Holmes v. City of Shreveport

Citations

• 31 F. 113

Syllabus

<p>Municipal Corporations—Public Improvements—Bonds—Bona Fide Purchaser—Principal and Agent.</p> <p>The defendant city, being-authorized hy its charter to contract for certain public works, agreed to pay to certain contractors one-half cash, and the balance in 10-year coupon bonds, for performing said works. A number of such bonds were issued in pursuance of said agreement, and this suit was brought by persons to whom these bonds before their maturity were transferred. Held, that the officials of a municipal corporation, which is vested with the usual powers of such bodies, are authorized to issue bonds or promissory notes to evidence the credit price of any works for which they are authorized to contract, which, in the hands of a bona fide holder, will be protected by the law-merchant; that the express authority in an agent to buy, provide for, or procure a thing for his principal, carries with it the implied power to give the hitler's negotiable note for the price of the thing, and that this rule of law applies to the officials or agents of such corporations.</p> <p>(Syllabus by the Court.)</p>