The comet. (Johnson City, Tenn.) 1884-1916, 1893-12-21
CONTINUED FROM FIRST PAGE
THE THREE C's SUIT.

the repair ut same, inside the corpO-
rate limits of the town. The applica-
ton stated further that The proposition,
when accepted by the town and rati-
fled by the voters Of the same, shouli-
be in lieu of the proposition h-retofor
acted upon submitted February 20,
1889. b. said railroad comp ny, 10 the
corporate authorities al said town,
proposing 10 subscribe severity five
thousand dol ara 10 the capital stock
OF said railroad company.
A certified copy Ut said application,
or proposition, together with the &C.
ton OF the Board OF Mayor and Alder
men thereon, is herewith filed, marked
exhibit b" TO this bill The Honor
able Court will readily see from an
inspection of the two propositions
submitted to the corporate authorities
of Johnson City, that both emanated
from the same corporate entity, and
were the acts ard deeds oilne and the
Same corporation.
In pursuance OF said last application
an election was again ordered, and
was held January 90th, 1890, and at
said election three-fourths OF all the
votes cast were ''for subscription" to
the capital stock of said railroad.
On the 1st day of May thereafter
the Board OF Mayor aud Aldermen
issued, or caused to be issued, seventy
five one thousand dollar interest bear
ing coupon bonds OF the corporation
of Johnson City, payable to the
Charleston, Cincinnati 4 Chicago
Railroad Company or bearer, and the
same were delivered to said railroad
company's officers, or agents, except
ten thousand dollars thereof, as will
be hereinafter more particularly ex
planned.
Complainant has not at its COM
mand one of said bonds, but herewith
files, as Exhibit G" to this bill, GER
tilted copy OF the words and figure
the Board OF Mayor and Aldermen
directed that said bonds should con-
tam when issued.
Complainant, therefore, charges
that the Defendant. Charleston, Gin
cinnati Il Chicago Railroad Company,
which submitted its applications, or
propositions, to the town of Johnson
City to subscribe to its capital stock
as above set forth, was, at the time
when applications were made, and at
the time when said elections were held
and at the tims when said bonds were
issued and delivered, foreign corpo
ration, organized under the laws O.
North Carolina and South Carolina
and had no legal existence in THU
State, Notwithstanding it claimed tt
be chartered under the laws of Ten
nessee.
III. Complainant is advised that i
is not legally liable for the paymen
of said bonds and coupons, and ough
not to pay the same, for the following
reasons
l. Because the bonds we're issued By
the town of johnson City without au
thority Of law. Under the laws o
Tennessee municipal corporation
has no authority or power to TAX
stock in, or issue bonds in aid of
railroad or other corporation, unles
such authority has been expressed,
granted by the Legislature. Sail
bonds show upon their face that the
were issued pursuant TO chapters
and So OF the Acts of 1887. With
these two chapters authority to issp
the bonds must be found, If found q
all.
Chapter 8 of said Acts authorize
towns or cities to become stakeholder
sin any railroad company incorporate
under the general laaOS of this State"
The act does not confer upon cit
or town the power or authority to sui
scribe for stock in foreign corpor
ton, but expressly limits its subscril
ton to home corporations.
Complainant is advised that acts
this character are to be strictly col
strued, but the most liberal constru
ton will fail to disclose grant
power in the act in question to al
nonresident corporations.
The,other Act cited in the face
the bonds ia chapter So of the Acts
1887, which attempts to authorii
Johnson City to issue interest-bearin
coupon bonds IN an amount not e.
ceeding seventy-fve thousand dollar
The Act nowhere defines the pu
pose for which the bonds may be
sued, and, therefore, as a delegation
power, is void for uncertainty, an
violates section 20, article 2, of tx
State constitution, granting the pow,
to the Legislature to authorize inco
porated towns to impose taxes or loa
their credit for corporation purpos'
only. If the object and purpose
the Act was to allow Johnson City
issue bonds in aid of the Charlesto
Cincinnati & Chicago Railroad Cor
nanY. foreign corporation, then Il