Monopolies -- United States; Railroads and state -- United States
counties and cities, and by fraud and false representation had obtained
these bonds, for which no consideration has been paid to the present
time. It will not be out of place here, as showing the influence of
these corporations over the supreme court of the United States, to refer
to the transactions that caused the first departure by the court from
the settled rules of decisions on questions arising under the
constitutions and statutes of states, and, we may add, initiated a rule
of decisions, followed to the present time, which have well nigh
destroyed states rights. Under this new rule the whole country is
governed by the supreme court and corporations. The people are
powerless, and monopolies reign supreme. We refer to the question of aid
by counties and municipal corporations to railroads. In many of the
states municipal corporations have subscribed stock and issued their
bonds to railroad companies, in some instances under express statute
authority, and in others without such authority. No one is prepared to
admit that compulsory payment by the citizen of a part of his property,
or money, to aid a private corporation in building a railroad, is the
payment of taxes for the support of government, or that the levy and
collection of a tax for that purpose can be supported by any section of
the constitution. Yet we all know that such taxes have been, and are
being, levied and collected. Judge Dillon, in his work on municipal
corporations, says: "The courts concur, with great unanimity, in holding
that there is _no implied authority_ in municipal corporations to incur
debts or borrow money in order to become subscribers to the stock of
railway companies, and that such power must be conferred by _express_
grant. To become stockholders in private corporations is manifestly
foreign to purposes intended to be subserved by the creation of
corporate municipalities, and the practice of bestowing powers of this
kind is of recent date and origin; and hence the rule, that in order to
exist, it must be specially conferred, and cannot be deduced from the
ordinary municipal grants."
If the above quotation is good law (and this no one will deny), the
recent decisions made by the supreme court cannot be supported. But in
order to avoid the force and effect of this principle, and to provide
for the collection of bonds illegally issued (by recent decisions), a
new doctrine has been promulgated by the court which overturns state
statutes, as well as the decisions of state courts. Treating of this
class of bonds, Judge Dillon says:--
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account