Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15

sufes against the use Of coupons. Public
meetings were held in many places and
passed dsnounoing parties
enemies Of the State and pledsine the
best endeavos OF the participants 10 pre-.
vent their use. Tho sentiment thus
aroused has been for the most part steadily
COUPON AGENCIES RsrADLlsxxp.
Meantime, after the decision last refer
red to. coupon agencies were established
by certain Of the bcndholders in the priu-
cipal towns aud cities of tho Common.
wealth. and the most tempting oders made
to Taxpayers generally without avail to
purchase and use coupons In discharge Of
their obligations TO the State.
In the session OF the Legislature OF 1885,
'S6 several additional acts were passed, oil
having for their object the imposition Of
further impediments and distractions in
the way OF using the tsx-paying coupons.
IL is unnecessary to specify particularly
the character Of the various enactments.
While most OF them subsequently met the
dlsapproyal Of the Supreme Court Of the
United States, they answered their pur-
invalid by that tribunal were immediately
succeeded by other provisions equally ef-
tective IN excluding the coupons from the
Treasury
In the spring Of 1897 the Governor called
the Legislature IN extra session TO receive
and consider proposition which, IL was
thought, would be made by the bondhold-
els for settlement of the debt. In fact,
commission composed of SIR Edward
Thornton and Mr.. Braithwats did como
to Richmond. and lengthy negotiations
were held upon the subject between them
and Joint committee of the houses of the
Legislature. The negotiations failed,
largely because OF the fact that the amount
Of outstanding Obligations OF the State 40
tuslly represented by the gentlemen named
was very small indeed. and they could give
no satisfactory assurances OF being able to
bring in enough securities to consummnte
a settlement, should the terms of one be
agreed Oh.
These negotiations having failed, as
stated. the Legislature proceeded in Nay,
1887. 20 pass the bill commonly known a.
the coupon crusher" This was intended
TO meet the decision of the United States
Supreme Court. holding collecting officers
liable TO suit for proceeding against the
property of taxpayers who bad rendered
coupons. IL directed that suits should be
brought by the Attorney General and the
Commonwealth attorneys in the name or
the State against such taxpayers for the
amount of taxes due; imposed on the de-
PENDANTS the duty of proving the validity
OF coupons which they had rendered; put
considerable costs upon them, and pro-
vided for recording the ludgments against
them, so a. 10 preserve liens Tor the Dene-
Il, OF tho State for tho amounts thereof.
This was necessary to collect the revenue
requisite for the maintenance or the State
Government.
TIE INCARCERATION OF STATE orFIcRRs.
The Attorney General and several Com
monwealth's attorneys, being about to IN
s.itute proceedings under this act against
parties who had rendered coupons for
taxes. Mr. Cooper, an alien. protesting to
be holder of tax-receivable coupons,
brought suit in the Circuit Court OF the
United States asking for an injunction TO
prevent such proceedings. The injunction
was granted. but the law officers OF the
State nevertheless begun and pressed the
proceedings against the coupon-tender-
ers. For acting thus in disregard of its in
junction. the State officials were adjudged
by the Circuit Court OF the United states
30 be guilty OF contempt. and were hned
and actually Incorporated IN the common
Jail till they should purge themselves OF
the contempt by dlsmissipR the proceed
ings referred 10. Writs OF hdoeas corpus
were at once sued out by the Imprisoned
officials from the Supreme Court OF tn9
United States, and it was there decided
that CoOper's suit was O suit IN substance
against the State; that the court below
had therefore no jurisdiction OF the same.
and that tho injunction and the commit.
ment for attempt were both unwarrantsd
and void.
There was not much anti-coupon iegis--
lation of consequence at the session OK
lSS7lss. The legislation of that character
passed at tho session of l8s5-'56 was SUBJ
seauently, rs has been minated, for the
most part held invalid by the United
States Supreme Court. The decision was
not rendered till May. 1890, after the adj
iournment of the last General Assembly.
| But its effect was anticipated by legisla.
ton enacted at the session of l8S9-'90, and
| il has been quito barren OF results to the
public creditor.
In some respects the last decision was
very favorable TO the State; for 1t upheld
| legislation requiring the school tax and
| liquor licenses to be paid in money to the
exclusion Of coupons; thus removing
very considerable proportion OF the an
nual revenues from me possibility OK IN
| Perception by the bondholders.
On the other hand the constitutionality
| of the coupon crusher was seriously quss-
| toned. and it is significant that the last
decision was without dissent, and was pro-
nounced by Justice Bradley, who had on
previous occasions dissented from the ma
iority. In this case he said that I'VE feel
bound TO yield TO the authority OF prior
decisions of this court whatever may have
been the former views OF any member OF
the court"
THE WISH OF JUSTICE BRADLEY.
Tho language Of Justice Bradley in
closing his opinion in these cases deserves
careful consideration. He said, speaking
of desirability OF an adjustment OF the
differences between the State and her credi.
tors: " Ii is certainly to be wished that
some arrangement may be adopted which
will be satisfactory to all the parties con-
cerned and relieve the courts as well a.
the Commonwealth of Virginia, whose
name and history recall SO many interest
ing associations. from ell further exhibi-
tions of controversy which has become
yexation and regret"
Although some 81, 250, 900 OF Riddleberger
bonds have been issued and exchanged for
outstanding securities, under the proyi-
sions Of the Riddleberger act, yet COM
paratively few Of that class of obligations
which have all along occasioned 30 much
troubIe-viz.. the tax-paying coupons and
the bonds bearing them-haye been re-
celyed in exchange by the State.
The amount of 6 per cent. consol bonds
bearing tax-receivable coupons outstand-
ing at the time of the passage of the Rid
| ileberger act was about Si+,S0,00o.
Inc amount OIL lU-4U b DeaIlnS per coht.
| interest &C that time, but now bearing 4
per cent. Coupons tax-receivable). was, at
| the same date. about $s.5ls.o0 Total
principal o. taI-receivable coupon bonds
outstanding at the time OF the passage OF
| the Riddleberger bill. about $22. 1856. 600.
The amount Of consols now outstanding
is about Sl2,92s, 900. The amount OF
10 4O's now outstanding is about $3,652,-
600, ageregating Si5.5S0.000.
| SO that only about $4,300,000 OF the
bonds bearing the troublesome tax .paying
coupons have been retired under the Hid
| dlsberger act. The coupons II aturing on
the amount OF such bonds still outstand-
ing aggregate about million dollars Q
year. Meantime the success of the States
| obstructive legislation, sustained as II
| has been by a very general pubic senti-
ment, has resulted in the accumulation OF
an enormous amount of psst-due coupons.
The whole amount Of tax-rscelvable
coupons now outstanding is about 81. 0E :
022. This. added To the principal OF the
bonds still outstanding bearing sax-re..
ceyable coupons, makes an aggregate OF
about S25. 607, O22. The maximum amount
Of all unsettled obligations outstanding
against the State, which thsre IL any
probability of her having 10 provide for.
Is placed By the Bondholders' Committee.
as hereinafter shown, at about x2S.000.V0.
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