The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-11-03

to stock, and the fact that the proposed
road was to terminate at Henderson, since
it was to connect there with lines of steamboats,
to be run between that point and Evansville. did
not take the enterprise beyond the reasonable
scope of the power conferred on the city.
The question that the want of petition from
the resident freeholders rendered the bonds IN
valid in the hands of the original freeholders
the railroad companies-is beyond doubt.
Such o petition was the condition precedent to
the right to subscribe for stock and consequently
the subscription 10 the stock of the COM
pany, being unauthorized and Illegal the
bonds issued in payment Tor tne
stock were without consideration and illegal.
The question arises. do the recitals protect inno-
cent purchasers Judge Woods quotes mum Der
of authorities bearing upon this question, ana de-
cdes that the bona ide purchasers OF the oonds are
entitled to protection. the recitais showing tnat
they issued in pursuance OF an act OF the
General Assembly and an ordinance OF the City
Council. There being no other valid act OF the
Legislature that could have been intended, 1t
must be presumed that the act of 1S47 is the one
referred to. The purchaser, 1t is clear was
bound to know that the act of 1867, and the cleo
ton ordered and held in compliance with it. were
valid and that the law of l847 required petit
ton of freeholders as condition to
the right of the Common Council
to m AXE stock subscription, but while bound
by legal construction to know these things for
himself, he, for the same reason, had right to
presume that the Common Council and officials
OF the CITY, VINO ordered ana MADE the DOnuS,
had the same knowledge--that they held the
elections as matter of precaution merely, and
without omission of any requirement of the act
of 1847, as they must have intended. and certify
If they acted honestly. as they are presumed TO
have acted intelligently, in ordering the bonds
issued. While the law of 1847 was not strictly
formed to- there was substantial compliance
1t appears that the voters of the city
voted with great unanimity in favor
of subscribing to the stock of the re-
spective railroad companies, the ajority being
mnch greater than two-thirds. The propo-
sitlons submitted to the voters contained, in
substance, the statements and formalities neces-
sary to proper petition. There nothing
more than formal failing to comply with the
law.
The contemplated roads were built and the
anticipated benefits have been and will be en-
Joyed. There has, therefore, been failure
either of the consideration or inducements
which led to the execution of the bonds For
ten or twelve years the bonds were in the giar-
ket. and no question as to their validity was
raised. Such payments of interest III cases
where there is question .,oout the power to issue
the bonds, have gssrat weight.
Inc demurrer to the complaint was overruled,
ana the same ruling was made in the case
wherein Augustus IT, Post is plaintiff The
effect OF the decision is to enforce the payment
of the interest due, amounting in the agere-
gate to nearly $780, 600. The ruling also decides
the question of the validity of the bonds and,
far as Evansville is directly concerned, places
the city in bad predcament financially, as the
Indebtedness largely exceeds the revenue The
ruling will, however, sustain the reputation of
the State among capitalists, which has been
affected some by the talk about reputation.