Hayes v. Holly Springs

Citations

• 114 U.S. 120
• 5 S. Ct. 785
• 29 L. Ed. 81
• 1885 U.S. LEXIS 1740

Syllabus

<p>The Constitution of Mississippi, adopted December 1, 1869, provided as fol- • lows, (Art. 12, sec. 14:) “ The Legislature shall not ’authorize any county, city, or town, to become a stockholder in, or to lend its credit to, any company,-association, or corporation, unless two-thirds of -the qualified'voters of such county, city, or town,- at a special election, or regular-election,'to be held therein, shall assent thereto.” A city in that State subscribed for stock in,a railroad corporation, after what was called a “special election” was' held, but neither the election nor the subscription was authorized by any act of the Legislature. Afterward, the Legislature passed an act providing “ that all subscriptions to the capital stock of the” corporation, “made by any county, city, or town in this State which were not made in violation of the Constitution of this State, are hereby legalized, ratified, and confirmed.” Théreafter the city issued bonds to pay for its subscription. In a suit against the city, by. a tona fide holder of coupons cut from the bonds, to recover their amount: Held,</p> <p>(1.) The intention of the Legislature to confirm and ratify the subscription could not be ascertained with certainty from the language of the act;</p> <p>(2.) The bonds were void, for -Want of power to issue them, notwithstanding any recitals on their face, or any acts in pais, claimed to operate by way of estoppel.</p>