Organization

of the company;

duty of the mayor of the

city of New Or

leans.

Transfer of

the waterworks by the Mayor

Privilege

company.

shares of stock for its own account and benefit, unless it shall prefer to continue to take up any of said outstanding bonds by exchange as aforesaid.

SEC. 1685. The said water-works company shall be organized by the mayor of the city giving thirty days' notice that he will receive subscriptions of bondholders who may agree to exchange their bonds for stock as aforesaid; and the said city shall at once subscribe for stock to the amount of six hundred and six thousand six hundred dollars, and such further amount as shall equal the par value of any of said water-works bonds, which shall have been extinguished by said city; and as soon as in addition to the subscription of said city there shall be subscribers for an exchange of said bonds for stock to the extent of five hundred thousand dollars, and the said amount of bonds shall have been actually surrendered to and cancelled by the administrator of finance, the said subscribers shall assemble together, on a day to be named by the mayor, and shall elect a board of directors, to consist of seven persons, four of whom shall be designated by the mayor, and the remaining three shall be elected by said subscribers, other than said city, from amongst themselves; and the persons thus designated and elected shall constitute the first board of directors, and shall continue in office until the first of July, 1878, and the said board shall elect one of their number as president.

SEC. 1686. As soon after the election of said board of directors as the city council may determine, the mayor of the city shall transfer, by notarial act, to said New Orleans water-works company the water-works and all the property appurtenant thereto.

SEC. 1687. The said water-works company shall own and granted to the possess the privileges acquired by the city of New Orleans from the commercial bank; that it shall have for fifty years from the passage of this act the exclusive privilege of supplying the city of New Orleans and its inhabitants with water from the Mississippi river, or any other stream or river, by means of pipes and conduits, and for erecting and constructing any necessary works, or engines, or machines for that purpose; that it may contract for, purchase or lease any land or lots of ground, or the right to pass over and enter the same from time to time as occasion may require, through which it may be necessary to convey the water into said city, or to distribute the same to the inhabitants of said city; and to construct, dig, or cause to be opened any canals or trenches whatsoever for the conducting of the water of the rivers from any place or places it may deem fit, and to raise and construct such dikes, mounds, reservoirs, as may be required for securing and carrying a full supply of pure water to said city and its inhabitants; to enter upon and survey such lands as it may think proper, in order to ascertain the best mode of furnishing a supply of water; to lay and place any number of conduits, or pipes, or aqueducts, and to cleanse and repair the same, through or over any of the lands or streets of the city of New Orleans; provided, The same shall not be an obstruction to commerce or free circulation; and also to have and use a common seal and alter the same at pleasure; to ordain and establish bylaws for its government and that of its officers and employes,

Proviso.

not repugnant to this act and the constitution of the State and of the United States, or the ordinances of the city of New Orleans.

SEC. 1688. On the first Monday of July, 1878, and annually Election of thereafter, an election for directors of said company, after ten directors. days' notice of the time and place of holding the same, shall be held, at which election there shall be elected four directors by all the stockholders other than the city of New Orleans; and the mayor of the city, the administrator of water-works and public Composition buildings and the administrator of finance of said city, shall be of the board. ex officio directors of said company; the said city, through its mayor and administrators, shall have the right to vote at the election of directors, and at all meetings of said stockholders, in the same manner as any other stockholders. That at all elections and all meetings of stockholders each share of stock shall be entitled to one vote. The directors elected shall serve for one year, and shall hold their offices until their successors are appointed; ice of the board and no failure to elect directors at the time designated shall prevent the board of directors from fixing another day for holding the election; and in case of vacancy in the board of directors occasioned by death, resignation or absence from the State or other cause, the board of directors may fill such vacancy for the remainder of the year.

in

SEC. 1689. The stock owned by said city of New Orleans said water-works company shall not be liable to seizure for the debts of said city.

SEC. 1690. The stock of said water-works company may be increased to two millions of dollars, for the purpose of enabling said company to improve, enlarge and extend its works; provided, That the new or increased stock shall be paid for in cash, or in work done for the company; and in case of non-payment of instalments on stock subscribed for, the same may be forfeited to the use of said company.

