The south-western. [volume] (Shreveport, La.) 1852-1870, 1865-08-30
English Decision on Confederate Contracts

The Liverpool Post of the 2Sth ult, has the follow
ing IN regard TO contracts made by the late Confederate
government:
A case Of considerable interest, arising out Of the
late American war, was incidentally mentioned at the
Dock Board Yesterday. The board were only concerned
with the question, to whom they were to give up GER
tain cotton in their hands; but the subject had carried
the parties into the court of chancery, and the board
were liberated from all responsibility in the matter by
a decision which had been given on a previous day by
vice-chancellor Page Wood. The motion before the
vice-chancellor was to restrain Mr.. Prioleau, of the
firm of Messrs. Fraser, Trenholm & Co., from parting
with or disposing of a freight of cotton, consisting of
some 1900 bales, which had been shipped from Havana
to him, as a Confederate agent, TO be turned iuto mon
ey Tor the purposes Of the rebel government.
The United States as plaintiffs claimed the property;
but the defendant insisted that his title as Il successful
runner OF the blockade was a good one, and that even
It this did not hold good, he had a prior claim to the
United States, in consideration of the fact that he had
lost e2n,0y0 by the Confederate government. The
vice chancellorhs decision appears to have been very
clear. he said that there could be no doubt that the
United States were entitled to the cotton; but as TO
the force of the agreement between the southern gov
eminent and PrOleau, that wasa most serious matter,
since 1t was a Transaction between a government de
tacto and a citizen of a country wholly unconnecte ed
with the rebel and de jure governments. 1t could not
be doubted that when the transaction was entered upon
the cotton was the property Of the so-called Confeder-
ate States, they having bought it with money levied as
taxes.
The question then was, in what character the south
ern government must be regarded. He held that it
could not be deemed a mere band of marauders, but
must be presumed to have been an actual de tacto
government, exercising authority end receiving submits
sion. What, then, he asked, became OF it when its
power terminated, and It's functions were resumed by
the United States? The vice-chaneellor considered
that there could be no difficulty as to the law applica-
Bile to this state OF things; Tor international law had
settled that when IA de tacCO government came to an
end, its property became that of its successors. He
considered, however, that object to any argument to
be hereafter adduced, when the cause was thoroughly
heard, these SUCCESSORS to such de facto government
were bound by the agreement OF those to whom they
succeed.
This view had been anticipated in the arguments
before him, and it had been set up in opposition to it.
that Mr.. PriOleau Tor Messrs. Fraser, Trenholm g. Coz
had taken possession of this CO. ton, knowing that he
received it from people VINO were substantial rebels,
and conscious at the same time OF the rights of the
United STATES as lawful governors of the so-called Con.
1ederate territory. The yice-chancellOr considered
that this proved too much, since, if it were correct.
the United States might at any time during the war,
have restrained the departure Of any vessel acting as
a privateer against the United S ates, whenever such
vessel happened to be il a British port, simply by filing
a bill in chtncery.
He put very torcibly the argument that the Confed-
crate government must be held to be a government de
iacto, and not a mere band of banditti, because if they
had been mere %banditti, there would have been no
rights against them III the United States, but only III
the private individuals whose property had been nlun.
dered. He considered, therefore, that the United
States must take the cotton, subject TO fulfilling the
agreement made between the Confederate government
and Mr.. PrioIeau; but as much dispute would arise in
negotiating the settlement of the affair, and rs one half
OF lAe cotton appeared y 5oe prett, certainly the prom !
erig OF the detuuct government, under Tie agreement,
and not Mr.. Prioleau's, he ordered that Mr.. Prioleau
should be appointed receiver in the cause, which
would enable INN TO dispose of the cotton and pay all
proper charges, he giving security for E2o, 900, the |
amount which would probably be found absolutely the |
property of the United States.
We need not tell our readers that this suit is one OF |
a very Interesting character, aud the settlement OF it is |
likely to lead to considerable discussion, although, for |
tunately, the affair is 50 entirely in the hands OF the
lawyers, that no diplomatic difficulty Is likely to arise |
out Of it. At the Dock Board, yesterday, there was
no trouble on the subject, the board simply beng freed /
by the yice-chancelIor's decision from any response.
blIity in the matter, Mr.. Prioleau receiving the cotton
from them upon the terms of the order Of the court,
being thenceforward responsible in the matter.