Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1868-12-09
SUPREME COURT OPINION.
NASHVILLE, TENNESSEE, DECEMBER TERM 10
RANK or TENNESSEE rs. G. A. W0oDSoN' 81


THOMAS II. oOIDwELI, ATTORNEY GENERAL AND
RANK OF TENNESSEE rs. G. A. W0oDSoN' Ell
AL.
1o cbaDeelIor in this pronounced decree lor
H. comrIa;pant 10 the Chancery court az Niathsio'
+-o,n yTbieb the defendant appealed to thls court
'IC ~ go, ..ossarV 10 be ted follows: On
.he Igb of June 1860, Z. w Thomas ana montgomery
Davie being indebted the Bank Of tennessee az inc
6 Ionsfed at Clarksyi.le, in the of S25,O95, by
- notes for 1928 each payable in six, twelve,
sigbteen and twenty four months E. W. Thomasscon-
syed 10 the President and Directors Of the Bank ten
rs Of land adjoining the town OF ClarksYle to secure
tb navmept of the debt. power reserved in the
deed Authorizing Thomas lay of said land in lots and
sell the for the payment OF the debts specified On
IN. 9TH Of july 1860, Thomas having divided said land
IN ot sold the defendant WOodsOn three Of the lots at
the price Of S54T47l for which be executed his
three for 81 S24 each, due the 18th Of April 1891
18th Of January, 1852 and 18th Of july 1892 payable
TO E. W. Thomas order and were by him Endorsed
and delivered the bank in September 1861 The first
note being paid, il placed in the hands Of an at
torney for collection. 10 February 1892 about the time
Of the fall Of Fort Doneson the assets Of the Branch
Bank Of Tennessee at GAINESVILLE removed by the
Cashier by the advice and Of the President and
Directors 10 Chattanooga, to prevent them falling int
the hands Of the Federal forces From that place they
afterwards removed the State Of Georgia, aud
held by the Cashier until the close Of the two OF the
notes thus held against the defendant carried to
Chattanooga WOodson continued 70 reside in the county
Of Montgomery, Tennessee until the close Of the war
After the removal Of the assets TO Chattanooga the bus
Of the bank discontinued, except the Cashier
having charge Of the assets received payment Of the
notes owing by its debtors. The Cashier continued in
the custody and control Of the assets until they re-
turned to the State. = -. f.
The Federal forces occapied the town Of ClaTksvie
permanently, about the first Of January 1862 and from
that time until the close Of the war il vas garrsoned BY
strong military force. In August, 1868, the defendant
Woodson, and Z. w. Thomas who a resident Of the
town Of Clarksyile procured ". p. Indy 10 60 to
Chattanooga, where the Of the bank then
They gave him Confederate treasury notes, with nsruc
tons pay Of their Indebtedness 60 said bank and
the 10th day Of August 1863 the said Indy the
agent o. the faid WOodson and Thomas paid to the
Cashier Of said branch bank the said notes 10 COnfeder
ate treasury notes. and be delivered 10 him Of the
notes, and executed receipt against the note that had
been given 10 attorney TO upon At the time OF
said payment the Federal forces occupied and held
session Of the county Of Montgomery and city Of Nash
ve and other parts Of the territory Of Middle Tenne
Chattanooga was in the possession and military
occupation Of the Confederate forces. Upon the return
Of the assets Of the bank the State after the organza
ton Of the State government, Samuel Watson, in pur-
suance Of law appointed the assignee Of the bank
and filed this bill have delivered up the and
force the collection by selling the real upon which
lien was retained for the payment Of the purchase
money Woodson in his admits the material al
legations Of the BILL and insists the payments bona
fde and made 10 the proper officer that he had the right
TO receive payment and deliver up the notes, and the
receipt executed by him for the in the hands Of
attorney a valid payment, and brings the with
the rule settled by this court Of executed contract
In the determination Of the questions arising upon
this record IL becomes necessary look TO the charter
Of the bank TO the object and purpose Of its creations
the power aud authority vested in Its agents or officers
for its control and management and the relative status
Of the parties the time Of the alleged payment of the
notes The Bank Of Tennessee is public corporation,
chartered for the benefit of the State It's capital stock
consisted 10 part Of the school fund, which the
State held trustee for the purpose of educating the
children Of the State and the surplus Of the
United States deposited with the State under act Of
Congress approved June 23d 1885, for the repayment of
which the faith and credit Of the State stood pledged
eQBed by the Secretary Of the Treasury etc.
No portion Of s stock is private IT s therefore,
public corporation, Actiag upon the funds and credit Of
the State, in conformity TO its charter, for tho eonven-
fence and advantage Of the public. Furman Co.. VS..
NichOl Z Cold.
