Hodgman v. St. Paul & Chicago Railway Co.

23 Minn. 153, 1876 Minn. LEXIS 107
Supreme Court of Minnesota·Decided October 17, 1876·Published·Cited by 2 cases

Opinion

Cornell, J.

By an act of the legislature, passed March 5, 1868, entitled “An act to authorize the city of Red Wing to issue bonds to aid in the construction of the St. Paul and Chicago railway through said city,” (Sp. Laws 1868, c. 14,) the city was authorized, by its council, subject to a vote of the people, at any time prior to the first day of August, 1870, to issue its bonds to the extent of $100,000 in aid of such enterprise, and to enter into any agreement with said company, in relation to the terms, time, and conditions of such issue, as might be agreed upon. On February 8, 1869, this act was amended by removing the restriction as to the time when such authority conferred upon the city should be exercised, empowering it to issue the bonds “ to aid in the construction of the St. Paul and Chicago railway,” with this proviso, “ that no such bonds shall be issued until so much of said railway as is or shall be located between the city of St. Paul and said city of Red Wing shall have been fully constructed, equipped, and put into successful operation for the transit of passengers [156] and freight.” Sp. Laws 1869, c. 35. By the amended act the authority was given to the city council to enter into any agreement with any company having the right to construct such railway, in relation to the time, terms, and conditions of the bonds, and the issuance thereof, and to provide for their issue by an ordinance specifying such time, terms, and conditions, provided, among other things, that such agreement and ordinance should not take effect or be in force until ratified and approved by the qualified voters of the city, as therein provided.

Under this authority a contract was duly entered into between the city and the defendant company, on or about May 8, 1869, by an agreement and ordinance duly passed and ratified, the stipulations, terms, and conditions of which are, so far as material to this case, as follows: “It is mutually understood by and between the parties hereto that no portion of said bonds shall be issued until said railroad shall have been fully constructed, equipped, and put into successful operation for the transit of freight and passengers from the city of St. Paul, in the state of Minnesota, to the city of Winona, in said state, or to some point south of Bod Wing connecting with some railway, so as to afford, in conjunction therewith and with other railways, direct railway transportation with Milwaukee and Chicago ; and said bonds, when so issued, shall each bear date subsequent to the completion, as above expressed, of said railway; and that no such bonds shall be issued unless said railway shall be fully constructed, equipped, and put into successful operation for the transit of freight and passengers from St. Paul to said Bed Wing, on or before the first day of January, A. D. 1871;” and the said company “covenants and agrees to construct, equip, and put into successful operation said railway, for the transit of freight and passengers from the city of St. Paul aforesaid to the city of Winona, in said state, or to some point south of Bed Wing connecting with some railroad, so as to afford, in conjunc[157] tion therewith and with other railroads, direct railroad transportation with Milwaukee and Chicago ; and the said party of the second part (the company) further agrees to fully construct and equip the said railway, and put the same into successful operation for the transit of freight and passengers from St. Paul aforesaid to said Red Wing, on or before the first day of January, A. D. 1871.”

The ordinance, in terms, provides for the issuance of the bonds of the city, to an amount, etc., therein specified, “to aid the St. Paul and Chicago Railway Company in the constniction of its railway” between St. Paul and the point or points therein stated, and contains these provisions i “Provided, that no such bonds shall be issued until said railway shall have been fully constructed, equipped, and put into successful operation for the transit of freight and passengers from the city of St. Paul, in the state of Minnesota, to the city of Winona, in said state, or to some other point south of Red Wing connecting with some railroad, so as to afford, in conjunction therewith and with other railroads, direct railway transportation with Milwaukee and Chicago ; and said bonds, when so issued, shall bear date of a day subsequent to the completion, as above expressed, of said railway ; and provided, further, that no-such bonds shall be issued unless said railway shall bo fully constructed, equipped, and put into successful operation for the transit of freight and passengers from St. Paul to said Red Wing, on or before the first day of January, A. D.. 1871.”

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Hodgman v. St. Paul & Chicago Railway Co., 23 Minn. 153, 1876 Minn. LEXIS 107 (Mich. 1876).

23 Minn. 153 (Hodgman v. St. Paul & Chicago Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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