Shelby County Court v. Cumberland & Ohio Railroad

71 Ky. 209, 8 Bush 209, 1871 Ky. LEXIS 41
CourtCourt of Appeals of Kentucky
DecidedSeptember 30, 1871
StatusPublished
Cited by5 cases

This text of 71 Ky. 209 (Shelby County Court v. Cumberland & Ohio Railroad) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelby County Court v. Cumberland & Ohio Railroad, 71 Ky. 209, 8 Bush 209, 1871 Ky. LEXIS 41 (Ky. Ct. App. 1871).

Opinion

JUDGE HARDIN

delivered the opinion oe the court.

This was a proceeding for a mandamus to compel the judge of the Shelby County Court to issue and deliver to the Cumberland & Ohio Railroad Company the bonds of that county for the sum of three hundred thousand dollars, in payment of that amount of a subscription to the capital stock o,f the company of four hundred thousand dollars previously ordered to be made by the county court, upon certain specified conditions, and in conformity with the apparent will of the people of the county, ascertained by a popular vote. The circuit court being of the opinion that said subscription was valid and obligatory, and that the county court in refusing to issue the bonds on the application of the company had transcended its discretion and authority, peremptorily ordered the issual of the bonds of the county to the company for three hundred thousand dollars, and from that mandatory order the judge of the county court prosecutes this appeal.

The Cumberland & Ohio Railroad Company was incorporated by an act of the legislature of this state, approved February 24,1869, and that act was amended by one approved on the 11th of March, 1870. It will only be necessary to state some of the numerous provisions of said acts in presenting the questions involved by this appeal, which seem to require particular consideration.

Although neither the exact line nor precise terminal points of the road are fixed by the charter, they are substantially, and as we think sufficiently, designated by the following provisions of section 12 of the original act of incorporation: That the president and directors of said company are hereby vested with all the powers and rights necessary to the con[213]*213struction of a railroad from the Ohio River, through Henry County, Shelby County, Washington County, Nelson County, Marion County, Taylor County, Green County, Barren County, and Allen County, to a point on the boundary line between the states of Kentucky and Tennessee, to be selected by the president and directors, about due north from the town of Murfreesboro, Tenn., with the view of connecting with the southern system of railways converging at Nashville, Tenn. They may connect with the Ohio River by intersecting the Covington extension of the Louisville, Cincinnati & Lexington Railroad at some convenient point in Henry County, Ky., on such terms as may be mutually and lawfully agreed upon between the company hereby incorporated and the said Louisville, Cincinnati & Lexington Railroad Company.”

The 15th section of the same act provides, in substance and effect, that any county through which the proposed road may pass is thereby authorized to subscribe stock in the company, in any amount such county may desire; and the county court of any such county is authorized to issue its bonds in such amount as the county court may direct; provided the court shall first submit the question of making the subscription to the qualified voters of the county for determination by an election; and if at such election the majority shall vote in favor of subscribing the stock, it shall be the duty of the county court to make the subscription in the name of the county, and proceed to have the bonds of the county issued therefor.

The Cumberland & Ohio Railroad Company organized under its charter, and thereafter, on the 14th of August, 1869, the County Court of Shelby County, on the motion of the president of the company, entered upon its records an order for submitting to the voters of the county, at an election on the 4th of September, 1869, the question of subscribing on the part of the county to the stock of the road the sum [214]*214of four hundred thousand dollars, payable in the interest-bearing bonds of the county, to become due in twenty years. To this proposition, and for submission with it, the court in its order annexed four conditions, which are substantially as follows:

1. That the road should pass through or within six hundred yards of the corporate limits of the town of Shelbyville.

2. That the subscriptions should not be made until it should be made to clearly appear to the county court that said company had secured a bona fide subscription to its capital stock sufficient with that to procure the right of way, grade, and execute the masonry of the road from its northern terminus to the Tennessee line.

3. That the stock taken by Shelby County should, as far as necessary, be used in that county in procuring the right of way, in grading, and the necessary masonry for the road-bed.

4. That before said subscription should be made by the county court, or the bonds delivered in payment thereof, the president and directors of said company should by an order^ of its board direct the county court to issue and deliver one hundred thousand dollars of said bonds to the Shelby Railroad Company, to be used in Shelby County in extending the Shelby Railroad east of Shelbyville.

The election was held upon due notice, and resulted, by a small majority of the votes cast, in favor of the proposition to make the subscription of stock upon the several conditions submitted with it.

•Afterward, in March, 1871, the Cumberland & Ohio Railroad Company, having filed its petition in the county court, setting forth that it had complied with the terms and conditions of the propositions submitted and voted upon as aforesaid, and asking that the subscription be made on behalf of the county, the same was heard upon evidence adduced, and thereupon the court adjudged as follows: “ And it clearly [215]*215appears to the satisfaction of this court that from the evidence exhibited by said president and directors of said company that they have secured a bona fide subscription to its capital stock sufficient, with the subscription asked from Shelby County, to procure the right of way, grade, and execute the masonry of said road from its northern terminus, through the state of Kentucky, to the line of the state of Tennessee. It is therefore ordered that the said sum of four hundred thousand dollars, for and on behalf of the county of Shelby, be and the same is hereby subscribed to the capital stock of the Cumberland & Ohio Railroad Company, with the condition that one hundred thousand dollars of said subscription shall be paid to the Shelby Railroad Company, and shall be held by the Cumberland & Ohio Railroad Company as stock in said Shelby Railroad, to be expended by said road as provided in the order submitting the proposition to the voters of Shelby County, and with the further condition that, said Cumberland & Ohio Railroad shall run within six hundred yards of the corporate limits of the town of Shelbyville, as they existed on the 4th of September, 1869, and that the money arising from the subscription of Shelby County shall be expended, as far as may be necessary, in Shelby County in securing the right of way, grading, and executing the masonry upon said road.”

Subsequently the appellee moved the county court to issue to it three hundred thousand dollars of the bonds of the county in payment of that much of the subscription, which the court refused to do, and hence has arisen this litigation, resulting in the peremptory judgment of the circuit court, now before this court for revision.

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Bluebook (online)
71 Ky. 209, 8 Bush 209, 1871 Ky. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelby-county-court-v-cumberland-ohio-railroad-kyctapp-1871.