Feldman & Co. v. City Council

Citations

• 23 S.C. 57
• 1885 S.C. LEXIS 78

Syllabus

<p>1. A large portion of the city of Charleston having been laid waste by fire, the legislature authorized the City Council to issue its bonds and lend them to persons who desired to rebuild in the burnt district. Bonds of said city, called “Fire Loan Bonds,” were accordingly issued and lent after the year 1868, and put upon the market. Held, that these bonds were not valid obligations of the city.</p> <p>2. The legislature has no power to levy taxes for the purpose of assisting private individuals in carrying out private enterprises, even though incidental advantages may result to the public.</p> <p>3. Under art. I., $ 41, of the constitution of 1868, the taxing power of the legislature, even in the absence of any express restrictions upon them, can be exercised only for some public purpose.</p> <p>4. Authority given to a municipal corporation to issue bonds, necessarily involves the power to levy taxes for their payment.</p> <p>5. Where bonds were issued by a city to be lent “to such applicants as will build up and rebuild the waste places and burnt districts of said city, or erect improvements upon their lots.” Held, that the bonds so issued and lent were for private purposes, notwithstanding advantages might incidentally accrue to the city.</p> <p>6. This case distinguished from cases sustaining local taxation in aid of railroads; and also from the case of Herndon v. Moore, 18 8. O., 339.</p> <p>7. In doubtful cases the constitutionality of an act of the legislature will be affirmed, but it is for the courts, not the legislature, to determine whether a statute is beyond the powers granted to the legislature; and when that body has clearly overstepped its constitutional powers, it is the right and the duty of the courts to so declare.</p> <p>8. As the City Council had no power to create the obligation, their payment of interest on these Fire Loan Bonds, their suits upon the securities received in exchange therefor, and the purchase by them in market of such their