, 1865-08-12

| under tho direction Of the plaintiGs-the
| United States oi America. =,
| THE POINT At ISSUE.
The case was one Of great public Interest,
and sa:etd the following most important
| ~ estlon--viz !: whether the United States
Government, In tesunfng their authority
ever the Confederate States, arc entitled to
the property in specie OF those States, wher-
ever found, without regard to any agreements
enter6d Into by cltlztns Of this country with
the dc }atfo Confederate Government, or
| ,}chts acquired il 1Cepfct Of such property.
The btl, after stating the rebellion against
| this United States Government aud the nsuTp-
| yets peEsona totmtIg themselves into pre-
| te1dtl Goreynms Mt, under the sty1e Of the
t'Goveinuert Of the Confederate Safes"
stated that such pretended GoFernment, uu-
| der their usurped authority, possessed them
selyea oi moneys, goods and trehsure which
! tits, snd employ ID them in aid Of the rsbel-
! lion. Such pretended Government SONIC time
| since caused a ja'ge quantity Of cotton
whsch had been acquired in exercise Of thelr
psusped autho;lty 10 be shloped from Texas
to Havana. with o view Of It's being shipped
Oh behalf fthe Confederate Government.
HISTORY OF TIE DISPUTED SHIPMENT.
Among Other shipments, and that which
formed the subject matter Of this suit, was
one of 1850 bales Of Gotten IN the Allne.
On the 10th Of June, 1865, the Aline sailed
under English colors from Havana, with
this cargo Of cotton, which was consigned to
the defendants Pffoleau and Others who
Trenholm &: Co." The ship, which was con-
signed to the defendants {lessrs. Mslcom-
eop), has recently arrived at Liverpool, and
IL row lying In the Mereey docks. The bill
p1oce eued 10 eta1e TINT the reb: 1llou being
DOW 1t an ena. and tee m 80 & sallea Confederate
property Of the persons Constituting such
prtteIded government {irc1ud1ng the cottou
shipped IN The .Aline>, had been expressly
eedsa to The plaintiffs, and that the cotton
thus CT nsigned to Fraser, Trenholm l. Co.
The plaintiffs, and ought to be de-
liverd up to them. Notice has been
Served by The United Statsa Consul at Liver
POOL upon Fraser, Trenholm & Co., requiring
thtm not to part Or deal With the cotton
without the couseut Of the plaintiffs, The
Of the ship, refused, however, to deliver up
the cotton TO- the plaintiffs, and, In particu-
1ar, the defendant Pr1olean claimed to t3 en-
titltd to the cottnn, which lad been constgn-
I'd to his firm hy Herrera :: TO-, bis agents at
Havana, under an arrangement With tho lie
fae:o Conf. derate government, before the srb-
mission Of Kirby Smith to the Fsdera1s. Tie
ah:Pme ut Of this cotton formed one OF long
series ef Transactions between Priofeau and
the coufedera' government, under which he
bad incurred very heavy liabilities Ito the ex-
ttnt Ct nO, ,000l, srl to the realization Of
Of those liabilities. Under these ciecum
stances the bill was filed, and the plaintiffs
now moEed for an Injunction.
Tho Attorney General, Mr.. GiGarl, O. c.,
and Mr. Bruce appeared for the pla!ntdtt In
support Of the motion, and commended that
%T1o fEHr$r a%a fa{$1 I+,t
position Of rebels and mere wrong -doers, had
no power to enter into any contract which
could give the defendants, who had full no.
tlce Of the rights Of the United States and Of
the rebellion Of the Coutederates, any right
us SeaiBst Rt. TIE = p!atntit' tne law1al oxnsss;
Dir. c. M.lwa1d, q G, and NJ. Charles Hail,
on behalf Of ths principal defendants, con.
tended that the plaintiffs were entitled TO
stand for tho purposes OF this suts In the po-
sition of the Confederate Government,
ard IT,, "a no higher s! position. i
COTTON now in tho banis Of The Briti3h sui.
