Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1890-10-15
IT is CONSTITUTIONAL.
htale Objections to the Sub-Treasury Bi
on the Plea of Its Unconstitutionalit
NJ

upon tnat line. In view OF the fact that
this bill has heen SO widely discussed,
more SO perl aps than any matter of
legislation during the past twenty years,
1T is somewhat strange that the proof OF
Its being unconstitutional has not ad-
vanced beyond mere assertions So far
all objections have been confined to the
details of the plan, while its principles
have been entirely ignored The main
points in the bill involve the right of
the Government
1. To purchase land.
2. To build warehouses
3 To appoint agents
To receive deposits
5. To loan money.
Upon the constitntionality of these
propositions the Sub-Treasury bill must
stand or fall. 1t has been said before,
!. and it is well to repeat, that the most
ardent supporter of this measure de-
sireS to have all its provisions strictly
within the limits of the Constitution.
IS The right of Government to purchase
land, build warehouses, appoint agents
and receive deposits of grain, merchan-
disc and the precious metals is so clearly
Sand fully set forth in the system gov
erning the execution of the internal
revenue laws, the customs laws or those
of the Treasury Department. as to need
lsno repetition at this time. No func-
lstions of government are more clearly
defined or practically applied than are
these, as shown by the following Incl
dent. Learning that the basement of
the post-office at Kansas City, Mo-, was
being used as warehouse for whisky,
The Economost addressed a communi-
cation to the Commissioner of Internal
Revenue, which elected the following
response, dated July H. 1890, from AS
sistant Secretary of the Treasury George
S. Batcheller:
1 have to acknowledge the receipt, by ref
er ence, of your Letter of the 10th instant, ad-
dressed to the honorable Commissioner of
Internal venus, and in tt ply to the inquiry
therein contained + lat We the authority
Ander which The bas m mt under the United
States custom house and p st office building
at kans City, Mo, is used for warehouse
purpose particularly for the starage of
whisky. have to refer you to act of Con-
! gress approved April 49, 1878, chapter g.
page 80, volume 20, U. S statutes at Large
and to section 1852, vised Statutes.
The act of Congress referred to pro-
vided for the purchase of suitab BILE
| grounds on which to erect a building to
be used as ps.5t-office, custom house,
bonded warehouse and office of Internal
L Revenue Collector. Section 1869 of the
Revised Statutes is as follows:
# Any merchandise subject 10 duty, except
l4perishable articles, also gulpowder and
! other explosive substances except fire.
/ crackers, which shall have been duly en-
| tered and bonded for warchouSng, in con-
| formity with existing laws, may be deposit
/ ed, at the option of the owner, importer
sconsignee or agent at his expense and risk
in any public warehouse owned or loaned
1 by the United States, or in the private ware.
house of the importer, the same being used
exclusively for the storage of warehoused
merchandise of his own Importation or to
lihlS cons ignment, or in a privste warehouse
used by the owner, occupant, or lessee as a
J general warehouse for the storage of ware
| housed merchandise; such place of storage
to be designated on the warehouse entry at
the time of entering such merchandise at
the custom house.
The above citations constitute the
! authority by which the Government at
this present time purchases lands,
builds warehouses, and receives depos-
its for storage The appointm of
agents to perform these duties is a
necessary sequence
In view of these facts if the bill is
unconstitutional it is because of that
provision which requires the Govern
ment to loan money. If, therefore, it
can be shown that the Government has
loaned money, and that the Supreme
Court has decided it proper and legal
| further objections to the bill must be
/ confined to its detail.
The act of February 16 1876, placed
| - I oF II.
Committee 81, 500, 900 of Government
funds, to be used in completing the ar
rangements for the Centennial Exposi-
tion. This money was to be returned
to the Governmentoutof of certain moneys
after the close of the Exposition A
bond in the sum of $500, 600 was exacted
for the performance of the provisions
of the act When the time for
payment came this committee re-
fused to liquidate the debt to the
Government setting up a different
construction of the act. A suit was COM
menced, and finally taken to the Su.
preme Court where it was argued al
length, Chief Justice Waite giving the
opinion of the court which is given in
part:
The act of IS s requires the payment of the
| United States before distribution to stock
| holders. Not word is said about restoring
capital; in fact tn r. is no mention of capital
at all. The act of 1872 is not repealed. On
the contrary, it is left in full force In every
particular, save that the liability incurred
to the United States is made payable after
those contemplated by the act OF 1872 are
satisfied in full In this, the United States
made a concession to creditors but not to
the sto khoders. Meth. n was anY thing
I hn Gfp hold 81, 4
the rights which the act of 1872 gave them.
Ii there had been no appropriation by Con :
gress the corp ration would have been
driven to the necessity of raising the re.
CURED means, by b1rrowing or further
sale OF stock. If by boirowing, the debt so
created would have to be paid with the
others, before there could be any div fdend
to stockholders If by lie of stock the ne W
stockholders would come In pro rata with
the old npon the final Division of assets,
Congress might have advanced the money
by loan, as well as upon the conditions II
did impose. 1t might also have subscribed
to the stock. If a loan had been made, and
there had been no waiver of the legal rights
OF the Government a creditor, this debt
would have preference over all Gthers in the
order of paymet. II stock had been taken,
the Government would have participated in
the hnal distrib button, like any other stock.
holder. It seemed best, however, not to
adopt either of tEosc plans, and another
was 0eNlSeQ, DY RHiNH cEe0ILOEs Wer5 given
pre-. ercnee, and The United States remftted
for their in iemnity to the fund which might
remain after all the debts we're paid. To
this the corporation assented, and tbs
stockholders can not now complain. Cred
Itors were protected and stockholders not
Injured. The de of the
Circu Cou t mu be reversed and the case
remandcd, with ins ructions to enter de-
crcc directing the payment 9f the sum o.
$,So0.0O0 into the treasury OF the Unite
states by the commerc nj board of q Ianct
befe re any division of the remaining assets
of that corporation is made among tn.
stockholders.
In 1884 an act was PASSED loaning 81,
coo, coo to the Cotton Exposition to be
. held in New Orleans This bill was
fully and exhaust. .yely debated, and
! finally passed by vote 1872 to 81. The
caption of the bill was:
An act to nuke a .oan 10 aid in the celebra-