Rathbone v. Board of Com'rs

73 F. 395, 1896 U.S. App. LEXIS 2640
CourtU.S. Circuit Court for the District of Kansas
DecidedMarch 19, 1896
DocketNo. 467
StatusPublished
Cited by2 cases

This text of 73 F. 395 (Rathbone v. Board of Com'rs) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rathbone v. Board of Com'rs, 73 F. 395, 1896 U.S. App. LEXIS 2640 (circtdks 1896).

Opinion

WILLIAMS, District Judge.

This suit is instituted upon past-due coupons, detached from 16 bonds, of $1,000 each, issued by the defendant county to the Kingman, Pratt & Western Railroad Company, and upon past-due coupons, detached from 30 bonds issued by the defendant to the Chicago, Kansas & Nebraska Railway Company. In each instance, the bonds were issued in payment of stock subscribed for by the defendant, in the respective companies.

Without stating the matters alleged in the answer in detail, it will be sufficient to say that the defendant county avers the bonds wére issued by persons who were not clothed with power to issue the same, in disregard of the law governing the issue of this class of bonds, and that the amount issued is in excess of that which could be issued under the law. To the answer a general demurrer has been filed. All the steps taken by the county officers, in relation to the election, the canvass <5f the vote,-and making of the subscriptions, if done at a time when the law authorized them to be done, appear to be regular.

The laws of Kansas authorize counties to subscribe for stock in railroad companies, and pay for the same with bonds of the character of thosé from which the coupons in suit are detached. The amount of indebtedness which may thus be created is fixed by statute:

“No county shall issue, under the provisions of this act, more than one hundred thousand dollars, and an additional live per cent, indebtedness, of the assessed value of such county, and in no case shall the total amount issued to any railroad company exceed four thousand dollars per mile, for each mile of railroad constructed in said county.” Comp. Laws 1885, p. 783, § 68.

The courts of Kansas, in the construction of this act, have held that, after a proper petition has been filed, the board of commissioners of the county can be compelled to make an order for the holding of an election and submit the proposition of voting bonds to the voters of the county. They have also held that, after a subscription has been made, the officers designated by the statute to sign the bonds can be compelled to sign the same. In addition to this, they hare held that, after the subscription has been properly made and accepted, this creates a binding contract which can be enforced by law.

As will be seen, the amount of bonds which may be issued by any county, under the law, is $100,000, and an additional 5 per cent, indebtedness of the assessed value of such county. The assessed value of the defendant county, on the 23d of March, 1886, was -$236,662. The greatest amount of bonds then which could be issued, under the act, was $111,833.10. There were two propositions for bonds before the board of commissioners, — the one for $115,000 to one com[397]*397pany, and $120,000 to another, the two amounts aggregating $235,-000; and the assessed value of the county was only $230,062. Both propositions were submitted to the voters at the same election, and both were declared carried. Either of the sums so voted are greater than the limit prescribed by the act. But it was held, in Chicago, K. & W. R. Co. v. Commissioners of Osage Co., 38 Kan. 597, 16 Pac. 828, that the voting for more bonds than could be lawfully issued did not invalidate the vote, and that bonds, under such a vote.», might be issued to the lawful limit. Hence, the question of the amount voted passes out of the discussion.

On the 25th of June, 1886, the hoard of commissioners authorized the county clerk to make a subscription to the Chicago, Kansas & Nebraska Railway Company for 1,200 shares, of $100 each. The order is as follows:

“And tlie said board of commissioners of said county, as provided for in said proposition, and by law in sucli case, do now and hereby order and direct that the county clerk of said county of Kiowa, state of Kansas, do and shall, for and in behalf and in the name of said county of Kiowa, at once, subscribe, and make due and proper subscription of, twelve hundred shares, of one hundred dollar's each, to the capital stock of the said Chicago, Kansas & Nebraska Railway Company,” etc.

In pursuance of this order, a.nd on the same day, tlie county clerk executed the following instrument:

“Whereas, on the 25th day of June, 1886, the board of county commissioners of tlie county of Kiowa, in the state of Kansas, did make and enter of record, upon the journals of its proceedings, an order directing the county clerk of said county of Kiowa, for and in the name and on behalf of said county of Kiowa, to make due and proper subscription to twelve hundred shares, of one hundred dollars each, of the capital stock of the Chicago, Kansas & Nebraska Railway Company,” etc.: “Now, therefore, 1, J. M. Crawford, county clerk of the eonnty of Kiowa, state of Kansas, in pursuance of the statute in such case made and provided, and in obedience to the said order of the board of county commissioners, do hereby subscribe to, and make subscription of, twelve hundred shares, of one hundred dollars each, of tlie capital stock of said Chicago, Kansas & Nebraska, Railway Company, for and on behalf of and in the name of the county of Kiowa, state of Kansas, and I do hereby fake twelve hundred shares of the capital stock of said railway company, in (lie name of said county, and for its behalf and benefit,” etc.
“In testimony whereof, I have executed, and signed and executed, this instrument and subscription, by subscribing my name hereunto, as county clerk of said county, and attesting tlie same under the seal of the said county'of Kiowa, state of Kansas, at my of lice in G-reensbnrg, the county seat of sa.id county, this 23fh day of June, 1886.
“[Signed] J. N. Crawford,
“County Clerk of the County of Kiowa, State of Kansas.”
“Approved:
“J. W. Gibson,
“J. L. Hadley,
“Board of County Commissioners of Kiowa County, Kansas.”

Tlie action of the county clerk, in executing this instrument, on the day of its execution, was reported to the board of county commissioners, and it made the following order thereon:

“The clerk of said county thereupon informs the board of county commissioners of said county of Kiowa that, in obedience to the foregoing order, he has made the subscription of stock, as required by said order, and now submits the same for approval, which is done by said board, and the said board further orders that the subscription, so made by the county clerk, be copied and spread [398]*398upon the minutes and record of proceedings of said board, and that said subscription be delivered to said companj'-, as provided in the foregoing order, and' it is accordingly so done.”

This action of the board of county commissioners, in connection with that of the county clerk, on the 25th day of June, 1S86, under the adjudications of the courts of Kansas, constituted a concluded contract, if, at the time these acts were performed, the parties performing them had the power to act for and bind the county. •

On the 2d of August, 1886, the board of commissioners of said' county made the following order:

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Bluebook (online)
73 F. 395, 1896 U.S. App. LEXIS 2640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rathbone-v-board-of-comrs-circtdks-1896.