76 Tenn. 121 | Tenn. | 1881
said:
On the 5th of April, 1881, the Legislature passed an act entitled “an act to settle and compromise the bonded indebtedness of the State.” The 3d section of the act is as follows:
“Be it further enacted, that the coupons on said compromise bonds, on and after their maturity, shall be receivable in payment for all taxes and debts due the State, except for taxes for the support of the common schools and for the payment of the interest upon the common school fund, and said coupons shall show upon their face that they are so receivable.”
The 9th section provides the form of the compromise bond, in which it is declared: “The coupons of the bonds as they become due are receivable for-
The 10th section .makes it the duty of the funding board (composed of the Secretary of State, Comptroller and State Treasurer), immediately upon the receipt of the original bond or bonds and the issuance of the compromise bond or bonds, to cancel said original bond or bonds.
This bill was filed on the 24th of May, 1881, attacking the act for various' causes, among them alleging its unconstitutionality, and alleging that complainants are all resident citizens of the State of Tennessee; have been for many years ; are now holders of property not exempt from taxation; and that thej' pay taxes to the State on their property. The bill charges that defendants are preparing with all possible haste to commence the work of funding. One of the circuit judges for the State granted a fiat enjoining action upon the part of Polk, Nunn and Nolan, the members of the funding board. There-was a motion to dissolve the injunction. On its hearing the chancellor, of his own motion, dismissed the-bill, and complainants appealed.
In support of the action of the chancellor, it is,, first, insisted complainants cannot sue at this time- and in this manner. As we have seen, they are citizens and tax-payers of the State. It must be that, to the extent of taxes for which they are respectively liable, each has an interest in the questions ’ raised. The act of the Legislature and the defense to the bill constitute an effort in the direc
I am unable to appreciate the argument that, in any event, the suit is prematurely brought; that if complainants would have the right to sue at all, they must wait for some wrong, actual or threatened. The
If there is no precedent for taking cognizance of the question, we must do as the courts of all ages have done in novel matters, — make one, founded in reason and solid justice. On this question we really need no case antecedent; general principles are broad enough to and do embrace it. I think, however, we have precedents in our reports. In Bradley v. Commissioners, etc., 2 Hum., 428, the Legislature had passed an act establishing the new county of Powell, and appointing commissioners to organize it. The bill was filed to enjoin the commissioners from or
In that case the liill was filed to prevent action.
The same principle governed and was announced in the cases of Cocke v. Gooch, 5 Heis., 305, decided in 1871, and Bouldin v. Lockhart, 1 Lea, 195, decided in 1878.
In Ford v. Farmer, 9 Hum., 154, Bradley v. Commissioners was reviewed and reaffirmed. In the later case, Judge Turley said: “The act of the Legislature is a' nullity and void, -and every act done in pursuance of it is void, and not merely voidable, — an act which they have no right to pass, an authority which they could not delegate,' — and the acts of the commissioners stand just as though they were self-constituted authorities, and the officers and others as usurpers without color of authority.”
It is next insisted “the suit is against the State.”
We are referred to cli. 13, sec. 2, of the Acts of 1873, which is: “That no court in the State of Tennessee has, nor shall hereafter have any power, jurisdiction or authority to entertain any suit against the State, or against any officer of the State acting by authority of the State, with a view to reach the State, • its treasury, funds or property.”
The court must necessarily inquire, are the defend
If the mandates of the Constitution are to be observed, there is not, nor can there be such thing as an officer of the State acting by authority of the State in pursuance of an unconstitutional law. If the officer and his office are created by the unconstitutional exercise of power or the exercise of power not conferred by the Constitution, the first is a violation of power, the second its usurpation. A law unconstitutional is void, and confers neither right nor authority. Officers created by it are wrongdoers whenever they attempt its execution.
Then, if the funding act of 1881 is unconstitutional, this suit, against officers brought into being by it, is not a suit against “officers of the State,” but is a suit against persons attempting to commit a wrong, and may be maintained. See cases already cited from 2 Hum., 9 Hum., 5 Heis. and 1 Lea.
The argument that the bondholders are not before the court, and that therefore the relief sought (other questions out of the way) cannot be granted, is untenable for the reason that the bondholders are as yet no parties to the action charged to be the purpose of the defendants. The act is how merely in the nature of a proposition to be- offered to the bondholders by the defendants; there is nothing up to this time connecting them with the defendants or the act they are proposing to execute. The bill is filed to prevent the tender of a contract of settlement, and therefore the bondholders are neither necessary or even proper parties.
The next question is: Is the act called the funding or 100-3 statute constitutional?
Several objections are assigned in the bill and also in argument of counsel. The first I will notice is, that section 3 of the act violates so much of art. 11, sec. 12, of the “ State Constitution as ordains: “ The State taxes derived hereafter from polls shall be ap
Now, if sec. 3 of' the act is valid, it will divert this educational fund from a constitutional to a legislative appropriation, and in a very different direction
The question, then, is, which must succumb, the Constitution or the act of the Legislature?
In this connection, it may as well be noticed that the exception of the third section of the act is omitted in the ninth, prescribing the form and conditions of the compromise bonds. That form, which is as much a part of the act as the third section, makes the coupons receivable for all taxes and debts, thereby including the common school fund and the interest upon it, so that in fact the entire 12th section of article 11 .is directly violated.
It is also objected that the Legislative enactment violates sec. 24 of art. 2 of the Constitution, which ■declares: “Ho money shall be drawn from the treasury but in consequence of appropriations made by
To rightly construe these two clauses, I will try-to put them into one and give them such meaning as it seems to me was the purpose of their authors. I render them thus: The Legislature shall consist of a Senate and House of Representatives, the term of office as Senators and Representatives to be just two years from the day of the general election. At the end of the two years their representative capacity ceases, and it will be for the people to say at the ballot-box who shall compose the Legislature for the next two years. Each Legislature shall cause to be made and published with the laws it shall have made an accurate statement of the receipts and expenditures of the public money for the last two years before the rise of its session. It may have the power during its session to make the necessary appropriations of money to be drawn from the treasury in conformity to such law as it may pass for that purpose, the money so appropriated to be drawn and used for the benefit of the State in the vacation between one stated
It is conceded to be the general rule that one legislature cannot bind or commit its successor to its laws or policy. It was certainly the policy of the people in convention to so frame their organic law as to enable them to test the wisdom, from its results, of any legislative act, and to reserve to themselves, to be exercised through their legislatures, the right of repealing or modifying' legislation to conform to their needs and wants, hence a limitation upon the terms of office of the law-making department. It was the-object of the convention to leave no room for confusion or dilemma because of inability to reach the treasury; and also, at the same time protect it from drainage by a legislature for a longer time than its own existence. The unforeseen exigencies that might arise, the changes that might come to the State, its wants, its advancement, its prosperity or adversity, were studiously left for the consideration and action of each biennial General Assembly. The two years afford ample time for development and the' suggestion of the necessary changes in laws, and to bring to public attention the demand for taxation, and its amount, and the capacity of the people to pay it.
Tt seems to me clear indeed that it was the fixed determination in the adoption of the clauses last cited, that no legislature should exceed the length of its own life in its appropriations of public moneys, and that each legislature should only be credited with foresight
I do not doubt the power of the Legislature of 1881 to have provided for the payment, of the interest on the State debt for two years, and to have made an appropriation of money therefor. This action would not have interfered with its successor.
If it be determined that it may have gone further, as it has attempted in the act before us, and have appropriated for ninety-nine years, the result is that each of about fifty consecutive legislatures must of necessity take, as a basis of their action in providing for the expenses of the State and the revenue to be collected, the law of that Legislature, and declare that an annual tax of about $810,000, is already riveted upon them and must be paid before the natural, necessary and inevitable governmental expenses; that it has priority over every other consideration, and is the beginning point in the item of taxes to be assessed. It must decide that whatever may be the condition of the State, either for prosperity or adversity, in peace or war, in health or pestilence, in plenty or famine, still nothing can be drawn from the treasury until the creditor has been paid annually eight-tenths of a million dollars. This obstruction must be removed before any legislature can give its attention to the affairs of State. Such contingencies were meant to be guarded against in the limitations upon the legislature in the length of official term and mode of drawing money from the treasury.
One general assembly has as much in its ’ favor
Another purpose of the restrictions mentioned is to prevent oppression and secure ’ protection, not only against extravagance and corruption, but against mistake. This act, if recognized,- will very likely become oppressive. When we consider the uncertainty of the future, and the great length of time during which the contract is proposed to operate, not only as a legislative enactment, but also in effect as an organic one, we cannot conclude the convention meant to confer such latitudinal authority upon the legislature as is here assumed. Put the question to any thoughtful man, would the convention, if it had been proposed, have given to the legislature the authority
Another and the most serious objection to the act is, the legislature, being the financial agent of the State and having no authority to delegate that agency, has in fact assumed to do so by this legislation. If the proposal to compromise is held good and shall be accepted by the bondholders, it will then be out of the power of any legislature to at all interfere with the law under any . circumstances. The provision that the coupons shall be receivable for taxes and all debts due the State, becomes a contract. The language of
This will be a surrender of sovereignty. The State-will no longer be its own guardian, with power to make provision for its support and existence, but will be the ward of the Federal Government for ninety-nine years, its estate to- be administered at the beck and nod of the bondholder, — a centralization of the worst form.
A further consequence of the act will be &t surrender by the State of its inherent, as well as constitutional right of determining when and in what court and in what form it may be sued, or of withholding or withdrawing its liability to suit at its pleasure.
It is the right and duty of the State to hold its own purse strings, to be its own financial agent, to provide for its own necessities, and to maintain its own sovereignty. These rights ■ and duties must be-
I think the act unconstitutional and void, and that the injunction was properly granted and should be made perpetual.
By this opinion I am not to be understood as favoring repudiation. I want the State to be honest.
I express no opinion -on the question of bribery, because I think the constitutional objection to the statute the primary one; that being resolved adversely. to the law, is conclusive of the whole case. I think the settlement of one question controlling and overwhelming all others, is as far as a court should go in any case. It is always time enough to solve legal • problems when they are material to results.
said:
On tbe 5tb day of April, 1881, tbe Legislature passed a bill entitled “An act to compromise and settle tbe bonded indebtedness of tbe State of Tennessee.”' Its provisions, so far as material, may be gathered from tbe following statement, and citations from the-act:
It provided for funding the bonded indebtedness-of tbe State, with past due interest, up to July, 1881, by new bonds, to be issued through tbe agency of what is called a “ Funding Board,” bearing date July 1, 1881. These bonds are to bear interest at. tbe rate of three per' cent, per annum, payable semiannually in the city of New York, coupons for tbe interest to be attached to each bond.
By tbe third section of tbe act it is provided,. “That tbe coupons on said compromise bonds, on and after their maturity, shall be receivable in payment for all taxes and debts due the State, except for. taxes for the support of the common schools and for the payment of the interest upon the common school fund,, and said coupons shall show upon their face that they are so receivable.”
By sec. 5. “The Secretary of State, Comptroller and State Treasurer, shall constitute a board, to be designated a funding board, any two of which shall constitute a quorum for the transaction of any and all business for which said board was created. Said board
This board by next section is, among other things, authorized, when any legally issued bonds of the State ■or coupons are presented to it, to examine and audit the same, and if found genuine, prepare compromise bonds, as directed, and deliver them to holders, taking up the old bonds.
There are other provisions to effectuate the purposes of the act, that need not now be referred to, except to say that the form and language of the bond is given in specific terms in the 9th section of the act, anc^ for some reason, the exceptions in the 3d sec. of the act are not included in it or mentioned. ' Its language is: “ The • coupons of the bonds, as they become due, - are receivable for all taxes and debts due the State of Tennessee.” The fact is added, that the bond and coupon are issued in pursuance of the act, giving its title and date. It is seen, that taxes for the support of the common schools, or for payment of interest on the common school fund, are not excluded from payment in these coupons by the terms of the contract on its face.
The above, with such references to the act as may be necessary, will serve to present the questions raised by the bill in this case, so far as they grow o'ut of the provisions of the enactment under consideration.
On the 25th of May, 1881, complainants, number
I shall not attempt to state in detail the large amount of matters found in the bill, much of which I think irrelevant and superfluous, and to say the least of it, not necessary to present the questions raised for decision by the court. It suffices to say, that the injunctive power of the court is invoked on the ground that the act of 1881 is unconstitutional, for reasons given at much length in the bill, and also, that the ■authority to issue the new bonds, and the whole scheme for funding the past due indebtedness of the State was procured by fraud, and by bribing members of the Legislature. The details constituting these charges will be noticed in their order, when the questions are hereafter discussed.
This ease is one of the highest gravity ever submitted to this court, seldom equalled in any court, both by reason of the large amount involved or to be affected by its decision, as well' as the weighty questions of law, constitutional and general, presented for solution. It has been argued at unusual length, and with an ability worthy of its importance. Tts dis-
In doing so, we have felt the gravity of the duty imposed, and have given to all the questions presented, our most earnest consideration. With the policy or wisdom of the measure before us we have no concern, as a court. With the party or political combinations or accretions that may have gathered around this or any other measure, as Judges, we have neither sympathy or the opposite. We shut our eyes to everything except the simple question, What is the law of the case? When that is seen, as we understand it, it must 'be fearlessly announced, in the calm spirit that belongs to our high places. Consideration of consequences is not for us — only duty is to be known, and - faithfully done. Where it leads, is our pathway — • its voice is to us the imperative, which we cannot disobey, and which we would not disobey if we could.
Owing to the importance and weight of this case, contrary to our usual practice, it has been deemed proper that each Judge, who may choose, shall give his own opinion, and the reasons leading to his own conclusions. I now proceed to the discussion of the questions deemed material to the decision of the case as it stands before us.
In accord with our practice, the bill was presented to one of the circuit judges for his fiat authorizing a preliminary injunction to be issued. This was obtained, and the injunction issued in accord therewith. Thereupon, after service of process, the defendants regularly appeared in the chancery court at Nashville, where the bill had been filed, and moved the dissolution of the injunction, basing this motion alone on the face of the bill and charges therein contained. From these it was maintained, the motion to dissolve, should be allowed, as the decree of the chancellor reciteF, for want of jurisdiction, and for want of equity on the face of the bill. These are the specific points presented as the basis for 'the motion to dissolve the injunction — not to dismiss the bill. After argument by counsel on both sides, the decree states: “ The court being of opinion that there is no equity upon the face of the bill, of its Vown motion, it is ordered, adjudged and decreed, that said bill be dismissed with with costs, 610.” From which decree the’ complainants appeal to this court.
