Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1872-01-31
Inslice NJ Last.

The Legislature of Michigan, some years
ago, BY very large majority, passed an act
authorizing municipal aid in building rail-
roads in that State. Under this act mum
Der Of enterprising cities and towns subscribed
to various worthy scheme Of this sort, AMI
issued their bonds 10 payment But when
about one aud half million dollars in bond
had been thus distributed, some town, after
subscribing to a project, changed its mind,
and declined to complete the contract Sultwas
brought to compel the authorities to issue
the bonds, when the State court-three Out
Of four judges concurring, -decared Tho
Railroad Aid law to be unconstitutional, aLu
decided that the towns had no right to issue
bonds according to its terms. This fell like
thunderbolt, not only upon the boudhoders
who had taken these securities in good faith,
but also on the people Of the towns who had
incurred the debt. For, be it understood,
this aid was not granted by corrupt NUM-
cipal government, imposing such burden upon
an unwilling constituency, but by vote Of
the taxpayers themselves. 10 ono such town,
GU, Of about four hundred votes, only half
dozen were in opposition.
The situation was very peculiar The peo-
pie desired to aid the railroads and with
great uoanimity had raised money on their
bonds for this purpose. They desired to pay
the interest promptly aud to tax themselves,
according to agreement, for sinking fund to
absorb the principal but the highest court
Of their own State denied them the privilege
Of fulfilling their own wishes, and of redeem
Jog their own solemn pledges.
They did not accept this situation gladly,
and thus convict themselves Of insincerity.
They proposed to amend their State constitu-
ton aud thus render their action legal
Such an amendment was therefore submitted
to the popular vote, but strange to say was
not adopted. The people whom it most ai-
iected voted for it the towns whom it would
tax gave a large majority in its favor but
]
villages who had issued no bonds, and who
had not agreed to issue any, would not allow
those who had to tax themselves in legal
form to redeem their pledge. We believe
that there was never before case like this
upon the record of history.
The bondbolders determined to test it, and
two cases were made, George II. Taylor VS.
The City of Battle Greek, and Edward b
Talcott vs.. The Township of Pine Grove, aud
brought before the United States Circuit
Court These very defendants, to their credit
be it said, we're not unwilling to be charged
with the payment, but thcy employed the
best advocates to argue against it that there
might be no grounds for remonstrancc
The decision has just been rendered. the
Judges unanimously agreeing that the bonds
having been issued in good faith, and trans.
ferred to innocent purchasers, were legal
contract between the citizens of Michigan
aud other States, which the Federal courts
we're bound to enforce. This deciaion apple.
only to the bonds issued before the law wa.
declared to be unconstitutional by the State
courts. That declaration would be in the
light of a notice to buyers, aud subsequent
contracts would not be enforced. As no after
issues were in fact made, this as far as we
can see, renders substantial equity aud covers
the entire debt. If citizens of Michigan
hold the bonds and do not choose to transfer
them to outside parties, they are welcome to
accept the situation but investors in other
States nov have their legal remedy.
There may be serious objections to the orr.
gnal action Of the several townships since
upon principle many prudent men are opposed
~ yvrviuHeut AID IN Denuf or any sucu PR.
waite enterprise but having promised thi.
aid, and issued the obligations, those who
subscribed should redeem their pledge at
whatever cost to themselves.