Louisiana v. Taylor

105 U.S. 454, 26 L. Ed. 1133, 1881 U.S. LEXIS 2148
CourtSupreme Court of the United States
DecidedApril 24, 1882
Docket264
StatusPublished
Cited by3 cases

This text of 105 U.S. 454 (Louisiana v. Taylor) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana v. Taylor, 105 U.S. 454, 26 L. Ed. 1133, 1881 U.S. LEXIS 2148 (1882).

Opinion

Mia. Justice Matthews

delivered the opinion of the court.

Taylor, a citizen of Illinois,.brought this action against the city of Louisiana, a municipal corporation of Missouri, to recover the amount alleged to be due upon, certain bonds and coupons issued by the. latter in payment of a subscription to the capital stock of the Louisiana and Missouri River Railroad Company, a corporation-authorized by law to construct, and which has constructed in pursuance thereof,, a railroad from the city of Louisiana to the Missouri River. The bonds sued on were dated, some in September, others in October and in November, 1869. -They matured on Jan. 1,1876,1877, and 1878, and; together with the coupons, falling due since January, 1876, remain.-unpaid. All coupons maturing previously, together with'the principal of a portion of the whole issue of bonds, had been'paid by taxes regularly levied- and collected by the proper authorities of the city, from’the year 4867 to 1876. *455 Certificates of the stock in the railroad company were issued in pursuance of the subscription, and were accepted by the city, which has ever since exercised its rights as a stockholder.

The defence was that the bonds were void for want of power in the municipal corporation to issue them.

There was a judgment in favor of the-plaintiff below, to reverse which this writ of. error is prosecuted.

Each of the bonds sued on contains a recital that it “'is issued by the city of Louisiana under authority of the General Assembly of the State of Missouri, entitled ‘ An Act incorporating the Louisiana and Missouri River Railroad Company,’ approved March 10, 1859; also an ordinance of the city council of the city of Louisiana, No. 502, passed June 12, 1866.”

The reference to the railroad charter is to the twenty-ninth section of the act of incorporation, which reads as follows

“ Sect. 29. It shall be lawful for the county court of any county in which any part of the route of said railroad may be, to subscribe to the stock of said company, and it may invest its funds in stock of said company and issue the bonds of such county to raise funds to pay the. stock thus subscribed, and to take proper steps to protect the interest and credit of the county. Such county court may appoint an agent to represent the county, jóte for it, and receive its dividends; and any city, town, or incorporated company may subscribe to the stock of said railroad company and appoint an agent to represent its interests, give its vote, and receive its dividends,- and may take pr'oper steps to guard and protect the interests of said city, town, or incorporation.”

The tenth section of the act incorporating the city of Louisiana, passed Feb. 16, 1865, was as follows t — -

“ The city shall have power to subscribe for stock in any incorporative railway company connecting with the city of Louisiana, or give any bonus to any institution of learning, by submitting an ordinance making the appropriation, or authorizing the issue of bonds for any such purpose, to a vote of the qualified voters of the city, at any general election held in the city, or at any special election expressly ordered, át.which election the majority of the votes cast shall be for such ordinance: Provided, the debt of the city shall never exceed one hundred and fifty thousand dollars.”

*456 , In pursuance of tbis provision of the city charter, the city council, on June 12, 1866, passed-ordinance No, 502, recited in the bonds in suit, providing for an election to be held on the first Tuesday in July, 1866, on the proposition to subscribe for stock in the Louisiana and Missouri River Railway Company for an amount not exceeding $50,000.

The election provided for by this ordinance was in fact held, the result' of which was, that 176 votes were cast in favor of the proposition and 46 against it.

Thereupon, the city council passed an ordinance authorizing the subscription of $50,000 to the capital stock of the railway company, and the issue of bonds for the payment of the same. The subscription, was made and the bonds were'delivered.

The Constitution of Missouri that went into operation July 4, 1865, sect. 14 of art. 11, contains the following provision : “ Thé General Assembly shall not authorize any county, city, or town to-become a stockholder in, or to loan' its credit to, any company, association, or corporation, unless two-thirds of the qualified voters of such. county, city, or town, at a regular or special election to be held therein, shall assent thereto.”

’ Section 8 of article 2 is. as follows: “ All statute laws of this State now in force, not inconsistent with this Constitution, shall continue in force until they shall expire by their own limitation, or be amended .or repealed by the General Assem-? bly,”

At its first, session- after the adoption of this. Constitution, the .General Assembly of Missouri passed a general railroad law (Rev. Stat. Missouri, 1865, p. 872), which it is claimed went into effect March 19, 1866, and which contained the provision following, .to wit: “It-shall be lawful for the county court óf any county,' the city council of any .city, or the trustees of any incorporated-town to take stock for such city, county, or town, in, or to loan the credit thereof to, any railroad company, duly organized under this or any law of this State: Provided, .that two-thirds of the qualified voters of such county, city, or town, at a regular or special election to be held therein, shall assent-to such subscription.”

At the same session of the legislature, it was also enacted *457 (Rev. Laws of Missouri, c. 224, sect. 6, p. 882)' that “ all acts and parts of acts of a private, local, or temporary nature, or specifically applicable to particular cities or counties, in force on the first day of November, A. D. 1865, not repealed by or repugnant to the provisions of the General Statutes or some act of the present General Assembly, shall continue in force or expire, according to their respective provisions Or limitations.”

These are all the statutory provisions, supposed -by counsel for the respective parties to have any material bearing upon the question at issue.

The power to subscribe to the capital stock of the railroad company is expressly given to the city of Louisiana by the twenty-ninth section of the charter of the former. Whether that grant of power carries with it the incidental authority to pay its subscription by an issue of bonds,, or whether, upon a fair construction of the terms of that section, the exercise of such an authority is within the meaning of the law, it is not necessary for us to discuss or decide; for whatever might be a proper construction of the section, if it stood by itself, we think it must, at the time when the bonds in suit were issued, be interpreted in connection with the tenth section of the city charter, which had in the mean time been enacted.

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Bluebook (online)
105 U.S. 454, 26 L. Ed. 1133, 1881 U.S. LEXIS 2148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-v-taylor-scotus-1882.