The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-01-28
STATES CANNOT BE SUED.
SUCH SEEMS TO BE THE OPINION
OF THE SUPREME COURT.

The Judgment Of the United States
Circuit Court for Eastern North
Carolina Affirmed in the Case of
! Christian Us. the Atlantic ana North
| Carolina Railroad Company - The
State Held to be the Real Defendant
WASHINGTON, Jan. 27.-Justice Bradley
today delivered the opinion of the United
States supreme court Affirming the judg
ment Of the Uaired State circuit court for
| the Eastern district Of North Carolina in
the case Of William E. Christian ct al ,
appellants. vs. the Atlantic and North Car
DINA Railroad Company ct al.
This case IS Of importance, not only in the
amount OF money directly involved, but in
the amount Indirectly involved and the
important constitutional Ques ions decided.
OF late a number of cases involving the
question Of the liability of = state TO be
sued have bean brought before the supreme
court, notably the House case from Louisi-
ana, in which it is said that S11,001,O0J is
involved, and another North Carolina bod
case. involving from S5,000,00J TO $1,000
900.
GROUND OF THE PR OCEEDINGS.
Inc , ttAB VI -NBIlu AdTOilu1 EuDsCFlDaQ
for 81 ,066, 800 of the capital stock OF the
Atlantic and North Carolina Railroad Com
pany, organized for the purpose of building
railroad from Beaufort 70 GoldsJorOugh
Bonds we're issued by the sta-e to raise
money to pay for this stock aud the state
not ily pledged its public faith IS security
for the redemption Of the bonds, but in
addition pledged all the stock held by the
state in the railroad company.
The nlA0CrinU aica r,rntriAad that
dividend which may be declared on the
stock held by the state shall be piled t.
the payment Of interest accruing on the
bonds, but, until such dividends may be de-
clared, the interest on the bonds was to be
paid out OF the public money in the state
treasury. The state received certificates
for the stock it subscribed, and was repre-
seuted at the meetings Of the stockholders
by proxy.
A BONDHoLDER's ACTION.
Mr.. Christian, a citizen Of Virginia, holds
ten OF the bonds issued by the state, and as
there had been no interest paid since 1868.
he sought to have the bonds declared lien
upon the stock owned and held by the state
OF North Carolina in the Atlantic and n nth
Carolina Railroad Company, and also upon
all dividends that may be declared on the
stock until the bonds issued, and the inter
est thereon are redeemed by the state He
~ az q NhdO al uOusyS payable as ulYl-
dends on the stock be paid to the
bondholders in payme mt of the inter
est due them, and that if the
dividends be insufficient for this
purpose. the sale Of the STOCK held by the
state be authorized and receiver ap-
pointed. The railroad comptny its pre- 81
dent and directors personally, the proxy
representing the state, and ths state treas
urer, were all made parties to the suit.
THE SUIT AGAINST THE STATE.
The state of North Carolina, says Justice
Bradley, is the only party really concerned.
The whole proceeding is virtually against
her. The object of the suit IS to get posses
sion of her property. 70 sequester her
dividends Of any there may bel
and to compel the payment Of
them to the complainants; to seize and sell
the railroad stock of which she is in sole
possession. Though it be true that the
bondlolders have lien on the dividends
and stock, it is not lien that can be en-
forced without suit, and that a suit
against the state. the court is of the
opinion That the state is an indispe 1sable
party to any proceeding in equity in
which its property is sought to be taken and
subjected To the payment of its obligation.
The judgment of the lower court ia favor
of the sta,e is theref re affirmed