The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-02-28
JURISDICTION OF THE FEDERAL
COURTS,


and corporations. to resort 10 tho Federal
courts for the enforcement of their claims
and the tendency of these tribunals to assume
whatever jurisdiction, whether In civil or
criminal cases, may be attributed them with
any plausibility at all. have attracted the
attention OF the press as well as Of the legal
profession all over the country, aud have
provoked from both an earnest depreciation.
Indeed IL would appear, from the manifest
preference Of public credtors for the United
States courts, that they have come to regard
these tribunals rs specially established for
the enforcement of such rights against the
States and their corporations, and that they
are vested with a power and jurisdiction to
this end not possessed by the State courts
This assumption IL, of course. wrong and
without any foundation in law, and there IL
no ostensible reason why the Federal
courts should be preferred In such
cases to the State courts, which possess
precisely tho same powers, II not greater
ones. and In regard to whose Jurisdictions
none OF the grave doubts exist which arc con
staDty urged against that of tho United
States Courts.
| From time to time suits have been Insti-
tuted against various States by credl-
i tors who have sought to avail themselves of
these courts to enforce their claims, and we
| have heard that some such proceedings may
be resorted TO against this State by the hold
ers of her securities, in Gel tain contingency.
| The remedy usually asked In such suits has
| been mandamus to compel the levy of
particular tax. Such proceedings have invari-
I.tl CxlIu ~ a
sons. still the idea seems to prevail that the
United States Courts are vested with some
unusual and peculiar power to enforce con-
tracts against the States and the political cor
| poratons instituted by them.
The latest instance u this Is afforded In the
| suit OF the creditors Of tho city OF Memphis
against that corporation In which Judge
| Baxter. by appointing a receiver for the city,
| has pushed the jurisdiction of his court to nm
| extreme never before attempted. II appears
that the Legislature Of Tennessee, I'm attempt
ing to afford some relief to Memphis from
her debts, repealed the charter of tho city and
| resumed the powers Of municipal govern
ment which had been granted her. Imme-
diately the creditors Of tho city brought
suit and alleged the unconstitutionaity of
paired the obligation of contracts between
the city and her creditors. The theory of
the plaintiffs in this suit Is thus stated by the
New York Tribune:
Cities are corporations created by State leRis-
lation, 1t IL true. But 30 are railroad com pan
les. and banks having State charters and In
sursDce and trust oompanie les. Corporations Of |
every other description. whenever they are so |
managed that hey annot sa iafp Just demands |
II creditors. are unhesitatnRly seizad by the |
@ 'urs and managed for the benefit of creditors |
until their lust demands have been met. What |
ever powers. functions or franchises the corp,-
ration has then pas ed into tn. control OF The
court, TO be employed for the benefit and pro
.ec sy os me WIFE, ai ahs ana as lar rs
cipal corporation should b. exempt from Ike
treatment In similar citcumstances2
All powers which ths city has to assess, to tax.
enforce collections t. maintain order, to pro-
tectl lie and property. and To punish uffensea
were necessary fran ,hises Of the corporation
u enable II 10 moet ttsFooDtrlC o. and repenl OF
any 81 them WAS rs unconstitutional as a direct
gislative abrogation OF all contracts made BY
whatever xtent they may be needed for the 81.
forcem mt Of contracts, They have not lapsed
and can not be destroyed, 30 long al tho con
tracts renal unsa isfied. but can be used to
their full extent II necessary for the enforce
ment Of those contracts.
In reply to this position of the Tribune the
Galveston News, In an able and elaborate ar
tice, contends that there is no parallel be-
tween the charter of railroad, banking and
insurance company and that of a political
created by the State and gov
erned as part and parcel of the State. AS the
creation Of such a corporation Is q sovereign
act and invests the grantee with powers OF
sovereignty of which the States cannot be
absolutely Invested. the charter may be
amended or repealed at pleasure, and all the
sovereign powers granted reassumed by tho
State at will. Such powers can never be the
subject Of contracts nor can they, by any
become inalienable vestitures
either OF the city, its agents or Of its credit
ors Yet, says the News:
The theory in que stion aff1rms that the char
ter powers conferred by the State pass by a
tacit subrogHtion 10 the credit ors of a bankrupt
city. or rather to the United = ates judiciary
when called to assume those powers in trust
doubt. q broad mseonception of what l. meant
ny the Federal constitution in d claring that NJ
state shall pass law imDairing the obligation
Federal constitution that the judicial power of
the United States shall not extend 70 any suit
AGAINST State by citizens of another. State or
Oy citizens or SUBJECTS Of any foreign State
This provision was Incorporated as a distinct
rec, gnition Of the principle that State Il not
It's own jurisdcI ion. and that as political
b ing and an indissouble Unit It cannot be put
undet judgement daress or execution BY any
plainly contravened when United States conrt
on the ground that the State Of Tenne sses
attempted to abrogate the contracts OF y
the city OF Memphis. undertakes toll
seize and administer the franchises OF that city
In the interest OF its creditors. To deny the
right OF the State TO resume those franchises Is
70 deny tue sovertigny aud unity of the state
within lis established boundaries. The asser-
ton OF luhicisl authority to seza and atminis-
ter the political division OF state as bankTupt
states carried ont to logical exhaustion. wouid
Invest the U lifted States judiciary with political
sn hremacy In the Union. The Supreme Court
at Washington would exercise as imperial
sway as the proudet of the Roman Caesars.
The circuit and district judges would resemble
y man procoIsuls, wi. h armies of receivers
ke pers. tax COLLECTORS. bailiffs and other minis
Teri 81 agen 10 carry on tn, business OF man /
aging the financial affairs and mortgaged in
iustrfes OF cities and States. The United States
, 'nrts would do well to pause. The people of
MS country even II they grow tired OF their
present system of State governments will never
consent TO wear the yoke of a vast system OF
JUDICIAL despotism.
This is, as we understand 1t, good law and
most excellent ad vice which ha TIpitad