Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1859-05-23
Muuicipal Railroad Bonds.

Important Decision Of Image GIier.-
Judge Grier, Of the U. S. Circuit Court at
Pittsburg, delivered an important opinion
this week concerning the issue of Railroad
bonds by cities and counties. The Dispatch
has the following summary Of the main
points of the Judges opinion:
The court held in the case of Allegheny Val
ley Road, that the Legislature vested in the
councils of the city of Pittsburg authority to
snbScribe-nothing further. Having no IN
herent authority to compel the citizen to be-
come n stakeholder in any private corpora
ton, or pledge his property therein, it tran
scended its powers in subscribing to the
stock of the road. Had the city property Of
its own to invest, it might do so as legiti-
mately as an individual, but it could not
bind the property of the citizens for the pay
ment of such stock unless the special power
so to do was clearly conferred by the Legis'
lature. This, of course, disposes Of all the
stock subscribed by the city to the Alleghe-
nv Valley Road, and the holders of the bonds
cannot recover.
In relation to the first issue of bonds to
the Pittsburg and Steubenville Road. the
court held that unless the holder can show
legal title to the bond, by assignment, there
can be no presumption that he is entitled to
the interest by mere possession OF the war
rant There being no evidence of the ne
cessary assignment, the plaintiff could not
recover. This restriction does not hold in
relation to bonds of the second issue.
In the case IF the CHARTERS Valley Road
full Legislative authority was granted TO
make the bonds and coupons transferable.
The court could see no reason why the plain
tiff should not recover on these bonds, and
those of the second issue to the Pittsburg
and Steubenville Road.
A non-suit was taken rs regards the bonds
Of the Allegheny Valley and the first issue
of the Pittsburg and Steubcnville Roads,
To recover on these the plaintiff will have
to commence proceedings a6 mitiO, or 20 to
the Supreme Court.
The jury found for the plaintiff on the
coupons attached to the bonds Of the Char
tiers Valley, and the second issue of the
Pittsburg and Steubenville. But the case
will 20 to Il higher tribunal for review Oh
bills of exception.
We may remark that the opinion does not
touch upon the authority of the Legislature
to confer upon counties and municipal cor
poTdtIOHS uutuOIltS W i'Su0 "uIh p"h'"'
The court assumes that such authority e1-
lists, and takes the decisions of the Supreme
Court of the State for such assumption
The general doctrine is laid down that when
such authority has been granted, and exer-
cised, the citizen has no right to repudate
because he did not, by direct act, consent to
its exercise The plaintiff does not recover,
as he should not, when the power has been
exercised wthOm authority.
The Pittsburg Gazette says
THE decision of Judge Grier, in the Rail
road cases against the city, relieves the city
from 100000 of her Railroad debt-S4OO,-
COO to the Allegheny Valley, and 200
to the Steubenville. The county subscrip-
ton of 100000 to the Allegheny Valley
stands, we suppose, upon the same legal ba-
sis as that of the city, and may therefore be
considered as subject to the same result
The loss to the bondholders, by this decision,
NAV therefore BIO set down at 81 100000"