Railroad Co. v. County of Otoe

83 U.S. 667, 21 L. Ed. 375, 16 Wall. 667, 1872 U.S. LEXIS 1192
CourtSupreme Court of the United States
DecidedMarch 31, 1873
StatusPublished
Cited by52 cases

This text of 83 U.S. 667 (Railroad Co. v. County of Otoe) 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
Railroad Co. v. County of Otoe, 83 U.S. 667, 21 L. Ed. 375, 16 Wall. 667, 1872 U.S. LEXIS 1192 (1873).

Opinion

Mr. Justice STRONG

delivered the opinion of the court.

The first question upon which'the judges'of the Circuit Court divided, was whether the act of the legislature of Nebraska, approved February 15th, 1869, authorizing .the county bf.Otoe to issue bonds in aid of a railroad outside of- the State, conflicts with the constitution of that State.

. Unless we close our eyes to what has again and again been decided by this court, and by the highest courts of ‘most of the States, it would be difficult to discover any sufficient reason for holding that this act was transgressive of the power vested by the constitution of the State in the legislature. That the legislative power of the State has been conferred generally upon the legislature is not denied, and that all such power may be exercised by that body, except so far as it is expressly withheld, is a proposition which admits of no doubt. It is true that, in construing the Federal Constitution, Congress must be held to have only those powers which are granted expressly-or by necessary implication, but the opposite rule is the one to be applied to the *673 construction of a State constitution. The legislature of a State may exercise all powers which are properly legislative, unless they are forbidden by the State or-National Constitution. This is á principle that lias never been called in ques* tion.. Ifj then, the act we are considering was legislative in its character, it is incumbent upon those who deny its validity to show some prohibition in the constitution of the State against such legislation. And that it was an exercise of legislative power is not difficult to maintain. No one questions that the establishment aud maintenance of highways, and the opening facilities for access to markets, are 'within the province of every State legislature upon which has been conferred general legislative power. These things are necessarily done by law. The State may establish highways or avenues to markets by its own direct action, or it may empower or direct one of its municipal divisions to establish them, or to assist in their construction. Indeed, it has been by such action that most of the highways of the country have come into existence. They owe their being either to some general enactment of a State legislature or to some law that authorized a municipal division of the State to construct and maintain them at its own expense. They are the 'creatures of law, whether they are common county or township roads, or turnpikes, or canals, or railways. And that authority given to a municipal corporation to aid in the construction of a turnpike, canal, or railroad is a legitimate exercise of legislative power, unless the power be expressly denied, is not only plain in reason, but it is established by a number and weight o? authorities beyond what can be. adduced in support of almost any other legal proposition. The highest courts of the States have affirmed it in nearly a hundred decisions, and this court has asserted the .same, doctrine nearly a score of times.. It is no longer open to debate.

Then what is there in the constitution of the State of Ne-bi’aska which denies this power to the legislature ? There is no direct or express prohibition. General legislative power is vested in the legislature. None was reserved to *674 the people of the State.. There are, however, certain restriction's that may be noticed. The constitution declares that “ the property of no person shall be taken for public use without just compensation,” and it is earnestly contended that this prohibits the legislature from passing any laws in aid of the construction of a railroad that may result in the imposition of taxes. It is said that the act of February.15th, 1869, is taking private property for a public use without compensation. It would be a sufficient answer to this to say that a similar provision is found in the constitution of almost every State, tlife legislature of which has been held authorized to legalize municipal subscriptions in aid of railroad companies. It has' never been held to prohibit such legislation as ive are now considering. But the clause prohibiting taking private property for public use without just compensation has no reference- to taxation. If it has, then all taxation is forbidden, for “just compensation” means pecuniary recompense to the person whose property is taken equivalent in value to the property.' If- a county is authorized to build a court-house or a jail,-and to impose taxes-to defray the cost, private property is as truly, taken for public use without Compensation as it is. when the county is authorized to build a railroad or á turnpike, o.r to aid in the construction and to levy taxes for'the expenditure. ■ But it is taken in neither case in the constitutional sense. The restriction is upon the right of eminent domain, not upon the right of taxation.

We find nothing else iu-the constitution of the State that can with any reason be claimed to restrain the pow.er of the legislature to authorize municipal aid to. railroads, or other highways. • There is a clause that declares “ the credit of the. State shall never be given to, or bound, in aid of any individual association or corporation,” and another that ordains that the debts of the State shall never, in the aggregate,'exceed $50,000, but -these refer only to State action and State liability. *

*675 In view, therefore, of the organic law of the.State, and of the decisions which have been made in regard to other sim-' ilar constitutional provisions, both in the highest courts of' the States and in this court, we think it ’cannot he doubted the legislature of Nebraska had authority to authorize its municipal divisions to incur indebtedness and to impose taxation in aid of railroad companies.

It is urged, however, against the validity of the act now under consideration that it authorized a donation of the county bonds to the railroad company, and it is insisted that if even the legislature could empower the county to subscribe to the stock of such a corporation, it could not constitutionally authorize a donation. Yet there is no solid ground of distinction -between a subscription to stock and an appropriation of money or credit. Both are for the purpose of aiding in the construction of the road; both are aimed at the same object, securing a public advantage, obtaining a highway or. an avenue to the markets of the country; both may be equally burdensome to the taxpayers of the county. The stock subscribed for may be worthless, and known' to be so. That the legislature of the State might have granted aid directly to any railroad company by actual donation of money 'from its treasury will not be controverted. No one questions that in the absence of some constitutional inhibition the power of a State to appropriate its money, however raised, is limited only bythe sense of justice and by the sound discretion of its legislature. ' If the power to tax be unrestricted, the power to appropriate the taxes is necessarily equally so. Accordingly nothing has been more common in the State and Federal governments than appropriations of public money raised by taxation to objects, in regard to which no legal liability has existed. State legislatures have made donations for numerous purposes, wherever, in their judgment, the public well-being required them, and the right to make such gifts has never been seriously questioned.

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Bluebook (online)
83 U.S. 667, 21 L. Ed. 375, 16 Wall. 667, 1872 U.S. LEXIS 1192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-co-v-county-of-otoe-scotus-1873.