The news and herald. (Winnsboro, S.C.) 1877-1900, 1883-03-20
THE co UpON CASE.
thc N"cHnh Decision Is Claimed to be n vic.
tory for the States Creditors
I EyJu2 M, N,,, y,rl y,r,,

From tie Ncto YorA 7riJuaa.1
The recent decision Of the United
states Supreme Court, in the Nirriuia
coupon ease Of Anioni AGAIN, Green
how, was accepted by the Hcadiustcrs
OF Virginia asa victory. Cuniron were
tlrcd in Richnond OH receipt Of the
news OF their supposed victory. \
copy Of the decision of Chief Justicc
Waite, received in this city gives n
new phase 10 the case, however, and
seems to afford the creditors Il virtual
victory over the Rcahiusicrs. 70 the
bonds ISSUED umucr the Rcliut,inu ac.
OF 1871 were attached coupons. which
were made receivable Tor all taxes.
debts and demands due the State. II
was by such legislation as this ONLY
thHt Tie State could induce The holders
OF The 0ntc-bci|um bonds 10 arccrs the
new ones, as the coupon clause seemed
10 make the bonds source of some
income because the coupons were re.
cciva'lc for taxes. The LEGISLATURE
OF 49,, however, rendered these cou-
nohS useless by passing u law prohib-
ting tax collectors Of the State from
receiving in payment OF taxes any,
thing else than coin or treasury or
hnt1on bank notes. 1t was the Gucs-
ilon Of the legality Of this uct that re-
suited in the suit upon which dcci-
sion has inst been rendered. The
abstract Of this decision furnished by
ne associated Press, au,i published
throughout the country, gave an crro-
ht"us impression. The court has de-
"idcd t!iat the State has entered into n
contract to receive the COUPONS for
taxes, ann that any act which fn;bi,|s
Tie collectors of taxes to receive the
coupons is void. "Anv act of the
State which forbids the rcccint of
these coupons for taxes is uyiuiution
OF the contract, and void as against
the couron-hoidcrs," is the language
OF the court. Again. the court saws:
"Ihe right Of the coNpon-holdcr is TO
nave bis coupon received for taxes
when offered. The question here is
not IA to that right, but rs to the rem
cay the holder has for its enforcement
when dcnwd."
Mr.. William l.. Royal, of this CITY.
is coun*cl for pool of bond,Yol,lnrs'
and appeared before tic Suprcuc
Court in Dha!t: CT the creditors. In
speaking Of the decision he said: "Thc
substance OF the decision is this: When
the taxpayer has rendered to the lax
collector tho States COUPONS in pay
mcnt for his taxes he has done ali lis
aduty. 1t is Of no consequence to him
whether the State gets nuv revenue or
not. If she chOoscs'to refuse his COLI
Dons, and be ont Of her revenue, il is
no concern Of his. If, however,. he
wants to do a work OF supcrcrooalion
and make her take the COUPONS and
place them in her treasury, the court
decides that he must proceed under
the act Of 1882. The vital point SET
lied is that the State cannot rxpncratc
her collectors from their rcsDonsibjIi-
ties hen they refuse a coupon of the
state. II the tax collector attcmpts 10
levy FOR taxes after coupons have been
rendered in payment Of taxes he does
SO at his peril. lie can also be re-
sirainod from lcvying by an iniunc-
ton. Under such circumstances the
State must provide for its COUPONS. or
else I've without revenue for the next
two years" Mr.. Royal states th4t
there arc about 1922 100000 of thcso
bonds, with taX-rccciruble coupons,
for which the State is RESPONSIBLE
Undcr this decision tho holders of
these bonds will tender their coupons
i'll payment Of taxes, and in case OF the
refusal of a collector to accept them,
legal proceedings will be taken against
the collector. "lf the decision of the
Supreme Court is followed up" said
Mr. Royal, "Yirginia will then be
left without any income, unless she
makes some provision for taking care
of these coupons. If tho decision is
followed uD in these suits it will mean
a great relief to hundreds Of people
who have invested in bonds, who have
been crippled bv such an investment
and who lhtvc had no means Of dis
posing OF "" using their coupons any
way"