Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-06
Opinions Handed Down in the
Supreme Court.
IN CASE OF BANKRUPTCY
Securities May Be Returned to Their
Owners.
STATE TAX ON BONDED WHISKY
Michigan Law Selling Property for
Taxes Upheld-Vicksburg
Wins It's Case.

That securities held by a broker who Is
about to become a bankrupt may be re-
turned to their original owner without
constituting a preference under the law
was held today by the Supreme Court of
the United States in deciding for David
son and Shaw the case of Henry Arnold
Richardson. trustee in bankruptcy for the
estate of j. Francis Brown. bankrupt
stock broker of Boston, versus John NJ
Shaw and Alexander Davidson. on the
ground that thSy were not creditors.
Brown was declared d bankrupt June
o. 1903. and on the day previous turned
over to Shaw and Davidson, both OF New
York, $45.5S3 in securities which they
had deposited with him In the course OF
their business with him as clients. they
paying at the same time An indebtedness
Of S34 919 to Brown. When Richardson
was appointed receiver for Brown he be-
gan suit to secure the restoration OF the
securities on the ground that to turn
them back to the original owners was an
act of undue preference as among cred
itors. The decision of the United States
circuit court for the eastern district OF
New York and the United States circuit
court of appeals were sustained by to-
days opinion, which was by Justice Day.
State Tax on Bonded Whisky.
That the Kentucky statute imposing q
tax on distilled spirits in bonded ware
houses does not violate the federal Con-
stitution was asserted by the court in q
decision handed down today by Justice
McKenna in the case of J. B. Thompson
against the commonwealth Of Kentucky.
Thompson is the owner of a warehouse
in Franklin county, and he antagonized
the law on the ground that such tnstitu-
tons are not within state jurisdiction, be-
ing under federal control. Hence he ar
gued that for the Kentucky authorities to
tax whisky held in bond Is a denial OF
the equal protection of the law and the
taking of property without due process.
contrary to the guarantees under the
fourteenth amendment to the federal Con-
stitution. The supreme court OF Ken
lucky upheld the law and Justice Nc
Kenna's decision affirmed this finding.
Sale Of Property for Taxes.
In deciding the case of John NJ. Long
year versus William Toolan and Alex
ander Mcmillan against Longyear the
court today upheld the Michigan law
authorizing the sale Of property to pay
delinquent taxes. Toolan and MCMILLAN
laid claim to a certain tract OF land IN
Clinton county under such a sale. ana
tended that the sale was contrary to the
fourteenth amendment Of the fedora!
Constitution in that It authorized the
taking of property without due process.
The court decided the case Of Beadies
versus the city Of Perry, Okla. involving
debt Of $4,000 from the city to Beadies,
against the city.
Pledge Not Binding.
The court today decided the case Of the
Yazoo and Mississippi Valley Railroad
Company VS.. the city of Vicksburg, Miss.
involving the right OF the city to compel
the railroad company to pay taxes in IA
vor Of the city. The company claimed
an exemption under an agreement made
by the city with it's predecessor. the
Louisville, New Orleans and Texas rail-
way, providing that the company should
not be required to pay taxes In case It's
shops should be located In the city, which
was done, and brought a suit to enjoin
collection. The United States circuit court
for the southern district Of Mississippi
decided against the company. and that
Justice Day announced the courts de-
csion.
The case of Carolyn Foster stickney
widow Of Joseph Stickney of New
York, against the controller Of that state.
involving the method of enacting the
transfer tax law by the New York Iegis-
lature, was dismissed by the court to-
day because the court found no federal
question in the case. Mrs. Stickney at
tackled the law on the ground that the
Journals OF the two houses Of the legisla-
ture did not constitute sufficient evidence
that the requisite quorum Of three-hfths
of the members was present when the
bill was passed. The decision Of the
court was announced by Justice Moody,
and it had the practical effect of affirm
to- hn nf court
for the county Of New York holding the
proceeding regular and valid.