Page:Federal Reporter, 1st Series, Volume 8.djvu/305

BMITH V. CITY OF FOND DU LAC. 291 �act of March 24, 1871, is in conflict with the constitution of Wis- consin. If that position be sustained, the bonds must be declared void, by whomsoever held, and without reference to the good dt bad faith of those who now own them. With the decisions of the iupreme court of the United States iipon this point, counsel, I observe, are entirely familiar; and it is therefore unnecessary to mate special reference to them. • �The first section of the act of 1871 declares that it shall be lawful for the city of Fond du Lac, and certain named towns and villages, to subscribe to the capital stock of the Milwaukee and Northwestern Eailway Company, and, in payment thereof, — �" To maie, issue, and deliver to said company its bonds, payable to such person or persous, trustees or corporation, or to said company or bearer, at such tlme, for such sum or sums, with such rate of interest, not exceeding 10 per cent., transferable by general or special indorsement or by delivery, and in such form and manner, and upon such terms and conditions, as may be agreed upon by and between the directors of said railroad company and the proper offlcers of such town, incorporated city, or village, as the case may be; * * * but no such subscriptlon for the stock or bonds of said company, and -no such bonds or orders, shall be issued or delivered to said company, or money paid thereto, by or for any such town, city, or village, unless a majority of the legal voters of such town, oity, or village, as the case may be, voting on the ques- tion, shall first have voted in favor of such subscriptlon in the manner here- after provided ; but when such subscriptlon shall have been made, the same shall be absolutely binding upon the town, city, or village by or in whose behalf such subscriptlon shall be made." �The succeeding sections of the act made provision for a written proposition from the railroad company to the town, city, or village from which it desired a subscriptlon. That proposition, the statute required, should state the amount, kind, and description of stock or bonds desired to be subscribed, the terms of the proposed subscrip- tlon, and the mode in which its payment was desired to be made; and, if in bonds, then the company's proposition should state the amount of each bond, the aggregate of all such bonds, the rate of interest they were to bear, not exceeding 10 per cent., and the date of maturi.ty. The statute also provided that the substance of this writ- ten proposition should be submitted to the legal voters of the munic- ipality at an election called by the proper local authorities, after notice of not less than 20 nor more than 30 days. �The statute, it will be also observed, imposes no limit upbn the amount which aiight be subscribed by the designated municipalities, except that lue propor officers making the subscription, and issuing ��� �