Pleasant Township v. Aetna Life Ins. Co.

Citations

• 138 U.S. 67
• 11 S. Ct. 215
• 34 L. Ed. 864
• 1891 U.S. LEXIS 2063

Syllabus

<p>The act of the legislature of Ohio of April 9, 1880, authorizing townships having a population of 3683 under the census of 1870, “to build railroads and to lease or operate the same,” and “ to borrow money” “ as a fund for that purpose,” and “ to issue bonds therefor in the name of said township,” is repugnant to the provision in article 8, section 6 of the constitution of that State, which provides that “ the general assembly shall never authorize any county, city, town or township, by vote of its citizens or otherwise, to become a stockholder in any joint stock company, corporation, or association whatever; or to raise money for, or loan its credit to or in aid of any such company, corporation or association ”; and bonds of such a township, issued under the supposed authority of said act, are void.</p> <p>It appearing that a decision of the highest court of the State of Ohio, made prior to the issue of the bonds in controversy in this action, as to the validity of such municipal bonds, was, argumentatively at least, in conflict with decisions of the same court made after the issue of such bonds, this court, following the rule laid down in Douglass v. Pike County, 101 U. S. 677, and Svrgess v. S.eligman, 107 U. S. 20, in the exercise of its independent judgment, finds the issue here in controversy to be invalid.</p>