The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1870-07-15
THE MICHIGAN BOND DECISION.

A decision was recently made by the
Supreme court of Michigan, by which
the law of that State authorizing coun-
ties, cities and townships to vote bonds
to aid in the construction of railroads
was declared unconstitutional. This
decision was based upon a clause in the
constitution of Michigan, which is ex-
actly the same, we believe, as the follow
ing provision in our own fundamental
law:
"The State shall never be party in carrying
ON any work OF internal improvement"
If this decision is to become the law,
it seriously affects the status of at least
three-fourths of all the railroads in the
West-or at least in those States having
such provision in their constitutions.
The grounds of the decision are
briefly as follows:
l. The power OF taxing is limited TO public
objects.
3. Railroads are not Espublic Objects" but
private corporations; and the construction of
railroads is carrying on works of internal
Improvement
8. The State cannot itself, under the consti-
tuition, levy tax in favor Of railways And
no right to do itself. Therefore, bonds voted
to q railway by township, city, or county,
under State law, are void and not legally a
lien upon the people Of such township, city or
county.
This decision has caused great excite
ment in Michigan, so much so that an
extra session of the legislature was
called to consider the subject. But il
seems the decision goes still farther and
declares that no constitutional amend
ment can reach the matter. It says:
"The powers of government have limita.
tions, which need not be written in constitu'
| tons. and which no constitution can destroy
| or set aside. Chief among these powers is one
| that taxation must be made for public pur.
poses alone; that taxation for private purposes
| is robbery and eXtortion, and that no govern
| ment can have the rightful power to transfer
the property of A to B, or to tax A to enable
b 10 engage in or prosecute any private bust.
| ness. This is not u matter of constitutional
right which governments may not ignore, and
which majorities cannot vote away. The
right Of property is indestructible, except fol
public purposes"
It has been the practice of most of the
States, from New York to Kansas, fol
twenty years past, to issue bonds in aid
of railroads. If this decision be sound
how long have the people been plod-
ding in darkness. Millions upon millions
have been voted and paid, and even in
Michigan large amount of the bonds
declared illegal have been paid. The
bonds voted to railroads in Michigan
amount to S6,OOO,OO0. OF this amount
the companies aided have obtained
actual possession of 81, 744,9 55, of which
$4,000 have already been paid
81 ,5S9, $50 have been purchased by CAPT
talists and corporations, contractors and
employees, and it seems to us that the
interests of these innocent holders Of
these bonds, the third parties who pur.
chased them in good faith, must form
one of the serious features of this new
decision. Will the companies be com.
PEELED to return that portion of the
bonds already sold to them?
This is question in which Kansas il
deeply interested. Her railroad system
is just now rapidly developing. One
of the principal sources of aid to many
of them has been and is county bonds
Millions of dollars of these have beer
voted. 1t Is laid down by this decision
that majorities cannot vote bonds in aiG
of railroads. This decision, if it is tC
be the rule, works radical change.
A case is soen to be tried in our owl
State in which the same questions viii
probably be decided. The people viii
await the result with great anxiety.