Sampson v. People ex rel. Rich

Citations

• 140 Ill. 466

Syllabus

<p>1. Municipal bonds—void when donated in lieu of. authorised subscription to capital stock. Where a subscription by a county of $100,000' to the capital stock of a railway company is authorized by a vote of the-people, if the company enters into a contract .with the county board, by which the latter sells its stock to the company for $30,000 of its bonds, and issues only $70,000 of bonds, this will amount to a donation by the county of $70,000 of its bonds to the railway company, and such bonds,, as between the county and the railway company, will be void.</p> <p>2. Same—judgment for taxes—absence of proof as to innocent purchasers. In such a case, a tax levied by the county to pay interest on such bonds, in the absence of proof of their passing into the hands of innocent bona fide purchasers, is illegal, and it will be error for the-county court to enter judgment against an objector’s lands for such tax.</p>