shall fall due, and no further legislation or appropi-iation shall be requisite for the said assessment and collection, and for such payment from the treasury.”

Under this authority, consolidated bonds to the amount of about twelve million dollars were issued. John Elliott, Nicholas Gwynn, and Henry. S. Walker are the holders and bearers of these bonds .to the amount of $20,000, and of unpaid coupons due Jan. 1, 1880, to the amount of $78,900. The bonds, in accordance with the requirements of the act under which they were issued, are signed by the governor, auditor, *715 and secretary of state, and the coupons by the auditor and treasurer.

On the first day of January, 1880, a new Constitution of Louisiana went into effect. A portion of that Constitution, called the Debt Ordinance,” is in these words: —

“State Debt.

“Art. 1. Be it ordained by the people of the State of Louisiana, in convention assembled, That the interest to be paid on the consolidated bonds of the State of Louisiana be and is hereby fixed at two per cent per annum for five years from the first day of January, 1880, three per cent per annum for fifteen years, and four per cent per annum thereafter, payable semi-annually; and there shall be levied an annual tax sufficient for the full payment of said interest, not exceeding three mills, the limit of all State tax being hereby fixed at six mills: Provided, the holders of consolidated bonds may, at their option, demand in exchange for the bonds held by them, bonds of the denomination of five dollars, one hundred dollars, five hundred dollars, one thousand dollars, to be issued at the rate of seventy-dive cents on the dollar of bonds held and to be surrendered by such holders, the said new issue to bear interest at the rate of four per cent per annum, payable semi-annually.

“ Art. 2. The holders of consolidated bonds may at any time present their bonds to the treasurer of the State, or to an agent to be appointed by the governor, — one in the city of New York and the other in the city of London, — and the said treasurer or agent, as the case may be, shall indorse or stamp thereon the words, interest reduced to two per cent per annum for five years from January 1,1880, three per cent per annum for fifteen years, and four per cent per annum thereafter: Provided, the holder or holders of said bonds may apply to the treasurer for an exchange of bonds, as provided in the preceding article.

“Art. 3. Beit further ordained,

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Bluebook (online)
107 U.S. 711, 2 S. Ct. 128, 27 L. Ed. 448, 1882 U.S. LEXIS 1268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-v-jumel-scotus-1883.