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UNION, JUSTICE, CONFIDENCE
Act 43 of 1884

A constitutional amendment, approved and ratified by the people on April 22, 1884, and proclaimed by the Governor on May 10, 1884 to become a part of the Constitution of the State of Louisiana.  Act 43 recognized the establishment of the Tulane University of Louisiana.


No. 43] AN ACT  

To foster, maintain and develop the University of Louisiana, to that end to make the Board of Administrators of the Tulane Education Fund, as presently constituted, with the addition of the Governor, Superintendent of Public Education, and Mayor of the city of New Orleans, as ex-officio members thereof, the Administrators of the University of Louisiana, which shall hereafter be known as the "Tulane University of Louisiana;" to invest said Tulane Board with all the powers, privileges, franchises and immunities now vested in the Board of Administrators of the University of Louisiana; and with such other powers as may be necessary or pertinent to develop, control, foster and maintain it as a great university in the city of New Orleans. To give to the Administrators of the Tulane Educational Fund the control, management and use of all of the property of the University of Louisiana, in the city of New Orleans, for the purposes aforesaid: To exempt, in consequence of the terms of this act, and the dedication of its revenues to the purposes stated in this act, all the property, real and personal, present and future, of the said Board of Administrators of the Tulane Educational Fund, from all taxation, whether State, parochial or municipal: To make a contract, irrevocable and conclusive, between the State and Administrators of the Tulane Educational Fund, covering the provisions of this act: To enable the said Board of Administrators of the "Tulane Education Fund" to decline to accept the provisions of this act, unless the same, in all its provisions, be ratified and approved by a constitutional amendment, to be submitted at the next general election: To give said Board of Administrators of the "Tulane Education Fund," upon the adoption of the said constitutional amendment, not only the full powers of administration over the University of Louisiana conferred by this act, but also the power to create, develop and maintain a great University in the city of New Orleans, which University so to be created shall perpetually be under their full and complete control: To enable said Board, should they act under the provisions of this act, pending the submission of the said constitutional amendment, to withdraw and relieve themselves from all the effects of said action should said proposed constitutional amendment be rejected, and to provide for the submission of a constitutional amendment ratifying the provisions of this act to the people of the State at the next general election;

WHEREAS, Paul Tulane, Esq., formerly a resident of this State, and now of Princeton, New Jersey, with the beneficent purpose of fostering higher education in this State, did, in May, 1882, express to certain citizens of this State his intention to donate for such purposes valuable real estate to him belonging, situated in the City of New Orleans; and,

WHEREAS, The citizens to whom the intention of Paul Tulane, Esq., were expressed, did, by act, before Charles G. Andry, a notary public in the city of New Orleans, organize themselves into a corporation, under the name of the "Administrators of the Tulane Education Fund," with the objects and purposes specified in said act of incorporation; and,

WHEREAS, Since the formation of said corporation, Paul Tulane, Esq., in the execution of his previously expressed intentions, has donated to said Administrators of the "Tulane Education Fund" nearly one million dollars, the revenues whereof are to be used for the promotion and encouragement of intellectual, moral and industrial education, and has expressed his intention to largely increase said donation should this act be adopted; and,

WHEREAS, The said Board of Administrators of the "Tulane Education Fund," in order to make their work fruitful in results, have expressed their desire to take charge of the University of Louisiana, in the city of New Orleans, and to devote the revenues of the property now owned, or hereafter to be owned, by said Board, to its expansion and development; and upon the adoption of a constitutional amendment to that end, to apply all the revenues of property now owned, or hereafter to be acquired by them, to the creation and development in the city of New Orleans of a great University, whereby the blessings of higher education, intellectual, moral and industrial, may be given to the youth of the State; and,

WHEREAS, Under the terms of this action, as proposed by said Board, the property of said Board, and the revenues thereof, will not be used for the purpose of private or corporate income or profit, but will be exclusively dedicated to school purposes, and to the service of the State in maintaining and developing the University of Louisiana, an institution recognized in the Constitution, therefore entitling the said property of said Board to exemption from all taxation, both State, parochial and municipal; therefore,

Be it enacted by the General Assembly of the State of Louisiana,

SEC. 1.  That the Board of Administrators of the University of Louisiana shall hereafter, instead of the Board appointed as provided by section thirteen hundred and fifty-one (1351) of the Revised Statutes, consist of the seventeen administrators of the "Tulane Education Fund," with power, perpetually, to fill any vacancy in their own number; provided that the said Board shall, on the passage of this statute, recognize by formal notarial act the Governor of the State, the Superintendent of Public Education and the Mayor of the City of New Orleans, as ex-officio members of said Board.

