The Caucasian. (Shreveport, La.) 1900-192?, 1905-01-05

piafleI py TWO RTeS1 pflHSiplSs. Mas
sachusetts and the other New England
States hold that judgments against
auasi-eorporation may be satisfied out
of the property Of any individual IN
habitant. In other words, these States
satisfy the just claims Of bond holders
by attaching and selling the property OF
individuals who are citizens Of the
quasi corporation" which has repudiat.
ed its bonds.
Other States resort to compulsory
taxation. Instead of holding individuals
responsible, these States hold the cor
poration itself responsible and compel
its officers by writ OF ri,afndamus to col
lect the taxes necessary to the satisfac-
| ton of the debt. This procedure may be
defended, says Prof II. G. Adams, on
the ground that when political cor
poration has contracted a debt or in
Cured an obligation. it has already
taken the initiatory step in taxation, and
has in effect given its consent that the
subsequent steps, so far as they may be
essential, to the discharge of such debt
or obligation may be taken.
Both OF these methods are feasible
and efficient when employed against
cities and other subordinate political
units. but would they work. equally
against regulating States?
Il must be admitted that such meth
DDS of procedure wou1d be entirely
without precedent, il we except the mil
itary governments established in the Sc
ceding States at the close of the civil
war; that they would strike blow al
/ the legislative independence Of States
and that they would weaken what re.
mains of State sovereignty But dc
these facts constitute valid objections te
the reaedy which they propose9 Il
that feature Of legislative independence
which makes it possible for State te
rcpudiate her debts--and thai is the
Only feature touched by this remedy
desirable? Would not the States be the
gamers by the REIMBURSEMENT Of this
shadow OF sovereignty for the substance
OF good credit
The above is from The Reputation
Of State Debts, q Study in the Financial
History Of Mississippi. Florida. Ala
bana, North Carolina, South Carolina,
Georgia, Louisiana, Arkansas, Tonnes
see, Minnesota, Michigan and Virginia, .
BY VIM. A. Scott, University Of Wiscon-
sin Published BY 4. Y Crowell & Co,
New York and Boston, 1905.
Extract from opinion Of Mr.. Findlay,
United States commissioner on Vene-
zuelan Claims Convention Claim Of
Rowland Co, vs.. Venezuela for
$,3ooooo consolidated bonds 0
This CLAIM, was presented TO the old
Commission and dismissed because i
represented consolidated debt.
The joint resolution of 1883 which
provided for the re-opening Of the old
claim and the creation of a new Conn
mission was passed not at the instance
of Venezuela only, but Of citizens Of the
United States who felt aggrieved at the
old Commission in dismissing their
claims. 81
The most active promoter Of the
Legislation was the gentleman who has
argued this case for, the claimants and
who appears 10 have been the craftsman
5,f the joint resolution in which this
Convention originated.
hese facts were well known, this
his claim had been presented to the old
Commission and rejected, Tn 1865
We are aware that il is not the pol
icy Of the United States to exert diplo-
matte Intervention III behalf Of claims
purely contractual.
II We were representing or speaking
he policy of the United States we
would BE obliged to dismiss this petit
ion and send tile parties to Caracas
but we are sitting here under 4 treaty
between the two countries, the object OF
which is to have heard and determined
Ill claims.
After the submission of this claim,
o The old Convention and the steps
hat were taken u reopen its work and
have new adjudication, It would strain
probability beyond endurance to sup
nose that this matter was not discussed
b. the plenipot entiarics Of tle respec-
live powers and that the whole matter
aniu the comprehensive term claims
was referred for. settlement to this Com
mission.
1T will b admitted that the policy 81
he United States il correctly stated, but
e can conceive q no reason why such
policy should not Be departed from
xhen arbitrator IS adopted as tho meth
i Of finally adjudicaling international
.lainas.
hold that nothing short Of
II