State of New Hampshire v. State of Louisiana State of New York

On the eighteenth of July, 1879, the general court of New Hampshire passed an act, of which the following is a copy:

'An act to protect the rights of citizens of this state,     holding claims against other states.

'Be it enacted by the senate and house of representatives in     general court convened:

'Section 1. Whenever any citizen of the state shall be the     owner of any claim against any of the United States of      America, arising upon a written obligation to pay money      issued by such state, which obligation shall be past due and      unpaid, such citizen holding such claim may assign the same      to the state of New Hampshire, and deposit the assignment      thereof, duly executed and acknowledged in the form and manner provided for      the execution and acknowledgment of deeds of real estate by      the laws of this state, together with all the evidence      necessary to substantiate such claim, with the attorney      general of the state.

'Sec. 2. Upon each deposit being made, it shall be the duty     of the attorney general to examine such claim and the      evidence thereof, and if, in his opinion, there is a valid      claim which shall be just and equitable to enforce, vested by      such assignment in the state of New Hampshire, he, the      attorney general, shall, upon the assignor of such claim      depositing with him such sum as he, the said attorney      general, shall deem necessary to cover the expenses and      disbursements incident to, or which may become incident to,      the collection of said claim, bring such suits, actions, or      proceedings in the name of the state of New Hampshire, in the      supreme court of the United States, as he, the said attorney      general, shall deem necessary for the recovery of the money      due upon such claim; and it shall be the duty of the said      attorney general to prosecute such action or actions to final      judgment, and to take such other steps as may be necessary      after judgment, for the collection of said claim, and to      carry such judgment into effect, or, with the consent of the      assignor, to compromise, adjust, and settle such claim before      or after judgment.

'Sec. 3. Nothing in this act shall authorize the expenditure     of any money belonging to this state, but the expenses of      said proceedings shall be paid by the assignor of such claim;      and the assignor of such claim may associate with the      attorney general in the prosecution thereof, in the name of      the state of New Hampshire, such other counsel as the said      assignor may deem necessary, but the state shall not be      liable for the fees of such counsel or any part thereof.

'Sec. 4. The attorney general shall keep all moneys collected     upon such claim, or by reason of any compromise of any such      claim, separate and apart from any other moneys of this state      which may be in his hands, and shall deposit the same to his      own credit, as special trustee under this act, in such bank      or banks as he shall select; and the said attorney general      shall pay to the assignor of such claims all such sums of      money as may be recovered by him in compromise or settlement      of such claims, deducting therefrom all expenses incurred by      said attorney not before that time paid by the assignor.

'Sec. 5. This act shall take effect on its passage.'

Under this act six of the consolidated bonds of the state of Louisiana, particularly described in the cases of State v. Jumel and Elliott v. Wiltz, just decided, [ante, 128,] were assigned to the state of New Hampshire by one of its citizens. This assignment was made for the purposes contemplated in the act, and passed to the state no other or different title than it would acquire in that way. After the assignment was perfected, a bill in equity was filed in this court in the name of the state of New Hampshire, as complainant, against the state of Louisiana and the several officers of that state who compose the board of liquidation provided for in the act authorizing the issue of the bonds. The averments in the bill are substantially the same as those in Elliott v. Jumel, supra, save only that in this case the ownership of the bonds specially involved is stated to be in New Hampshire, while in that it was in Elliott and his associates. The prayer is, in substance, for a decree that the bonds and the act and constitutional amendment of 1874 constitute a valid contract between Louisiana and the holders of its bonds; that the defendants and each of them may be prohibited from diverting the proceeds of the taxes levied under the act from the payment of the interest; and that the provisions of the debt ordinance of 1879 may be adjudged void and of no effect, because they impair the obligation of the contract. The bill was signed in the name of New Hampshire by the attorney general of that state, and also by the same counsel who appeared for Elliott, Gwynn & Walker in their suit in equity just decided.

On the fifteenth of May, 1880, the legislature of New York passed the following act:

'An act to protect the rights of citizens of this state     owning and holding claims against other states.

'The people of the state of New York, represented in senate     and assembly, do enact as follows:

'Section 1. Any citizen of this state, being the owner and     holder of any valid claim against any of the United States of America, arising upon a written obligation to pay money,      made, executed, and delivered by such state, which obligation      shall be past due and unpaid, may assign the same to the      state of New York, and deliver the assignment thereof to the      attorney general of the state. Such assignment shall be in     writing, and shall be duly acknowledged before an officer      authorized to take the acknowledgment of deeds, and the      certificate of such acknowledgment shall be duly indorsed      upon such assignment before the delivery thereof. Every such     assignment shall contain a guaranty, on the part of the      assignor, to be approved by the attorney general, of the      expenses of the collection of such claim, and it shall be the      duty of the attorney general, on receiving such assignment,      to require, on behalf of such assignor, such security for      said guaranty as he shall deem adequate.

'Sec. 2. Upon the execution and delivery of such assignment,     in the manner provided for in section 1 of this act, and      furnishing the security as in said section provided, and the      delivery of such claim to him, the attorney general shall      bring and prosecute such action or proceeding, in the name of      the state of New York, as shall be necessary for the recovery      of the money due on such claim, and the said attorney general      shall prosecute such action or proceeding to final judgment,      and shall take such proceedings after judgment as may be      necessary to effectuate the same.

'Sec. 3. The attorney general shall forthwith deliver to the     treasurer of the state, for the use of such assignor, all      moneys collected upon such claim, first deducting therefrom      all expenses incurred by him in the collection thereof, and      said assignor, or his legal representatives, shall be paid      said money by said treasurer upon producing the check or      draft therefor of the attorney general to his or their order,      and proof to his or their identity.

'Sec. 4. This act shall take effect immediately.'

On the twentieth of April, 1881, E. K. Goodnow and Benjamin Graham, being the holders and owners of 30 coupons cut from 10 of the consolidated bonds of Louisiana falling due January 1, 1880, July 1, 1880, and January 1, 1881, assigned them to the state of New York by an instrument in writing, of which the following is a copy: 'Know all men by these presents, that we, the  undersigned, citizens of the state of New York, being   the owners and holders of valid claims against the state   of Louisiana, arising upon written obligations to pay   money, made, executed, and delivered by the state of   Louisiana, and now past due and unpaid, being the   coupons hereto annexed, in consideration of one dollar   to each of us paid by the state of New York, and for   other good and valuable considerations, hereby assign   and transfer the said claims and coupons to the state of   New York.

'And we do hereby covenant with the said state that if an     attempt is made by it to collect the said claim from the      state of Louisiana we will pay all the expenses of the      collection of the same.

'In witness whereof we have hereunto set our hands and     affixed our seals this twentieth day of April, in the year of      our Lord 1881.

'E. K. GOODNOW. [L. S.]

'BENJ. GRAHAM. [L. S.]

'Sealed and delivered in presence of

'FRANK M. CARSON.'

W. H. Peckham, for New Hampshire.

[Argument of Counsel from pages 80-81 intentionally omitted]

W. A. Duer, L. W. Russell, and David Dudley Field, for New York.

[Argument of Counsel from pages 81-83 intentionally omitted]

John A. Campbell, for Louisiana.

[Argument of Counsel from Pages 84-85 intentionally omitted]

WAITE, C. J.