Page:Federal Reporter, 1st Series, Volume 8.djvu/303

SUITH V. OITY 07 FOND DU LAO. 289 �Bmith ». CiiTT OF Fond du Lao. �HiaaiNS V. Sahb. �{Oireu& Court, B. D. Witconsin. July 12, 1881.) �MtwioiPAi, Bonds— RAELROADB—CoNBTrruTioN or Wisconsin, abt. 11, f 3. �The legislature of Wisconsin passed an act whereby it authorized the defend- ant to subscribe to the capital stock of a particular railroad, and to make, issue and deliver to such company its bonds, etc., provided a majority of the legal votera of the defendant municipality shall flrst have voted in favor of such sub- gcription, as also in favor of a proposition, in writing, stating the amount, kind, and description of stock or bonds, etc., to be subscribed, submitted by Bucli railroad. The statuts set no lirait to the amount of such subscription, except that the city authorities could make only such subscription and issue such amount of bonds as called for by this proposition. In an action brpught by holders of coupons attached to these bonds, held, such statute is not in con- flict with section 3 of article 11 of the constitution oif Wisconsin, providing for a restriction upon the power of municipalities, among other things, to borrow money, contract debts, and loan their credit. S. FEDERAL Courts — Unconstitutional Btatb Laws. �A federal court, when determining the rights of parties nnder a state law, will never, in a doubtful case, adjudge such law to be in conflict with the con- stitution of the state, unless sustained in so doing by some distinct adjudica- tion of the highest court of the state. �Foster v. Uitp of Kenosha, 12 Wis. 618, and Fisk v. City cf KenoshUi 26 Wis. 23, examined and distinguished. �These are actions by the holders of coupons attached to certain bonds issued by the city of Fond du Lao in payment of a subscrip- tion made in its behalf to the capital stock of a railroad company originally known as the Milwaukee & North-westem Eailway Company, but whose , name was subsequently changed to that of the North- western Union Railway Company. Each bond, dated November 7. 1871, is made payable to the Northwestern Union Eailway Company, or bearer, and recites that it — �" Is one of a series of 750 bonds, bearing even date herewith, each for the sum of $100, * * * and is issued in pursuance of an election held in said city on the seventh day of November, 1871, under and by virtue of a certain act of the legislatui-e of the state of "Wisconsin, approved March 21, 1871, entitled 'An act to authorize certain towns, eities, and villages therein named to aid the Milwaukee & Noi'thwestern Railway Company,' by which said act cer- tain towns, eities, anJ villages were enabled to subseribe for and take stock of the said Milwaukee & Northwestern Railway Company, at which election a majority of the legal voters of said city voted ' for the railway proposition,' requiring the said city to subscribe for and take the common stock of the said Milwaukee & Northwestern Railway Company, in the sum of $75,000, and to issue the liMuds of thp -^ vid city therefor ; and the said election haviug been duly v.8,no.5— 19 ��� �