David Josiah Brewer

“ The first effect of this constitutional provision was the full withholding of all public aid to railroad enterprises. Nothing broke this clear record of exemption from taxation for railroad enterprises until 1869, when, on the 4th day of May of that year, the legislature passed an act which, though general in its terms, as applicable only to cities having exceeding 150,000 inhabitants, was, by the existing condition of municipalities, one in fact having reference solely to the city of Cincinnati. ”

“ Even if in form they were absolutely alike, yet, as they are acts respecting different classes of corporations, the validity of the one would not necessarily determine the validity of the other. A statute empowering a county to issue bonds and build a jail might be unquestionably valid; while a statute, in precisely the same language, attempting to give the same power to a school-district, might be as plainly unconstitutional and void. ”

“ Mighels, 7 Ohio St. 109. The differences between these two classes of corporations it is unnecessary to point out in detail. It is enough to say that one has, far more than the other, the powers, capacities, and duties of a private corporation; so that a delegation of power to the one, if adjudged valid, does not justify the inference that a delegation of a like power to the other must also be valid. So far, therefore, as judicial determinations are concerned, the purchaser of these bonds had no express warrant from the supreme court of the state to rely upon. ”

“ In no project originated by individuals, whether associated or otherwise, with a view to gain, are the municipal bodies named permitted to participate in such manner as to incur pecuniary expense or liability. ”

“ They may neither become stockholders nor furnish money or credit for the benefit of the parties interested therein. Though joint-stock companies, corporations, and associations only are named, we do not doubt that the reason of the prohibition would render it applicable to the case of a single individual. ”

“ In this case our judgment accords fully with that of the supreme court of thestate in 37 and 38 Ohio St., supra. Notice the constitutional provision. The significance of its inhibition is read in the evil which it was intended to remedy. Common was the practice theretofore of issuing muncipal bonds to aid in the construction of railroads. The practice was felt to be evil, stimulating unnecessary railroad enterprises, and injuriously affecting the interests of the tax-payer. The universal method of railroad enterprises was through private corporations. ”