by John Marshall Harlan

“ Was a bona fide purchaser of bonds issued in payment of a subscription of stock-the power to subscribe being clearly given bound to know that the conditions precedent to the exercise of the power were not performed? If the bonds had not contained any recitals importing a performance of such conditions before the power to subscribe was exercised, then it would have been open to the city to show, even as against a bona fide purchaser, that the bonds were issued in desregard of the statute, and therefore did not impose any legal obligation upon it. ”

“ The supreme court of Indiana said: 'Here the power is expressly granted, and the question is merely whether the road in which the stock was subscribed is one contemplated by the charter. We think, also, that a company chartered to build a railroad is chartered to build a road. We think a railroad is a road as properly as a turnpike road or a plank road is a road ”

“ The court answers the first, second, and fourth questions in the negative, and the third in the affirmative. Its answer is in the negative to the first clause, and in the affirmative to the second clause, of the fifth question. ”