City of Kearney v. Woodruff

Citations

• 115 F. 90
• 53 C.C.A. 117
• 1902 U.S. App. LEXIS 4193

Syllabus

<p>1. Municipal Bonds — Bona Fide Purchaser — Public Improvements — Public Aid.</p> <p>Where bonds were issued by a municipality “for the purpose of aiding the K. Canal & Water Supply Co. in the construction of a canal for irrigation and water power purposes,” under Comp. St. Neb. § 5491, declaring that canals and other works for irrigation and water power purposes should be works of internal improvement and under section 3506, authorizing municipal corporations to aid in works of internal improvements by the issuance of bonds not exceeding 10 per cent, of the assessed value of their taxable property, a bona fide purchaser of such bonds in the open market was only bound to ascertain whether the issue was in excess of the 10 per cent limit beyond which he was entitled to rely on the recitals of the bonds that all antecedent steps necessary to validate the securities had been taken.</p> <p>2. Same — Statutes—Construction.</p> <p>Comp. St. Neb. § 5491, declares that “canals and other works constructed for irrigation and water power purposes or both, are hereby declared to be works of internal improvement”; and section 3506 authorizes the issuance of bonds by municipal corporations to aid in the construction of any railroad or other work of internal improvement, etc. •Held, that that part of the statute declaring the construction of canals for water power purposes to be a public improvement was not invalid on the ground that a canal constructed for such purpose might be devoted primarily to private uses, since the act did not authorize the extension of public aid to the creation of a water power used for private gain alone, but should be construed only to authorize such aid to the construction of waterworks devoted to public uses, and other incidental objects not prejudicial to the public interest.</p> <p>8. Same — Popular Vote — Submission of Question.</p> <p>Where bonds issued to aid in the construction of an irrigation ditch recited that they were issued after submis