On this statement of facts, in strictness it might-be said, that the only question before us is, whether it is such a case as authorized the chancellor, without a motion to dismiss for want of equity, or any de
It seems clear, on principle, that the only question before us fairly is as to the sufficiency of the matter of the bill, either well or defectively pleaded, to entitle complainants to any relief whatever — “ the bill •standing,” as said by this court, “ as if all its allegations are to be taken as true” — that is, all its allegation of facts: 9 Heis., 270.
In this- view it might well be held, that unless the court in this state of case could say, that under no circumstances a decree could be pronounced against these parties on the facts alleged, or that it had no power to make a decree against the parties before it, all the facts being admitted or proven as stated, the
The question so much pressed on our consideration, that this is a suit against the State, and is, therefore, one that cannot be prosecuted, would be excluded from our consideration in this view, unless it could be shown that under no circumstances could the court hear and determine a case -where the State, or her officers — for it is assumed ' defendants are officers in this sense, in argument — are defendants. ' If the power to hear and decide in such a case is forbidden absolutely by law, then as no decree could be rendered by the court for want of jurisdiction, it might be that the chancellor . could even on this ground, consistent with the principles we have referred to, dismiss the bill on his own motion. But certainly not if the objection is one in •the nature of a personal privilege, which had not been claimed by the State or parties representing her, and ■authorized to act for her.
The act of 1873 is relied on in support of the position, that the suit is forbidden or cannot b.e maintained. We refer to it now for the purpose, however, of seeing whether it forbids all action by the court, or only gives the right, at her option, to interpose the objection by the State.
The language of the act is: “ Eo court in the •State of Tennessee has, nor shall hereafter have, any power, jurisdiction or authority to entertain any suit against the State, or against any officer of the State, acting by authority of the State, with a view to reach the State, its treasury, funds or property, and all such
The uniform practice, and practical construction of the statute since its passage, in cases of suits against the Comptroller to compel issuance of warrants or claims disputed, is most persuasive evidence in favor of this view. Numerous cases of this kind have been before this court. See Burch, Comptroller v. Baxter, 12 Heis., 601: Alters & Union and American Pub.
Most of these cases were represented by the then attorney general, Col. Heiskell, who is said to have been the author of the act of 1873, and who knew its purpose, if any one did. The same practice has continued under the present learned attorney general, as we know. See Uhl v. Gaines, 4 Lea, 352. This practice, and the action of this court in those cases, can only stand on the ground we have stated. This court could not gravely hear cases, as a mere advisory body, nor has it power so to do.
No motion being made, either by the State or counsel employed by the State, to dismiss on this account, nor plea, or demurrer filed (nor can we know that any will ever be made by the State, nor even by the defendants to the case), we cannot treat the case as if this had been done — the case standing here on the issues before the court below, and the record then made. To do so, would be to make a case, not review what has been done. The result would be that the record, on this point, raises fairly no question, except the single one, whether the chancellor on his own motion could dismiss the bill, because the State ■ was sued through the officers forbidden to be sued by the statute. He does not assume to have acted on this question, but on the general question of “ no equity on the face of the bill;” and as I think he had no- power to raise the question oft his' own motion, this question might well be settled on
But I think proper not only to express the above opinion on this point, but in view of the dignity of' this case, and the earnestness with which the question-has been urged, to add my views on the precise question made. Is this a suit against the State in any legitimate sense? Is it a suit against an officer, by any sound rule of law established, or under our constitution, that can be defeated on these grounds? By sec. 17 of our bill of rights, it is declared: “ That all courts shall be open; and every man for any injury done him in his lands, goods, person or reputa-tation, shall have remedy by due course of law, and right and justice administered without sale, denial or delay.” The exceeding breadth of these words, literally at any rate, would certainly have included an injury done by the State. But the convention chose to prescribe a limitation or qualification to the language, and added, suits may be brought against the State, in such manner and in such courts as the Legislature may by law direct. It could not be questioned, if the last words had not been added, that even - the right to sue the State would have been granted absolutely, in all the cases where a remedy-had been affirmed in the first part of the clause. But the convention chose to qualify this right to sue-the State by leaving the manner, and the courts in
But I think it clear, this language of the bill of rights does not allow the absolute exemption from suit, by the Legislature, of any person or officer, simply as; such, but only the State, and may be included under that term. From this it results that whenever the question is made as a defense to a suit commenced,, that the State cannot be sued, and her exemption from suit interposed to defend the suit, the inquiry is,, whether in the sense of this' clause of the constitution,, the State is sued in any proper sense, and if not, all others may be, if they have wronged the citizen or are about to do so, in such manner as will meet the-requirements of a court of equity in such cases. He must have 'redress for that wrong “by due course of law, and right and justice administered without sale, denial or delay.” The act of 1873, sec. 2, cited above, even as to “any officer of the State, acting by authority of the Stale,” etc., requires, as we have shown,, the objection to be made, and the defense to be interposed, by motion, plea or demurrer of the law officer of the State or counsel employed for the State-I might dismiss this question here, as no such motion, plea or demurrer appears in the record, either by the law officer of the State, or counsel employed for the-State, nor indeed by any one else, nor is the State-
But is this suit “ against the State or any officer of the State, acting by authority of the State, with a view to reach the State, its treasury, funds or property,” within the language of the act of 1873 ? On this question I cannot entertain a doubt. The defendants are in no legitimate sense of the term, certainly not within the intent and meaning of this statute, officers of the State at all. It is the funding board that is sued, in the only way it could be done, that is, by making the persons composing it defendants, it not being incorporated. That board, as a legal entity is, to use the language of the statute, “ created ” by the act. It is, to continue the use of the language of the act, “ constituted,” or made up, of the Secretary of the State, Comptroller of the Treasury and State Treasurer, and designated a Funding Board.” That is, the men who shall for the time being fill these offices are designated, as the constituent elements, making up the unit created by the act, designated a funding board. This unit, so constituted, acts as one, any two of them constituting a quorum for the transaction of the business in hand. I cannot see how this legal thing thus created can be conceived of as an officer of the State. It certainly is not the comptroller, nor treasurer, nor secretary of the State, for it is inconceivable that the three men filling these offices should be combined into, one, and be either officer. The acts of the board are no more the acts of these officers as such, than would be the case if
The board is simply three parties acting as such, and claimiug to be authorized to fund the past due indebtedness of the State, and the right to do so, by authority of an enactment of the Legislature. This is their letter of authority, and under this they justify, and claim the right to do what they propose to do. The question is, whether what is authorized to be done, is a valid, legally authorized act, or is it in violation of the constitution, and a nullity. If the latter’, the board has no authority to issue these bonds, and may be restrained from doing so, by any party liable to be injuriously affected by their act. A citizen, a taxpayer, is certainly' so liable, at any rate has as direct interest in the question as any other party,
It is certain, on the face of the bill the State is not a party. I think it equally certain ’ that no officer of the State as such is a party — only the funding board. It claims to act under the authority of what purports to be an act of the Legislature. If that act is valid, then the authority is complete — if not, there is no authority for the action of the board, and they cannot represent the State, even if the board was an officer of the State. It is correctly said by the Supreme Court of the United States, in the case of Board of Liquidation v. McComb, 11 Otto, 541: “If an officer plead the authority of an unconstitutional law for the non-performance or violation of his duty, it will not prevent the compulsory process of mandamus. An unconstitutional law will be treated as null and void.” See also, 9 Wall., 859; 16 Wall., 220. This principle certainly applies with full force to such a board as the one now before us.
To say that a simple enactment of the Legislature, is to be conclusive evidence of authority, though it be unconstitutional and void, and that no court could question it, is to make a valid and void enactment of equal force, and to authorize arbitrary power on the
It is no intrusion by the court- upon the province- or sphere of the Legislature. It is their duty and right to enact; but ours to judge whether the act is valid, or beyond the powers conferred on that body,, whenever that is fairly presented for our adjudication. The fact, that the Governor, nor any other party, as the result of holding this enactment invalid, (if it should so be found), would not and could not legally proceed to do what they might -otherwise do, is nothing more than results in any case where a law is declared unconstitutional. It is then by the proper authority adjudged to be no law, and consequently no authority for any action by any one under it.
We had a case lately before us at Knoxville, where the validity of th'e law authorizing assessment and valuation of the property of the railroads of the State-was in issue. The Governor by the statute appointed the assessors. This had been done for several years, but after this period, the question came before us, and the law was held unconstitutional and void. ■ No one certainly ever thought that this was an invasion of' the right of the Governor to appoint the board of' assessors, nor of the province of the Legislature, when the law was held ■ unconstitutional. The Governor, however, will appoint no more railroad assessors, simply because it has been settled by the proper authority that the acts they were to perform are in violation of" the constitution, and the Legislature could confer no authority to do an act in violation of the constitution,.
I but add here, that the contention, that this bill •cannot be sustained because the State should be a party, ■and is not, I do not think well taken, as it goes on the proposition that in every case where a party seeks to act by virtue of an enactment of the Legislature, the State must be a party before the validity of the law can be adjudicated. I take it, this proposition would not be seriously insisted on. I need not ■discuss it.
The question of whether these parties as taxpayers •and citizens of the State, can file a bill to restrain the issue of these bonds, if issued in violation of the •constitution, I shall dispose of shortly. • I cannot doubt the right to bring such suit, under settled principles in this State.
The pineiple on which the jurisdiction of the court of chancery rests in a case like this, is stated by Judge Turley in the case of Bradley v. Commissioners, etc., 2 Hum., 432-3, so clearly that we need but use his language to find all that may be rendered on this question. After referring to the incompleteness ■of legal remedies, he says: “ It is this inability of courts of law to operate prospectively by prohibition, for the prevention of mischief, that has established upon clear and definite grounds that portion of chan•cery jurisdiction which rests on the doctrine of quia ■timet. It embraces a great variety of interests, which
The bill in that case was filed by two citizens, against commissioners appointed by an act of the Legislature to lay off and organize a new county, and in pursuance of this authority they were proceeding to-perform the duty required of them. The bill, among other things, stood on the ground that the new county would not have the number of square miles required by the constitution. On this ground, as clearly made out by the proof, the court put its decision. The new county was to be made up of fractions taken from three other counties, one of which was the county of Hawkins, The bill was filed solely by two citizens of Hawkins to enjoin the organization of the county— the complainants residing in the portion of Hawkins that would go into the new county. The sole ground in the bill for its relief was that the act to he done and performed by the action of the commissioners, would be a violation of the constitution; and on this ground the court placed the jurisdiction, or right on. their -part to file the bill, saying: “It is submitted whether one or two private individuals can seek the aid of a court of chancery for this purpose. We think
This is a strong case in another aspect of it. It is a legislative function undisputed, to lay off new counties. The commissioners were but the appointed • agents of the legislative department .for carrying out what the Legislature had appointed — had expressed as -its will. But that expression or act was in violation of the constitution; and this court, at that early day— forty years ago — unhesitatingly gave the remedy, in favor of the citizen whose right was only to be affected •to the extent of changing the county in which he would live, by the organization of a new one. It was not even sought to sustain the jurisdiction by pointing out, as has .since been done, how his burdens might be increased by new taxes for court-house and public buildings, and in other ways; but the jurisdiction of the court was established on the broad ground that the constitution was about to be violated, . and the citizen’s right would be thereby so much affected, as that he might ask a court of chancery to prevent it. The court said the act was in violation of the constitution, “ and, as a consequence, any attempt to organize the county contrary to its restrictions was a void exercise of power which can and must be stopped by the judicial department of the State. There is no other place to which an appeal can be made, and if courts cannot interfere, the constitution, if violated, is a dead letter.”
Since that case, the jurisdiction then established has ■been exercised unhesitatingly in all like cases — indeed
The opposite theory, and the one maintained in •argument, that the act of the Legislature is conclusive authority for the act of this board, would, if carried -out, make the Legislature independent of the constitution, with no check upon their action whatever. - Suppose an enactment should authorize the property of ■the citizen to be taken for the use of the State under
We need but notice an argument pressed probably in another connection, but one that may well be met here. It is, that if the law is repealable, this is the remedy; and if unconstitutional, the act will be void— that is, the contract proposed to be made. The fact that a law is repealable is no remedy against its execution for the citizen, nor is repeal a remedy at all when applied to courts, for no man can enforce it; and we may add, the Legislature may repeal a constitu-. tional law, as well as an unconstitutional enactment. But this has no relation to what a court shall do when the act is called in question in that forum.
As to the ulterior remedy of the taxpayer, or the-State, after the contract is completed, we need not say how that is. It may not be effective, but that is not the question. No court in all the future can give the complete and adequate remedy now sought, by preventing the mischief, if it be a wrong; and the question whether it will be a wrong, is the very question on which the remedy rests. If there is a wrong, prevention is better than remedial relief — meets the whole
It was suggested in argument, that the taxpayer was not injured, because the old debt, which this Avas to fund, was the same in amount, and the interest at six per cent., while this was to bear but three. But the answer is, it is not whether he owes another valid debt, heavier than this, but whether the specific liability now proposed to be created is a valid one. Whether the taxpayer might not have misunderstood what is best for him, is not important. That is for him to say. But that he has the right to resist the wrong in the particular form attempted, if a wrong, regardless of its prudentials, is to me a proposition not admitting of doubt.
The only other matter I notice in this connection is, that the State can, and ought to bring the suit. I only answer, that may or may not be; but whether true or not, it cannot affect the right of the party who in fact has to pay the money — to furnish it, either voluntarily or have it exacted from him, before
I now proceed to the main question on the merits of the bili. On this I premise, that the question is not whether the State of Tennessee may not fund her past due indebtedness — that is taken for granted; nor whether she may not provide the means for paying the bonds given. The real question is: Whether the precise bonds this funding board, the defendants, are proposing to issue, creating the precise liability, provided for in the act of April, 1881, in the form proposed, are authorized by the Constitution, or can be constitutionally and legally issued ? Can this proposed contract be made, with all its liabilities and incidénts? Shall ii be consummated, not another? Is it forbidden by the Constitution fairly construed, either expressly, or by fair and necessary implication?
To this grave question I now address myself. I shall endeavor to discuss it in view of its gravity and importance. I think proper to say, that I cannot fully sympathize with the . somewhat conventional tone usually adopted by courts in approaching the discussion of a question involving the constitutionality of •an act of the Legislature. It seems to be assumed that this department of the government treads on ground where, • for some reason, it must walk with bated breath and a sense of awe in the presence of the mighty power of a co-ordinate department, that does not accord with my view of the sense of perfect freedom with which a judge should perform his high functions. It has even been sometimes said that, if
The enactment before us comes in the form of a law, and must so be treated. Its contents must be fairly considered and weighed, its purpose- seen and understood; and if these are in violation of the supreme law of the land, then it is stripped of its form and becomes a nullity- — is void. It is my imperative duty so to declare, and if I so find, it shall he done. I can consider no consequences; care, as a judge, nothing for what may be said or thought by others. The party accretions and combinations, as I have said, if such there be, that have gathered around this question, are matters with which I have no concern. With the policy, or impolicy of the measure, I have nothing to do. The only question is, Does it accord with, or does it violate the Constitution I am here
In the discussion of this question, I am compelled to deal with the elemental principles that enter into and animate the Constitution, which embodies the powers conferred by the people on the law-making department of their government. The nature of the thing known as a constitution, must be somewhat considered, as well as the inherent limitations that, from that nature, of necessity belong to it, and are therefore of itself a part.
