Meyer v. City of Muscatine

Citations

• 1 U.S. 384

Syllabus

<p>X. tVhere a charter gives a city power to borrow money for any object in its discretion, and a statute of the State where the city is enacted that “bonds of any city” issued to railroad companies “may have interest at any rate not exceeding” a rate named, and “may he sold by the company at such discount as may he deemed expedient” — Reid, that the city had power to issue bonds to aid the construction of railways; even although the power to borrow, as given in the charter, was found among powers of a nature strictly municipal; such, in fact, — except as, under the decision now made, might respect the power to “borrow money,” — being the only powers given in the charter at all. The statute, in connection with the power, gives the requisite authority. Miller, J., dissenting.</p> <p>2. A city having power to borrow money, may make the principal and interest payable where it pleases.</p> <p>3. Where a statute fixes the rate of interest per annum, a contract mar lawfully be made for the payment of that rate, before the principal comes due, at periods shorter than a year.</p> <p>4. The statute of Iowa, of January 25, 1855 (chap. 128), authorizes cities in that State to give their bonds in payment of subscriptions to railroad, stock, and authorizes them to be sold at a price even greatly below their par value. Miller, J., dissenting from the doctrine as applied.</p> <p>5 Where the votes of three hundred and twenty-six citizens were given in favor of a municipal loan, and of five only against it, and the city' issued the bonds, no one interposing to prevent the issue, all' parties acting in good faith, the city cannot afterwards object to the regularity of the preliminary proceedings, and set up that the vote was not taken in the form in which, under the charter, it ought to have been taken. If the legal authority under which the agents of the city, in issuing' the bonds, acted, was sufficiently comprehensive, a holder of them bond fide and for value has a right to presum