Savannah morning news. [volume] (Savannah) 1868-1887, 1881-01-25
THE .. S. SUPREME COURT
IMPORTANT DECISIONS Rem
DERED.
The Ease of n. @. G. Hartman vs.
Samuel a. GFeenhOVg. Involving
the Validity OF a Virginia Statute
Case OF HaIlet Kilbourne VS.. J. G.
Thompson ct. aI.-Oiher Southern
Decisions Rendered.

Case OF Hallet Kflbourne VS.. J. G.
ThOmpson ct. aI.-Other Southern
Decisions Rendered.
WAsHIEeToE. January 24.-The Supreme
Court of the United States to-day rendered
decision In the case of II. C. G.. Hartman
VS.. Samuel A. Greenbow, Treasurer Of the
city OF Richmond, Va, brought to that court
on writ Of error from the Supreme Court
OF Appeals of Virginia. The question In
Volved is the validity OF an act Of the State
Legislature passed in 1876, by which tax
was imposed on the funding bonds Of the
State, and by which Tax Collectors were
directed not to receive the interest coupons
Of such bonds In payment Of taxes, without
first deducting from them the amount of
the State tax upon bonds of which they had
originally been part. The court holds
that the act In question Is unconstitutional
and void, for the reason that it impairs the
obligation OF contact, and the judgment
OF the Supreme Court Of Appeals OF Virginia
is reversed.
In long snd carefully written opinion,
Justice Field, after reviewing the history of
the debt Of Virginia and the legislation of the
(
opinion OF this court In substance as fol-
lows: "The power of the State to impose
tax upon her own obligations Is q subject
upon which there has been a difference OF
opinion among iurists and statesmen, but
whatever may be the wisest rule as to the
| taxability OF public securities It is settled
that any tax levied upon them cannot
be withheld from the interest payable
thereon. This was the Judgment in the
case OF Murry VS.. Charleston (96 U. g., 445,)
where the court held that by the legislation
OF the city its obligation to its creditors was
impaired, and, however great its power of
taxation, it must be exercised, being polIti-
cal agency, In subordinatiOn to the prohibi-
tion Of the Federal Constitution against
legislation impairing the obligation Of con-
tract.
'This decision would be decisive In the
present case, but the present case Is still
stronger for the creditor. The funding act
made the bonds issued under 1t payable
10 order or bearer, and made the coupons
payable to bearer. The bonds and coupons,
! therefore, were so far distinct and
independent contracts, that they
could be separated from each other and
transferred to different hands. This court
has repeated y held that such coupons have
all the essential attributes of commercial
paper; that they are separate claims against
the State, and may be used TO
actions. The coupons held by Hartman,
the petitioner, were distinct contracts i'm
posing their own separate obligations upon
the State. Hartman was not the owner of
the bonds to which they had been originally
attached. In his hands they were as free
and discharged from all liability on these
bonds as though they had never been cor
nected with them, and an argument is hardly
necessary to prove that an act which re-
quires the holder of one contract to pay
taxes levied upon another contract held by
stranger cannot be sustained. Such an
act is not legitimate exercise of the taxing
power. 1t undertakes to impose upon one
the burdens which should fall, If at all, upon
another.
"The funding act stipulated that the cou-
pons should be receivable for all taxes aud
dues to the State for their full amount, and
upon this pledge the holders of the bonds
OF the State surrendered them and took
new bonds for two thirds of their amount.
The act of 1876 declares that the coupons
shall not be thus received for taxes for their
full amount, but only for such portion as
may remain after the tax subsequently
levied upon the bonds to which they were
originally attached is deducted. II this act
does not impair the contract with
the bondholder, who was authoriz-
! cd to transfer to others the
coupons with the quality of receivability
what way 1t would be impaired, even
though the tax on the bond should equal
the whole face Of the coupon If against the
express terms Of its contract. The State
can take a portion Of the interest in the
shape Of tax On the bond. 1t NAV, at It's
! pleasure, take the whole. This court is
clear, therefore, that the act of the Legis-
lature of the State of Virginia of 1876, re-
quirfng tax on her bonds issued
under the funding act Of March 80,
1871, to be deducted from the
coupons originally attached to them when
rendered In payment Of taxes or other dues
to the State, IL, in the face of previous
contract with such bopdholders, contained
In the funding act, a law impairing the OBJ
legation of a contract, and that it is there
fore void. 1t follows that the petitioner
was entitled to his mandamus
to comDel the treasury of the city of
| Richmond to receive the coupons rendered
to him In payment of taxes for their full
amount The judgment of the Supreme
Court Of Appeals Of Virginia, denying the
writ, Is therefore reversed and the cause re-
manded for further proceedings In accord
ance with this opinion. Justice Miller
expressed his dissent from the opinion
OF the court, and gave as his reasons,
first, that no Legislature of
State has authority to bargain away the
States right OF taxation; aud second, that
In issuing the bonds and coupons which are
the subject of this controversy, the Legisla-
ture of Virginia, neither In terms nor by
any just inference, made any contract
that the bonds and coupons should
not be subject to the same taxes
as other property taxed by the State.
The court also announced It's decision to-
day In the case Of Hallet Kilbourne, plain
tiff In error, VS.. John G. Thompson ct sl.,
brought here by appeal from the Supreme
Court of the District of Columbia. This
was an action OF trespass for assault and
imprisonment. In January, 1919, Kilbourne
the plaintiff In error, was summoned be.
fore the House of Representatives to answer
certain interrogatories IN regard to the So
called ''real estate pool' of the district In
which the firm of Jay Cook s. Co., who
were then largely Indebted to the United
States, were said to be interested. Kiibourne
refused to answer the questions put to him
by the House committee, and to produce the
papers and records which were demanded
By the resolution of the House, Kilbourne
was thereupon declared in contempt and
given into the custody OF the Sergeant-at-
Arms, to be kept in confinement until he
should express bis willingness to answer
the question and produce the records re-
quired. Upon warrant issued hY the
Speaker of the House, Kilbourne was con.
veyed by the Sergeant-at-Arms to the COM
mon jail of the District of Columbia, and
detained there for period or forty hve
days, at the expiration of which time he
was released on habeas corpus Kilbodrne
thereupOn brought this suit to recover
damages for assault and Imprisonment.
The defendants, who were the Speaker of
the House, Sergeant at Arms and the
special House committee, set up various
special pleas in defense, to which the plain
tiff demurred. The Supreme Court of the
District of Columbia overruled his de-
murrer, and gave Judgment for the de-
PENDANTS. This court is unanimously of
the opinion that the demurrer should have
been sustained. The judgment of the
court below is therefore reversed and
the cause remarded for further proceed
ings. The judgment Of the court In this
case was simply announced with the state
ment that no written opinion had yet been
prepared, but that one would be filed during
the courts February recess.
The following decisions in Southern cases
were rendered by the United States Su-
preme Court to-day: Upton, county of
Tennessee, VS.. the Rogers Locomotive and
Machine Works; same vs.. Norton, Slaughter
& Co., and the same VS.. j. L.
Edmunds & Co. The judgments In
all three cases are affirmed with costs.
The Life Association OF America, Wm.
S. Relf, Superintendent of Insurance De-
partmsnt of Missouri, aud Daniel M. Frost
Special Agent, appellants, Vs. Samuel Z
Rundel ct al, appeal from the U. s. Circuit
Court Of the district of Louisiana. The
decree was reversed with costs, and the
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