What is a constitution ? An apparently simple question, but really presenting a most complex idea. I would define it for my purpose at present, as the written charter, enacted and adopted by the people of a State, through a convention of representatives, or in any other way the people may choose to act, by which a government for them is ordained and established, and by which the people give organic and corporate form to that ideal thing, a State, for all time to come, or during the life of the State. , In it must be found the powers. of that government, and the distribution of those powers among the several departments and
It is obvious that the first and underlying thing, or that which is the first element entering into the idea of the existence of an organized State, is that of' life — the free exercise of its essential functions. The organic thing was not. ordained as a theory, nor simply to give expression to principles of right; but for action — that action to be the life of a free people..
Assuming these premises, I now lay down a few general principles of construction to guide in ascertaining the meaning, in fixing and ascertaining what are the powers conferred, and what withheld, in the instrument which I am to construe and apply. I think them axiomatic in our constitutional jurisprudence, and entitled to be so considered, because they are based in necessary truth. The opposite of them must be a contradiction in the nature of things.'
I use and adopt, as has often been done by this court, the language of Judge Denio, in the case of People v. Draper, 15 N. Y., 543, as appropriate on this question. He says: “In inquiring whether a given statute is unconstitutional, it is for those who question its validity to .show that it is forbidden. I do not mean that the power must be expressly inhibited, for there are but few positive restraints on the legislative power contained in that instrument. But the affirmative provisions of the Constitution are far more fruitful of restraints upon the Legislature. Every positive direction contains an implication against anything contrary to it, or which would frustrate or disappoint the purpose of that provision. The frame of the government; the grant of legislative power itself; the organization of the executive authority; the erection of the principal courts ■ of justice, create implied
These broad general principles are necessarily true, as will be seen, and rest on the principle that an affirmative prescription involves a prohibition that its opposite shall be at the same time, because the existence of the one of necessity excludes its opposite. The principle has been well stated by Judge Catron, in the case of Norment v. Smith, 5 Yer., 272: “Whenever a State constitution prescribes a particular manner in which power shall be executed, it prohibits any other mode of executing such power. On that particular subject the authority is exhausted by the constitutional provision, and an attempt to render it nugatory by law, would be an attempt at repeal.”
Whatever not authorized by the State Constitution, interferes with or limits the free exercise of the powers conferred on the Legislature, is contrary to and in violation of that power. It is a check or burden imposed upon its free action. Whatever is in contravention of the frame of government, to use the word of Judge Denio, is forbidden; or, to. state the principle more succinctly, whatever would defeat, impede, hamper, control, impair or weaken the free, untrammeled exercise of powers conferred, or the discharge of the duties imposed on the Legislature, must of necessity be in violation of the Constitution of the State and forbidden to be done. Whatever tends to interfere with the arrangements of the Constitution, and hinder those arrangements from being carried out with perfect freedom as required, cannot be permitted.
As a matter of course, I recognize in all these general propositions the fact, that in the Federal government there are certain powers of domination and control over the States, and to that authority as possessed I yield a prompt and cheerful obedience. But this does not contravene the principles laid down, but is strictly in accord with them. The powers thus, exercised are granted powers from the States, or people thereof, therefore exercised by their consent. The government exercising them, to the extent it does so, within the terms of the grant, is the government of the State or its people, as much and as legitimately as is the State government itself. Its proper sway, therefore, is not tyranny, but only the performance of beneficial functions, designed for and calculated to promote the good of all.
I now propose to bring the enactment under consideration, in its salient features, to the test of these principles.
The question to be considered mainly, if not ex^
I remark, first, that this section contains a new feature on the bonds of this, or as far as we know,, any other State, except certain bonds issued a few years since by our sister State of Virginia. The old bonds, which they are to take up, have the traditional and well-known pledge of “the faith, honor and credit of the State, solemnly pledged,” for the prompt payment of the principal and interest therein promised to be paid. This bond, as directed, contains that solemn-pledge of these,' but in addition has the added terms of contract, that the coupons of the bonds, as they become due, are receivable for all taxes and debts due the State.
I may say here, that, under the old bond, the rights of parties were understood. The undertaking was to pay; . but the only security given was the-pledge of the faith, honor and credit of the State, solemnly plighted. I heartily accord with the sentiment, that this pledge, when authoritatively made, should beheld as sacred as the life-blood of her sons — should ever be made good to the extent of its terms; that the honor, faith and credit thus plighted cannot be
But this pledge is given, to be redeemed by the collection and disbursement of her revenues, the same ■to be levied by the free- action of her Legislature, -charged with still higher and precedent duties, to preserve and keep free from all contingency of impairment or hindrance the vital functions of the State. It was to be met by the action of the Legislatures as they might assemble, free to look to the exigencies of the • State, with no compulsory power over it, — only subordinated to the Constitution of the State. Revenue to be assessed and collected by the free action of the Legislature, from time to time, as it might direct, in view of the pledge given, it is true, but of necessity not excluding from consideration on the part of that body the condition and exigencies incident to the life of a State were to be the sources of payment. This was all well understood, and entered into and made elements in the contract, as plainly as .if it had been written in words on its face. Certain it is, there entered into this contract no element of •coercion — no power to legally enforce or oblige the ■State to comply with her promise and make good her plighted faith.
In the contract proposed to be made under this act, the same pledge is given, the same honor, faith and credit are plighted, and so far the contracts are the same. But, in addition,' there is proposed in the new contract a new element, stipulations for an additional security for the performance of what is promised — a
Be this as it may, we find the contract proposed in the enactment, and the question is whether the-legislative department of the State had the power to authorize the making such contract.
To test this, I first look at the precise effect of what has been done. 'What is the nature of this new agreement? Does it in this form assume the complete essentials of a legal contract made between individuals? In .the old contract, it had only the-•elements that enter into an agreement and pledge of a State. No legal obligement attached to it. It had no principle of enforceability in it; no lien on her resources; and no coercive power over these revenues attached to it, or inhered in it. Is this element found in the new one now proposed ? If so, what, is it, and what is the effect of this element? Had the-Legislature the power, under the Constitution, to give, grant or confer on any body such power, in the "form here given, and to be enforced by the means by which this can be enforced ? These are vital questions, as I think, on which the solution of the issue now un
First, is the element of coercion, of enforceability, in the contract ? It certainly is so intended, and would be so understood by the holder of the new ■bond. Is it a fact,' as a matter of law - however? That this is true, cannot be doubted if once the contract is executed and the bonds issued, and the power conceded to make the contract. The creditor holding the coupons, whenever they are due, can enforce their collection. He has given to him, then, the power to ■ compel, by his own act, the payment of his debt, and an appropriation of the revenues of the State to this end. It is so nominated on the face of the bond, and so written on the coupon that evidences the indebtedness so far as the interest is concerned, and that runs for ninety and nine years, — the life of three generations. This cannot be doubted as being what the contract will contain, and what it means. It is not questioned, we understand, in the arguments of learned counsel. In fact, we believe, is justified frankly, as proper and right. It is said in Burroughs on Public Securities, 594, in giving the effect of such stipulations: “Such .provisions give an increased Avalué both to the bonds themselves and to the coupons. It is an assurance •to the holder that whatever may be the condition of the treasury, he has a mode of enforcing the payment ■ of interest which other creditors do not possess. So long as the municipality or the State' finds it necessary to levy and collect taxes, so long will there be • a demand for the coupons. It is, in substance, a
This is a strong statement, but is substantially true. The contract is certainly in the nature of a mortgage, for it gives a right to appropriate the revenues of the State by the holder whenever his debt becomes payable. The right of the mortgagee is to do the samé, ■either by entry on condition broken at common law, or by strict foreclosure in a court of equity under the old rule, or, under our practice, by a sale under ■a decree of a court of chancery. In this ease, however, the party has secured to him by the contract the right to appropriate the revenues of the State to his payment by his own act. He has but to tender his coupons to the tax collector, and he is by the law bound to receive them, and thus his debt is paid. In this aspect, it is more analagous to our deed of trust, made to the creditor himself, to secure the payment of his debt when due, with power of immediate sale on default, and appropriation of the proceeds to its satisfaction. Should the tax collector refuse to receive it, then a legal proceeding to enforce the right would be his remedy. If the State said her tax collector •should not be sued in any way, and repealed our act
“The decisions of the highest courts of the State to the contrary will not be respected by this court when such decisions are not satisfactory to the minds of the judges here, and when the matter in . question is bonds issued in negotiable form by a township of that State, and now in the hands of a citizen of another State or a foreigner, bona fide for value paid.*178 Questions relating to bonds issued in a negotiable form, under such an act, involve questions relating to commercial securities; and whether, under the Constitution of the State suoh securities are valid or void, belongs to the domain of general jurisprudence.”
See, also, 16 Wall., 667-8. I need not comment. The principle is well known and settled. That court would as certainly enforce the coupon feature, and protect it from impairment by repeal, suspension or modification by the Legislature or any other power of the State, as that the sun rises and sets. In fact no one, I take it, questions this, least of all the holders of the bonds. It suffices to say, that these decisions and the well known and settled rules established in the Supreme Court of the United States, together with the experience of the State on the question in the cases of the Bank of Tennessee, do not' invite this court to go a step further than safe and assured constitutional exposition shall require, in affirming a power in the Legislature to make like contracts. We should at least tread cautiously on such ground.
But to the argument. That the Legislature has not the power to abnegate any of its essential functions, or to confer on any one, or any body, authority or power of compulsory control, either directly or indirectly, over its free action in their performance, would seem to be self-evident. To make the laws that shall govern a free people, that body itself must be free to adopt all such measures as the varying •exigencies and wants of her people may demand. The true principle cannot be better stated, perhaps, than
These are words of weight and wisdom, and the principles stated embody the necessary limitations inherent in' the Constitution of a free State.
That, the coupon contract gives the holder power over •the revenues of the State, is not questioned; power to -appropriate them at his option to the payment of his
What, then, in this aspect of the question is the actual effect of what is proposed? Hoes it fix a contract liability, in the nature of a first mortgage, on all the revenues of the State; give control over its vital functions; compel in any way the action of its Legislature; impair the freedom of action of that body, and make it subordinate to any extent to the will of another? If so, does such a power exist in the Legislature, or can it be conferred on another ?
That this contract gives a compulsory power over all Legislatures for ninety-nine years, seems to me beyond question; not directly applied it is true, but certain, effective and secure. The creditor has his own option to enforce it, and has the power of the Federal courts to give imperative efficiency to his will. The debt may be assumed to be twenty-seven mill
Let us see how this control is operative. In the-future, when the Legislature meets, and looks over the estimates of expenditure for the next two years, which it is its duty to provide, and . appropriate specifically to each item the amount required, which cannot otherwise be paid, there will always be an item of interest on these coupons, which will stand on ground higher than all the others. To meet the others is, in the case of the official salaries, and of their own, with other like items, an imperative duty, involving, as we have shown,
Let us look at this for a moment. Suppose the Legislature should propose to levy a special tax for official salaries of the State officers, in the form of so much on the hundred dollars of taxable property, as is now done by the act of 1873, sec. 38, for the support of common schools; and should then appropriate this to the payment of these salaries in the appropriation bill; under this contract, the holder of a due coupon, or the holders might tender the coupons in payment of the whole tax, and thus absorb it. In fact the salaries of all the officers of the State, and ■of the Legislature itself, could be more than absorbed by the amount of this interest. And so, if all the legitimate and actual ascertained expenses of the State were itemized, and provided for by a special tax, as might be done, this debt could be interposed, and by the terms of the contract enforced, over the means provided for these purposes. It is a lien preferred,
The case I have put, however, only brings out the operation of this power on these special taxes, if laid in that form. That it is certainly accurate, is shown by an illustration at hand. Suppose there had been no exception in the enactment, as found in the third -section, of “taxes levied for the support of the common schools,” would not that tax be subject to this •contract, and might it not all have been paid, under this act, in coupons — in other words, appropriated by the creditor to his debt, though levied for the specific purpose of the suport of the schools? If this be so, it inevitably follows, that any tax levied for any purpose, not excepted, is subject to the charge of this mortgage.
That this power, if exercised in the specific way pointed out, gives the creditor power over the life of the State, is too clear for question. But the principle is precisely the same, when no such special tax is levied. The poAver is over all the taxes and debts
The point now is to show that it is compulsory power over the action of the Legislature. In view of the rights of the creditor under this contract to enforce it in the way we have stated, the compulsion is on the Legislature to levy a tax, and realize it so as to have it in hand on the 1st day of January and July of each year. The penalty is, that the bond will be forfeited, and the mortgage enforced, and the normal life of the State be in the hands of the creditor. All her sources of revenue are mortgaged to him. She can only prevent its enforcement, and the revenues necessary for her existence, from being appropriated by him, by responding to his demands promptly and certainly. To this she is compelled. If she fails she perishes, or her life is choked to the extent of the failure. Is such a Legislature the free, unfettered representative, and cun it give voice to the-will of a free people ? Does it meet with the same unfettered power to do its own will,' as Legislatures before have met? It is said, it is the duty of the
But again. These essential duties are left to the-free action of the Legislature by the constitution. They are more imperative by far than the duty of paying the creditor his interest. Why should the one-be left free by the constitution, and by contract the other made compulsory? Yes, compulsory, by a power over the State’s vitals. Free it was intended she should be in her action as to her own government and pedple, and that freedom cannot be mortgaged as a security for the bond of her creditor. Can it be. bargained and bartered in the market by the Legislature, like a worn-out garment? If so, instead of being the proud representatives of freemen, it is but fit to stand for-slaves, and obey the behests of a master. This is not what the constitution designs, and can never be allowed.
If the Legislature can by contract give creditors-the power to compel the levy of eight hundred thousand dollars per annum for their benefit, why may it not by the same means contract, that they shall compel the levy of two millions, or ten? Concede the poioer, and who can -mark the lim.it of its exercise, or
But, why shall the Legislature not thus give control over its free action? The answer is, it holds all its powers as a trust, and the duties of that trust, the functions of the trustee charged with them, can never be sold, never trammelled, never subordinated to the will of another, by contract, without interfering with, and frustating the objects of the trust, and defeating or obstructing the arrangements of the constitution. ■Such a bargain is, therefore, by necessary implication, forbidden. When exercised under this compulsion, the Legislature would not. act as the law-making depart
We have two illustrations in our own Reports, that occur to me now, of the principle that the Legislature cannot transfer control over its own functions.
