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


to Six.
News and Courier.
Columbia, September 27.-The
~ourt en- banc tonight fled decision
upholding the validity Of the stolen
state bonds, the court being divided
7 to 6. The bonds involved are the
following, though only one Of them
was mentioned in this case:
$500 bonds, Nos. 153, 231, 81, 7S3,
595 and lat; $1,000 bonds, Nos.
567, IT'S, 1899, 1926 and 3,77S.
The court sat en- banc today, call
ed for the purpose of hearing the ar
guments on two cases in which the
supreme court justices had evenly d.
vided. In such cases, where the
case is heard on appeal, the decision
Of the lower court is affirmed unless,
as in one of the cases heard today,
there is a constitutional point invol-
we'd. But when, as in the state bond
case, the case is brought in the orig
iral jurisdiction Of the supreme court,
it is necessary to call the circuit
judges to sit with jusiees.
All the members of the supreme
court we're 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: Dantzler, of
the 1st: Wilson, Of the Sd; Watts, of
the 4th; Gary, Of the 5th; Gage, Of
the 9Th; Hydrick, Of the 7th; Klugh,
Of the Sth; Memnainger, Of the 9th,
and Prince, of the 10th. There being
division was impossible.
The argument for the relator, Ed
ward Ehrlich, Of Columbia, in the
bond case was made by Mr.. W. 7. Ay-
cock, of Columbia, while the Treasur-
er was represented by Attorney Gen.
eral Lyon and MI. J. William Thur
mond, of Edgefeld.
The case is an application for a
writ Of mandamus to compel the
state treasurer to exchange GER
tain state bond for certificate Of
stock. It will be recalled THAT a
number Of state bonds, returned for
cancellation, were not cancelled by
the hc7d clerk, Daniel Zimmerman,
as re. 4ired by law, but were again
put into circulation by Zimmerman
and eventually passed into the hands
Of innocent purchasers. Mr.. Ehrich
came into possession Of one Of these
bonds and presented it for exchange
for certificate of stock, the ex-
change being refused on the ground
that the bond was null and void, hav-
ing been cancelled and fraudulently
reissued. The case was brought to
test the validity of this and other
such bonds, description Of which
has been advertised in the public
prints by the state treasurer.
No Cancellation Marks.
The opinion Of the majority is writ
ten by Associate Justice Jones and is
concurred in by Justict Wood and
Circuit Judges Watts, Gage, Dantzler,
Memminger 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 shall
Immediately, upon suca surrender, be
cancelled and filed by the state treas
>urer with the permanent records Of
his Office. It is admitted that rela-
tor is bona fide holder for value
before maturity and without notice.
The general rule Of law is that
thief Of personal property cannot
convey to a purchaser, however in
pQeent, title to the stolen property as
against the real owner. But from the
highest considerations Of public poll
cy the law excects fro mthe rule ne
gotiable instruments acquired in good
faith before maturity and without no.
tice, and makes the title Of such hold
er good aaginst the world"
TIE opinion goes on to say that
''the state bond cases, IL S. &C., show
that coupon bond Of the state, valid