The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-03-14
CHANCELLOR HANDS DOWN DE.
cisioN AND THE CASE GOES
HIGHER.
Case VIII Go to the Supreme Court
at Once for Hearing, Transcript
to BE Filed at Once, With Motion
to Advance.

the state bonds from taxation was
not unconstitutional Last week sew
eral citizens and taxpayers of Nash.
vile fled friendly suit In the chan.
Gerry court to test the validity of this
clause In order that the supreme
court may act upon this matter be-
fore the legislature reconvened the
chancellor allowed the case to be set
for argument on bill and answer We'd
nesday, after which he rendered his
opinion.
The chancellor's opinion, which
was delivered orally was:
"The state acting in its sovereign
capacity, has power outside of the
constitution to contract with its cit
liens; that it will not itself nor per-
nit it's creatures to assess for taxa
tons it's obligations held by its citi-
zens agreeing to repay them with in
terest. Many such citizens loan the
state to pay off certain other of its
obligations.
"This is not exempting from taxa
ton any property, bond or chose In
action already in existence and being
held by any of its citizens"
The decree OF the court which was
handed down in the afternoon was as
follows:
This cause came on to be heard
before the Hon. John Allison, chan
cellor on the 9Th day of March,
1913, upon the bill of the complain
ants and the two separate answers of
the members of the funding board,
whereupon counsel for compliments
moved to set the case for hearing on
bill and answer, which motion the
court granted and upon motion OF the
complainants for an Injunction in &C.
cordance with the prayer of the bill
and the court being of the opinion
that the provision of the act of the
ASSEMBLY quoted in and attacked by
the compla.nants, containing a stipu
lation by the state that the bonds to
be issued under the provision of the
act and the interest accruing thereon
shall not he taxed by the state OF
Tennessee nor by any county or mu
nicipality thereof is not unconstitu
tional but IS a valid and lawful exer
else of the state through the legis
laure; and it therefore appearing tt
the satisfaction of the court tha
there is no merit in complainant.
bill; and it is accordingly ordered
adjudged and decreed by the cour
that the motion for injunction be ant
the same is disallowed and the com
plainant's bill dismissed, and it il
further ordered by the court that thu
compliments and Thomas J. Tyne
and security for the costs pay tn,
costs Of the cause for which let exc
cution enter
ITO all of which rulings and de
! cree of the court the complainant
and the defendants, w. p Hickersol
and r. R. Sneed except and pray al
appeal to the supreme court OF thu
state, now in session at Nashville
is granted on condition. that the.
make and file with the clerk and mas
ter an appeal bond for costs as requir
! ed by law
JOHN ALLISON, Chancellor"
Chancellor Allison in stating hi
! conclusions said that he had investi
gated for the past twenty years from
every standpoint the question of ex
empting the bonds from taxation
He said that he had discussed tn,
matter with Cows. Turney, Taylor
and McMillin, and that out of these
three two had believed that the bonds
could be issued exempt. The chan
cellor said that in reaching his opin
ion he had been advised by bankers
and business men all over the state
In the suit to determine the valid
ity of the clause, John Dewitt and
Judge John A. Pitts represented the
governor and tdhe comptroller. Thos
J. Tyne represented the complainants
and Attorney General Charles T
Gates represents the state treasurer
and the secretary of state, who are
the other members of the funding
board and who are contesting the
clause exempting the bonds.
The transcript of record will be i'm.
mediately filed in the supreme court
and motion will be made by counsel
for. both sides to advance on the
| docket and hear 1t at this term of the
supreme court.