SEC. 2.  Be it further enacted, etc., That the Board of Administrators of the "Tulane Education Fund," as administrators of the University of Louisiana shall have all the rights, powers, privileges, franchises and immunities, now vested in the Board of Administrators of the University of Louisiana by existing laws. That they shall further have full direction, control and administration of the University of Louisiana, now established in the city of New Orleans, in all its departments as also of all the property belonging to the State of Louisiana, and now dedicated to or used by the University of Louisiana as well as of all property controlled or used by the said University of Louisiana and for the purposes thereof, and Board of Administration of the University of Louisiana are hereby empowered and directed to turn over to the Board of Administrators of the "Tulane Education Fund" all the property rights, books, papers and archives now under their administration or control; provided, that if the custody of the State Library should be transferred to the Tulane University of Louisiana, as herein established by the consolidation of the University of Louisiana at New Orleans with the Board of Administrators of the "Tulane Education Fund," as herein provided for, through the University of Louisiana, at New Orleans, as it now exists, or otherwise, it shall be on the express condition and agreement that the State of Louisiana, may resume the custody and control of said State Library, whenever, it may be deemed advisable; and provided further, that after the establishment of the "Tulane University of Louisiana," as herein provided for, and after the transfer of the custody of the State Library, thereto, as aforesaid, if the custody thereof shall be transferred to the "Tulane University of Louisiana," as herein established, then and in that event, the State of Louisiana shall be relieved of and released from all obligations to pay the salary or compensation of the State Librarian or his assistants as is now or may hereafter be fixed by law, during the period the said State Library may remain in the custody of said "Tulane University of Louisiana"; but that during said period the salary or compensation of said State Librarian shall be paid by the "Tulane University of Louisiana." An inventory shall be made of all property, movable and immovable, belonging to the University of Louisiana, and transferred by this act to the control and administration of the Administrators of the Tulane Education Fund, by two appraisers to be appointed for that purpose by the Governor of the State and sworn, which appraisement shall be filed in the office of the Secretary of the State, as evidencing the description and appraised value of the property so transferred, and also in order that the liability of the said Administrators of the Tulane Education Fund may not be extended, in any contingency; provided further, that the property so transferred, may not be sold or disposed of, except under Legislative sanction; provided further, that if the "Tulane University of Louisiana," as herein established, should cease to use the property, and exercise the privileges, franchises and immunities, now under the control and administration of, and enjoyed by the University of Louisiana, as now constituted and transferred by this act, for the exclusive purpose intended by this act, then and in that event the State of Louisiana shall have the right to resume the custody, control and administration of said property, and the exercise of said privileges, franchises and immunities.

SEC. 3.  Be it further enacted, etc., That the said Board of Administrators of the "Tulane Education Fund" shall perpetually as Administrators of the University of Louisiana, as above provided, have full and complete control of all the property and rights, and now vested in the University of Louisiana. The said Board shall have the powers above provided in addition to those conferred by its charter, by act passed before Chas. G. Andry, Notary Public, in the city of New Orleans, on the 29th day of May, Anno Domini 1882, including the power to hold and own all real and personal property, now to said Board belonging, or hereafter to be by it acquired, during its corporate existence, for the purposes and objects of its being, or the revenues whereof are to be solely applicable to such purposes.

SEC. 4.  Be it further enacted, etc., That in honor of Paul Tulane and in recognition of his beneficent gifts and of their dedication to the purposes expressed in this act, the name of the University of Louisiana be, and the same is hereby changed to that of the "Tulane University of Louisiana," under which name it shall possess all the powers, privileges, immunities and franchises, now vested in said University of Louisiana, as well as such powers as may flow from this act or may be vested in said Board, under the terms of this act, from the adoption of the Constitutional Amendment hereafter referred to. The purpose of this act, being, to invest the Board of Administrators of the "Tulane Education Fund" with all the rights now vested in the University of Louisiana; to give said Board moreover complete control of said University in all its departments, and in every respect, with all the powers necessary or incidental to the exercise of said control. To enable said Board, besides the powers designated by this act, to have irrevocably upon the adoption of said Constitutional Amendment, full power with the rights hereby conferred, to create and develop a great University in the city of New Orleans, to be named as aforesaid. Said University to be established by the said Board of Administrators of the "Tulane Education Fund," to be dedicated to the intellectual, moral and industrial education of the youth of the State, in accordance with the Charter of said Board of Administrators of the "Tulane Education Fund."

