Nebraska advertiser., 1878-08-08
BROWNYILLE BONDS.

Editor NeDraSka Advertiser
The Commissioners of the County,
at the request of number of tax-pay-
ers. have decided not to levy tax to
nav the interest on bonds issued by
BrownviIle Precinct.
The Common Council of the city
has taken the same action in regard
TO bonds issued by the city.
Before the matter goes too far would
Il not be we'll to reconsider the steps
already taken, and if would be wiser
to avoid the attempt at reputation, it
il can be done if immediate action
follows?
The petition presented to the Com
missioners was carefully drawn, and
states the strongest legal defence that
can be made in resisting payment of
the bonds.
The first statement in the petition
ia to the effect, that, "The Brownville,
Ft. Kearney & Pacific Railway Co.
have utterly failed to comply with
any of the conditions, on their part
in the construction and management
ofsaid road, forwhioh the bonds were
voted, and the process by which the
bonds were obtained was unconstitu-
tional, illegal, and unwarranted."
There has been q vast amount of
litigation in regard to railway aid
bonds. and on nearly every possible
question which can be raised, the law
has become thoroughly established by
repeated decisions of the U. S. Su-
preme Court.
The Court has taken very broad
and liberal grounds, and the general
principles expressed in its decisions
That irregularities in the issue OF
bonds in aid of railroads do not effect
their validity in the hands of the6OnG
fde holder, provided, the original leg
islative authority is constitutional,
and the bonds recite that they were
issued in pursuance of such authori-
ty;" and, that 1.-THE construction Of
the road is not condition on which
the payment Of the. bonds depends" !"
have been sustained in large num-
Der of different cases.
In the suit of Henry Co. Vs. A. S.
Nicolay, U. 8. Supreme Court: 1t
was held, "There was nothing Oh the
face of the bonds that they We're not
regularly issued, and it was not in
cum bent on the bondhOlder to inquire
whether the the railroad company
had pursued all the regular steps nec-
essary to entitle it to receive the
bonds.n
In the suit of the County of Dallas
vs. John w. Mckenzie, it was held,
"That holder for value of the bonds
issued, is not affected by any irregu-
larities, or frauds, unfounded assump-
ton of authority on the part Of the
agent of the county"
The law under which the Brown
vile bonds were issued, 1.-THE Inter
nal Improvement Act of 1862" has
been declared by the highest court OF
the State to be constitutional.
In view of these well established
facts, can the defence that the Rail
way Company did not perform its
contract, or obtain the bonds in le-
gal manner invalidate the bonds?
The next statement in the petition
Is TO the effect, THAT the amount on
bonds issued exceeded the statutory
limit at the time the bonds were is
sued. The statute providing that
bonds could not be issued in an
amount to exceeding ten per cent. of
the assessed valuation.
This defence has been made a num-
Der of times bat has not been deemed
sufficient to invaIidate bonds.
In the case of Humboldt County
Us. Long. The U. S. Supreme Court
held, 1.-The assessment rolls of the
township may have been proper evil
dence for the consideration of the
board of County Commissioners when
they were inquiring what the value
of the taxable property was; but the
bonds are not invalid in the hands Of
bona fde holder by reason of their
having been voted and issued in ex-
cess of the statutory limit, as shown
by the rolls.
Whatever may be the right of the
townships against those who issued
the bonds, it cannot be set up againt
bona .fde holder of the bonds that
the amount issued was too large, In
the face of the decision of the board
and their recital that the bonds were
issued pursuant to, and in accordance
with the act"
Before bringing upon the city and
precinct an expensive and continued
litigation which may prove, in the
end, futile, would it not be we'll to re-
consider the question and levy the
tax, unless a strong case exists upon
which to base defence?
COSTS OF BOND SUITS.
IT, a. H. 5,,t., of tho fov nouarS Of