SEC. 1691. The board of directors of said company shall have power, in addition to the authority to increase its capital stock, to borrow money for the purpose of improving and enlarging its works, and increasing the supply of pure water; and to accomplish this purpose the said board of directors are hereby authorized to issue the bonds of the company to an amount not exceeding two millions of dollars, in such sums, on such terms and bearing such rate of interest as said board may determine, and the payment of said bonds, in principal and interest, may be secured by a mortgage of all the property and franchises of said company, including its franchise to be a corporation, and said mortgage may include the property and franchises of said company, acquired or to be acquired; and the registration of said mortgage in the office of the recorder of mortgages for the parish of Orleans shall operate on the property and franchises of said company, wheresoever situated, and shall be and continue a valid and subsisting mortgage until the payment of the debt secured by it, without re-inscription; provided, however, That no bond shall be issued, or mortgages given, without the consent of the council of the city of New Orleans, and said bond shall not be sold or disposed of except on such terms as shall be approved by said council of said city.

Term of serv

Stock owned

by the city of not liable to

New Orleans

seizure.

Amount of the stock of the Proviso.

company.

Powers of the board.

Dividends to be paid in cash.

The city of

use water free

of charge.

SEC. 1692. Said company shall not declare or pay any dividends except in cash, and then only out of the net semi-annual or annual receipts, after payment and expenses of operation and the interest on its bonded debt, nor shall any dividends be declared until the contemplated works are completed and in use. SEC. 1693. The city of New Orleans shall be allowed to use New Orleans to water from the pipes and plugs of said company now laid, or hereafter to be laid, free of any charge, for the extinguishment of fires, cleansing of the streets, and for the use of all public buildings, public markets and charitable institutions, and that the said company shall place, free of any charge whatever, two hydrants of the most approved construction in front of each square, where a main pipe shall be laid at a suitable distance from each other, from which a sufficient quantity of water may be conveniently drawn for the extinguishment of fires, for watering the streets and cleansing the gutters, and for any other public purpose; that on the squares which do not front on the river the hydrants shall be placed on opposite sides of the streets, at an equal distance from each other and the corners. It shall be the duty of the said company, whenever main pipes shall be laid, to supply water for all the purposes herein mentioned at all times during the continuance of this charter; and in consideraand property of tion thereof the franchises and property of said New Orleans be exempt from Waterworks company, used in accordance with this act, shall be exempt from taxation, State, municipal and parochial.

Franchises

the company to

taxation.

Right of the

the streets and

SEC. 1694. The said water-works company shall have the right, company to use in the city of New Orleans and its suburbs and adjoining lands, public places for to use the streets and public places for the purpose of laying laying pipes and hydrants. pipes and hydrants to run water; provided, That said streets shall not be obstructed longer than necessary for such purpose, or for making repairs, and that said streets shall be restored to the same condition they were in as soon as practicable by the said company, under the supervision of the city surveyor. In case the said water-works company shall require any lot of ground in the city of New Orleans, or any lot of ground or quantity of land situated in any parish of this State, for the purpose of constructing reservoirs or other works, or for the purpose of laying pipes to conduct water to the city of New Orleans, and shall not be able to agree with the proprietor or proprietors of said lot of ground or land, the said company shall have power to cause the same to be expropriated in pursuance of the general laws on the subject of expropriation for works of public utility now in force, or which may hereafter be enacted; and if the object of said company be merely to lay pipes through a piece of land or lot of ground, the expropriation shall be confined merely to the servitude it may require, and not to the right of absolute ownership.

Company to proceed to erect

new works and pipes.

SEC. 1695. The said water-works company, immediately after its organization, shall proceed to the erection of new works and pipes sufficient in capacity to furnish a full and adequate supply of water, to be drawn from the Mississippi river, or elsewhere, as may be judged most expedient; that said new works and pipes shall be commenced within twelve months from the passage of this act, and shall be year by year completed, so that, within five years from the date of this act, they shall be completed so as to

give an adequate supply of water to the people of the city of New Orleans, exclusive of the fifth district. If said work be not done as above prescribed, said corporation shall forfeit all exclusive privileges granted herein, and the city shall have the right to contract with anyone else for a supply of water as above proveyed, and to expropriate the property of the corporation hereby created. After the completion of the new works and pipes, the said company shall, from time to time, as the wants of the population may require, and when the estimated revenue on the cost of such extension shall equal ten per centum, extend their works throughout the entire limits of the city and suburbs, and any future extension of said city; and any failure by said water-works company to comply with this provision shall work a forfeiture of this charter.

reduction of

SEC. 1696. The city of New Orleans, through its council, shall City of New have authority to apply the stock subscribed for by said city, as Orleans to apply the stock herein provided, to the reduction of the bonded or floating debt subscribed by of the said city, on such terms of adjustment as may be mutually the city to the agreed upon between the city council and the holders of such her bonded or bonded or floating debt; provided, Said stock shall not be sold floating debt. at less than par, and that when sold for obligations of the city, it shall only be under sealed proposals, after not less than fifteen days' advertisement in two daily papers, to the bidder who shall offer said obligations at the most advantageous rate, the council reserving the right to reject any and all bids.