SEC. 5.  Be it further enacted, etc., That in consideration of the agreement of said Board to develop and maintain the University of Louisiana, and thereby dedicate its revenues not to purposes of private or corporate income or profit, but to the public purposes of developing and maintaining the University of Louisiana, all the property of the said Board, present and future, be and the same is hereby recognized as exempt from all taxation, State, parochial and municipal; this exemption to remain in force as long as the revenues of the said Board are directed to the maintenance of the University of Louisiana, as aforesaid, or until said Constitutional Amendment be adopted. That adoption of said amendment shall operate such exemption in consideration of the said Board in expending their revenues as aforesaid, or creating, maintaining and developing a great University in the city of New Orleans; provided, that the property exempted from taxation by this act shall not exceed in value five million dollars, invested in real estate not otherwise exempted, which said value shall be determined in the mode required by law for the assessment and valuation of property subject to taxation, it being the true meaning and intent hereof, that all the property of the Tulane University of Louisiana, of whatsoever character, shall be exempted from taxation, State, parochial and municipal, except the excess of real estate belonging thereto, over and above the value of five million dollars as above stated.

SEC. 6.  Be it further enacted, etc., That in consideration of the vesting of the administration of the University of Louisiana in the said Administrators of "Tulane Education Fund," of the transfer of the rights, powers, privileges, franchises and immunities of the said University to said Administrators, and of the exemption from all taxation as hereinabove provided, the said Administrators hereby agree to bind themselves, with the revenues and income of the property heretofore given them by Paul Tulane, Esq., as well as from the revenues of all other property, real, personal or mixed, hereafter to be held, owned or controlled by them, for the purposes of education, to develop, foster and maintain, to the best of their ability and judgment, the University of Louisiana, hereafter to be known as the "Tulane University of Louisiana," and upon adoption of the Constitutional Amendment aforesaid, to perpetually use the powers conferred by this act, and all the power vested in them for the purpose of creating and maintaining in the city of New Orleans a great University, devoted to the intellectual, moral and industrial education and advancement of the youth of this State, under the terms of the donation of Paul Tulane, and the previous provisions of this act. The said Board further agree and bind themselves to waive all legal claim upon the State of Louisiana for any appropriation, as provided in the Constitution of this State, in favor of the University of Louisiana. Besides the waiver of the claim, as aforesaid, as an additional consideration between the parties of this act, the said Board agrees to give continuously, in the academic department, free tuition to one student from each Senatorial and from each Representative district or parish, to be nominated by its members in the General Assembly from among the bona fide citizens and residents of his district or parish, who shall comply with the requirements for admission established by said Board. The meaning of this provision being that each member of the General Assembly, whether Senator or Representative, shall have the right of appointing one student, in accordance with the foregoing provisions. The free tuition herein provided for shall continue until each student has graduated from the academic department, unless his scholarship has ceased from other causes. Whenever a scholarship becomes vacant, from any cause, the Senator or Representative, who, appointed the previous student, or his successor, shall, in the manner prescribed by this section, immediately name a successor.

SEC. 7.  Be it further enacted, etc., That this act, in all its provisions be and the same is hereby declared to be a contract between the State of Louisiana and the Administrators of the "Tulane Education Fund," irrevocably vesting the said Administrators of the "Tulane Education Fund" with the powers, franchises, rights, immunities and exemptions herein enumerated and hereby granted, and irrevocably binding said administrators to develop, foster and maintain as above provided, the University as aforesaid in the city of New Orleans, subject to and in accordance with the terms of this act.

SEC. 8.  Be it further enacted, etc., That this act, in all its terms, provisions and stipulations, without in any manner affecting the validity thereof, or casting any doubt upon its constitutionality, be submitted for ratification at the next general election by a constitutional amendment, as hereinabove and hereinafter provided.

