The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-10-01
STOLEN BONDS ARE GOOD.
Court En- Bance Upholds Their Vail
dity-Court was Divided Seven
to Six.
News and Courier.

VIEWS ana courier.
Columbia, September 27.-The
court en- banc tonight filed a decision
upholding the validity Of the stolen
state bonds, the court being divided
z to 6. The bonds involved are the
following, though only one of them
was mentioned in this case:
$500 bonds, Nos. 1853, 231, 81, 7s3,
sos and lat; $1,000 bonds, Nos.
SGT, 1,17S, 1890, 1926 and 3,77s.
The court sat en- banc today, call
ed for the purpose Of hearing the ar
gumcnts on two eases in which the
supreme court justices had evenly d.
vlded. In such eases, where the
case is heard on appeal, the decision
or the lower court is affirmed unless,
as IN one Of the cases heard today,
there is constitutional point invol-
we'd. But when, a. in the state bond
case, the case is brought in the orig
inal jurisdiction Of the supreme court,
IT is necessary to call The circuit
Judges to sit with jusices.
All the members Of the supreme
court were present and all the Judges
OF the circuit court except Judge
Aldrich, who is on sick leave. Chief
Jusice Pope and Associate Justices
Gary and Woods occupied the usual
seats of the supreme court, while be-
low, within the circular desk, sat the
Following circuit Judges: Dantzlcr Of
Inc lst: Wilson, Of the Sd; Watts, of
the 4th; Gary, of the 5th; Gage, Of
the 9th; IIydrick, Of the 7th; Klugh,
of The Sth; Mcmmin~cr, of the 9th,
and Prince, of the 10th. There being
division was impossible.
The argument for the rclalor, Ed
ward Ehrlich, Of Columbia. in the
bond ease was made by Mr.. w. n. Ay-
cock. Of Columbia, while the Trcasur-
er was represented by Attorney GEN
eral Lyon and Mr.. j. William Thur
mond, Of Edgcfcld.
The ease is an application for a
writ OF mandamus to compel the
state treasurer to exchange a Ger.
tam state bond for Il certificate of
stock. II will be recalled that n
number Of state bonds, returned for
cancellation, were not cancelled by
tho bond clerk, Daniel Zimmerman,
as required by law, but were again
put into circulation by Zimmerman
and eventually passed into the hands
of innocent purchasers. Mr.. Ehrlich
came into possession of one of these
bonds and presented it for exchange
for Il certificate Of stock. the cx-
change being refused on the ground
that the bond was null and void, hav-
ing been cancelled and fraudulcniIy
reiSsucd. The ease was brought to
test the validity Of this and other
such bonds, a description Of which
has been advertised in thc public
prints by the state treasurer.
No Cancellation Marks.
Thc opinion of the majority is writ
ten by Associate Justice Jones aud is
conrurrcd i'll by JuStict Wood and
Circuit Judges Watts, Gage, Dantzlcr,
Memmingcr and Wilson. After stat
ing the facts the opinion goes on to
say: 'No marks to indicate cancella-
ton were ever placed upon said bond,
although the statute expressly decalr-
ed that such surrendered bond sEall
immediately, upon such surrender. be
cancelled aud filed by the state treas
nrer with the permanent records Of
his office. 1t is admitted that rcla-
tor is n bona ndc holder for value
before maturity and without notice.
ihe general rule of law is that
timer Of personal property cannot
convey I" a purchaser, however in
nocent, title TO tac stolen propcrtv As
against the real owner But from thc
highest considerations Of public poll
ry the law cxcccts fro mthe rule NJ,
@"tlabIc instruments acquired in good
faith before maturity and without no.
tlce. and makes the title of such hold
en- good aaginSt the world.'
Ine opinion goes on TO say that
the state bond eases, II S. C., show
that coupon bond Of the state, valid
IN It's inception, is a negotiable secur-
lty, and the state issuing sucn nego-
tlHble paper incurs the same RESPONSE
bllty which attach to individuals or
corporations in such eases.
NHhnrn ic 10 e,,,nn4:. L., 1,