jeete, they could only obtain 1t on the terms
Of satisfying all engagements made In respect
Of 1t Dy their predecessors, the Confederate
Government, with such BItt!sh subjtc1s. It
vas, Indeed, q most etart1lng and uuhcartl Of
pscEoElt1on, that Z Government which sue
ceeded In conquering and disp1acias a d. faefo
Government could follow the property Of toe
displaced Government into this country ard
obtain the assistance Of the courts oil ttis
county to NIest 1t from B.itish subjects,
who had entered into fair lsgal contract
with TIE de toeto government, aud acted On
the fal1h Of such contract.
DECISION OF TIE COURT.
Ihe Vice Chancellor said, that uFcn the
first questionable right Of the United States
to this cotton-he had no doubt, though
whether or not the plaintiffs must take 1t.
subject to the agreement hetween tia dc facto
Governmentand Mr. Prioleau was more SER
admittedly the result Of funds which had
btep raised by the dc (acto Government Of the
Southern States by 1a'ion, for the purpose
Of carrying On the war against the Northern
States. It was not The property Of my In
diYidus1 State Of America i; II It had BEEN
IT,. peculiar constitution OF the United
eus d:intult and complicated questions.
Bat the rucney with which that
cotton was rn.chased was levied in
more than c1e State, and WAS the
p6oRe5y 4I 1ae Sow e.; Of the reyotsd
not mere band OF maras5e,a, p!nndcring
country md Lying upon the pli1nder. bnt
IN actual and de Jac.o Government, exsrc!s-
lug authority, ard as such receiving snbnata-
sion. Ih1s dt Jdeto Government having been
displaced, t6e Government na1t or e. the gnited
oyer the seeded States, stood directly ii
the position Of those Who had acquired the
cotton By the taxation OF the sa5jects of
The seye1al States. formerly the CoAfedetate
States, but noW undoubtedly unes the
centsoi Of the present plaintiffs the,pnited
were clear upon this potnt-viz. that
whtn q de jatso Government : had
been superseded or put an end to, hA dis
r,acinq aorernme.u s4cetedkd to al tie T9ghA Of
| he de Jdt4o go~Tnmeak But, subject to ny
argument tnst may be Rdduced at the heAr-
upor the second branch Of the question, ana
| tie United States Government in taking this
| Gotten, mpAt take 1t; subject to all agree
| mcn,s m1de In respect Of It oy the as Jaefo
government. It WAS not the case which had
been susgpstel On hehsN Of. the plalntlt1s, OF
PERSONS tasi2E RIoPsy fIon " tRs tESs
pass.s The courts ct eveEy county recce:.
1tztd o DE- faeto government. md th.y cou'd
rot ol;ow Inc rights and contracts acquired
by their owu subjects with IN existing goT- n
eminent to be dlsrega::ded. The
dIsqlacins government succeeded 70 70
The state in which it Was fund, and subject
] 10 ali agreements affecting It. II The theory
| row raised by the plaintiffs were sound, he
did not see why they might not have fled a
bill Tor the purpose Of having taa Alabama,
With he Corfederate flag flying, delivered up
| to them. The United States government
could only claim thla cotton because It had
been raised by the de facto Confeder-
ats royernment, not bY robbsry Or violence,
but IN The ordinary course Of taxation, and
fecause they ttae United States govern
mimi we're now the d .fasso goyernmsnt
or those States in which tt had been
raised, His Honor, after SONIC further OBJ
swat O - = to tie principle upon which the
prcc, eds would have to be divided,
ard the numerous questions that would arisc
at the hta1t1g, ea'd that he must treat the
defendants, Fraser, Trenholm & Co., a. en-
titled to eao, COO, the amount Of the liabilities
t, which thfy swore they were subject. Re-
Tng no%ssGs az 19ese en q9es1!ons re- nv, na