St. Charles Republican intelligencer. (St. Charles [Charles City], Iowa) 1856-1857, 1857-07-16
Important Decision.

The following important decision of
the Circuit Court of the United States,
in regard to county subscriptions to
Railroads, has been made by Judge
Mclean. We find it in the Indianap-
oils Journal
David C. Wallace agt. The Com
missioners of Knox County. This
was one of the most important cases
of the term, and was argued on de-
murrer to the declaration, with signal
ability, by Mr. Judah and Mr.. n. G. &.
Mclean for the plaintiff, and Mr.. Nc
Donald and Mr.. Hovey for the de-
PENDANTS. The facts of the case were
substantially the following:
The Board of Commissioners of Kent
County, before the adoption of the
constitution of 1851, i'll pursuance OF
the terms Of a statute authorizing the
same, subscribed 100000 to the cap
ital stock of the Ohio and Mississippi
Railroad Company, and after the con-
stitutioI took effect, issued their
bonds with coupons, for the payment
of the stock in the usual form. The
county failed to pay the interest
coupons when they became due, and
rlrIs SUIT was prougnJ 10 recover the
amount of the coupons held by the
plaintiff, as the bearer. The defense
rested upon several grounds.
That the subscription was void, the
county having no right to make it for
railroad purposes.
That the bonds were void, having
been issued after the taking effect Of
the Constitution of 1851.
That the coupons were void for the
want of power to issue them, even if
the bonds were valid
That the laws of the State submit
ting the question to the people of
Knox County. whether the Commas
sioners shall subscribe the stock, was
unconstitutional and void.
We may have omitted some SUBJ
ordinate points, but these were the
main objections taken. Judge Nc
Lean in an able and lengthy opinion
covering the whole ground Of the
action and defense, held that the action
| could be maintained upon the cou-
pons that each of the points raised
in the defense was unsustainable in
: point of law; that the subscription
: was valid and binding upon the county
of Knox; that the Court would have
compelled by mandamus the issue
of the bonds, had the Commissioners
refused to issue them that the SUBJ
scription having been made before the
+. Constitution of Indiana of 1851 was
in force, could not be affected by that
!. instrument that the issue of bonds is
not inhibited by the State Constitution,
If which only applies to subscriptions
4 made after the Constitution took ct,
!. feet; nor could the Constitution affect
q these bonds, even if bonds were named
n in its prohibition, as they We're not
r a new contract, but merely the con
D summation Of the previous contract o.
= subscription that was made before tht
J. adoption of the Constitution, therefore
). both the subscription and bonds wer'
!. protected by the Constitution Of tht
!, United States that the coupons were
~ merely incident to the bonds, and de
n rived all their legal effect from th'
. bonds, and were clearly authorized
" to be attached to the bonds as a mat
ID ter of convenience, and to facilitate tin
ID payment Of the interest; that the Law
n submitting the question of the sub
it scription to the people of the counties
# was valid and binding enactment
or In delivering the opinion, Judge Nc
il Lean took the occasion to enlarge, il
IT course of eloquent remarks, upo
4 the great Importance to the country
I as we'll as to the counties throug
2r which the work passes, of the Obi
IS and Mississippi Railroad, and tina
hi good faith should be observed in tn
d subscriptions to enable the Compan
in to carry out the enterprise in lik
iv faith with their creditors.