The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1873-06-13
no BONDS FOR ANY PRIVATE
ENTERPRISE.

Justice Dillon, of the United d
States circuit court for Kansas, has 5
rendered very important decision: 4
in the case of the bonds issued by the l
city of lola to secure the location {
there of the King bridge works.
The bonds were duly voted, issued,
and sold TO the Commercial National
tbank of Cleveland, Ohio. The
bridge works were duly erected.
The whole matter was duly sanct-
Toned by the legislature. But the
city refused to pay the bonds or in
terest, and the bank therefore |
brought suit. Justice Dillon ably |
reviews the case in all its bearings,
and decides conclusiyely that The
, statute by virtue of which any
Al bonds have been issued TO aid any
private enterprise, is uneOnstitu-
tional, and that all such bonds are
worthless.
s. His decision is very searching and
p exhaustive. He declares that the
II act of the Legislature giving the
y city of lola power to issue the
<. bonds was manifestly special, and
"a therefore q violation of the twelfth
article of the Constitution OF the
NJ State that the Legislature has ne
m authority to impose taxation TO aiC
o. corporations of that kind, nor t'
no confer such power upon muEicipa
e organizations and that seven com
= pulsory taxation ia favor of rail
80 ways and like public Improvement,
- although "doctriue that must no'
be considered as judically settled,
OIL ia Fan exercise of power goIn
~ quite to the verge of legislative al
ed thority." st is obvious" says III
The Judge, afrom the statement OF IL
Ihe grounds upon which such legisiatio
gus IA. e., the right TO aid railroads
tile rests, that it furnishes no suppo
ell for the validity OF taxation in fav'
for of enterprises and objects essential
uld private" And II this solitary pri
ciple be abandoned, he argues, AZ
unsettle the foundations of priYS
no. property, and uuwisely open t
and door for frauds and abuses OF :
MY most alarming character"
oks In consequence of this decisic
rye the State Auditor has issued
:, is following:
age THE REGisTRATIoN OF noxDs.
IOrc Ill., T,,o 7th 1879
ana To the Editor of the Commonwealth.
r on Judge Dillon has rendered q
ore. cision declaring void from the /
cess ginning the bonds Issued by the Ct
Of lola for the erection of brid
re a works The decision is main
VS. based on the fact that the bon
were given for q private and II
for public purposes, and will Il
al surprise any one.
Chapter 6S, of the laws of Is
oeo under which municipal bonds Q
Ding issued in this state, declares IL
ten counties, titles and townships III
Pitts issue bonds 'for the purpose
-. building bridges, free or otherwi
iiiHi or to aid in the construction
pat railroads or water power by dor
non ton thereto, Or the taking of sto
idlv theein, or for other srOFLS Of int
nal Improvement" Under Jud
billions Interpretation this il
Vays clause limits and confines the pow
the of municipalities, and they may u
ling hereafter issue bonds for "the cat
ere trade" Gas one township has don
TO for starch factories, or for any p
nave Yatc enterprise whatever.
ting This note is written to you
give notice that bonds OF this eli
will not hereafter be register
N. Cities having such propositions
yhen fore them may save the expense
lies holding elections and issuing bon
Bonds that the the courts will p
80 nounce void will not aid any ent
o wv prise in which our people are int
MI ested, and we cannot afford to
on's censured by 'jnnOcent," or gui
ex- holders.
az section Ilth of the law quot
'i,o has this proviso; "That such bon
'eus shall not bear interest or be neg
rod table until after the delivery a
do. registration thereof" OF course
,ont not registered they will not be
circulation, and the solvency a
70 10 good name of our state will not
ana injured.
5 as Your obedient servant,
own DANIEL w. WILDER.
Auditor