The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-04-21
THE VIRGINIA COUPONS.
The United States Supreme Court Gives q
Decision in Favor of the Bonaholders.

The United States Supreme Court Gives
Decision in Favor of the Bonahoiders.
WASHINGTON, April 20.-rhe United States
Supreme Court rendered an important decision,
to-day, 10 the group of cases known as the Fir-
GINA coupon tax cases. involving validity of the
recent legislation of that State with reference to
the payment of State taxes in the coupons of
the States bonds. The decision was against the
State and III favor of the bondhOldors on all
material points. The court holds that all the
legislation of the State which attempts to evade
the obligation under which it rests to receive the
coupons of its bonds in payment of State taxes
is unconstitutional and void, because it impars
the obligation of a contract that the taxpayer,
having once made due tender of coupons In
payment of his taxes, is under no obligation
to pay such taxes in money, but may rest secure
ly on his right to have the coupons received
when offered and that a tax-collector who at
tempts, thereafter to forcibIy collect such taxes
by levying upon the taxpayers property is not
shielded by the legislation of the State, but
makes the attempt at his personal peril The
s;ourt holds, furthermore, that suit brought
against tax-colector for seizure of a tax
payers property, after due tender of coupons is
not suit against the State, bat is suit against
an individual trespasser, acting without author
ity of the State. The opinion was delivered by
Mr. Justice Matthews. the chief justice. with
Justices Miller, GRAY and Bradley dissenting.
The fundamental ground of the dissenting
opinion as set forth by Justice Bradley, is that
all proceedings on these coupons are virtually
suits against the State OF Virginia to compel
specific performance. The opinion is long
one The following excerpts give its spirit:
We regard it as directly repugnant to the
eleventh amendment to the Constitution, which
declares that the judicial power of the United
States shall not be construed to extend to any
suit in law equity, commenced prosecuted
against any one of the United States by citizens
of another State, or by citizens or subjects of
any foreign State. Counsel for the bondholders
press upon our attention that provision of the
Constitution which delares that no State shall pass
any law impairing the obligation of contract:
so we have one provision of the Constitution set
up against the other, and are asked to enforce
that relating to contracts by regarding the in
GrvIJiual officers the real parties proceeded
against and ignoring the fact that in the matter
of receiving coupons in payment OF taxes these
officers only represent the State BY this tech
meal device, it is supposed that the eleventh
amendment may be evaded. In my opinion, this
is not sound or fair interpretation OF the Con-
stitution If the contract clause and the eleventh
amendment come in conflict, the latter has para
mount force. 1t was adopted as an amendment
to the Constitution, aud operates as an amend
ment to every Part of the Constitution to which
it is at any time found to be repugnant.
It is the last declared will of the law maker and
has paramount force and effect. The IConstitu-
tor still declares that no State shall pass any
law impairing the obligation of a contract, but
the effect of the amendment Is that, even If a
State should pass law impairing the validity of
its own contract. redress can be had therefor
in the federal courts All those who deal with
State have full notice of this fundamental con-
dition. They know that they must depend upon
the faith of the State, just il no Constitution
existed and cannot resort to compulsion unless
the State chooses to permit itself to be sued
This is the first time, we believe, since the
eleventh amendment adopted, that any
State has been coerced by judicial proceedings
It the suit of individuals in the federal courts.
that this is such case, seems one of the plain
It propositions that can be uttered