The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1879-08-02
The Wafer Power Isonds.

asRr people to see the decision Of the Suprem,
Court of the United States under which the pay
g.ncnt Of these bonds is made compulsory upon
she city. We present below, therefore, the tex
al Judge Uarlan's opinion, cmb0dying the dc
.ision OF the Court
SUPREME CoUgr OF THE [. S,--Ocr. TERM 1873
No. $50.
WILLIAM II, HAcKETr ct al, Executors, Plain
tits in Error rs. TuE Cry OF OTTAWA. In cr
ror IL the Circuit Court the United States foI
the Northern District Of Illinois
Mr.. Justice HARLAN delivered the opinion OF
the Court
This action is upon certain bonds issued by the
City OF Ottawa, Illinois, in the year 1869, and OF
which the testat0r of plaintiffs in error became
che holder and owner for value before maturity.
They are in the usual form Of municipal bonds,
aud, besides pcdging the faith Of the city irrCv.
JcaEly Tor their payment, contain these rccitals
'"Ths is one of one hundred and twenty bonds
81 like amount and even date herewith, number
I'd one to one hundred and twenty respectively,
ISSUED by the City of Ottawa by virtue of the
charter Of said city; wherein it is provided that
the city council shall have power to borrow mon
ey on the credit Of the city, and to issue bonds
therefor, and pledge the revenue of the city for
The payment thereof provided that no sum or
sums Of money shall be borrowed at greater in
.tcrest than ten per cent. per annum.-(Art. v,
sec g.
No HoItg NC UOlIoWtu ny tllC CITY tOufl-
Ill until the ordinance passed therefor shall be
submitted to and voted for by a majority of the
voters of SAID city attending an election for that
nurposc.-(Art. Y, sec 30 And also in accord.
.ance with n certain ordinance passed by the city
council Of said city on the 10Th day OF June, A.
D., 1880, entitled An ordinance to provide for II
Hoap for municipal purposes which ordinance
VAS ratified by majority OF all the qualified yot.
of said city ut an election holden on the 10Th
day Of July, A. ID. 1869, and in conformity with
rHi at,aa Taa nI Inv itp ,gJ
city on the 3Oth.day Of July, 1869, entitled AN
ordinance TO carry into effect the ordinance of
June -, 1869, entitled an ordinance to provide for
4 loan for municipal purposes
witness the signatures Of the mayor and
clerk Of said city, and the corporate seal thereof
th6'3Oth day OF August, in the year Of our Lord
one thousand eight hundred and sixty. mine.
isEAL. "HENRY A. SHULER, Ndyor.
'R n. WATERMAN, Ctek.'
The city, upon grounds which will sufficiently
q appear in the course Of the opinion, denied all
liability upon the bonds, and to its pleas a de
5Fnurrer was interposcd. The demurrer was over
ruled, aud, the plaintiffs in error elected to stand
'cy the demurrer, Judgment was rendered for the
: :ity.
From that Judgment the present writ of error
IS prosecuted.
The Illinois constitution Of lStS declares that
the corporate authorities Of counties, townships,
school districts, cities towns, and villages may
&c rested with power to assess and collect taxes
Tor corporate purposes. & frt. g, 81
The charter Of the City Of Ottawa, granted in
sa5, confers upon its council the power to estab
lish hospitals-tO provide the city with watcr-to
open, widen. extend. and Otherwise improve and
mar streets and ntbbsr ,nlj;c h;,rh TO ns
tatlisb. erect and keen in rcnajr hrjJprs-to
=, rect market houses-to provide ali pnedfl,l NH
lie buildings for the usc Of the ciiy-and yarious
ether municipal mowers. the cyertion Of which
necessarily involves the raising and disbursement
900
Among the powers expressly tolerated 70 the
council Is the power to appr0priate money and
,royide for the payment of the debt, md ry
,9enses of the city, and. with the sanction of a
minority OF voters ATTENDING. nt an cIrction for
that purpose "to borrow money on the credit of
The city and to issue bonds therefor, and pledge
The revenue of the city for the payment thereof"
The bonds in suit upon their face import: list
chat the faith OF the city ia irrcyocably pledged
.i0r their payment. I'd. That they were issued in
Of the power which the council DOS
sessod to borrow money on the credit of the city
ma issue bonds therefor and, also in accordance
with certain ordinances which provided for a loan
fpr slipirDdl p,irposes The rccitals of the bond,
IN themselves. furnish no ground whatever for
the s,pposition that the council, in issuing them.
transcribed its authority or issued them for
,ther than municipal or corporatc purposcs
They justify the opposite conclusion
The city, however, claims that they were not
ssuea for municipal purposcs but as n simpje
donation to a private CORPORATION formed for bus
ness ends solely and in no wise connected with
,r under the control OF the city,-all of which,
IL is further claimed, appears from the ordinance
.ose date and title is Given IN the face of the
bonds
.Thp,urdiDaucc of June Il 1850 outhnrizcs fine
rlayor 10 borrow In the nnmc for thr usc and
upon the bonds of the city the sum of 500 600
.ta ne ernendrd in dcvcln,,inr thr nntrraI ,d
wants res Of the CITY for man,f,ct,rin,, nrn"scs
aud provides "tbat no application shall he made
af the proceeds of the snid bond, eyrrnt for The