charges for

SEC. 1697. The said water-works company shall have the right Company to to fix the rates of charges for water; provided, That the net fix the rates of profits of the company shall not exceed ten per cent. per annum, water. and shall publish sworn annual statements of its business and condition, and that the city council shall have the power to appoint a committee of not less than five, who shall have access to the books of the said company, and make such extracts from the same as they may deem necessary; and in case the said profit shall exceed ten per cent., the city council shall have the right to require said company to reduce the price of water in such manner and in such a proportion that the profits shall never exceed the above named rates; and provided further, That the rates charged shall never exceed those now paid by the city, and in case said company shall refuse compliance, the demand of said city may be enforced by a writ of mandamus.

Proviso.

company in the

execution of its

works.

SEC. 1698. If any person or persons shall obstruct the said Penalty for company, their successors, agents, workmen or servants, in con- obstructing the veying the said water into the said city and its suburbs, or shall change, alter, remove, injure or destroy any work or part of a work made by the said company, or cause to be made, for the purpose of introducing water into the city of New Orleans, under the authority of this act; or if any person shall alter, change or pollute the water or stream which the said company shall hereafter introduce, or be preparing to introduce, such person or persons shall be indicted in the proper court for the trial of such offense, and being thereof convicted, shall be fined at the discretion of the court, according to the nature of the offense, and imprisonment for a term not exceeding seven years, such fine to be paid and applied to the use of said company.

City of New

Orleans to have

other works are

made.

Term at

right to buy the works.

SEC. 1699. Until other works are constructed by which the the control of present works may be dispensed with, the same shall remain the works until under the control of the city council, and the superintendence thereof remain in the hands of the administrator of water-works and public buildings; but the said company shall be authorized which the city to collect the revenues thereof and apply them to the expense of of Orleans the operating and extending the works. At the expiration of fifty years from the organization of the company, the city shall have a right to buy the works, conduits, pipes, etc., of the company, at Extension of a valuation to be fixed by five experts; two to be named by the the charter of city, two by the company, and the four to select the fifth expert; the event that but should the city neglect or refuse to purchase said works, Orleans should etc., as above provided, the charter of the company shall be refuse to pur ipso facto extended for fifty years longer, but without any excluof the company. Sive privilege or right to supply water according to the provis ions of the charter.

the company in

the city of New

chase the works

Privilege granted to certain persons.

1884-78.

New Orleans

water-works

city, how set

SEC. 1700. Nothing in this act shall be so construed as to prevent the city council from granting to any person or persons, contiguous to the river, the privilege of laying pipes to the river, exclusively for his own or their own use.

SEC. 1701. In all instances of the taxation of the franchises Taxes due by or property of the New Orleans Water-works Company for any year or years, by or for the city of New Orleans, or for municompany to the cipal purposes, whether such taxation be for past or future tled and paid. years, and the said company be in any manner obliged to pay, notwithstanding the exemption granted in section 1692 then, in all such instances, the said city of New Orleans is hereby empowered and required to pay the said company the value of all the water the said company has supplied or shall supply during any year or years, for which said taxes have been or shall be levied, to or for the use and purposes of the city of New Orleans, its public buildings, markets, or for streets, gutters, extinguishment of fires or other public purposes.

Duty of the city of New Orleans in provid.

ing for an amount sufficient to pay for water supply.

Taxes im

to said exemp

SEC. 1702. In all instances of such taxation, contrary to said exemption, or any future year or years, the city of New Orleans shall provide in its budget, or shall set apart and appropriate a sum sufficient to pay for the said water supply for said year or years; and unless this be observed and done, the said company shall not be compelled to deliver water for the uses and purposes aforesaid.

SEC. 1703. Any taxes already imposed for any year, contrary posed contrary to said exemptions, shall not be exacted nor any penalty or intions not to be terest accrued be demanded thereon, or any begin to run until said city shall have provided for the payment of the water supplied in said year, or provision made therefor by remedy at law or equity.

collected.

Duty of the

city of New Or

leans to con.

SEC. 1704. To secure the inhabitants of New Orleans and to the use of the city a supply of filtered or clear water, the city of New Orleans be and is hereby empowered to contract with the pany for supply said company, and determine upon terms and conditions, and fix of water. a price for obtaining from said company such supply of clear or

tract with com

Rights, fran

filtered water.

SEC. 1705. Nothing in this act shall be construed as in any chises and priv. manner abridging or otherwise affecting any of the rights, franileges of said chises and privileges heretofore granted to said company; but

company.