The case of Marr v. Enloe, 1 Yer., 453, was an attempt by the Legislature to confer on the counties, through their county courts, the power' to levy a tax to meet the current expenses of the county. This was done before the constitution of 1834 had given the authority, as now exists, to authorize counties and incorporated towns to levy taxes for county and corporation purposes. This court, by Judge Catron, with more than ordinary vigor, repudiated such a right, and held the law unconstitutional and void, saying: “ Is taxing the people an act of legislation ? That the taxing power belongs to the Legislature, and that exclusively, and is,- if not the most important, at least of equal magnitude with any power entrusted by the constitution to the general assembly, is a truism never doubted or denied in Tennessee. Can this constitutional right, by an act of the general assembly, be
In the case of The State v. Armstrong, 3 Sneed, 634, this court, through Judge McKinney, in terms of vigorous reprobation, held an act void, that proposed to confer on the courts the power to grant charters of incorporation, though the powers of such corporation were all defined by the act, when created. The principle on which this was done is, that it was an attempt to confer the right to exercise legislative power on the county, which power was confided to that body alone.
These cases are not identical with the one now in hand, but the analogy is striking, and the principle the same. The transfer of the power to the county •court in one case, and in the other to the circuit and chancery courts, was but giving to these bodies the ■control of that power to the exter>t indicated. To this extent it was a complete control, and was a direct exercise of the power. But there is no difference in principle, whether I give a man the right to do an act that I am to do, or more circuitously, I confer on him the power to compel or control my own action. To tire extent that he exercises that control, and may use that power effectively, it is an exercise of the power which I was bound to exercise — only he uses me as his instrumentality. All action under the
So in this case, the Legislature has given the creditors power to compel the Legislatures for ninety-nine years to levy a tax sufficient to meet their debt, in preference to all other claims on the State — her official ■salaries and all, and this at the peril of enforcement of their mortgage, though it should paralyse all the ■departments of government; and under this compulsion it is agreed, and so written, all future Legislatures for this period shall act. Is not this practically the transfer of power and control over the Legislative department, and is not such control, in fact, the right to ■compel the mode of action, 'to the extent of the debt, of that body? And if so, what is thus compelled, is 'but the act of the party compelling, and not of the mere instrumentality, the Legislature. Therefore, in the exercise of the taxing power, so vital to the State, the Legislature to the extent of paying this debt, acts ■solely as the agent of these creditors, under their will, and do their bidding, and in this the people can have •no voice in the future, nor that body any freedom. It is dominated by the necessities of this contract, -and thus the legislative body of a free people reduced to the position of servants of a master, rather than a body of freemen.
The principle of the cases cited, forbids us to re-cognize such power. In fact it is evident that to the ■extent of the debt due these parties, they can compel the action of the Legislature, and in this is found the ■real security which inheres in this contract. As I
That this power is in violation of ’ the express affirmation of the constitution, and in derogation of its clear and definite prescription, is demonstrable.. By the constitution it is provided, the Governor “ shall, at stated times, receive a compensation for his services”: Art. 3, sec. 7. By art. 2, see. 23, the compensation of the Legislature is fixed to be paid them for their services. By art. 6, sec. 7: “The Judges of the supreme or inferior courts shall at stated times receive a compensation for their services, to be ascertained by law.” In addition, numerous officers are provided for, and all must be paid out of the revenues of the State, in some form; for offices under our system, involve, duties and salaries, as necessary incidents to office. Payment of these is necessary to the continued action of the government. Such as I have
An argument, ingeniously framed and most skillfully put, has been made, to the effect that the coupons can never be tendered till after maturity, and this can never occur till after default on the part of the State
The answer is, this does but state a fact, that the right can never arise till the debt is due; but the question is riot how or when the right over the State’s revenues shall arise, or under what conditions may it be exercised, but can such a power be granted to arise at any time, under any conditions? The fact that it can only be prevented by a certain defined course of action, is an element that renders it obvious, and demonstrates its controlling power. The contract by its terms, it is necessarily conceded by this argument, gives the compulsory power over the Legislature which I have argued it does; and to the extent the power of compulsion is given, and to the whole extent, has the Legislature transferred into the hands of others than itself, the legislative power of the State conferred on them as a sacred, inalienable trust, to be exercised by that body under the limitations of the constitution, but subject to no other restaint, no other will, nor obedient to no person, whether individual or governmental, beneath the sun.
It has been said, that the State can only be subject to the influence of this contract by violating her plighted faith, and failure to keep her promise. Theoretically this. may be so, but practically I must know from, the nature of the thing provided, and from my knowledge of the operations of our system of laws and governmental machinery, that this is a mistake— if by default and breach of promise, is meant a willful violation of the terms of her contract, or willful
After the first of January, there must be first gathered into the treasury and laid aside, the sum, or about the sum, necessary to meet the semi-annual isw-terest, say $405,000, and so again after the first of July. The taxes being levied in one aggregate mass for this 'and all other expenses, unless it be that no pressure of misfortune, no drouths, nor epidemics, with baleful breath and black wing — no monetary crises or revulsions, such as, vivid in the memory of all, occured in 1873 — no such long period of universal pressure as followed, is again to come — then such a failure will come, and no human foresight can avoid it, no skill evade it. And then what must be the result? The offi,-eers of the State must go unpaid, their services be performed on a credit or not at all; the functions of government be performed without the vital force of money to support them, and the other creditors of the State be postponed to the claims of the mortgagee under this mortgage. Either this must follow, or what is still more revolting, the State must, like the mortgagor we have referred to, when his crop has failed, his labor been unrewarded though faithfully given, stand, at the end of the year, before his cred.-itor, with bowed head and broken spirit, and ask or
Our statute book, since 1873, if not before, abundantly sustain what I have said. Statute after statute stands on it since then suspending the enforced collection of the taxes, even for the support of the life of the State, and we all remember the issuance of warrants receivable for taxes some years since. . Some have had experience in receiving them for hard toil in her service. We cannot but assume that all this was not of choice, but the result of influences beyond the control and foresight of our Legislature. He who assumes that no such times will come again, must’assume that history never repeats herself, and in the blindness characteristic of hopeful youth, expect that sunshine, prosperity, and above all, stability and fixity, shall characterize all the future years — the ever shifting surging elements that make up our national life,
One other view of' this question may be given. The only assumption on which what is proposed can even plausibly be palliated is, that the charge in fact will not absorb all the available revenues of .the State •at any time, or may never practically reach the results •indicated.' How that is, I do not know. Nor is it •important to settle. The lien, the charge, the mortgage given, as I have shown, is fixed on all the revenues, save the specified exceptions. Like the case of a man mortgaging all his lands, including his homestead right, for a debt; it may be worth more than the debt at present, largely more, and may on sale leave a surplus. But it may not; and all experience ■shows the futility of human calculations to fix in ad-
This is a question .of power, not of the extent of its exercise in this particular case. If the power be conceded, that has no limitation. Discretion may prevent its exercise to the destruction of the State, but that discretion is not for the judiciary, but the Legislature to measure. It then, if admitted as a power,, is arbitrary in that body, and there is no restraint whatever upon its exercise.
To test certainly the question of power, let us see what its admissions of necessity involves. If the Legislature can thus charge by such a mortgage, the whole revenues of the State, to the extent of eight huudred thousand dollars; it may give the same lien to the extent of two millions, or five, or any other amount. If it may do this, and mortgage to the extent of the sum here proposed, then it could, after ascertaining all its sources of revenue, proceed to assess all for ten years, by an assessment law to the full amount it would bear, and then transfer all these revenues by contract to the holders of her bonds, to pay bonds and coupons, and make both a tender for the whole tax levied, and so deprive the treasury of all revenues. If the bargain now under consideration is in the power of the Legislature, the one supposed is equally so..
In the consideration of this case, I dare not be-influenced by the fact that the State is assumed to owe and be bound in honor to pay the bonds now outstanding, or that her plighted faith will be broken if it be not done My own feelings or convictions on this question, be they what they may, I cannot allow to influence me in the slightest. That is not the question. It is simply one of law — of constitutional power.- When I find that power is not conferred, but forbidden; when • I see the act proposed to be done is inhibited by the constitution, and as I think may touch the vitals of the State, however meritorious the claim, however it may appeal to State pride and honor, and the love I’ bear to these and
I have not gone into the cases in the Supreme Court of the United States, holding States may make contracts of perpetual exemption of property from taxation, as well as many other questions presented in argument. Nor have I made large citations from authorities or decided cases. I have found it too much labor, in view of the necessary discussion of the main questions presented, to do this. I have felt compelled simply to "give my own conclusions, with some of the reasons for them, without undertaking to cite authority on every -point, or answer all objections. I have reached ihat conclusion on principles I think sound, and of which I have no doubt. The only cases bearing directly on the validity of the coupon feature, are the Virginia cases. They have been carefully examined. With great respect for the tribunal pronouncing them, I am not convinced by them, nor can T agree with them. I cannot, therefore, follow them, but my own judgment. See 22 Gratt.,. 833, approved in 24 Gratt., 159; and 30 Gratt., 134, for these opinions.
On the subject of bribery and fraud, the bill, among other things, substantially charges that • the members elect to the Legislature had maintained, in their canvass for election before the people of the State, that there should be a compromise and abatement of the amount claimed to be due the holders of the bonds; and that all, or nearly all, were elected solemnly pledged
It is also definitely charged, that on a large portion of the bonds now proposed' to be funded suits had been commenced, iu the Federal courts at Nashville, Knoxville and Memphis, by the bondholders, to enforce a lien claimed to exist by law in favor of the holders, on the railroads, for whose benefit said bonds were issued, aiid that a test case had been heard, and had. been appealed to the Supreme Court of the United States, and now pending in that court for decision. In view of this litigation, it is alleged, said bondholders and railroad corporations entered into a combination and conspiracy to procure by improper means a settlement of the debt of the State dollar for dollar, with coupons receivable for taxes, with the understanding that when such settlement should be procured and effected, the said litigation between them should 'be dismissed and the liens claimed therein should be abandoned. This result, I may say here, would be the inevitable result of. the execution of the act of 1881 by the acceptance of the new bonds, as the old ones are required to be given up and cancelled.
It is then charged that the combination supplied agents, called a “powerful, active and efficient lobby,” with the means of corrupting the Legislature, or members thereof, one railroad company alone furnishing fifteen thousand dollars. It is averred as a fact that
The vote on the passage of the bill in the Senate is given, showing that it was at first defeated by one majority on the 1st day of April. A rnotion for reconsideration was made, and, on the 5th of April, the vote was reconsidered, and the bill passed by a majority of one vote, being, as the bill says, the vote of Senator Smith of Fentress, who changed from the-negative to the affirmative, and thus gave the bill the majority of one. It is then stated, in substance, that in this he voted contrary to a pledge given on his nomination for his place — a pledge kept up,, or not withdrawn, during his canvass; and that, pending the motion to reconsider and the final passage of the bill, no new argument or fact addressed to his reason or light shed on his conscience, was presented to him which could have changed his convictions and absolved him from his pledges to his constituents; that, by his own admission, he • was offered fifteen thousand dollars to vote for the bill. It is then charged, on in-' formation and belief, that money and State bonds, and
The substance of all this is, fairly understood, to charge, that by means of the profits on bond speculations (the bonds furnished by the combination), votes were obtained for the bill sufficient to secure its support and passage. And especially is it to be inferred, from the statements of the complainants in their bill, that the Senator who changed his vote on reconsideration was .influenced to do so by the use of considerations other than reasons, or arguments to his judgment or conscience. This, in connection with the suggestion that he is charged to have admitted that he was offered fifteen thousand dollars to vote for the bill, and the previously stated facts, can only fairly mean that his vote was changed by the influence of gain and not legitimate argument. In other words, that he was in some way bribed.
Taking all the charges on this subject, they present the question fairly, though not as fully and definitely stated perhaps as might be, of a charge of bribery of sufficient members of the Legislature, who otherwise
As I have said, some of the facts that raise this question are not as definitely stated as they might be; but under the cases we have before referred to, as this case stands before us, even an equity defectively stated will reverse the decree of the chancellor and sustain the bill in court. If defects are found, they are matter for amendment in the court below.
Assuming the charge to be, that a majority was obtained for the bill by bribery, or the purchase of votes enough to secure its passage, the question presented for our decision is, Will these facts, if proven on definite allegation, if not so made now, furnish any ground on which a court of equity will enjoin the completion of the contract, which is authorized by the act so passed, by the board created' to carry it into effect ?
I may say in the commencement on this subject, that it presents no little difficulty, as I think, whether the one side or the opposite shall be attempted to be maintained. Much of weight may be presented on either side, and much that demands the- gravest thought on the part of a court before a satisfactory conclusion can be reached either in the affirmative or negative. Certain,. to my mind, the argument is not all on the side of the negative. ’ I think the cases that have been cited before us, and the arguments so ably urged, do not fairly present the real question- involved. It is not whether a law of the Legislature may be shown not to be a law, by showing the members of the
• I may say further here, that in my judgment the question does not involve in any proper sense any invasion of the province of a co-ordinate department of the government on the part of this court, nor any inquiry into the motives of a Legislature, or of any member of that body, in any accurate use of the term motive; but that, in fact, it only involves questions of fact, that might well be examined by a court, under proper limitations, in order to ascertain and de-dare the result, as bearing on the right to obtain the contract proposed, and the benefits in this branch of the case, charged to have been the object and purpose of the alleged corrupt combination, which combination, and the use of the corrupt means stated, I am compelled to take as true, on the state of the record as it stands before me for decision. These benefits on
These are the parties who are to receive the benefits of the contract thus charged to have been procured, and these parties are charged to have been the bribers of the . members of tlie Legislature, in order to secure the advantages, great or small, which are stated.
In this view the real question is, shall these parties, under this state of facts, have their work consummated and sanctified, either by the approval of this court, or the admission that wc are powerless to prevent the consummation? And shall the taxpayers of the State — our own people — be compelled to learn that they must submit, bear and pay all such contracts, or, in desperation, “bow the lip of honor in the dust,” by repudiating an obligation that bears on its face the pledge of the “faith, honor and credit” of the State, with its broad seal thereunto affixed, as the assurance the pledge shall be made good?
