, 1880-12-25
VALIDITY OF MUNICIPAL BONDS.

SURPLUS Ea1n5-ls OF lilo lenSC t0HSlAeTRtlolls
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VALIDITY OF MUNICIPAL BONDS.
The Inv oil tho subject Of municipal III
ttcbtetncss Inns been pretty thoroughly ill.,
ycstignte,! by nil tho state Courts md by tho
courts of tho United States during the Inst
twenty years.
For long time Iowa furnished cases of /
t1fs Kind. At orc tllnc tile Supreme Court
Of Iowa denied tho power Of the State Leg
islature to authorize coul,tles ntul cities to |
issue bonds III a1d Of rattrond companies; |
tIe sumo Court for time de- \
cittclt that silcll subscriptions were c0nstit-
l!oiat, but after year or tll0re tilu Court re-
vorscd this last Judgment, MID nguin denied |
the validity Of the bonds. These conflicting
tlecls1nns letl to s0fng extraordinary cuin-
ptlcatlnns. bonds were Issued during The
periods covered by nil these decisions.
When Suits wcrc brought to recover tho
amount Of the bonds, the State Court denied
their validity. A largent1nbcr Of these suits
were carried to the Supreme Court Of The
United States. THAT Court laid down tho
rl,lu TINT, III tic construction Of the State Coli
ssltution, tho United States Court would
nttopt TINT Interpretation thereof mnslo by
The Supreme Court Of the Statc. Under this
ruling, as thu casea ca,l,o ,lp, tho validity Of
tho boll.Is issued prior to and during tic timo
tho first Slato decision wns authority wns de-
nIetl, a1ld tho bonds drelarcd void; wte, the
cascs involving the validity Ut tic bonds Is
sud .atter tho secot,d decision Of tho
Stats court cAmo up, tho Supreme
Court Of the United States. following
lis rnlo of accepting tho Interpretation of
tho State Court, affirmed tito validity Of all
those bonds, they having bccn isstict when
their tssMu lutl been declared constitutional
by tho Supreme Court Of the Stntc. II took
tic pcuplu of the municipal corporations Of
Iowa a lung i1,ne to understand why tho
Supreme Court shnuld lMtltl the b01ltls 10 bo
lcgul In Tho eases Of certain counties aI1l not
in the eases Of other cnlli,ttcs.
The question, lsoweyer. lths s'nce become
one of general Importance. cnscs went Up
from MI parts of the country, and tho Ec1'-
cral tendency 1T tic C0urt Inns been TO lDll
tile municipalities 10 strict responsibility
wherever thurr WINS II possible authority to
do 10. rhr issns Of municipal bonds, cspe-
chilly for rat'rnad nil purposes, has bce',
grossy and slllaInousfy abused, but tho
Court Inns Invariably refused to relcnse tho
counties or towns frunl obligations in form
legally entered lIpnn beea,se of tho fraud Or
Easca'l.s u l'c't o"n "A.'ul "'.s.
LUG o''pteau tout. VI Ilu o'n'ou -, n'''.o' .'a
Town Ut Litcl,ilcld, Montgomery County, III
this Statc, Is declared released from nil
issue Ut bonds Inatle under peculiar elrcunl-
stnnccs. III 1871 tho "city Of Litclhtield :"
lssuea LUZ JULIUS lot soo sas''' ".,"o'o
| twenty yea1s ni,ef ''al" u. u1o .'a's"'' p"nN'
New 1ofk, WIN INTEREST," p's "oio Seh'''"n-
| haaEls' ~ Inc rue VI ~ no1 se"l"'' pet "''-
mum. Eaeh no'H' eof'n,hca on ~ 1aco,
s1encn W t'le slas"E "''o eleFh' 'oe lo4lo ''t'
recItal:
This bonfl Ia issued under authority OF IN net
of tiiD Ur,,ra Assembly oi tt,V BtGto of fill-
nrte;i Y' towns. a,,I ylEss to cnslstr,tgt 1ti,l
maintain water. wnrks," approved April ii, lH7l
md il pursuat,co Of in oftlinanen, Of .hc saItl
"t 9 m ryt M fr is ts I'M ss,lH ot os e.,
tGo c0t,strptnn t,f thu L.tchiied Wntor- Works =
Neither The general not ut tho Legislature
Of 1879 nor tie ely osaina"cs maas my rst
crcnco to tint section u tue constitution u
Illinois which declares that "no county
c!tS, to"1i, tp""shlp' sc'ou' "'o'A'v'' "
other municipal cnrporatlt'l'' st1al' DO a'lo"c'
to becou!o Indebted IN nny manner, or fo
ahy pI.rposc, 10 MI anton''t, Including exist
lllg Indebtedness, III thc nggreeato exccealil'
per cehtsn OF, the Vnluo OIL ttSaoie prolel'.
thero4l,' TO DC ascertalflctl oy INC sase assess
ment for State md county taxes previous Il
'ncurrlag s'lcIl Indebtedness"
Tie property within Tic limits or tho CITY
"a aBscbsea LOT olate a'"' cauhty l""ea
| | 1kstl nffAtfttl ffiA tftitI IL nntH Dec