Young v. Clarendon Township

Citations

• 132 U.S. 340
• 10 S. Ct. 107
• 33 L. Ed. 356
• 1889 U.S. LEXIS 1883

Syllabus

<p>It is settled law that a municipality has no power to issue its bonds in aid of a railroad, except by legislative permission.</p> <p>The legislature in granting permission to a municipality to issue its bonds in aid of a railroad may impose such conditions as it may choose.</p> <p>Where authority is granted to a municipality to aid a railroad and incur a debt in extending such aid, that power does not carry with.it authority to execute negotiable bonds except subject to the restrictions and’directions of the enabling act.</p> <p>Tbe act of the legislature of Michigan of March 22, 1869,.“to enable any township, city or village to pledge its aid by loan or donation to any railroad company, etc.,” provided that the bonds when ‘issued ” should be “ delivered by the person . . . having charge of the same to the treasurer of this State; ” that the treasurer should “ hold the same as a trustee for the municipality issuing the same and for the railroad company for which they were issuedthat whenever the railroad company should “ present to said treasurer a certificate' from the governor of this State that such railroad company has in all respects complied with the provisions of this act . . . such of said bonds as said company shall be entitled to receive shall be delivered to said company;.” that the treasurer should endorse upon each bond delivered the date of its delivery and to whom it was delivered; and that in case the bonds were not demanded in compliance, with the terms of the act within three years from the date of delivery to the treasurer, “the same shall be cancelled by said treasurer and returned' to the proper officers of the township or city issuing the same.” The township of Clarendon, in Michigan, having complied with the requirements of the act on its part, delivered to the state treasurer its bonds to the amount of $10,000, dated July, 1869, for the benefit of the Michigan Air Line Railroad Company. The company completed its railroad before February, 1