Stanley Matthews

“ If, on the other hand, the statute is construed to allow him by a proceeding before the auditor conclusively to fix the liability of the municipal corporation without notice and without a hearing, certainly, in respect to bonds previously issued, it would be open to the gravest objections on constitutional grounds, for if a law cannot impair the obligation of a contract, neither can it create one, or by a mere fiat take from a party an existing and meritorious defense. ”

“ But it is sufficient to say, that the power of the board of county commissioners to bind the township is conferred by the statute to be exercised only in the mode pointed out, and the attesting signature of the clerk is as material to the integrity and validity of the bonds as is that of the chairman of the board of county commissioners. The township had no power to bind itself for the purpose of aiding in the construction of a railroad, by subscription to its capital stock and the issue of bonds to pay for the same, except as authorized by this statute ”

“ We have just seen that, by the pleadings, they are admitted not to be such; and the position of the plaintiff in error is not improved by the supposition that he is an innocent holder for value. If the bonds are not the act and deed of the defendant, they do not bind it at all, and cannot be made obligatory by their own contents.
3. It is argued, however, finally, that the defendant township is estopped to dispute the validity and obligation of these bonds by the fact and certificate of registration. ”