Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-04-09

Some days since the case Of the two re-
Ceiy5rs Of Memphis was submitted to Judge
Baxter, of The United States circuit court, at
Knoxville, Dy the attorneys OF tae creditors OF
the detunct corporation OF Memphis, with
view to restrain the State receiver. MI1or
Merwethlr, from collecting back taxes. lie
points made ID the bill are IS follows:
The orators show in the bill that the original bill
in this cause WAS filed originally on the twenty
which time amended and supplemental bills have
been flied. On the seventh dag of February an
amended and supplemental Dill was hled, s=t,lis
out among other things that the complsinanS We're
seyeTaly udgm creditors OF the city of Memphis
on large amount; that said judgments were Re Gov
cred in the circuit court OF the United st ateS
TOR the western district of Tennessee. and
that Ii obedience to the peremptory mand2l ? OF
said court the city had for several years levied
special tax to meet the judgments Whatever funds
pose and were to be collected in lawful money. That
under Ihe act Of the legislature approved JAM iry
81, 1879, the charter OF the CITY Q! AeiIphls was
declared to be abolished and repealed, aud that the
officers OF the city had abandoned their posts am an
the assets OF SAID city that there We're taXes uo tne
city which under the law is debt amounting 10 over
rE3 million eight hundred thousand dollars, be side
special funds, etc. that by the act aoollshlng Inc
charter, the state legislature had assumed 10 isiEe
charge of all the back taxes Of the and asset of
every ptGn ana turned them OTefto the oa OF
Tennessee. including the special eyies; that by an
act of the legislature Taxing District crea ted,
that this Taxing District should be liable iii any
way for any Of the debts of the defunct city, and
that al remedy mad attemptedito pc taken away TOT
the collection OF any Liabilities or debts OF the city Of
Memphis the complainants had filed petition ask
ing the appointment of d receiver. and that the
fourteenth day Of February ThOs. J. Latham app
pointed TO take charge as receiver of taXbOos, as
city. The said receiver had given his proper bond,
and proceeding in the collection OF taxes, as
had been ordered by the court; that afterWaTd, to-
wit, Oh the thirteenth day Of March, the
State Legislature had passed an act providing for the
appointment OF d Tece We" and back-taX collector, to
take charge for the State Of all assets of the city and
TO collect unpaid taxes. Said act provides the re
cever for the State shall receive as taxes assessed
prior to 1915 may be settled in the valid Indebted
of said municipality; also for taxes levied after
1874 any valid Indebtedness OF the defunct city,
when there is no lien or equity requiring them 10
be paid in current funds and that One-ifth of these
taxes are TO be paid each year., provided however,
that nothing therein contained is intended TO
interfere with any vested Tigat which entities
the party having such right to a Speedier col
lection, but only 10 extend the indulgence,
wherein the State has the power to do SO
without interfering with vested rights Acting by
authority of this act, Governor Marks appointed
Minor Merwether receiver and bacl-t tax co lector,
of taxes. The bill further alleges that the said
Minor Mertwether is greatly impeding the receiver of
the United states court In the collection OF taxes
and dtscouraging and preventing the payment of
taxes to him. IN this, that he claims the right to
take possession OF the tiXbooks, accounts, assets,
etc, OF the city, now in the possession OF T. J..
Latham the receiver of the United States court and
to be the duly and legal receiver, and IS claiming
that all parties owing taxes must pay to him as the
receiver Of the State of Tennessee and that the re-
the orators believe mat Mr.. IerwetheT is Cor has
already proceeding to obtain possession OF the tax
books, etc, now in the bands of Receiver Latham;
and that these rOcsedings will not be brought IN
the court where these assets are held but elsewhere
and in disregard of It's jurisdiction. The orators
fear that this vii! involve unnecessary litigation and
conflict OF jurisdiction between This and some other
court; il is believed that said act is
void, and 50 charge, and that it Is IN viO-
aton Of the constitution Of the United States
and of the State OF Tennessee, and i'm
pairs the obligation OF contract The premises con-
sideTed, the orators pray that all the defendants 10
the sevl raj bills. original and amended AID supple
meutaTy bills, be made party defendants, and that
they be required TO answer thai the Saiu Minor Aeri
wether be made de,epdant: tnat an Injunction at
once issue restraining the sad MeFiWetheg from de
manding, receiving in any way obtaining taxes. or
interfering with the receiver Of this courts that this
Injunction be issued under the seal of the ard
be made perpetual.
It Is confidently expected thai Judge Bax-
ter viii announce his decision IN d few days
Bat this will not be a settlement Of the mat
ter, rs Judge Swayne viii be here IN May to
hear and determine the whole question.