Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1857-06-25
IMPORTANT DECISION

The following important decision Of the Circuit
Court of the United States, in regard to county
subscription to Railroads. has been made by Judge
Mclean, We find 1t in tie Indianapolis Jour
nall
CIRCUIT CoURT OF THE UNITED SrATEs-IM-
PoRTANr DEcIsIox.-Dayid G. Wallace, agt-
The Commissioners of Knox county. This was
one of the most important cases of the term, and
was argued on a demurrer to the declaration, with
signal ability, by Mr., Judah and Mr.. N. G. Nc
Lean for the plaintiff. and Mr.. Mcdonald and Mr..
Hovey for the defendant. The facts Of the case
were substantially the following: The Board of
Commissioners of Knox county; before the adop.
ton Of the constitution in 1851, in pursuance Of
Of the terms of a statute authorizing the same, sub
scribed $2n0,0O0, the capital stock Of the Ohio
and Mississippi Railroad company, and after the
constitution took effect, issued their bonds with
coupons, for the payment of the Stock in the usu-
al form. The county failed to pay the interest
coupons when they became due, and this suit was
brought to recover the amount Of the coupons held
by the plaintiff, as the bearer. The defence rest
ed upon several grounds.
l. That the subscription was void, the county
having no right to make it for railroad purpos.
es.
2. That the bondsw ere void, having been is
sued after the taking effect of the Constitution Of
1851.
8. That The coupons were void fOT the want
of power to issue them, even if the bonds were
valid.
A. That the law of the State submitting the
question to the people of Knox county, whether
the Commissioners shall subscribe the stock, was
unconstitutional and void.
We may have submitted some subordinate
points; but these were the main objections Ia
ken.
Judge Mclean in an able and lengthy opinion,
covering the whole ground of the action and de
fence, held that the action could be maintained
upon the coupons; that each of the points raised
in the defence was unsustainable in point oflaw;
that the subscription was valid and binding upon
the county of Knox; that the Court would have
compelled bv mandamus the issue of the bonds,
had the Commissioners refused to issue them;
that the subscription having been made before the
Constitution of Indiana of 1851 was in force,
could not be affected by that instrument; that the
issue of the bonds is not inhibited by the State
Constitution, which only applies to subscriptions
made after the Consultation took effect; nor
could the constitution affect these bonds, even il
bonds were named in its prohibition, as they were
not new contract, but merely the consumation
of the previous contract of subscription that was
made before the adoption of the constitution
therefore, both the subscription and bonds were
protected by the Constitution of the United States;
that the coupons were merely incident to the
bonds, and derived all their legal effect from The
bonds, and were clearly authorized TO be attached
to the bonds as q matter of convenience, and tc
facilitate the payment of interest; that the law
submitting the question of the subscription to The
people Of the counties as valid and binding
enactment. In delivering the opinion, Judg,
Mclean took the occasion to enlarge, in cours
of eloquent remarks, upon the great importanc
to the country, as we'll as to the counties through
which the work passes, of the. Ohio and Misssipp
: Railroad, and the good faith that shoull be OBJ
served in the subscriptions TO enable the Compan
10 carry out the enterprise in like faith with the
t creditors.
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