English v. Chicot County

26 Ark. 454
CourtSupreme Court of Arkansas
DecidedJune 15, 1871
StatusPublished
Cited by2 cases

This text of 26 Ark. 454 (English v. Chicot County) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
English v. Chicot County, 26 Ark. 454 (Ark. 1871).

Opinion

McClure, C. J.

It appears from the record, in this case, that the county of Ohicot issued ten, $1000 bonds, in May of 1860, to the Mississippi, Ouachita and Red River railroad company, payable five years after the date thereof, with interest thereon, payable annually, at the rate of eight per cent, per annum.

The bonds numbered 2, 8, 4, 6, 7, and 8, have the following endorsements thereon, respectively :

‘‘Pay to the order of Lloyd Tilghman, E. & C. Wilson, Secretary and Treasurer, M. O. and R. R. R. R. Co.”
Pay to the order of English and Wilshire for collection.
A. M. TILOIIMAN, Executrix.

In April of 1868, English & Wilshire presented these bonds to the county court, and asked an order for the payment of the principal and interest of these bonds. The county court re. fused to make an order for the payment of the bonds, and English & Wilshire prayed an appeal to the circuit court, which was granted. The action of the county court was sustained by the circuit court and they appealed to this court.

It appears from the record, that certain citizens of Ohicot county presented a petition to the county court to subscribe the internal improvement fund of the said county to the capital stock of the Mississippi, Ouachita and Red River railroad company, for the purpose of enabling said company to complete said road, “to a point west of the Mississippi overflow, on the high lands of Drew county.” In response to this petition the county . court “ordered, adjudged, and decreed, that said county of Chicot, do subscribe to the capital stock of said railfoad company, the sum of ten thousand ($10,000,) dollars, for the payment of which the internal improvement fund of said county, not already appropriated by order of this court, is hereby appropriated.”

“And it was further ordered, adjudged, and decreed, that said county of Ohicot shall issue, under the bond and seal'of the county judge, attested by the clerk of the court, under his official seal, ten bonds, each, for tlie¡sum of $1000, payable in five or ten years from date, as the county attorney of this county shall deem most proper, bearing eight per cent interest, payable annually.”
“And it was further ordered, adjudged, and decreed that all of the internal improvement fund of said county, now iñ the hands of the internal improvement commissioner, and not already appropriated by this court, or that may hereafter come into the hands of said commissioner, with all interest that may accrue on the same, is hereby set apart and appropriated as a. fund to meet and liquidate the principal and interest of said bonds, as the same may become due.”

And it was further “ordered, adjudged, and decreed, that the subscription is ordered upon the condition that said railroad company will receive said bonds at par, in payment for stock in said railroad,” and the county attorney was authorized and empowered to represent the interest of the county, etc.

On the 23d of July, 1860, the county court had a settlement with the internal improvement commissioner, and it was ascertained that said commissioner had the sum of $8,669 86 of the internal improvement fund on hand. On the 5th of November, 1861, the internal improvement commissioner made another report to, and settlement with the county court, and from this report it appears that he received $9,864 60, of internal improvement fund since his previous settlement.

Thus it will be seen, that the commissioner received $18,534 46, which was specifically set apart for the express purpose of paying the bonds now in controversy.' The fifth section of the act of January 22,1855, authorized “the county court, of any county, to subscribe to the capital stock of any vatlid and duly organized railroad company, incorporated under any act of this State,” the internal improvement fund, and to appoint an agent to represent the interest of the county. The proceedings we have detailed at some length, seem to have been taken under the provisions of this statute.

Of the $18,534 46, the county court ordered the commissioner to cancel the bonds of the county, held by him, to the amount of $6,000 00, and that $6,000 of the capital stock of the railroad company be deposited in lieu thereof. Whether more than $6,000 00 of railroad stock was issued’to the county does not appear; nor does the subsequent settlement of the commissioner show any other payment for railroad stock.

The question arising in this case is; did the act of January 22, 1855, authorize the county court to issue the bonds of the county, in payment of railroad stock? The bonds issued by the county court, and that are now in controversy, read as' follows: “The county of Chicot acknowledges to be indebted to the Mississippi, Ouachita and Red River railroad company, in the sum of one thousand dollars, which sum the said county of Chicot promises to pay to the order of said railroad company, five years after date, with interest thereon, at the rate of eight per cent, per annum, payable annually.” This bond, as will be observed, says nothing about the internal improvement fund being pledged to its payment, but at its head, it says, that it is “issued by an order of the county court, at the April term 1860.”

The law referred to, authorizes counties “having or controlling internal improvement funds, or credits granted to it by the State,” to subscribe to the capital stock of any valid and duly organized railroad company. The authority conferred by this act, as will be observed, is not that counties having internal improvement funds may issue bonds; but that counties having internal improvement funds may “subscribe to the capital stock of any duly organized railroad company of this State.” It was not the intention of the framers of the act of January 22, 1855, to authorize the county court of any county in the State, to subscribe for stock in a railroad and issue bonds of a county in payment thereof that, by any possibility, would have to be paid by the tax payers of the county. It seems to have been the intention of the framers of the act, that the amount of stock which a county might subscribe for, should not exceed the amount that the internal improvement fund of the county would pay.

But to return to the question; did this act authorizing counties to “ subscribe” for railroad stock, authorize the county court to issue bonds of the county to pay for it? In the enumeration of powers that belong to county courts, as fixed by section YII of Gould’s Digest, chapter forty nine, (317,) we do not find that county courts are authorized to issue the bonds of the county for any purpose. . Counties are political corporations and are- created for specific purposes, which are well known. The county court stands in the same relation to the county, as do the board of directors to a private corporation. The powers of a corporation are construed strictly, and the act, creating it, is never construed to include only the exercise of such unexpressed powers as are absolutely necessary to carry into effect.such as are expressly delegated.

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Bluebook (online)
26 Ark. 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/english-v-chicot-county-ark-1871.