In Great Southern Fireproof Hotel Co. v. Jones80 the authorities are carefully reviewed, and the doctrine definitely stated that the federal courts will not hold themselves concluded by the decisions of state courts holding, though for the first time, state laws unconstitutional, in cases involving contract rights based upon such laws. That is to say, they will determine upon their own independent judgment whether the laws in question are to be held valid as tested by the state constitutions, and if, when so tested, the laws are not in their opinion valid, the contract rights based upon them fall to the ground. The situation is thus quite different from that of the cases arising under the Gelpcke v. Dubuque rule where there have been diverse opinions upon the part of the state courts. There the contract entered in reliance upon the first decisions upholding the laws concerned are protected without the court say with reference to the general doctrine declared "the only exception to the general rule announced in the above cases arises when the question is whether a particular statute was passed by the legislature in the manner prescribed by the state construction, so as to become a law of the State." It is difficult to see why this exception is made, and, indeed, the authorities which are cited in its support are not appropriate, as in each case previously to the time when the contracts were entered into there had been state decisions with reference to similar laws, holding them void, and the parties thus advised of the doubtful validity of the laws upon which they relied.

79 Havemeyer v. Iowa County, 3 Wall. 294; 18 L. ed. 38: Butz v. Muscatine, 8 Wall. 575; 19 L. ed. 490; Township of Pine Grove v. Talcott. 19 Wall. 666;

22 L. ed. 227; Pleasant Township v. Etna Life Insurance Co., 138 U. S. 67; 11 Sup. Ct. Rep. 215; 34 L. ed. 864; Folsom v. Township, 159 U. S. 611; 16 Sup. Ct. Rep. 174; 40 L. ed. 278; Stanly County v. Coler, 190 U. S. 437; reference to the correctness of the earlier decisions as compared with the later.81

23 Sup. Ct. Rep. 811; 47 L. ed. 1126; Great Southern Fireproof Hotel Co. v. Jones, 193 U. S. 532; 24 Sup. Ct. Rep. 576; 48 L. ed. 778.

80 193 U. S. 532; 24 Sup. Ct. Rep. 576; 48 L. ed. 778.

81 In Hotel Co. v. Jones (193 U. S. 532; 24 Sup. Ct. Rep. 576; 48 L. ed. 778)