I frankly say, that to such a conclusion I would come slowly, and with fearful apprehensions as to either its correctness as a matter of law, or its soundness as •a matter of public policy. If compelled to so an
As to how the truth is in fact on this question, I can know nothing. The charges are not to be considered as true in fact, as if proven, but only as technically admitted on the record for the purposes of this decision. As to whether they be true in fact, that depends on the proof that might be made, after an answer, should the case be sent back to be further proceeded with on this issue. For the purposes of this opinion, I must treat them as admitted. Assuming this, it seems to me, the question stands before me in this light: The party who maintains there is no remedy, must be prepared to maintain either that bribery of members of the. Legislature is a legal and constitutional method of obtaining a contract, and such contract therefore valid and binding, or that, conceding this is not so, then, for some cause, there is no power in the courts to ' investigate such a question. And, practically, the result is the same. The briber may have his bond, and the people, whose representatives have, on the assumption, been faithless to constitutional obligation, must pay the debt thus imposed, not only in this, but in all like cases, and there is no power in courts to give help or relief from this burden. If the contract is one that is not legally and constitutionally obtained, and one that a court would not on these facts, shown affirmatively in a proceed
■I understand it to be conceded, probably — at any rate, not seriously contested, — that if these facts were shown in a case where such a contract was sought to be enforced by the party guilty of the bribery, it would be the duty of the courts to repel the claim and refuse the relief. To enforce actively such a contract obtained by such means, is too shocking to the sense of right to receive the assent of any court. It has been intimated very strongly by this court, in the ease of Furgerson v. Miners and Manufactarers Bank, 3 Sneed, 624, that such a case would demand that the courts should disregard the authority of an act of the Assembly upon this ground, as said, on the ground of fraud and imposition on the Legislature. And so, in the case of Sunbury, &c., R. R. Co. v. Cooper, 33 Penn. St., 278, the same principle was announced.
If this be conceded, it -is, it seems to me, an answer to nearly all that is said in the way of objection to the exercise of the jurisdiction by the courts in the arguments, either of courts or counsel. For this relief could not be granted, without either an admission of the facte or proving them. In either
But I think all the arguments based on the idea, that to make such an inquiry as is here proposed, is’ forbidden as an invasion of the sphere of a co-ordinate department of government, or taking the supervision or control over the Legislature, are fallacious. I admit the principle fully of the necessity of the division of the powers of government, and the inhibition upon either department intruding upon the sphere of the other. It is well expressed in our Constitution, art. 2, sec. 2: “No person or persons belonging to one of these departments, shall exercise any of the powers properly belonging to either of the others, except in cases herein directed or permitted.”
If I can show that to do what we are called on to do, does not infringe on this principle, the main difficulty presented is met.
What power is exercised by the legislative department? Law-making power. That is, that body enacts laws, in its own way, as provided by the Constitution, and for' its own reasons/ and I may add, moved by its own ■ motives. All this is conceded. With all this we have nothing to do. That body legislates; • that is its function. Now if we attempt to do this, we go out of our sphere, and into that of the other department. If we should attempt to decree what action should be táken, or what should not be taken, by that body, we' would be interfering with their powers. If we should propose to enjoin that body, or any of its members, from acting freely
Plow, then, can it be .that we are in any way intruding on the province of that body, or subordinating it to our jurisdiction in its action? No member is a party to this suit; nor is the Legislature. Plow, then, can that body be decreed against? The decree made is what is done by us. If that nowise interferes with or infringes on the powers of the Legislature, then there is no violation of the inhibitions of the Constitution in exercising the jurisdiction invoked.
It might and would render it more difficult for corruption to successfully attain its ends in the future. That is no undesirable end, however; but that would only be because such acts might be subjected to the scrutiny of courts. It might, for this reason, operate ■ as a check on such practices in the future.; but this would only be a result, it would not be forbidden by our decree. By the decree made in such á case, the only parties controlled or affected by it would be the Board in its action, — the effect of which will prevent the parties charged with the bribery from reaping the reward of corruption. They would be controlled, and their scheme defeated. But the Legislature would be as free and unaffected in any constitutional function, as before the decree. Can that which leaves that body with all its powers — does not exercise one of them, or prevent their exercise — be in fact an infringement on the sphere of action of that body? I con
What would we do in this case, more than we would do in an indictment for bribery, charging that the defendant bribed a member of the Legislature with intent to influence his vote? To do so, is made a felony by sec. 4797 of the Code. Would we not hear proof that the member had received .the money for the purpose stated? Members would be no party to the proceeding, but that would not be heard as an objection. If, however, such an inquiry is to control the Legislature; to subordinate it to the courts; to infringe on its province and powers, then the Constitution would forbid the inquiry; and the law authorizing such a prosecution is void. Such a prosecution' could never be made out, except by showing, that the member, or members, received the money — accepted the bribe; for there could be no bribery without this. It would only be an offer to bribe; which, also, is a felony by the same statute. This demonstrates that such an inquiry is not unconstitutional— not an intrusion by one department on the sphere of another; for this can no more be done in a criminal than in a civil case. Until a difference can be shown, the argument cannot be met.
This, it seems to me, disposes of all the arguments drawn from this source. If it is not forbidden by the constitution to prove' in court the fact that a member of the Legislature has been bribed, even where he is not a party to the proceeding in such a case, it is not forbidden in any case. If no constitutional
I may as well say here, that the fact that this is a renewal of an existing debt has no bearing on the legal question. If the inquiry cannot be made in this case, it cannot be done in the case of the creation of a new debt. The result would be, that a' Legislature might, under this principle, be bribed to issue bonds to the railroads of the State for fifty millions, and pay a majority of the members one-half of the bonds-to pass the law, and they might take the bonds, sell them, and the people be bound to pay them; or repudiation, which is no legal remedy at all, be, the only resource — no help anywhere else. The facts might all be abundantly susceptible of proof, or proven, and yet the inquiry . could not be made; • the debt bo fixed all the same. From such a consequence I am compelled to shrink.
But more. The principle goes further. If the
The illustration given of the supposed working of the principle, in the argument of the other side, that in one case the proof would be made by a mere preponderance, and the contract held void, and in another less .skillfully concocted, the proof would fail, and so the act be good in one case and bad in the other, has no force in this case, where the remedy is preventive, and goes to the decision of the whole contract.. It would be stopped at its source, and no more cases could arise out of it; and I confine my opinion to the very case before me, not to another.
I confine the whole operation of the rule I would establish, to the obtention of-contracts by individuals from the State, or other public agencies, by means of bribery. With these limitations it can be made effective, and will barm no one — might expose bribery— but no court can feel that that is not a most desirable end; certainly not a thing to be sheltered from exposure.
The cases to which we have been referred as de
All these cases to which we have been referred, and which have either decided or argued that no inquiry can be made as to the question of -bribery of a member of the Legislature, have gone on two grounds:
First. That it was in violation of the principle of a separation of our government into departments; and Second. That no inquiry into the motives of the Legislature could be make.
I shall not further notice the first. The second, I think, is a mistaken view of the question, as applied to the investigation like the present. . What is the motive that prompts an act? It may be defined to be, the last and controlling impuse that impels to the act, or all the impulses combined that so prompt. If this be correct, then I say motive is internal, subjective, to use the language of philosophy, a thing we cannot ascertain — can only approximate at best, or infer from conduct. This is the only accurate sense in which the term can be used. In this sense I frankly concede that the motives of a Legislature, or any mem-
It may have beén that the weak member who accepts a bribe to vote for a measure, has been actuated and controlled at the time by the most approved motive, such as the thought of a helpless and indigent family being raised to affluence and ease, and the love of wife and child may have undermined his sense of right. It may have been that an honest debt, for which his brother or a son were bound as sureties, and which he could not meet, was pressing on him, and he yielded from the motive to save them from ruin. He may have reasoned, that I am going to vote this way anyhow, or at any rate. I am free to do so if I will, and no one can question it; therefore, I may take the offered money and save those to whom I owe so much, from suffering. All this may be true, and if the act was controlled and prompted by these things, these would be the motives of his conduct. But if indicted for the offense and all these things appeared clearly', it would not change the verdict of the law; he would be convicted. Why? Because it is not a question of motive in this sense, but it is. a question of fact. The law says, when he took a bribe for his vote, that this act is corrupt, and forbidden, and he must suffer the penalty. The punishment might be in mercy mitigated by the jury, or the executive might pardon; but he is guilty of
The reasons are obvious. Public policy and the evil results of permitting such acts, require the acts should be forbidden; and when the act is proven, that is, that the party accepted the money for his vote, the offense is complete, when he in good faith agreed to give his vote for the money and accepted it. 'Whatever might have been the motive for such a contract; .however praiseworthy it might have been to have desired it for appropriation to a generous or honest use, this does not relieve him, nor can it be heard to show him guiltless. A man might, it is true, receive money, with a view, not of bona fide selling his vote, but to detect and expose the party seeking to bribe him, and he not be guilty; because he does not intend to perform his contract nor do the act, and does it not to be bought, but with the purpose not to be bought. Therefore, while apparently this would seem - to be a case of bribery, -it is not, because the intent to be bribed and to vote as agreed is not. present, and the purpose is not to sell his vote, but to expose and punish another party who has such guilty purpose. This does not contravene in the least the principle, but sustains it. The act, with the forbidden intent or purpose, is the only point of inquiry, not the motives that prompt to accept a forbidden contract.
It is really an inquiry as to whether a bargain or contract, forbidden by lew, has been actually and in fact consummated — that and nothing more. So I cheerfully admit that no inquiry can be had into the motives of a Legislature in passing a law, nor is such inquiry possible or proper. The legislator is free to act from any motive he chooses, being responsible to his constituents only for his acts. The wisdom or policy of the act is for him, and we have nothing to do with these. In most of the cases referred to, it was strictly an inquiry into these that was in issue before the court.
But when we come to an enactment under the rule in the Dartmouth College case, which is a law, plus a contract, superadded, then I think quite a different question is presented. I would confine the rule strictly to cases where parties obtain contracts of this class from the Legislature,’ and thus deprive all of the temptation to seek them by corrupt means. The fact that the doctrine of the Dartmouth College case has turned such enactments into another and different thing than a law, makes it, as I think, not only proper, but public policy of the weightiest character demands imperatively the distinction suggested, and the principles settled as to the elements that enter into this contract sustain it.
But to go further. It is settled by all the cases, that there must be, not only parties and assent, but' also a consideration, in order to make it a contract; without this, it is a mere gratuitous license or privilege, and - is not a contract. In addition, it has lately been held, that even all this may exist, and yet if the consideration 'be immoral, as in the case of an act of the Legislature for a valuable consideration- incorporating a lottery: Stone v. Mississippi, 191 U. S. R., 820; that in such cases it is not a contract, but such acts of the Legislature may be repealed, and the contract not protected by the constitution of the United
From this it follows clearly, that all the affirmative elements that make a contract between individuals, enter into a contract resulting from an enactment of the Legislature — parties, assent, .consideration — and they ■are vitiated by being' against sound morality or public policy.
If all' these affirmative and negative elements enter into this contract by law, then on what principle can it be,, that the negative elements that destroy or defeat all other .contracts, can be held as not applicable to such contracts? Fraud in obtaining them, bribery of an agent, who is authorized by his principal to act for him, will always, and in every other case, enable the party to be charged by the stipulation, to avoid it. Why is it, that the people who are to- pay, are the only parties whose mouths are shut and cannot be heard, and legislators charged with the most sacred trust, are to violate it with impunity? If a portion of these bondholders shall authorize an agent to fund their bonds, if in his judgment he deemed it best, and solemnly enjoin it upon him to investigate and act fully and honestly for their interest, but the agents or officers of the State, or any party concerní d, shoud bribe him by paying him ten thousand dollars to consent to fund, no man would say his principal could not avoid the act, whenever he could be heard to .present his claim in court.
It is procured by corruptly purchasing the members of the Legislature. They were representatives of the people. That is what they are to be by the-constitution. They are required, by the very character given them in that instrument and the ,.very nature of the thing to be done, to act freely and of' choice for the people. They are solemnly sworn “to vote without fear, favor, affection, partiality or prejudice.” But when a man sells his vote for money, he votes under the compulsion of a contract, corrupt and forbidden, and thus ceases to be the representative of his, people, and becomes the agent and tool of Iris purchaser. Is this the act he is authorized, required and sworn to do under the constitution ? Is it .not in violation of and outside all his constitutional duties— an utter .'abandonment of them? If so, why should this act be held as sacred and binding, when it makes an irrepealable contract, as if done in the precise line
The length of this opinion forbids a full discussion of this question. I would hold, that in all cases of private contracts, or contracts obtained by individuals for their own benefit or advantage, where it could be clearly shown the assent of the members or sufficient to pass the bill, was procured by bribery, the contract, as between the State, or her taxpayers and the parties so bribing, is one that may be avoided, and on proper case, the courts should fearlessly apply the remedy; no restraints of delicacy should make them hesitate.
I confine my opinion strictly to the case before me,
It is conceded that I have gone on delicate ground, •where the steps must be cautiously taken. But it is like the case of a surgeon who finds his patient either threatened or suffering with a cancer near a delicate organ. He might well hestitate, but when it was settled that the knife was the only remedy he could apply, he would be unworthy of his place if he did not use it.
So I would in this case cut, as the only .remedy, though I should have to. go close even to the bleeding heart, to prevent the approach of the eating cancer of corruption and bribery to our legislative halls, or if it be true, as charged, it has already come, to crush out its first footfalls on the soil of my State, by all the power and agencies of the judiciary department, and thus fix upon it the seal at least of judicial condemnation, strong and deeply engraven in our jurisprudence.
The result is, that I-hold the coupon clause unconstitutional and void; that the funding board should be enjoined from issuing the bonds proposed, and that on the charges of the bill, as to bribery, there is an equity; and the chancellor's decree should be reversed, •and the case remanded.
said:
No case of greater importance, I suppose, .has ever 'been presented to this court; and no case has probably ever been argued before it more thoroughly or with more learning and ability. It demands a most earnest, careful and deliberate consideration by each member of the court. It indirectly involves political ■questions upon which the people of the State have been divided, and in regard to which deep feeling exists. . As citizens of the State, the members of the court are not supposed to be entirely without such opinions upon these questions as may more or less affect their judgments; but the stronger instinct of •every fairly educated and fairly balanced judicial mind is that sound principles of law shall be maintained. The bill presents certain well-defined legal questions. We have only to respond to these questions from a .judicial standpoint, and as far as possible in a judicial spirit, and our duties are performed. I regard it necessary for the proper discharge of my duty to state .my own views in a separate opinion. In discharging this duty, I am sure I have never felt more impressively the weight of individual responsibility.
The object of the bill is to prevent the execution of an act passed by the General Assembly, on the 5th of April last, authorizing the funding (by the issuance ■of new bonds) of much the larger part of the present bonded indebtedness of the State. The aggregate of the new bonds thus to be issued, it is said, will be
Among other things, the bill charges that suits, were pending against certain railroad corporations of the State, brought by holders of Tennessee bonds, claiming a lien on the roads; and that during the session of the last General Assembly a conspiracy was formed between said bondholders and said railroad companies to procure the passage of the act in question, with the understanding that in such event the bonds, would be funded and the suits against the railroads dismissed; and that for the purpose of carrying out this scheme, a large and powerful lobby was organized, and supplied with large sums of money and bonds to corrupt and control the Legislature, and procure that body to pass the law in violation of their pledges to. the people and of the people’s wishes; and that various improper influences were brought to bear upon members of the Legislature; and that the final passage of the bill through the Senate, by -a majority of one vote, was procured by bribing two of the Senators who voted for it, one receiving ten thousand and the other fifteen thousand dollars for his vote.
