Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-11-27

tached to $50 bonds issued by the de
PENDANT county July l, 1883, and payable
to the Arizona d Narrow Gauge Railroad
company or bearer. The railroad il
| question was organized under-a genera
act of the territorial legislature for the
Incorporation of railroads, passed in
1879, which gave them power to make al
contracts, acquire real and personal prop.
erty, to sue and be sued, to borrow
money necessary for the construction OF
the road, to issue bonds and notes there.
for, and to receive donations or voluntary
grants of real and personal property to
that end. The bonds in question we're
issued by the board of supervisors of the
defendant county under an act of the leg
islature of Arizona Of February 81, 1888,
entitled San act to promote the censtruc-
tion of a certain railroad" and we're part
Of a series of 200 bonds issued in pursu-
ance of said act, and exchanged for like
number of bonds of the railroad com pany
of like amounts, bearing like interest,
and running like times as the bonds in
suit.
Defendant demurred to the complaint
both generally and specially, and upon
argument the demurrer was sustained and
Judgment entered in favor of defendant.
Plaintiff appealed to the supreme
court of the territory, by which the judg-
ment of the district court was afflrmed.*
He thereupon sued out this writ of error.
W. H. Barnes and w. H. Rossington, for
appellant. Chas. Weston Wright, for ap-
pelee.
Mr.. Justice Brown, after stating the
facts in the foregoing language, delivered
the opinion of the court
This case involves the validity of GER
tain bonds issued by the county of Pima
under an act of the legislative assembly
of Arizona, approved February 81, 1888,
and occurring the board of
to issue s 100000 of bonds of
such county, and to exchange the same, in
lots of $4,000 each, for an equal number
of the bonds of the Arizona g. Narrow
Gauge Railroad company, secured by
mortgage upon its road. Assuming that
the bonds we're issued in conformity
with this act, the act itself is claimed to
be in conflict with certain acts of con-
yress upon the subject of the organlza-
ion of territories.
By the Revised Statutes (section 1889
If chapter containing provision COM
non to all the territories), "the legisla-
i've assemblies of the several territories
shall not grant private charters or espec-
al privileges, but they may, by general
Incorporation acts, permit persons to
associate themselves together as bodies |
for mining, manufacturing and |
,ther Industrial pursuits, or the censtruc-
ion or operation of railroads, wagon |
Dads, irrigating bitches and the coloni-
.ation and improvement of lands in con-
lection Herewith, or for colleges, semin-
lries, churches, libraries or any benevo-
emit, charitable or scientific association"
In 1873 this section was amended by an |
act (20 Stat. 1O1) to the effect
hat the restrictions contained in section
$50 "shall not be construed as prohibit
ng the legislative assemblies x
rom creating towns, cities, or other mu-
licipal corporations, and providing for
he government of the same, and confer
Ing =, upon them the corporate powers
by either general or special
.cts." Following this there is para
,raph validating acts heretofore passed
treating municipal corporations, and |
further: "That nothing here
n shall have the effect to create any pri.
rate right, except that of holding and
municipal offices, or to divest
my such right, or to make valid or in
7alid any contract or obligation hereto
ore made by or on behalf of any such
own, city, or other municipal corpora
ion, or to authorize any such corpora
ion to incur hereafter sny debt or obi
cation other than such as shall be neces-
sary to the administration of it's internal
affairs"
In the face of these restrictions upon
it's power, the legislature of Arizona, on
February 81, 1888, passed the act in ues-
zion, making it the duty of the board of
to issue 100000 of county
bonds, and to deliver the same to the
railroad company in exchange for cor
bonds of such company.
Now, unless debt thus incurred in aid
Of the construction Of a railroad can be
said to be an obligation necessary to
,he administration of the internal affairs"
Of Pima county, it must necessarily fol-
ow, irrespective of every other considera-
lion, that the legislature exceeded its
powers in authorizing and requiring the
county to issue it's bonds in exchange for
hose of the railroad company in ques-
lion, and that the bonds are void.
The question is too clear for extended |
By the "internal affairs" of a |
corporation, in the admins
ration of which the legislature could |
Hone authorize it to incur debt, was
intended such business as
of like character are usual
y required to engage in to fulfill their
proper functions, and to effectuate the
objects of their charters. In the case
If counties these are ordinarily to pro-
tide courthouse for the administration
# Justice Jail for the confinement of
prisoners; poorhouse for the sustenance
# paupers (where by local law they are
made chargeable upon the county,; offices
or the various officials of the county;
nd, under certain circumstances, high
rays and bridges for the accomm odation
# the public. 1t could never have been
ontem plated, however, that this power
7ould be used to incur obligations in
avor of railroad operated by a private
orporation for private gain, though also
observing public purpose. The rec
I'd before us does not show whether this
abroad was designed to extend beyond
he limits of the county; but, if the coun-
= had power to issue its bonds in aid of
ailroads at all, there is nothing to indi-
ate that such power was restricted to
nch roads as we're wholly within the
ounty, and, if this act we're valid ex-
rcise of the authority Of the legislature,
,e credit of the county might be indefin-
ely pledged for the construction of rail-
avs extending far beyond the county
mits, and, indeed, for carrying out any
lch schemes of public improvement az