The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1880-06-02
AMOS WooDRCTF,

Error to Circuit Court, Chiekasaw county
Hon. J. A. Green. Judge
In ISL the town Of Okolona issued bonds L
the amount Of 5000 in payment Of eubscrip-
ton 10 the capital stock Of the Grenads, Houston
and Eastern Railroad Company The acts Of
the Legislature under which the subscription
was made provided for submitting The ques-
ton Of subscription to the voters Of the town,
and prescribed the terms upon which the
i bonds we're 10 be issued. Among other things
it was specified that the bonds were 10 be
made payable Ct the end Of ten years from date
T OF issuance.
The bonds were il fact made payable twen-
I " years after date.
/ Coupons for interest payable semi-annual-
+ II. in the sum OF so each, were attached TO
. G ach OF the bonds.
/ This was a suit on ten of the past due
coupons, amounting to 500
/ The declaration alleges that the bonds re-
cited on the face compliance with the law
/ IN the Issuance thereof, and that plaintiff was
I the bona ffs holder and owner f1S value ofthe
coupons sued on.
\ demurrer vas interposed behalf of the
town. in which various objections to the valid
! itv OF the bonds and coupons were raised, only
{
tha, the bonds were issued payable twenty
years after date, instead of ten the law re-
quired The demurrer was sustained and the
case dismissed plaintiffs declining to amend.
HsJd-
L The effect OF the Act authorizing the bonds
to be issued by the town was 10 limit the time
when they should be made payable TO period
not 10 exceed ten years. Bond made payable
twenty years after issuance, were unauthor-
lied, illegal aud void.
, The recital in the Courts that they were
issued IN pursuance OF law Is not conclusive.
Persons dealing in such bonds are bound TO
look to the public statute Of the State which
cenfers power to issue them, and Is chargeabie
vii notice of any want OF power.
4 false recital in this respect On the face OF
the bonds can not override the provisions OF
the law which all persons must know
The opinion in the case Of Supervisors rs.
Ga{5reath 80 L. s PA, Is not sustained by
the authorities referred TO, and can not be
adopted as the law.
3 An alteration Of the time of payment Of
an instrument is material, and avoids II. The
statutory requirement in this particular Is
matter OF substance, and not merely directory.
The town of OkolOua had no power or author
itv TO issue bonds having twenty years to run.
Purchasers Of the bonds were charged with
knowledge OF this. and therefore knew the re-
citals in the bond were false.
l. As to all matters of fact constituting the
conditions for the exercise of the power, pur-
chasers NAV rely on lhe recitals of the bonds
but a. to the extent of the power conferred,
the bonds must be read as if the acts were en-
bodied in them. Ii this Is exceeded or viola
ted. the bonds are void in the hands of all per-
sons. affirmed.
Opinion by CAMPBELL, J.
Lamar Mayes & Branham, for plaintiff IN
error.
Houston & Reynolds and Buchanan < Hous-
ton for defendant If error.
To be reported
NoTE-In the case of Supervisor, as. Gal
Jraitb, Justices Miller, Bradley and Harlan
dissented and l am informed that case has
recently been decided by the Supreme Court OF
the United States repudiating the doctrine
in Supsrcis ors IS. Galbraith as to
the point in controversy here, and fully sus-
tanning the views expressed by Judge Camp
bell, n the foregoing opinion. L. b.