The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-02-02
MUST ! PAY
The BONDS I. );
Slit Against North Carolina De-
cidcd III Favor Of Sout1,
" Dakota. Fg.
IN d. s. SUPREME COURT.
Decree Will Be Entered Rcquir-
Ing North State to Pay
$4,000.
(By Associated rress.)

(By5 Associated Fres5)
ArASH1NGTON. Feb. 1.-The case Of
the state az South Dakotns VS.: the State
OF Nortl, Carolina was to-day decided BY
the United States Supreme Court favor
ably to South Dakota. The case involves
the validity OF a, mortgage OH stock OF
tie North Carolina Railroad Company
given BY the State OF North Carolina to
secure tho payment of State bonds given
In aid OF the road iii 1867. Tho State
OF South Dakota holds ten bonds Of
1900 each under gift from Simon
8schafer ana Samuel NJ. Schafer, Of New
York city, the amount due OH tho bonds
and coupons attached being SCI 900.
1he opinion was rendered by Justice
Brewer, and *ho decree OF the court vas
embodied in the following order:
''A decree NH, therefore, DO entered,
which aftsrs finding the amount due
on the bonds and coupons in suit to be
SCI ,O01 no interest being recoverable, and
that tho game arc secured by one hun
dred shares Of stock Of the North Caro-
lima Railroad Company. belonging to the
State OF North Carolina, and directs that
said amount TO tho State OF South Da-
kota. and that In default OF such pay
mont an order OF salct.be issued to the.
marshal or this court, directing him to
sell at public auction all !. the interest
of the State OF North Carolina In and
TO one hundred shares Of the capital stock
OF the North carollna. Railroad 4 Com
apany, such sale to be made at the east
front door of the Capitol building in this
city, public notice to be given OF such
'salo by advertisements in some daily,
raper published In the. city Of Raleigh
N. e., and also In some daily paper pub.
ilshcd In the city OF washington.
Tho Chief Justice and Justices White,
McKcnna and Day united in a dissent
ing opinion @
MARKS NEW DEPARTURE.
The decision OF the court is considered
an apt one and marks a new departu
In ordering the sale Of property in dis
pute In case OF failure to satisfy q 5udg-
sment. Coming to that point. Justice
Brewer said there was mo reasonable
doubt Of the validity OF the bonds and
mortgages In controversy" nor ''ques-
ton respecting the title of South Dakota
to the bonds" He also asserted the jurls-
diction OF the court in cases brought by
one State against another to enforce
property rights. He added:
I'VE are confronted with the contenl
ton that there is no poworsi In this court
to enforce such Judgment, and that
such lnck Of power is conclusive evidence
that, outstanding the general Ian
guar &c OF the Constitution, there Is ar
| implied exception OF actions brought te
recover m oney. The public property hele
by any municipality. city, county OF
State is exempt from seizure upon exc
cutlon because It Is held by such corpo
ration not as part OF its private assets
but as a trustee for public purposes
There is in this case a mortgage Of
property. and the sale o. that propert,
under a foreclosure may satisfy The
plaintiffs claim. II that should be thu
result there would be no necessity FOR 6
personal Judgment against the State
That tho State Is a necessary party t.
the foreclosure Of the mortgage was set
tied by Christian VS.. ..lantfc and Nortf
Carolina Railroad Company. Equity Il
satisfied by decree for foreclosure
and sale OF the mortgaged property
leaving tho question Of a judgment ovel
for any deficiency. to be determined
when, IL ever. It arises. And, surely II
as We have often held. this court has
Jurisdiction OF an action by ono State
against another 10 recover O. tract o.
[ land there would seem to be no doub,
5of the Jurisdiction of one to render {
| decree for the sale OF personal property
INVOLVES OTHER BONDS.
The bonds were presented to South Da
kota for the aid Of the State University
and with the end In view OF prevailing
|Esuponl that State to- bring an original &C
ton IN tho Supreme Court, which &C
I ton has now proved successful. There arr
about s25o,o00 worth OF other bonds out
. T. N