The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1868-12-02
Interesting Case.
OPINION OF CHIEF JUSTICE CHASE.

ADMINISTRATORS OF CATHARINE c.. KEEP.
PE1L vs.. TnE PETERSBURG RAILROAD Com
PANY, IN THE CIRCUIT COURT OF THE
UNITED STATES FOR THE DISTRICT OF V1n-
G1NGA.-LiGbility of Railroads IN Secedino
States to Stockholders in Loydl States for
Dividends declared during the Rebellion
NulRty Of Proceedings onder Confederate
ConfiScdtion Acts - Payments since the
War Of Debts arising from receipt of Con-
federaie Notes during the Wdr-Wha a de
facto Government iS.-The following (which
the Chief Justices partiality 10 the Jour
nal obliges us to copy from that paper) il
the most important opinion which Mr.. Chase
has given in his court in this city. 1t asserts
the right Of stockholders in loyal States
to the dividends declared during the war
upon the stock held by them in south
ern railroads, Notwithstanding the confsca-
ton of such stock and dividends by the
Confederate Government, and notwithstaud-
ing the consequent payment of the dividends
to the purchasers under the confscation
law; and it promulgates the rule that Con-
federate notes received in the rebel States
on account Of parties in loyal States inno:
cent of acts violating the interdicts against
commercial intercourse, must be accounted
for in lawful money equal in value to the
Confederate notes at the time Of receipt.
OPINION.
This is suit by the administrators of q
stockholder of the Petersburg Railroad
Company, who was citizen Of Pennsylva-
MIA, and resided in The city Of Philadelphia
during the late rebellion, to compel that
created by the statutes of Vir-
ginia and North Carolina, and having its
principal office for business at Petersburg
to account for dividends declared by the
company during 1861 and subsequently,
before the filing Of the bill on the 22d Of
November, 1866.
According to the statement of the an
swer, admitted to be true by written stipu-
lation of counsel, Catharine G. Keppell, be-
fore the rebellion, was the owner Of 203
shares Of the company's stock; and subse-
quently, by further issues of stock, became
entitled to lOl additional shares, making
total of 304 shares.
After the secession of Virginia and or
ganization of the Southern Confederacy
the company submitted, without opposition,
to the control of the Confederate Govern
ment SET up over North Carolina and that
part of Virginia in which the road lay, in
hostile exclusion of the constitutional au-
thority of the United States.
Subsequently, on the 30th Of August,
1861, the Confederate Congress passed an
act for the sequestration or confscation OF
all property found within the rebel States
belonging to loyal citizens Of the other
States of the Union.
Under this act, such proceedings were
had by district judge holding a court un-
der the pretended authority of the Confede-
rate Government, and by receiver ap-
pointed by him, that ninety shares Of Mrs.
Keppelrs stock were sold to sundry pur
chasers, and dividends were paid on the
whole number of shares, partly to these
purchasers and partly to the receiver.
These dividends amounted to one hun
! dred and nine per cent, and were paid al
different times from July, 1861, to Novem-
| Der, 1864, inclusive.
After the overthrow of the Confederacy,
the sales made by the receiver were treated
AS nullities by the railroad company. Scrip
for the one hundred and one additional
shares was sent to the complainants, as ad-
ministrators, and if dividends had been
subsequently declared, payment would have
been made to them on the whole three hun
dred and four shares.
It appears from this statement that the
company itself regarded the coniscation act
as null and of no force so far as the sale OF
the ninety shares was concerned. That
sale was treated as nullity and the title
Of the purchasers under it as worthless.
But the company claims 1st. That pay
ments of dividends made under the same
- +l,n I'D tho baS CT
be upheld as valid payments; and I'd. II
this claim be disallowed, then that the liza
bility of the company was only to pay, on
demand, the dividends of Mrs. keppell in
such currency as was necessarily received,
and no demand having been made except
by the commencement of this suit after
that currency had become wholly worthless,
no decree can now be made against the
company.
The tlrst of these propositions rests upon
the premises that the Confederate organiza-
ton was 8 government de .tacto, and that
acts in obedience to its authority must be
presumed to have been done under the COM
pulsion of superior force, by reason OF
which the actors are discharged from all
ulterior responsibility. ..
Of this it may be observed, in the first
place, that the term de facto, as descriptive
of government, has no fixed and definite
sense.
1t is perhaps most correctly used as
signifying government completely, though
only temporarily, established in place OF
the lawful or regular government, occupy
ing its capital and exercising its power.
Examples of this kind of de facto 60
vernments are found in English history /;
some in the violent seizure and temporary
possession Of royal power and one, so con-
spicuous that the world can never lose the
sense of it, in the establishment of the
Commonwealth and the Protectorate In
place Of the monarchy. ..
In this sense certainly the rebel Govern
ment was never 81 de facto government. 1t
never held the national capital. 1t never
asserted any authority to represent the ma
ton. 1t was only what it professed to be
a revolutionary organization seeking to es-
tablish confederacy Of States disconnected
from the United States, and dependent
wholly for success upon the success Of the
revolution.
The term, however, is often used. and
perhaps more frequently in sensc less
precise, as signifying any Organized go
yernment established fer the time over o
considerable territory in exclusion Of the.
regular government. dc focto govern
ment of this sort is not distinguishahlc in
principle from other unlawful combina-
tions. 1t is distinguishable IN feet mainly
by power and in territorial control, and
by the policy usually adopted in relation to
it by the National Government.
Treason in England is not CORN itted
against the lawful government by acts OF
,s:I:4r lo,a IN Suppnrt nf q (1o fUciO pO-