Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-02-12
pARSONS'S COUPONS.


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NORFOLK, February Ii, 1885.
In the United States Court this morn
ing Judges Hughes and Bond granted .
permanent injunction 10 Edward Par
sons, of New York, restraining State
Auditor Marye from refusing to receive
coupons in payment Of State taxes.
The first order was published IN
the Dispatch. The complainant averred
that he was the holder Of coupons to
the amount Of 1856, the sale Of which
was obstructed by the refusal OF the
collecting officers Of the State to re-
cciyc them for taxes. The bill prayed
for q temporary restraining order, which
was granted on the I'd instant, and to-
day the injunction was pcrpetuated.
Ex-Governor d. Ii. Chamberlain, Of
South Carolina, counsel in the case,
said TO a representative Of the Dispatch
this morning that in this decision OF the
court n sure remedy is furnished the
holder Of coupons against the coupon
killer act. If the complainant had pro-
ceeded by mandomus it would have
been q proceeding at law" and the
coupons must have been verified be-
fore the United States Court as be-
fore the State courts, but that an in
junction is proceeding in chancery,"
and in such cases the United States
Court is not limited in its functions by
the restrictions in the State courts, but
may grant q relief to the nonresident
bondholder: that the decision in this
case is for the relief Of the bondholder,
Mr.. Parsons; and with the order Of the
Court to reinforce his coupons, he may
now dispose Of them at any bank or to
any individual, and the purchaser is
protected by the same order Of the
Court which was issued for the protec-
ton Of the bondholder.
The amount of the coupons in the
present case is less than $4,000, so that
from the decision Of the Circuit Court
there is no appeal.
For the future any bondholder may
obtain the same relief; and as the cost
of all such proceedings falls upon the
Auditor or the treasurer of any county
or city who refuses to receive coupons
in payment Of taxes, the result is that
in ashort time coupons will be generally
received in payment Of State taxes. So
he said.
A case somewhat similar in character
is now pending in the United States
Court. DR.. William Sclden, Of this
city. rendered coupons to Treasurer A.
l.. Hill, of Norfolk, in payment of his
taxes, and the coupons were refused.
The Treasurer then levied on DIR. Sell
denis property, and the Court granted
an injunction restraining the Treasurer
from selling the property Of DR.. Selden
until the case could be heard. The dis
tinction, however, between the two cases
is that in this case the relief is asked
by the taxpayer, whereas in the
Parsons case the relief is granted to
the bondholder. But the decision in
favor of the bondholder applies, it is
claimed. as well to the taxpayer, and
is far-reaching in its results. All are
agreed that the result Of the decision
will have the effect to greatly appre-
ciate the value Of State coupon bonds.
The injunction restraints Marye,
Grcenhow. Munfcrd, ct dls., from re-
fusing to accept coupons in payment of
all State taxes, including license-tax,
under penalty Of contempt. Some
think the decision will revive agitation
of the debt question in Virginia.
The Southern Telegraph case was
called in the United States court to-day,
and at this writing Mr.. John S. Wise,
counsel for the bondholders, is charging
the Farmers Loan and Trust Company
with contempt Of the Courts orders in
applying to other courts and having re-
ceiyers appointed for the Southern Tele-
graph Company after Judges Bond and
Hughes had appointed Mr.. A. L. Boul-
ware receiver. Mr.. BOulware is repre-
scented by Judge Waller r. Staples.
The Court reserved its decision in the
matter Of contempt, but issued an order
compelling the defendants to dismiss all
suits in other courts. ELLA.