Western sentinel. [volume] (Winston [i.e. Winston-Salem], N.C.) 1856-1886, 1877-04-05

propOsirioh cah ~ OF be c1amaintalncdI 8
Muhicipal bonds are 9hegntiahiet
Instruments. and the legal figAtee'ofi
Dtle' hoi1cfs Of sucli paper do not So
much rest "npuli.: abstract proposi I
tions, though. trpie, as mon a system
Irof practical rules, found by expert
llence to be essential 10, healthy COM
merciat life. Ii For. the public .pro~1
lection and the sconvience1of. trade.
every, intcndinent is made in favor
sof the validity ofanegotiahle iustru,
meffts. When bondsl ltase been,
lfssucd aud sold il, tile market and
have come into the hands of a bona
tide holder, before maturity, as
general rnle, such bonds are prtnaa
facie, valid, and the onus is upon
itilei party impeaching them. to
tslIow the contrary. Thisrnlelhow,
lever, which subsists between indi..
viduals, isiKiiehrmodified inrespect
of corporate bonds. Such bonds
can be issued only in pursuance OF
a special grant of power, and the
party Claiming the beneht of such
bonds, must, show a poaoer in tie
corporate body 10 issue them But
if he is purchaser ,tor value, with
out notice and before maturity, he
need do no more If a municiral
corporation has the power to Issue
bonds, only on a compliance with
! conditions precedent, as for instance
as here, in pursuance of popular
vote, and the bonds are issued. the
presumption is that the conditions
have been observed, and they are
prsned facte valid, though the de
fehdant may show the contrary, un-,
less he is estOpped by his own acts
from doing SO. The principles
however, of equitable. cstoppcl, is a
most Important element in the
trapsaction. For whether condi-
tions precedent have been complied
with, is a matter of fact, to be de
termined 10y some tribunal invested
with the power and authority to
decide it, and the decision when
made should be final. IT. is net
disputed that the poUer tc make
the subscription of stock and issue
the bonds, was conferred upon the
county Of Forsyth, by the ordinance
of the Convention. 1t is equally
clear that TIE tribunal which
was authorized to Issue the
bonds, only on compliance with
conditions precedent, was the sole
tribunal to determine the tact
whether the conditions had been
fulfilled. In our case, the justices
cf the county, a majority concur
ring, was; the Court or tribunal
designated TO carry the law into
effect, and was the tribunal tc
decide whether the conditions lhat
. been complied with, and their de
, cision. is final in a suit by a 5onO
tfde' holder of the bonds against the
municipality. This determination
; ola question of fact by the justices
! ) is manifested in two ways, first, by
the records of their Court, an,
second by the recitals in the bond
; issued by them. The justices wer,
> authorized by the Act to take th'
sense of the people, declare nh
result and Issue the bonds. Tkci
: declaration spread upon the minute
OF the Court and made a record i
CONCLUSIVE against the county il
tavor Of AT 1ono .fte bondholder
without notice. II they phrciiase'
: hefepe maturity they need look n
further. Marey IS. to,onshf5p Q
e Osacego. 90 z. 5. Rep.637. Dpmin
as. Houston, Is an. Rep. 253 an
d note. II there was fraud in makin
the record, or irregularities in til
;, election, which would nitiate til
:, bonds, upon exceptions taken in ap
{, time, any taxpayer in the count.
ceald Intervene and enipin. thei
issue. But this could only hav
g | been dane bcfure the. bonds tIwer
= issued, negotiable and passed. int
e circnlntion as eemnerciai securities
with the insignia of validity imp'es
:. sed upon their face. Chester, d
I LenoiF II. Il. C0. as. (a,zdaoel
! County. 2 ". 6. 1856. Il. inten
tiormlly, ,-or by neg.cct, the taX-,pay
{ ers tail to protest, interfere or asse:
5 their legal rights; if they suffer III
'1i election to be .Ils!d, a false resul
n declared, the bondsrto be issned am
c hsold. aad the proceeds -Eeceivdd b.
their agchts; If for tliea period Q
:, four years they annually submit t
= a special tax which is applied il
. payment of the ;.ccruirg interest OF
9. tile, bonds, if they still 11etaiif th
i railroad stock, witlIout AN offer t
e surrender it, and continue to shav
lit represented in the meetings Q
''.itthe GoInpapy,;-tthey cannot no,
! tdis;lfffirr the, acts ot tleit publ
q .Iagellts WHO issued and negotiate
I i tllcssaie sof tie bonds; They slla,
J thespheEtnnitys to. ilnterYene pam