Thomson v. Lee County

Citations

• 70 U.S. 327
• 18 L. Ed. 177
• 3 Wall. 327
• 1865 U.S. LEXIS 716

Syllabus

<p>The general doctrines of this court, as settled by various recent decisions, on the subject of railroad bonds issued by municipal corporations to “bearer,” and which have passed into the hands of íoná fule holders for value, — affirmed and acted on ; in the following points decided:</p> <p>1. A county, or other municipal corporation, has no inherent right of legislation, and cannot subscribe for stock in á public improvement, unless authorized to do so by the legislature. But the legislature of a State, unless restrained by the organic law, has the right to authorize a municipal corporation to take stock in a railroad or other work of internal improvement, to borrow money to pay for it, and to levy a tax to repay the loan. And this authority can be conferred in such a manner that the objects can be attained either with or without the sanction of the popular vote.</p> <p>2. If the courts of a State have when an agreement is made construed their constitution and laws so as to give the agreement force and vitality, the same courts cannot, by a subsequent and contrary construction, render it invalid.</p> <p>3. If the legislature possess the power to authorize an act to be done, it car by a retrospective act cure the evils which existed, because the power thus conferred has been irregularly executed.</p> <p>4. Bonds with coupons, payable to bearer, are negotiable securities, and pass by delivery; and, in fact, have all the qualities and incidents of commercial paper.</p> <p>6. If coupons to bonds are drawn so that they can be separated from the bonds, and like the bonds, are negotiable; the owner of them can sue on the coupons without producing the bonds to which they were attached, or without being interested in them.</p>