The question is, Can this court take jurisdiction,, and, upon proof of these allegations, set the law aside ?
The question is whether this court has jurisdiction of the question. I am satisfied, upon the most careful consideration, that it has not. This seems to me to be manifest from the organization of our form of government. The government of the State is divided into three departments — the executive, legislative and judicial. The three combined represent the entire sovereignty of the State. Powers vested exclusively in one department, cannot rightfully be exercised by the' other. The legislative power is. certainly vested .in' the General Assembly, and it is certain that the courts’ can exercise no part of this power; nor can either of these departments rightfully undertake to determine with what degree of fidelity the other • has met its obligations. For this court to exercise the jurisdiction invoked, would be to assume that the co-ordinate departments of the government are liable to corruption but we are not. If we were to take jurisdiction, and
The ground upon which courts set aside unconstitutional laws, as we shall hereafter see, is wholly different. .In such cases the courts simply determine whether there is conflict between the two laws — the Constitution and the legislative act,- — -and if so, the former must prevail.
The remedy, where the passage of a law has been improperly ohtained, is to repeal it, either by the same or by some succeeding Legislature, and the wrong sustained in the meantime is generally not irreparable; and, besides, the remedy, by repealing the law, can be more promptly applied by the Legislature than by the courts.
The correctness of this view as tó ordinary legislation is conceded by the counsel for the complainants, but it is insisted that,-as to contracts entered into by the Legislature on behalf of the State, the rule must be different; that when a State contracts, she lays aside her sovereignty and contracts as an individual,
But it is said, on account of a peculiar provision of this act, known as the “coupon feature,” it will, when executed, be irrepealable, and the State, for reasons hereafter to be considered, then without remedy, and hence, unless the courts now interfere, the obligations entered into under a law thus enacted, will be fastened upon the people, and no means left by which they can resist them. I will consider this question when I come to the constitutionality of the “coupon feature,” and it will then appear that, in my view, there is a remedy against such an emergency, but not the remedy we are now considering.
To assume the jurisdiction now insisted upon would not only be, as I think, wholly ■ unauthorized upon principle, but directly in the face of all the judicial opinions that have been expresséd upon the subject, which, considering the sources from which these opinions have emanated, it would be bold if not rash to disregard. I refer to Chief Justice Marshall in Fletcher v. Peck, 6 Cranch, 87; Sunbury and Erie R. R. Co. v. Cooper, 33 Penn. St., 283; Wright v. Defrees, 8 Indiana, 298; McCullough v. The State, 11 Indiana, 424; Ex parte Newman, 9 California, 515; Slack v. Jacobs, 8 West Va., 612; State v. Hays, 49 Missouri, 604; People v. Draper, 15 N. Y., 545. There is scarcely to be found an intimation to the contrary.
I come now to consider whether this act violates the- Constitution .of the State. Several objections have been taken to it on this ground, but the argument has been addressed mainly to what is known as the “coupon feature” of the act, and this question, in importance, undoubtedly overshadows all others.
The' bonds authorized by the act, as I have said, will aggregate about twenty-seven millions of dollars. They are to run ninety-nine years from the 1st of July, 1881, redeemable at the pleasure of the State at any time after five years. They are to bear interest at the rate of three per cent, per annum, evidenced by coupons payable semi-annually in New York. The 3d section provides that the coupons, on and after-their maturity, shall be receivable in payment of all taxes and debts due the State, except for taxes for the support of common schools an‘d for the payment of the interest on the common school fund, and said coupons shall show upon their face that they are so receivable. The 9th section enacts that the bonds shall be substantially in the form there set out. The form of the bond there set out contains this provision, to-wit: . “The coupons of the bonds, as they become due,
I will not stop- to consider the effect of the discrepancy between the 3d section and the form of the bond set out in the 9th section, — the former making the coupons receivable for all taxes and debts with, certain exceptions, and the latter making them so receivable without exception. I will assume that the-third section is to prevail.
The purpose of these provisions is manifest. The stipulation that the coupons are receivable for taxes and debts due the State, especially as incorporated into the bonds and coupons themselves, will, if valid, constitute part of the contracts, and will be within the protection of the clause of the Constitution of the United States prohibiting States from passing laws impairing the obligation of contracts, — a provision which the Federal courts have jurisdiction to enforce, apd this notwithstanding the Constitution of the United States denies to those courts jurisdiction of such suits directly against the States. The Federal courts take jurisdiction of the officers of the State, and enforce this provision of the Constitution, notwithstanding the contract to be enforced be the contract of a State and the State be the real party in interest. This is the well-settled law of the Supreme Court of the United States: Osborne v. U. S. Bank, 9 Wheat., 738; Bodge v. Woolsey, 18 Howard; Bank v. Debolt, ibid., 380; Furman v. Nichol, 8 Wallace; Hartman v. Greenhow, 12 Otto; Davis v. Gray, 16 Wallace, and many other cases. So that, if the act be within the power of
I take it to be a sound and well-recognized principle, plainly deducible from our Constitution, that the
The provision in regard to the coupon is not only a law regulating the collection and disbursement of the revenue and the conduct of the State’s officei^ but, under the construction put upon similar provisions by the Supreme Court of the United States, it becomes part of the contract. The question, therefore, is, can one Legislature, in the form of a law, make a contract which surrenders the power of future Legislatures to enact laws for the public good? Can one Legislature surrender those attributes of sovereignty which are absolutely necessary, not only to the well-being of the State, but to its very existence? Stated in this form, there can be but one answer. No such power can or ought to exist. The power, from time ■to time, to enact such law's for the public good as may then appear necessary,, is an essential element of sovereignty absolutely necessary for the existence and well-being of the State, and cannot be surrendered.
But, it is said, if this proposition be carried to its full, length, it denies to the • State the power to issue bonds in any form; that the power to bind the State by the “coupon feature” of the law, is no higher than the power to issue an ordinary bond; that in each case the faith, honor and credit of the State and its future revenues are pledged for the payment of the principal and interest of the debt, and nothing beyond this in either case. If the power exists to make one
If the obligation contained in the “coupon feature” be allowed to stand upon the same basis as the bond without this feature — that is, upon the faith and honor of the State — and bear the same construction, then this assumption might be correct.
When questions of this character were first brought before the Federal supreme court, it was insisted that the clause- of the Federal Constitution prohibiting States from passing laws impairing the obligation of contracts, related to contracts of individuals, and that mere legislative acts of the State should not be construed as. contracts which the Federal courts were vested with jurisdiction to enforce against the States, especially when, by the Constitution, the court could not take-jurisdiction of the State directly, but that such acts were no more than ordinary legislation regulating the. State’s local affairs, and subject to repeal as other laws. Had this construction prevailed, then the form of the obligation entered into by the State would not be very material. The State being sovereign, could not be coerced to perform the obligation in either-event; and in making such contracts, no higher power would be exercised in the one case than in the other. But, as we have seen, the. decision of 'the question was otherwise. It was held that when provisions like the present are enacted as to the manner of payment, the Federal court will take jurisdiction of the State’s officers and enforce the law as a contract, denying the
The ordinary bond pledges the honor and faith of the State. Each successive Legislature, as the representatives of the people, is left to meet its part of the obligation. In doing so, they act from the sense of honor and good faith which is supposed to actuate the people of a sovereign State and their representatives. It is for them to determine what honor and good faith require, but there can be no power to coerce their action. They are not bound by previous legislation further than honor and good faith r< quire they should be bound, and of this they are to judge. By the issuance of the ordinary bond, the power to legislate in the future for the public good is in no sense relinquished.
On the other hand, the bonds with the “coupon, feature” not only pledge the honor and faith of the State, but practically takes the matter entirely out of the control of the people or any future Legislature while the obligation lasts, not only as to the question
Had the Legislature the power by contract to place the coupon provision of the law absolutely beyond repeal while the coupons remain unpaid?
It is said that the question can never arise, unless we suppose that future Legislatures may disregard their •obligations and refuse to levy the necessary taxes to meet the interest on the debt and the other expenses of the State. Without this, the necessity for a repeal can never exist, and it cannot be presumed that they will thus disregard their duty. I agree that we are to ''predicate no argument upon a presumption that any future Legislature will violate its duty or act in bad faith. But the error of this argument is in the court assuming to decide that it will, under all circumstances, be the duty of every succeeding Legisla^ ture to levy the taxes to pay the coupons. This is not a question for the court. If a future Legislature should become satisfied that the debt was unjust and fraudulent, procured by bribery and corruption, the honor and faith of the State would not require that it should be paid. Of this the Legislature would have to judge. It is said that this debt is an honest and just debt. If so, I trust the . legislative de
But aside from this, and assuming that no future Legislature will ever doubt that this is a just debt, will it, under all circumstances, be their duty to levy taxes to pay the coupons? Public debts are to be paid by taxation; the creditor has no direct claim
But- it seems to me that if the power to make such contracts be conceded, then the right to repeal the law and abrogate the contract would not be recognized in any emergency. The question would come directly within the jurisdiction of the Federal court. The decisions of that court, at least as they now stand, leave no room for do.ubt. They say if the State Legislature makes the contract, and has the power to make it, then it cannot be impaired by any subsequent legislation; and to ascertain the meaning of the contract, they disregard the construction of the State courts and construe it for themselves. That court would not undertake to enquire into the circumstances of emergency or necessity under which \ the State Legislature may have undertaken to repeal the law- and impair the contract. It is said, howeyer, that the-jurisdiction is vested in that court, and whatever it might decide would be the law of the case; and we must presume they would decide correctly. Jurisdiction is vested in that court to enforce the Federal
But whether our Legislature has the power to bind the State by the contract supposed to be impaired, is not a question for the Federal Supreme Court. This is a question depending upon the construction of our own Constitution, and belongs to this court. If our Constitution denies to the Legislature the power to make the contract, and this court so declare, I do not understand that the Federal Supreme Court has any jurisdiction to review our decision. It is certain it would not if the law be declared unconstitutional, and the proposed contract without authority, in advance, and its execution prevented, whatever it might decide in the event the question were to come up after the bonds are issued. So. that, when it is found that legislative acts of the character of this one are construed to be contracts, by which the State is subjected to the jurisdiction of the Federal court, and by which its sovereign power, necessary for its own existence and well-being, is surrendered, the State court is well justified in declaring that no power exists in the Legislature to make such a contract. The State must reserve to itself and to each succeeding Legislature the sovereign power to protect itself and attend to its own local affairs. Its Legislature can surrender no power not already vested in the Federal Government.
Again, assuming that the debt will always be re
We cannot determine, nor was it in the power of the last General Assembly to determine, that these changes would never be necessary or important. It
It is argued, however, that for a consideration a Legislature may relinquish part of the sovereign power, though not all. I know that this doctrine is established by numerous decisions of the Supreme Court of the United States, with reference to provisions in charters of incorporations, by which, for a consideration, the right to levy taxes in the future has been held to be released. We are bound by these decisions in similar cases, but we are- not bound to apply the same doctrine elsewhere. The soundness of the doctrine has always been denied by some of the ablest Judges of the Supreme Court,' and has been met with solemn protests by some of the ablest State couits; and Mr. Justice Miller has shown, in one of his dissenting ■opinions, that if the power be conceded to exist, no limit can be fixed to its exercise.
These decisions must be left to stand upon their own peculiar grounds, if indeed they stand upon any sound principle. I have carefully examined the case of Antoni v. Wright (22 Gratt.,) decided by the Supreme Court of Virginia, and given to it the respectful consideration due to the decision of the courts of a sister State. But I cannot concur in the reasoning cr the conclusion. I have already examined the grounds
* The Supreme Court of the United States has not, in general, been disposed to question the power of the State, Legislatures to make such contracts. I presume, as I have said, the construction of the State constitution as to the power would be a question for the State courts. Though in enquiring whether the contact of a State has been impaired, the United States courts do not yield- to the construction given by the State courts,
We ought to entertain no feeling of- antagonism towards the Federal Supreme Court. , We should adopt its decisions, where they are controlling, without hesitation. We should not regard its ..decisions as those of a foreign jurisdiction. It is not to be denied that the extension of the jurisdiction of. these courts over the States is, from a political stand-point, regarded with jealousy in some quarters as indicating a tendency to encroach upon the rights of the States and strengthen the General Government. In this contest it is not the province of this court to enter with anything of a partizan spirit. Upon this character of questions, however, Mr. Justice Miller, in a vigorous 'dissenting opinion, in which Justice Field and the Chief Justice concurred, in the case of Washington University v. Rouse, 8 Wallace, 442, uses this language: “But we must be permitted to say, that in deciding the * * validity of the contract, this court has been at times quick to discover a contract that it might be protected, and slow to perceive what are claimed to be contracts are not so by reason of want of authority in those who profess to ' bind others.” This, he adds, has been especially apparent in regard to contracts made by Legislatures of States. When it is seen that the result in cases of this character is, by contract to surrender to the Federal court jurisdiction over the State-itself in its local affairs, it cannot be wondered if, in view of the above, statement, State courts shall here
It is said, however, that the bill attacks the act upon the ground that the Legislature cannot pass an irre-pealable law, and hence this law is repealable; and at the same time assumes that the act is unconstitutional because it it is not repealable. This argument is ■earnestly pressed, and it is insisted that the law is ■either repealable or it is not repealable; if it is re-pealable no relief is now needed, and it will be for the Legislature to repeal it at pleasure; if it is not re-pealable, the complainants arc entitled to no relief by their own' showing. This, though ingenious, savors of special pleading.” If the section in question was ■only a law, it would of course be repealable, but it involves also elements of a contract, and if the power ■exists to bind the State to these stipulations, and the terms be accepted, then the contract could not be .impaired. As to neither of these propositions can there be any doubt. Nor can there be any doubt, under the decision of the Federal Supreme Court, that this is a contract. No difficulty can exist as to its construction and meaning. It was intended to prevent the repeal of the law. The question is not whether it is or is not a contract, or as to the meaning of the contract; but the question is, whether the Legislature had the po(wer to bind the State to these stipulations. It is not an accurate statement of the po
If such jurisdiction exists, it would in every view be better to exercise it now, rather than allow the bonds to be issued and afterwards allow the coupon section to be repealed and the contract changed. Of course we .cannot know that the attempt will ever be made to repeal it; but the bonds in the form proposed would contain an unwarranted assumption upon their face and be calculated to deceive and mislead innocent purchasers, and create litigation. The Supreme Court of the United States enjoined the board of liquidation of Louisiana from issuing bonds of the-State to certain persons, upon the ground that an act of the Legislature authorizing it, indirectly impaired the rights of complainants under a former act: 2 Otto,
If this law, in terms, authorizes the defendants to enter into contracts in .the name of the State, containing stipulations to which the State under the constitution cannot be bound, then there ought to be no reluctance in so declaring, or any “ straining of the timber” of the law to avoid the result.
