, 1877-06-15

JNE Is, 1877.
woro the most fragrant md scand alous frauds,
which no private oitizcn would defend With
ont confcssing himself scoundrel. Tic
general laws Of the Btato authorized organ-
lied townships 10 vote bonds in aid Of rail-
ronds. Another law authorized q certain
number Of Inhabitants residing within a
geographical township having no government
to organize town government therein. Tho
bond spectators started out, with two or
three coaches, on two or threo lines; rcnohing
q spot markcd on t]lo map as township not
organized, tho coaches would unload the
"inhabitnnta," md then organize township
government; hold an election for town
officers, md another To voto $100, 200 bonds
In mid Of the railway; the 'tpeople would
voto tho bonds, the officers would fill up tho
blank bonds, and doliver them; the ''in-
hnbitants " would Immediately ro-cmbnsk In
tho coaches, md drive OF 10 tho next town,
where tho aatne proceeding would take place,
m hour or two answering for each township.
Sometimes "countics wcro organized in
tho. same way, and thus, In time,
bonds amounting perhaps to millions
OF dollars were voted BY the 'peoplc
Of tho towns and counties,"-the people
consisting exclusively Of tho migratory
gangs VIC have described. In courso Of time
these towns and counties camo to DO occu-
| pied by bona-htlo residents, nil innocent Of
these previous proceedings, and wcro called
upon to levy taxes 10 pay interest on these
bonds held by spectators, gamblers, thiesea,
and, VIC tnny add, tho class referred to BY tho
New York Times, "scountlreis." We do not
Say all The Missouri bonds wcre Of this class,
but this class formed large proportion Of
the Missouri bonds of which payment was
resisted.
In this State tho only bonds dcelarod void
by tho State Court were issued by certain
towns pursuant to elections hcld under what
purporsed to DO law authorizing them.
Subsequently It was aaoorsained TINT
no such Inv had ever been pngsed
By tho Legislature, but Ind boon fraud
ulently palmod upon tho State otlcors,
aud by them had been included among
Tho printed laws. Wo do not know TINT It Ia
acoundretism to rofuso to pay forged note,
or to decline responsibility for tho illegal
and unauthorized act Of IN agent. We do
not believe corporations hold themselves
bound to pay dividends on certificates OF
stock illegally Issued md by unauthorized
officers. We do not know that counterfeit
paper In nny form-bonds, notea, or drafts
constitutes mora1 or legal obligation upbn
tho persons or corporations whose names aro
simulated. Lega1 authority to issue is a
primary and cssontial requisite to the validity
OF my bond by municipality, and tho moro
so when tho bond Is issued for m extraor-
dinnry objoct,-ono wholly oxtornal to tho
ordinary objects Of municipal governments.
We asaumc, therefore, that tloro Is wlao
and material didoronco between municipal
bonds which arc Issued undor loyal authori.
ty, and In conformity with law, and bonds
which are forged, eounterfoitcd, roissuotl
nftor being pnid. or Issued without any legal
authority, or in oxcoss Of legal authority.
There Is provision In tho Constitution Of
this stato prohibiting tho issue by any
municipality Of bonds. either "a donation
or as subscription to tho oapltal stock, o,
otherwise in aid Of any railroad or other cor.
pozasiou. II any person should 80 far sue
coed In inducing any municipality In Illinois
. to voto and Issue bonds IN old OF railro"ds'
would 1t bo aconndrelisrn for the property
'. owners Of that municipality to appeal to tht
courts for protection agninst baingoompo}iot
TO pay such oondss 1has prosisfon wa'
pincota In tho Constitution to break up thi'
scandalous and fraudulent syatem Of issuing
municipal bonds rs donations, and % awarn
ing TO ali persons TINT all such bonds there
aftcr Issued would 10 void.