Nathan Clifford

“ Repeated decisions of the State courts have established the rule that the legislature has the constitutional right to authorize municipal corporations to subscribe for the stock of a railroad company, and to issue their bonds to aid in the construction of such an intended improvement; that the supervisors of the municipality have the power, in case such a subscription is authorized, to subscribe for the stock of the railroad company, and to call an election to ascertain the will of the legal voters in that behalf. ”

“ Here there are no 'qualifications coupled with the grant of power,' for no power has ever been granted, and none ever existed under 'any circumstances,' [4] because as the power is only to be given in case a certain past fact exist, the non-existence of the fact carries with it the non-existence of the power. ”

“ Bonds, payable to bearer, issued by a municipal corporation to aid in the construction of a railroad, if issued in pursuance of a power conferred by the legislature, are valid commercial instruments; but if issued by such a corporation which possessed no power from the legislature to grant such aid, they are invalid, even in the hands of innocent holders. ”

“ Now, in this class of cases, the fact on which the power depends is not 'peculiarly within the knowledge of the corporation,' and there can be no estoppel, and in such case there is no presumption that officers have regularly performed any duty, because it is not a question of official duty to be performed, but a question of the existence of a past fact, which, in the case now under consideration, was a voluntary, unofficial, unauthorized act. ”

“ Legislation of the kind may be prohibited by a State constitution, but it is settled everywhere that such an act is not in contravention of any implied limitation of the power of a State to pass laws to promote the usual purposes of municipal corporations. ”

“ No illegality appears on the face of the bond or condition, which shows that the plea, in order that it may be supported, must allege facts to establish illegality, but the plea makes no charge of fraud against the plaintiff and states no facts from which fraud may be inferred. ”

“ Such corporations are created by the legislature and they derive all their powers from the source of their creation, and those powers are at all times subject to the control of the legislature. Every where the construction and repair of highways within their limits are regarded as among the usual purposes of their creation, and the expenses of accomplishing those objects are among their usual and ordinary burdens. ”

“ Now if the vote taken August 4th authorized any bonds to be issued, it is fair to presume they were issued. On that hypothesis the power existed, and could be used to issue bonds reciting a vote of that date. Nothing in the record shows bonds were not so issued.
7. The fifth section of the ninth article of the constitution of Illinois, of 1848, provides that:'The corporate authorities of counties, townships, school districts, cities, towns, and villages, may be vested with power to assess and collect taxes for corporate purposes ”

“ Such laws, when they do not impair any contract or injuriously affect the rights of third persons, are never regarded as objectionable, and certainly are within the competency of the legislative authority. ”

“ Be it enacted, where such informalities and neglect may have occurred, and bonds have been issued to aid in the construction of said railroad, that no such neglect or omission on the part of township officers, shall in any way invalidate or impair the collection of said bonds, both principal and interest, as they may respectively fall due,' &c. ”