It may no doubt be thought that there are strong reasons why the court ought, if possible, to sustain the settlement. The State, it may be said, has large resources; the debt is not beyond our means; it has been a disturbing element in the State; the reputation of our people for honor and integrity is at stake, and the court ought, from these consideration, to resolve all doubts in favor of the law, brush aside all technicalities and abstractions, and sustain the action of the Legislature, if possible, because it is a favorable settlement, and it is of great importance to the State that it should be sustained.
To defeat this settlement of the public debt is, I know, assuming a great responsibility. I certainly could not undertake to join in doing so upon a mere technicality or abstraction. I cannot, of course, know that this law would ever injuriously affect the State;
It simply resolves itself at last into the' question, whether the sovereign power of the people of this State to deal with their public debt, to raise revenue by taxation and appropriate it, and enact laws in regard to the manner of such collections, shall remain with them and their representatives as they shall from time to time assemble, or shall that power be held to have been surrendered by the contract of one General Assembly for ninety-nine years, and the jurisdiction thereby vested in the Federal court to coerce the State into the performance of the contract. It must be remembered that if the contract be valid, the people of. the State ■cannot change it even by constitutional amendment— they cannot even in this mode impair the obligation.
The last General Assembly, actuated no doubt by a patriotic desire to redeem the honor of the State and do justice to its creditors, undertook to satisfy their demands by putting 'the obligation in such form that no future legislatvre could question the settlement
It remains, .then, to be seen whether the court has. jurisdiction, and the necessary parties to render a decree. It is argued with great earnestness • and force, that the court cannot take jurisdiction of this case,, because it is in effect a suit against the State, or against, “ officers of the State acting by authority of the State,, with a view to reach the State.”
■ The constitution allows suits against the State in such manner as the Legislature may provide; but as there is now no law providing for such suits, it is conceded that they cannot be maintained. On the-contrary, the act of 28th February, 1873, declares that no court in this State shall have jurisdiction “to en-.
There are cases, however, where the ministerial officer is vested with discretion in the discharge of his duties — -a discretion -which the courts cannot control. They may compel him to perform his duty, but may not determine how his discretion shall be exercised. The principle upon which mandamus is awarded against ministerial officers in such cases, is not that the State
It is true the court cannot take jurisdiction of the State for any purpose, but it has undoubted jurisdiction of the defendants. The objection to the exercise of the particular jurisdiction against them is, that they are officers of the State acting by authority of the State. To determine this the court must look to their authority — it cannot accept their mere assumption. If
This doctrine is firmly established as respects the jurisdiction exercised, by the Supreme Court of the United States, in enforcing the clause of the Federal constitution against State laws impairing the obligation of contracts, even where the contract to be upheld is the contract of the State. In such cases, although the State officers may be acting under the authority of a law of the State prima facie valid, and although the 11th amendment to the Federal constitution prohibits the suits against the State, yet the Federal courts take jurisdiction of the officer; and if the law of the State under which he is acting be found to impair the contract embraced in any previous act, the former is declared void, and the officer is compelled to execute the law as the court may declare it. The courts say that, such suits are not suits against the State, although the State be the real party in interest: Osborne v. Bank U. S., 9 Wheaton, 738; State Bank of Ohio v. Knoop, 16 Howard, 369; Dodge v. Woolsey, 18 Howard, 331; Bank v. Debolt, Ibid, 380; Jefferson Bank v. Shelly, 1 Black., 436; Dads v. Gray, 16 Wallace, 220; Murdock v. Governor Woodson, 22 Wallace, 351; Board of Liquidation v. McComb, 2 Otto, 351. In the latter case the board of commissioners of Louisiana, of which the Governor was a member, was
So that the argument insisted upon would lead us to this conclusion: In cases involving the provisions ■of both the State and Federal constitutions against laws impairing the obligation of contracts, the rule would be that a suit against an officer is not a suit against the State. If it involve any other provision of the State constitution, the rule .«would be exactly the reverse. It would seem that upon principle, the rule ought to be uniform. "We have a number of cases in which officers and agents of the State have been restrained by injunction from-carrying out laws which result in violating the constitution; as, for instance, the establishment of new counties. The leading case on this subject is Bradley v. Commissioners, 2 Hum., 432, which has been repeatedly followed; see, also, Mott v. Pennsylvania, 30 Penn. St., 1; also, Galloway v. Chatham, 63 North Carolina; also, Winston v. T. & P. Railroad, 1 Baxter.
The cases, however, of Bradley v. Commissioners, anothers of a similar character, were before the act of 1873, and the mandamus cases before referred to, did not consider its effect.
This question was considered in the case of the State v. Sneed, 9 Baxt., 472, in which it was held that the act of 1873 deprived the court of jurisdiction by mandamus to compel the tax collector to receive the notes of the Bank of Tennessee issued after May, 1861, in' accordance with the 12th section of the charter. It will be seen, however, that the .real ground upon
There are cases where executive .officers are vested with sole discretion to determine the validity of the laws under which they act, and where their action cannot be controlled by the court or its validity questioned afterwards. Such was the case of Jonesboro Turnpike Co. v. Brown, 9 Baxter.
There' are other cases where, although the court will not control their action, the same question may come before the court and be decided differently. Such was the case of Williams v. Register, Cooke, 214. The executive department of the government cannot be delayed and embarrassed by the execution of the laws necessary for the administration of its affairs, until the constitutionality of the laws be determined by’ the courts: Mississippi v. Johnson, 4 Wallace, 475.
The question of the constitutionality of this law is one ultimately for the courts. It cannot be held that the funding board were vested -with exclusive jurisdiction to determine the validity of the law. Their decision could not, in the nature of things, be final. If they were to determine the law unconstitutional 'and refuse to issue the bonds, the court would no doubt have jurisdiction by mandamus, if it deemed the law valid, to compel them to act: On the other hand, the court deeming the law unconstitutional, had the jurisdiction to restrain their action by injunction,
It is said the State is an indispensable party. If the Slate can be made a party in such cases it should be done; that it cannot, is a sufficient reason for not doing so: Davis v. Gray, 16 Wall. The Attorney General for the State, or any counsel employed by the Governor, would have been heard had they so desired. The- funding board are the only persons who could have been made defendants. The creditors have as yet taken no benefit under the act, and are besides unknown and too numerous to be made defendants: Davis v. Gray, 16 Wall.
The complainants only have the interest of citizens and taxpayers of the State. This would clearly not give them the right to prevent the execution of an unconstitutional law that might incidentally affect them. But such 'an interest has been held sufficient to entitle them to prevent the establishment of a new county: Bradley v. Commissioners, 2 Hum. The issuance of illegal bonds by a county: Winston v. T. & P. Railroad Co.: 1 Baxter. Also, to prevent the execution of
To suspend the execution of this law will not interfere with or embarrass the general administration of the public affairs of the State, either with respect to its internal government, or in the consummation of any public enterprise upon which the prosperity of the State may be supposed to depend.
The creditors already hold the bonds of the State. To suspend the execution of the act will only prevent the exchange of these bonds for others which, in my opinion, would contain stipulations by which the State cannot be bound; and if in this I am correct, it is to the interest of the creditors to have it so now declared.
These are the conclusions at which I have arrived, after most earnest consideration. I announce them with no feeling of undue confidence in my own opinion. And I may say, without affectation, that it is to me a matter of deep regret that these conclusions are not sustained by a unanimous bench. I would certainly feel far better satisfied could I have, also the opinion of the Chief Justice and the venerable Associate Justice who sits under a special commission in this, case, to lean upon, knowing full well the weight their superior learning, ability and experience and high character, will give their opinions on questions of this character. I must, however, stand upon my own convictions; and while these convictions are announced, I
I am of opinion that the decree of the chancellor dismissing the bill is erroneous.
said:
It is with no little regret that I find myself coni-pelled to differ in this case from a majority of the regular members of the court. But as I should feel myself recreant to my duty as a judge were I to concur for the sake of conformity in opinions and conclusions, contrary to my most deliberate convictions, I proceed, without excuse, to give my opinion in this case.
The bill in this case was filed in 1881, in the chancery court at Nashville, by certain alleged citizens and tax-payers of the State of Tennessee, to enjoin the carrying out and enforcement of an act of the General Assembly of said State, passed at its regular session of 1881, entitled “an act to compromise and settle the «bonded indebtedness of the State of Tennessee.” This act provided for funding all of the legally issued bonds of the State, except the bonds issued for the permanent school fund, and except the bonds held
By the general appropriation bill of the same session of the General Assembly, $1,125,000, or so much thereof as might be necessary, was appropriated to meet the coupons upon the compromise bonds as they ■might fall due for the next succeeding two years. The revenue bill of the same session fixed the State tax for the year 1881 and thereafter at forty cents on the one hundred dollars, of which thirty cents was to be for State and. ten cents for school purposes. By existing law the county courts were authorized to levy an amount annually -by taxation for 'general purposes, not to exceed the State tax exclusive of the tax for public roads and schools. Under the revenue bill aforesaid, a State tax of forty cents on the hundred dollars has been collected, or is in process of collection, thirty cents on the dollar of which may, by the terms of the funding bill, be applied to the coupons of the compromise bonds. All of these facts appear by statements in the bill. The bill was filed before the funding board entered upon the discharge of their duties.
The grounds for injunction stated in the bill are: That the “funding act” was procured to be passed by bribery and corruption- of certain members of the General Assembly; that the tax-coupon feature forestalls the revenue and diverts it from current exigencies, narrowing the scope of subsequent legislation by an enactment in the form of a contract binding the revenue, and the political power of the State over the
The case has been argued with admirable ability and ingenuity by the counsel on both sides. It was a pleasure, rather than a labor, to hear them. It comes now to be decided.
Is this in substance, though not in form, a suit against the State, and therefore upon general principle, as well as under the act of the 28th of February, 1873, inadmissible? The second section of that act is as follows: “No court in the State of Tennessee has, nor shall hereafter have, any power, jurisdiction or authority to entertain any suit against the State, or against any officer of the State, acting by authority of the State, with a view to reach the State — its treasury, funds or property; and all such suits now pending, or hereafter brought, shall be dismissed, as to the State or such officers, 'on motion, plea or demurrer of the law officer of the State or counsel employed for the State.”
It is further said, however, by complainants that on such a motion all of the facts stated in the bill to constitute equity are admitted, and that the question of jurisdiction cannot be considered; that this must come up later upon specification in a demurrer. The more correct statement in regard to admission of facts upon such a motion would perhaps be this: The facts stated, if true, do not make a case for the interposition of a court of -equity, and cannot be noticed by it. Substantially, however, there is no difference between these two. The cases cited to show that the court on such a motion cannot look at the question of jurisdiction, are Merriman v. Norman, 9 Heis., 268; Mays v. Biggs and Wife, 3 Head, 37; and Earles v. Earles, id., 366. 1 have carefully looked into these cases, and find no warrant in them for the assumption. If the facts stated in the bill be all taken to be well pleaded, as it is insisted they are, the whole of them taken together may not make a case that can be considered by a court of chancery. Jurisdiction is not a fact admitted on the motion. There may be natural equity in the facts as stated, but it may be such equity as the courts of chancery, neither from inherent power nor from power communicated by the Legislature, can consider. It may be not an equity of the court. The case of Anderson v. Mullenix, 5 Lea, 289, holds that on such a motion as the present, the court will not dismiss a bill for a defective
Upon the question of jurisdiction, then (disassociated from the special equities set up in the bill), as the most advanced question, I proceed with some discussion to announce my opinion. As it is not denied by complainants that if this ' be a suit against the State, or its officers acting under its authority, to reach the State, its 'treasury, funds or property, in form or substance it cannot be- maintained, that question need not be discussed. But there is a difference between the parties here as to the proper construction and meaning of the act of 1873. It will be necessary to settle that before proceeding further. Does the act mean to protect the State and its officers acting by its authority only when the State is reached through its treasury, funds or property, or generally, when it is in any manner reached, if indeed it can
But the question is asked at last, Is there no way of stopping in limine a vicious unconstitutional act — - one ultra vires legislative competency ? This very question would seem to have been in the mind of the General Assembly when the act of 1873 was passed, and that, balancing the advantages and evils on the one side and the other of allowing suits to be brought for such a purpose, the conclusion was to deny the right to sue with that or any other- object in view. In the meantime no citizen is suffering. There is a large bonded debt of the State outstanding, by every one’s admission; the taxes are laid for the two current years, and must in any event be collected ; the bondholder takes his bond subject to the
But it is said that if this question is not decided now, and the seeming contract offered is completed and the coupons go into the hands of the bondholders, the Supreme Court of the United States will hold that to be a real contract, which, by injunction now, before the transaction is a fait accompli, we can stop
From these considerations, it would seem to me to result that no general injuction, in any case under the laws of Tennessee to be administered in her own courts,
These authorities of complainants have been zealously pressed upon the court, but as it seems to me for various reasons applying to each case, they fail to sustain their position as to jurisdiction. Of course it is impossible, within the limits of a judicial opinion, to give each one a discussion to show its inapplicability. The case of Burch v. Baxter, and several others like it, are cases where the jurisdiction was submitted to and the question not raised. These were cases besides to compel the officer to do what the State had ordered; or to abstain from doing what the State had forbidden. There is no case where the officer has been prohibited from doing what the State • seems to have ordered to be done, with the possible exception of the ease of Bradley v. The Commissioners, and like cases. These have been already sufficiently commented upon. The Federal court cases, beginning with Osborn v. Bank, were cases decided against States, in effect making State officers parties and shutting the eyes of
I may remarle in passing, that as a citizen I was not in favor of the passage of the 100-3 act, as it is called, nor of the coupon-feature in it; if anything better could be done which would be accepted by the creditors. T preferred to reduce the capital of the debt and pay a larger interest on the reduced amount, and to induce the creditor to be satisfied, if possible, with the pledge of the faith, credit and honor of the State; but other ideas prevailed and I have now, in conjunction with others, to pass upon the binding nature of the measures adopted so far as they can, if at all, come within the scope of judicial cognizance.