It's charter il a general public law, and all persons
within the limits of the State presumed 10 know the
purpose Of its creation, and the nature, character and ex
tent Of its powers. The principal bank and branches
located at certain points designated by act OF
the Legislature and could only be removed by the power
that located them. Its officers trustees vested with
limited power 20 act within the scope Of the authority
conferred for the convenience and advantage Of the pub
lie. The power Of the President and Directors being
limited, aud giving rational exposition Of them, it
not be pretended they had authority to the assets
points places designated by law for purposes
contemplated by the act Of the Legislature and not
within the legitimate scope Of the charter. We think,
therefore, the removal of the Of the hank to Chat
tanooga illegal and not warranted by TIE provisions
Of the law creating the institution and locating its
branches and is governed by the principles analogous
10 those settled by the Supreme Court of the United
in the Of Minor the Bank OF Alexandra,
Peters, - though think this stronger case for
the application of the principle than that IL is in
sisted that the Legislature by act passed july 1851,
authorized the bank receive and pay out Confederate
treasury and therefore, the Cashier Of the bank
authorized &c receive them discharge of the debts
due the bank, end, though the payment made in
Confederate treasury notes. it in pursuance Of exist
ing law and Is binding the bank II is unnecessary
for consider the validity Of the act passed by the
Legislature Of the State on thedsy Of July, 1861, af
the attempt Of the people Of the State 10 throw of
their allegiance the Federal Government the quos-
ton has been differently settled by the people of the
acting their sovereign capacity Sec. s. of the
schedule Of the amended constitution provides that all
laws, ordinances and resolutions, well all acts
done pursuance thereof under the authority Of the
urped State government after the declared independence
IF the State Of Tennessee and after the 9th day of
May, 1861, unconstitutional null and void from the
beginning. The constitutional amendments became
part Of the constitution Of the State, and the schedule
annexed for all purposes sought by the ratification be-
equally binding the courts. Cold, 2l4. By
the schedule the said declared have been null
and void from the beginning, and it cannot be relied up
authorizing the Cashier 81 the Bank 70 receive
Confederate treasury in discharge Of the notes.
10 bind the bank IL s insisted though the act is void,
the illegal currency having been received voluntarily
and the notes delivered up and receipt executed against
the note in the hands Of the attorney il became
cutod contract aud the fails within the rule settled
by this court IN the Of Henry ct al VS., Franklin ct
al. 3 Cold.
The determination Of this question depends upon the
residence Of the parties the time the alleged payments
made, and the receipt executed against the note,
and the notes delivered up the time Of The payment
The defendants resided within the territory of which
the Federal oTces had permanent military occupation,
and had held from the first of January 1868 to the close
Of the The Cashier of the bank, who received the
payment, at the time residing within The military
lines Of the rebel forces at Chattanooga By the act Of
Congress Of the 18th Of July 1851 all commercial inter
prohibited between the States declared TO be
in state OF instruction and the citizens of other States
and other parts Of States Of the United States II
made unlawful and to remain unlawful until sch insur
rection shall cease have been suppressed Eae fifth
section Of the act Of July 49, 1881, providing for the
collection Of duties and other purposes, provided the
President By proclamation may declare the Inhabitants
Of the Stale any section part Of them to bn in
state Of instruction against the United States Ir pr
Of this act the 18th Of August 1851 he Pres
dent issued proclamation declaring the inhabitants of
Virginia. North Carolina Tennessee aud Arkansas and
other States south Of them be in state of Instruction
except the inhabitants Of Virginia, west Of the Arega-
MES and those parts Of States maintaining legal adhe
sion the constitution and Uuon OF from time TO time
occupied and controlled by forces of the United States
engaged in dispensing the insurgents. The Supreme
Court of the United States IN the Of the Venice
Wallace 27S after quoting the act Of July 18TH 1851
and the proclamation says: "Ths executive and legis
lative action related nainy 10 trade and commercial in
between the inhabitants loyal and the nhabi
tsns Of the insurgeBt parts Of the country but by
cepting districts occupied and controlled by national
troops from the prohibition of trade il indicated the pol
icy Of the Government not 70 regard such district m
actual instruction their inhabitants subject 10 treat
ment as enemies Military occupation aud control TO
work this exception must be actual that 10 say, not
iusory not imperfect not transient but substantial
complete and permanent being such il draws after the
full measure OF protection 70 persons and property con-
sistent with necessary subecOns Co military govern
ment The Federal forces having occupied and held the
town Of GAINESVILLE and territory Of Montgomery county
Tennessee from the LIST Of January, 1863 and until the
close Of the war, had such permanent occupation and
possession Of the territory which the defendant resi-
ded, as to bring within the exception provided BY the
proclamation Of the President Of the 18th of August
1861 and by the act Of Congress all commercial inter-
made unlawful with those residing within the
rebel military lines Il follows the defendants al the
time oil the alleged payment and delivering up Of the
notes. and the execution of the receipt against the
in the hands Of an attorney residing within the military