The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1908-08-01
THE STATE DEPOSITORY LAW
Treasurer Edwards Will Not Accept
Bond of Surety Company.

following signed statement:
Il nave determined not to deposit any
of the States public money in any bank
regardless of the 9olvency of the insti'
tuition, where the only sort of security
offered is the bond of a surety company.
In justice to myself, | desire to make
public the reasons which nave led me to
this conclusion. They are as follows:
"The State depository law has been
held by a majority of the Supreme Court
to be constitutional, the chief justice
dissenting in a very able opinion. The
term of Judge Calhoon expires next May.
L do not know whether the governor will
%reappoint him or not. But if the gov
ernor were to appoint in his stead a new
judge who agrees with Judge Whitfield
that the State depository law is vio-
lative of Section 1877 of the constitution,
and if my bondsmen and | were sued for
any money which had been lost by the
State repositories, and the case were
carried up to the Supreme Court, even
though my defense would be that | had
complied literally with an act which had
previously been declared to be consti-
tutional, the court, with the change
wrought by the appointment of a new
judge, could Overrule its previous deci-
sion, declare the act unconstitutional and
hold my bondsmen and me responsible
for the money.
In support of this, 1 wish to quote
from an opinion by one of the ablest
lawyers, in my opinion, in the State;
"'There is no constitutional or legal
restriction on the Supreme Court pre-
venting it from everything decisions; but
the fact that rights and obligations had
accrued under a statute after it had
been held constitutional would be a very
| potent consideration in influencing the
court not to overrule the former decision,
or to upset contract rights accrued under
it. But, however reluctant the court
may be to override a decision under such
circumstances it would have the power
to do 30. If, therefore, you were sued
by the State for such a loss and should
plead compliance with the act. and the
plaintiff should then plead the act il
unconstitutional, the Supreme Court
would have the power, if it saw fit, to
overrule the present decision and deny
you the protection OF the statute.
Rights and defenses accruing under a
statute are not effected by a subsequent
repeal by the Legislature, but it is to
6OIIlC tAtCHI II lHC iSiOo
and obligations incurred in reliance upon
a decision of the Supreme Court. If the
Judgment of the court had been in a
mandamus suit, and you had been or
dered to do a certain thing, your duty
to do it would nave been ad duplicated,
but we understand that the suit was
merely an injunction to test the validity
OF this statute
.Ernn, tho above ~ will ha nhcOryvn1
that | occupy a very delicate position.
Any uncertain step upon my part might
be fraught with much evil consequences
to my friends. | cannot afford to take
any chances on what might happen, or
what the courts might do. L am in a
position where | must know. | would
prove myself unfaithful to the friends
who in many ways have proved their
loyalty to me, If l were to permit them
to be placed in any sort of doubtful
position. 1t is my duty to be prepared
for the very worst, and to be in perfect
readiness to show, beyond cavil OF doubt,
to the courts and the people of MISSISSIPPI
pi that | am neither morally nor legally
responsible for any loss which may
occur.
If / am ultimately forced by tbs
OIuCI VI lEt CoulI u utDOSll lHt DiuIc >
money in banks offering surety bonds,
the fact that | nave opposed it
as vigorously as | nave known how to
oppose it, both by resolution in the
which was voted down by
the governor and the attorney general,
and in the courts of the State, the blame
for loss, if loss there be, must be borne
by those who have made it possible to
rot tbO S+ota'c pnO,ou rithnpf Cirip,
return for it securities of a known
value, out of which |, as
agent OF the State, could readily realize
II time of need.
Il have absolutely no confidence at all
n a surety bond. 1t is not collateral
or security OF any sort. 1t
no commercial value, and is
lot regarded anywhere by anybody as
having any value. The very best that
AN be said of 4 surety bond is that it is |
a right of action a right to sue. With
he right to sue, there necessarily goes |
land in hand the right and the posi- |
,ility of losing the suit-principal, inter F
st and all.
in addition to all of that, surety =
lain, without first having worn the '
ilIIS u III viz 1IdIC anu ICuti u
ourts. They employ the very best law
ers to be had, who take advantage of r.
very conceivable technicality in order 4
o avoid liability, and to nullify the very -
for which the bond was given. Z
Il do not share with others the view 4
hat our duty to the State is fully per- s.
1rmed when we accept any sort of 4
which the act happened to say l
iAY' be taken. | do not believe we \
IN hide ourselves behind the verbiage '
the act, and shield ourselves from our =,
loral obligation to the people, who y
ected us to office and to whom we are :,
,sponsible for our official acts, by plead Is
g a compliance with the terms of the
It, and that our responsibility ends m
lere. Aside from hedging about my W
,ndsmen with a superabundance of n
OBJECTION, | am going to do everything 16
thin my power to protect the taXpay- V
S from loss. Until every resource IL
to the ingenuity of nan has been
by us in q faithful endeavor II
prevent loss to the State, we cannot