The bill then in this case, upon the considerations above set forth, should in my opinion be dismissed. The discussion of other questions under this view might be unnecessary; but as other questions of great importance have been discussed, and, as it may be desirable that opinions should be expressed upon them, I proceed to consider the question whether the complainants, as tax-payers and citizens of the State are in their right (otherwise admitting the jurisdiction of the court) In filing their bill. It is not easy to conceive how
On the other hand the question comes back always, have not these tax-payers an interest in the matter, and have they not a right to have that interest protected? It is not every interest of every individual in a civilized republic that can be separately protected. Though the community consists of the individuals that compose it and each has a right and interest in any of the common purposes, it does not follow that this right and interest may be pursued at all hazards and under all circumstances through courts, at whatever risk to the rights and interests of others. Communities exist upon the principles of surrender and compromise as well as upon those of individual independence and self-assertion.
The general rule in regard to cases where the injury complained of is one to the general public, is, not to allow a person to sue who can show no special damage to himself, but only such damage as he may incur in common ■ with all others. It is damnum absque injuria. If the present case were one clearly
The next charge in the bill of complaint to be considered, is that of fraud, bribery and corruption against a portion of the members of the Legislature (part of the majority) that passed the act of 1881, now under consideration. I was at first of opinion 'that this charge was not made with sufficient definiteness to demand the attention of the court; in other words, was not well pleaded. But in view of the case of Anderson v. Mullenix, 5 Lea, 289, this being a general motion to dismiss for want of equity, I changed that opinion. It seems, however, somewhat contrary to ordinary fairness that the characters of ^members of the Assembly should be put on trial with■out their being parties to the bill and without oppor-Lunity of defense. On this motion to dismiss, as I understand the law, the facts stated in the bill are 'not in strictness admitted to be true, but it is said in effect, take them to be true and yet they are irrelevant and immaterial to any relief demanded upon them.
Can, then, the bribery of a member or members of the Assembly be looked to, to impugn an act of a general nature making or. offering to make a contract •between the State and individuals ? If the bribery
This is all that can be found in support of complainants’ position on the subject of bribery. What is there on the other side?' Judge Cooley, in his Treatise on Constitutional Limitations, under the head of “ Inquiry into Legislative Motive,” page 225, says, “and although it has been at some times urged at the bar that the courts ought to inquire into the motives of the Legislature where fraud and corruption were alleged and annul their action if the allegations were established, the argument has in no case been acceded to by the judiciary, and they have never allowed the inquiry to be entered on.” Dillon, in his work on Municipal Corporations, vol. 1, sec. -311, says: “It is well settled that the Judicial Branch of the Government cannot institute an inquiry into the motives of the Legislative department m the enactment of laws. Such an inquiry would not only be impracticable, but the assumption and exercise of such a power would result
The power to pass a law being conceded, the integrity of the Legislature cannot be inquired into. With a sufficient motive, bribery might always be proved) by perjury. The fullest representative of the State is the Legislature. For mistakes of power under the Constitution, the courts whose business is the study of laws and constitutions are a corrective, for their lack of honesty there is no corrective. The Constitution entrusts the Legislature (within certain bounds) with making laws both properly municipal and laws binding the State by contracts, both are legislative powers
But it is said the judiciary itself is not, in respect to this kind of a charge, more independent than the Legislature. The judgment of a court cannot be as-, sailed for bribery óf a judge, it may for fraud upon him; so perhaps may the act of the legislator. The judge may be impeached, I will not say that he may not even be sued for a corrupt judgment, though I know of no such case; the legislator may perhaps be indicted. All this, however, is aside from the question of the absorption of the powers of one department by another. However the judge may be put on his trial upon his motive, it will be the judiciary acting upon the judiciary and not. one co-ordinate branch subordinating another. The high court of impeachment itself is but an extraordinary court the functions of which are in no manner legislative. Is there then no remedy against the act of a bribed Legislature? In the nature of things there are many evils for which there is no precise remedy. The vis medieatrix naturae must be relied on where the pharmacopoeia furnishes no specific nostrum. Patience and the action of the people must be relied on to set such things right.
What, then, becomes of that absolute sovereignty
But I have said enough, perhaps, upon this position of complainants as one founded whether upon reason or authority, though the reasons against it are by no means exhausted. One other remark, and I dismiss the point. This proceeding, it is said, is to reach the bondholder; but the bondholder has not accepted the proposition; he neither is nor could he be before the court now, nor could he be reached under the authorities if he were before us. Certainly, however, the time to use the argument is when the
I conclude, then, that this charge in the bill, even if well pleaded in the ordinary sense, is, if true, irrelevant and immaterial, and forms no ground to impugn the act of Assembly is question.
The nest question demanding the attention of the -court is the objection to what is called the “coupon feature” of the act.
The precise question raised by this objection has never, so far as I know, been presented to a court, except in a late case in Virginia—that of Antoni v. Wright, 22 Grattan, 833. The objection in that case was held not to be well taken, by the supreme court of that State. That case is at one with ours, with two apparent or real exceptions, — one, that there the ■contract had been executed, while in our case it is only offered to the bondholder; the other, that there was a provision in the Constitution of Virginia that warranted the contract. In Hartman v. Greenhow, 12 Otto, the Supreme Court of the United States had before it some of the Virginia coupons, and sustained ¡and in all respects approved the case of Antoni v. Wright. There being no authority upon the other side in a case in any way similar to the present one, these two authorities might well be followed by us, if there is nothing in the exceptions .above stated. The question now under consideration being only one -of power on the part of the Legislature to enact this coupon feature, it would seem to me obyious enough that the same power that would enable the Legisla
After all, however, this case of Antoni v. Wright, supported as it is by other authorities and by the approval of the Supreme Court of the United States, is not binding authority upon this court. I proceed, then, further to examine this question upon principle -and reason, and shall endeavor to see, with such lights as’ I have, whether there is anything in this coupon feature manifestly in conflict with the Constitution of Tennessee. I have been struck in this case especially, as many times before in my life, at the wonderful intellectual superstructures which can be built on a few false assumptions, but they are at last houses built on the sand and cannot endure. But proceeding: If the coupon feature, once adopted, be in fact irrepealable, it is because it makes a contract that the Legislature was competent to make. If it does not make a contract because it is in form irrepealable and therefore unconstitutional, it binds nobody, hurts nobody, and may be disregarded by any future Legislature when exigency demands it. It would stand upon the same footing as mere municipal law, which, though bad and unwise, is beyond the reach of the courts. For the current two years the tax is laid to meet both coupon and other expenses, the appropriation is made, and to this extent all agree the law might be •constitutional. The presumption of sufficiency of rev
Shall we now in this case, before the contract is copiplete, which may be beneficial to the State, out. of which probably no inconvenience will ever arise, and from which, if accepted and yet void, no obligation can arise, — undertake to say that it shall not he-operative f If the coupon feature be ultra vires, it is-so only because it is a shackle. The moment in which it is to become a shackle, it drops off or breaks-of itself, or is declared to be no shackle because in its terms obligatory. The plain result from this is, that we cannot now declare that a limit and obstruction to future legislation which loses that character-the moment there is a necessity to overleap it; or, if it really puts bounds to legislation at all, it is because it is a contract which the Legislature was com
Something has been said upon the subject of appropriations as connected with the coupon feature. The provision" of the Constitution quoted in this connection is as follows: “No money shall be drawn from the Treasury but in consequence of appropriations made by
By an unwarranted assumption of analogy between the power of exemption denied to the legislative department by the Constitution of 1870 and the present pledge of future revenues for coupons of interest, by recurrence to that Constitution, which denies also the privilege of creating private corporations — both of which powers existed under the Constitution of 1834 — an argument somewhat plausible is advanced that the State of Tennessee, under its last Constitution, took a new departure upon the subject of State sovereignty. That whereas before the adoption of this last Constitution, the State influenced by the false doctrine of the great Dartmouth College case, and looking to it with reverence, had been pursuing in the main a sort of centralizing. policy and running in the grooves of a worn-out lego-political philosophy. This argument is attempted to be fortified by the fact that in the convention which adopted the Constitution of 1870 a proposition was introduced and rejected to make coupons of the public bonded debt receivable for taxes. The case of Mott v. Penn. R. R. Co., 30 Penn., 9, is introduced as authority to show that a State Legislature cannot permanently alienate its right of taxation and thus put fetters on future Legislatures, and finally it is argued that the tendency of the courts in these later times
The question here is not like that of a proposed exemption even of a partial character. ■ We have an existing debt which every consideration of morality and our true interests should prompt us to bring to a speedy and favorable settlement with our creditors. The proposition involves at most a partial and probably temporary anticipation of revenue, and no permanent shackle upon legislation. It brings about in a practical way a favorable abatement of interest upon a debt the payment of the principal of which is at our discretion in a short number of years. The only direct and analogous authority upon the subject sustains
The Ohio - cases on this subject of exemption cited, though some of them are reasoned with ability, do not ■demand much consideration here, as some of them have been reversed and all others overruled by the competent authority of the Supreme Court of the United •States.
At last it seems to me scarcely legitimate to argue against the constitutionality of a law upon the supposition that future Legislatures will not' discharge their duty, and this, in my view, is what the argument of ■complainants’ counsel comes to in the end. If they,
This court' is asked to seize upon the opportunity which it is said now occurs to forestall the anticipated difficulty. In my view of the act under discussion the court ought not to do so if it could, and in duty •could not if it would.
Something, has been said in argument of the right ■of a State to scale its debts. With the assent of the creditors the debt as it now exists will be heavily scaled under the pending proposition, and if such a right really exists, when the proper time comes it may be scaled again with or without the creditor’s’ consent,
There are some minor objections to the act of 1881 stated in the bill to which I shall give a brief notice, that they may not seem to have been forgotten. It is said that the first section of the bill of rights, in which it is declared that the people have the right to alter, reform or abolish the government, etc., is violated. But as even the people have not the right to abolish the State, or to destroy or weaken its status in the Union of States, or to annul a just debt of the State, or to take away a provision for the payment of such debt legally made by an ordinary Legislature, it is somewhat difficult to see how this section is violated.
Sec. 8 of Art. XI,, which provides against any law •granting peculiar privileges to individuals. It is said that a preference is given by the act of 1881 to- bondholders over other creditors. No more, it seems to me, than paying one in full and not paying another, at the same time' having the ability and the duty, and so far as appears the will to pay both and all. The construction contended for would cut the State Legislature off from all power to make favorable settlements and compromises with creditors who, foolishly or otherwise, might wish something more that' the bare pi’omise of the State. But this is merged in the larger question of the coupon feature, which has been already so extensively discussed.
The 9 th sec. of the act (though in the form of
Sec. 12, Art. XI. of the Constitution, which provides for the inviolability of the school fund, is said to be disregarded. But in view of the duty of the Legislature (with an unlimited power of taxation) to provide for this, which it is to be absolutely presumed they will discharge, I can see no violation Qf this section in the act of 1881. A special tax might perhaps be laid for the schools and the fund so appropriated that it could not be reached by the coupon. This, however, is immaterial.
It is said, however, that this section, Art. II., sec. 12 of the Constitution is further violated by the act of 1881, as being in contravention of this clause of that section: “ The State taxes derived hereafter from polls shall be appropriated to educational purposes in such manner as the General Assembly shall from time to time direct by law.”
This poll tax is now appropriated by sec. 962 a of the Code to common schools, and as the law now stands could not be reached by the coupon feature óf .the act of 1881, as the taxes for common schools are excepted by the 3d section of that act. Suppose a future Legislature should wish to take this fund away from the common schools (a very improbable supposition), would the coupon -holder have the power, in case the poll tax was applied to another educat’onal
But at last suppose when the poll tax was thus taken away by the Legislature and applied to another educational purpose, the coupon holder should attempt to seize it. What would be the answer of the tax-collector ? “ You never had any claim to this by the terms of your bargain; and more, if your bargain could by any strained construction be held to include this tax, plainly you are repelled by the constitutional provision -as to its application.” The coupon holder •certainly could make no effective answer to this. Shall we then, as a court, when now and in all probability forever the coupon holder will not be fool-hardy enough to make such a claim, and if he should, would be
It has been somewhat faintly argued that certain acts of Assembly of former dates have been, or purport in effect to have been amended, modified or repealed by the present act, without the proper reference thereto, as required by the Constitution, either in the caption or the body of the act. In view of the various decisions of this court upon this part of the Constitution, I feel clear to say that this is a mistake, and that the Constitution has not been violated in this respect.
It is said that the funding board, without being a court but mere executive agents, have been given judicial powers, thus intermingling the executive and judicial departments. Now the duties imposed upon the “ funding board/’ though not merely ministeral, are strictly executive. Their action upon a bond as to its admission or rejection is not a judgment, is not final, and in no manner binds the bondholder as to the ultimate assertion of his rights in case his bond is rejected. Pro hac vioe as to the issuing of a new bond for an old one, some judgment in exercised and must necessarily be exercised by somebody who is to discharge the duty. Certainly it is not to be expected that every bondholder was to come into court to es
The objection that the State did not make proper provision for the interest of the bonds and other demands upon the State, need not be further noticed than to say that it is, for the present at least, an absolute presumption that they did.
The bonds for war interest are denied by the bill to have been legally issued, but it scarcely seems that an issue as to these was to be raised and made mat
This disposes of all the minor objections to the bill.
There remains, however, one consideration in view of this whole matter which has some force at least with me, and that is, that there is some prospect if this act is sustained it will tend much to the repose of society, and this has heretofore been made a ground ■of decision in less important cases. There are, it seems to me, no real evils in sight in allowing the act under discussion to be executed, and on the other hand much apparent good.
In my opinion the bill should be dismissed.
said:
The main questions arising in this case have been so elaborately and exhaustively discussed in the four opinions already read, that I deem it unnecessary to repeat reasons already given, or cite authorities already referred to, to sustain the conclusions at which I have arrived upon the several questions involved. I content myself, therefore, with the simple announcement of the conclusions at which I have arrived, upon the several propositions contained in the bill, and discussed at the bar.
First. I am of opinion that the title of the act to compromise and settle the bonded indebtedness of the State of Tennessee, sufficiently expresses the subject thereof; that it contains but one subject; the several sections of the act being pertinent to the object expressed in the title. And therefore it is not void as being repugnant to sec. 17 of art. 2 of the Constitution of Tennessee.
Second. I am further of opinion that the courts of this State have no power to review or reverse the legislative action of the General Assembly, except for the reason that such action is violative of the Constitution ; and »that such action, if within their constitutional powei’, cannot be questioned by the courts of the. State, upon allegations of fraud and bribery.
Third. I am also of opinion that tax-paying citizens may file their bill to protect themselves from the
Fourth. I am, therefore, of opinion that the constitutionality of the act is fairly presented to this court for its decision; and that the question for our determination is, had the Legislature the power to pass it? And in my opinion it had the power, there being no inhibition or restraint in the Constitution to prevent it from doing so.
I therefore concur with Judge Ewing in holding that the act is constitutional and valid, and that the chancellor's decree, dismissing the bill, should be affirmed.