SEC. 9.  Be it further enacted, etc., That upon the passage and promulgation of this act the said Administrators of the "Tulane Education Fund," shall have the right to avail themselves of the provisions of this act pending the submission of the constitutional amendment aforesaid. In case they should so elect to do, the said Administrators upon the passage and promulgation of this law thereof, shall give notice of such intention to his Excellency, the Governor of this State, which notice shall authorize said Board to act under the provisions of this act and to exercise all the powers, privileges, franchises, immunities and rights which this act confers, and to undertake the performance of the duties by it imposed. In case the said Constitutional Amendment as aforesaid be not ratified, the said Board shall not in any way be held bound by its said action, but shall have the right to relieve itself of all liability growing out of such action by turning over to the Governor of the State, any property received by it from the State, or from the Administrators of the University of Louisiana, under the terms of this act, which to the extent of its imposing any obligation on the said Administrators of the "Tulane Education Fund," shall by said return, become null and void, provided, that the said Board may in the event of the defeat of said Constitutional Amendment continue to execute and to avail themselves of the provisions of this act to the full extent that, the same are legal without Constitutional enactment.

SEC. 10.  Be it further enacted, etc., That sections 1357, 1362, 1363, 1365, 1366, 1367, 1370, 1372, 1373, and 1374 of the Revised Statutes, be and the same are hereby repealed, and that all laws and parts of laws conflicting in any manner with the terms of this act, be and the same are hereby repealed.

SEC. 11.  Be it further enacted, etc., That at the next general election to be held in this State, there shall be submitted to the people of the State, the following amendment to the Constitution: (The terms of the Act. No. 43, adopted at the session of the Legislature in the year 1884, are hereby ratified and approved; and all provisions of the Constitution of 1879 repugnant thereto, or in any way impairing the passage thereof, are hereby repealed so far as the operations of said act are concerned.)

SEC. 12.  Be it further enacted, etc., That the electors who desire to vote at said election for said amendment, shall write or print upon their ballots the words: "For the Tulane University amendment," and all electors who desire to vote at said election against said amendment shall write or print upon their ballots the words: "Against the Tulane University amendment."

H. W. OGDEN
Speaker of the House of Representatives.

CLAY KNOBLOCH,
Lieut. Governor, and President of the Senate.

Approved 5th July, 1884.

S. D. McENERY,
Governor of the State of Louisiana.


The author is grateful to The Law Library of Louisiana, New Orleans, for furnishing the Constitution of the State of Louisiana, published in 1884 in Baton Rouge.  The text of Act 43 also appears as Appendix II in: John P. Dyer, Tulane: The Biography of a University, 1834 - 1965, Harper & Row Publishers, New York and London, 1st Ed., 1966, page 306.

Note 1: Tulane is the only American university to have been created through the privatization of a state university.  See: Gerald R. Ford, "Address at a Tulane University Convocation," The American Presidency Project, April 23, 1975, http://www.presidency.ucsb.edu/ws/index.php?pid=4859, accessed 09/24/08.

Note 2: The driving force behind the passage of Act 43 was Randall Lee Gibson, first president of the Board of Administrators of the Tulane Educational Fund.

Note 3: Periodically, various provisions of the act have been questioned.  In 1982, state Rep. John J. Hainkel, Jr., D-New Orleans, requested the attorney general's opinion on whether the state and the City of New Orleans could impose sales and use taxes on purchases made by Tulane University.  In Opinion Number 82-1039, issued November 12, 1982, Attorney General William J. Guste, Jr., stated that, "...the exemption granted in Act 43 of 1884 does not exempt Tulane University from the payment of sales and use taxes, but applies only to ad valorem taxes levied against the property of Tulane."

In 1983, Judge Edmund M. Reggie, newly appointed to Tulane's Board of Administrators, successfully lobbied to have the ruling on the sales tax rescinded, and in Opinion Number 84-194, issued February 28, 1984, Attorney General Guste stated that, "...the exemption granted in Act 43 of 1884 does exempt Tulane University from the payment of sales and use taxes of the State, parochial, and municipal authorities.  Opinion Number 82-1039 is hereby recalled."


 
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