The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-01-08
SUPREME COURT OPINIONS.
An Important Decision Affecting the
New Orleans CITY Debt.


q number of considerable Importance
The constitutional provisions and Iegis-
Iation relating to the refunding and re
firing of the city debt OF New Orleans
We're the subject of an elaborate opinion
of the court announced by Mr. Justice
White. Briefly stated. the facts and de
cision were these: Under a law passed
by the Legislature of Louisiana. the city
Of New Orleans appointed a board of
liquidation to cOnduet the operation of
retiring and rounding the city debt, and
for this purpose $4,000, 600 OF bonds were
placed in its hands. the proceeds to be
devoted TO that purpose To pay the new
bonds a special levy was placed on the
duplicate from the proceeds of which the
bonds were to be redeemed as they fell
due. This Law was subsequently incOr-
porated into the constitution of the State,
with an amendment or addition author
iZinG the city 20 expend one-half Of the
surplus of the bond tax in making public
improvements
Under this aut hority the board OF drain
age commissioners was established and
a system OF drainage inaugurated. Con
tracts were awarded amounting to about
$4,000, 0G0, of which $50 600 has been laid
TO the contractors By the terms of the
constitution Of 1897 promulgated by the
convention which prepared 1t without
submitting it to a vote of the people. it
was further provided that the board of
liquidation could pay out of the other
one-hah of the surplus of the bond tax
certain outstanding school debts. not the
obligations of the city people The board
of liquidation refused TO pay the school
debts, and was supported in its refusal
by the drainage board on the ground that
the whole proceeds of the bond tax were
due to the bondholders and to the cred
ltors OF the drainage board, and that the
proposed diversion was an impairment of
the obligation Of contracts
The Supreme Court of Louisiana said
that no obligation was impaired; that all
claims of the bondholders and drainage
creditors must be net before the school
debt could be discharged, and the Su-
preme Court accepted this view Mr.. Jus
tice White said the judgment OF the
Louisiana court would be affirmed with
out prejudice 20 the right of the two
classes Of creditors named to institute
proceedings If in the future the Judgment
worked any impairment of their obliga-
tons
In the case of Sumpter Turner Syndic.
of NJ Schwartz & Co. of New Orleans. IS.
T L. INlClGEuSOU, receiver OF me AnGFi-
can National Bank, Of the same city, Mr.
Justice McKeEna announced the opinion
and judgment OF the court to the effect
that receiver Of a national bank may
sue debtor of his trust in a State bark
rupt court and sell collateral on his &C
count without he special authority of the
Comptroller of the Currency given n each
case.
The controversy betW cen the Southern
Railway Company and the Postal Tele-
graph Company over the efforts OF the lat
ter 10 construct its telegraph line along
the right of way OF the railroad company
in North Carolina was disposed OF by Mr.
Justice Brewer. without settling it. The
railroad company sued out a writ Of error
to the Circuit Court for the Western dis
trict Of North Carolina without waiting
for a final order by Jhat court and for
that reason the writ was dismissed
An important ard interesting decision
was announced By Mr. Justice Harlan. in
terpreting what IS known the fire
proof safe clause in fire insurance poll
cies Kearney d Wise. hardware dealers at
Ardmore. Indian Territory. took out two
policies in the london, Liverpool, & Globe
Company on t,-eir stock Of goods. agree
ing IN the policy TO keep a set of books
including an invoice, and store them in a
FIRE proof safe. or IL some place BOT ex-
DnSRd 70 fire that Ign.tld destroy the bust
e
200 yards from Kearney & Wise's store.
and swept the territory Intervening The
partners 70 preserve their books TOOK them
out OF the safe, il being afterward de
stroyed- In the confusion the inventory
was either lost OF left in the safe and
burned The company resisted payment on
the ground that the inventory was not
produced in accordance with the require
ments Of the policy. bur the court said
speaking through Mr. Justice Harlon the
failure 10 produce the books and inventory
referred TO in the policy. means a failure
10 produce them II they are in existence
when called for. or II they have been lost
or destroyed by the fault. negligence. or
design Of the accused \ literal interpre-
tation Of the contracts of insurance might
sustain contrary view but the law does
not require such an Interpretation The
court lnterprets the contracts so as 10 do
no violence TO the words used and vet 10
meet the ends Jf justice" The judgment
Of the court below against the insurance
company was affirmed.
The right of the State of NFssissippI to
tax the YaZOo and Mississippi Valley Rail-
road. the Chicago. st Louis and New Or
leans Railroad. the Canton. Aberdeen and
Nashville Railroad. and the Illinois Cen
trail Railroad in that State for State and
municipal purposes was confirmed by the
court Defence was made by the rail-
ters granted in 1869 they were entitled to
certain Communication Of taxes. but the
court sustained the State courts in say
ing that taxes should be collected as upon
property Of individuals for the reason
that the corporations were organized by
combination or consolidation OF other cor
porations since the constitution of 1880
vas promulgated and they we're therefore
controlled by its provisions
On the oath of April, 1883, the steamship
Queen sailed from San Francisco 10 San
Diego. Cal carrying a carsn OF misceI-
laLeOus merchandise She fouudered and
sank the next day, and later was raised
and towed back TO San Francisco. The
bills OF lading contained stipula lions that
claims against the steamship company or
any OF its stockholders for damage to
cargo should be made within thirty DAYS
from date. otherwise right Of action would
lapse. Hellman Haas & Co. did not make
claim for loss until April 1892 when they
filed libel in rem against the steamship
Queen. The lower courts gave them judg-
ment for 900N holding that the Limitation
Of thirty days for filing claims was IN
reasonable. and that claim against the
vessel was not a claim against the com
pany or any of its stockholders These
coutehtiODs. Mr.. Justice Brown. speaking
for the Supreme Court, said were too tech
nicaI and if upheld would fritter away the
protection TO which the operating com
were reversed with instructions to dis
miss the libel
Fred Hewitt Oh April 10 1882. made
homestead entry upon a certain quarter
section OF land within the indemnity limits
Of the Northern Pacific land grant. in
Sergeant County. North Dakota On June
y, Emil Schultz, and wife. under contract