The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-01-26
ALL ISSUE VOID
IF interest IS
RULED TO BE VUIO
lsond Matter Now With Supreme
yourt, May Bring on Much
Trouble.

Jackson, Miss. Jan. 26.-If the SUI
preme court holds that the state can
not pay the accrued interest on the
S600,000 OF the state bonds recently
ISSUED, its decision, according to the
views Of some of the leading attor-
neys of Jackson, must declare the en-
tire bond issue void,
The date was so put before the court |
by former Assistant Attorney General
George Butler in his argument Tues
day, and lawyers who are familiar
with his line of argument take the po-
sition that one part of the bond can
not be declared void and the remain
der legal. As the coupons are part
of the bonds. the court must either
declare the bond issue legal or illN-
gal.
If declared illegal, there is no way
for the hondholders to recover their
money, as the state has not got $780,
O0O in the treasury and would be una
BILE. even if the legislature passed a
special act to that effect, to redeem
the bonds.
This is a feature of the case that
had not been brought out before, but
\the position assumed by Mr. Butler III
his argument seems to be logical ano
NALL of sound reasoning Mr.. Butler
made a strong argument for the bond
holders. his claim being that the salt
question to be determined by a court
was as to whether the sale OF tn
bonds at their face value was par. IL
contended that it was, and read Tn
acts of 1906, 1900 and 1902 in supper
of his contention. Where the accrue
interest was not to be paid by tn
state. it was specifically stated.
Only Relief Open.
If the bond issue is declared void .
the supreme court, which it is co
tended any decision affecting the |
gality of the first interest coupon
would mean, the bond buyers won
have to go before the legislature 4
Ereifef. and it might then be sever
years before they would even get {
principal and then, without interest
The situation, as presented by
Butler. is rather complex, when t
court attempts to declare any part
rbs bonds void. Such action |o'
lrat-, 200 Issue that would virtua
Anc.. ropudiation Of the entire oDh
= top. u the view Of those who III
s.5.el the question.
Mr.. Butler and Fred NJ. West rei
..rfag the bondholders. raised
contention thar State Treasurer
en1. because Of his connection "
r,. -als of the bonds, had no STAND
n count and that the action should
lt-u,-scd. This was the same pc
-ra, was raised in chanceIy co
and ou which Chancellor Lyeli
rr.d. sustaining the contention
finally allowed the case TO go 10
supreme court.
Araument was concluded in
case Tuesday, only MI Butler re
-f,,,, Sta+a Treasurer Edwards,
tntler and Mr.. West addressing
court ON the subject. 1t is expect
decision will he handed down
tow days. and there are many wh'
Iieye. in the face of the facts as
sa,tod nv Mr.. Butler, the supp
court will declare the sale Oh
" Alr. Butler has WORKED up ii'
III. authorities in the case. lie
oona hack over the proceedings o
Iooisloture for several years dis
,rt old bond acts to substantial
claim that the legislature diu III
voc, all these bonds to be sold a
and the same time, or if 1t did' u
,ras intended the accrued int
shonId he paid by the state