Monopolies -- United States; Railroads and state -- United States
other states) prohibits the state from subscribing stock, loaning its
credit, or issuing its bonds to private corporations, we would at once
conclude that it could not delegate authority to one of its subordinate
departments to do an act forbidden to itself by the constitution. But
this is what it has done, if these _quasi_ corporations possess the
power to afford aid to railroad or other private enterprises. Municipal
corporations, such as cities, towns, &c., act under special charters,
and in some respects are sovereign. But they are governed and controlled
as absolutely by the provisions of their charters, as is the state by
its constitution. They can only act within the scope of their delegated
powers, and in all doubtful questions the presumption is against their
right and in favor of the public, for the reason that only special
privileges are conferred upon them. Nor can the legislature confer upon
them privileges or powers not possessed by itself under the
constitution. It is then absolutely certain that neither counties,
cities, nor towns can aid private corporations, or become stockholders
in such corporations, unless the power has been delegated to them by the
state legislature. It is equally certain that unless the state, in its
sovereign capacity, possesses this power, it cannot delegate it to
either counties or cities, and that when the constitution of a state
forbids the exercise of a power, it includes the legislature, all the
departments of the state government, all counties, cities, and towns,
and all the people. All these corporations are agencies in the
administration of the affairs of the public. Being political in their
nature, they are entirely distinct from private corporations organized
for the purpose of pecuniary profit. They are established for public
purposes exclusively. Judge Dillon, in his valuable work on municipal
corporations, says that "They can exercise the following powers, and no
others: First, those granted in express words. Second, those necessarily
or fairly implied, or incident to the powers expressly granted. Third,
those essential to the declared objects and purposes of the
corporation--not simply convenient, but indispensable." The same author,
in treating upon aid to railroads, while admitting that the current of
judicial decision is in favor of the principle that in the absence of
special constitutional restrictive provisions, it is competent for the
legislature to grant this power to municipal corporations, says that
"Notwithstanding the opinions of so many learned and eminent judges,
there remains serious thought as to the soundness of the principle,
viewed simply as one of constitutional law. Regarded in the light of its
effects, however, there is little hesitation in affirming that this
invention to aid private enterprises has proved itself baneful in the
last degree," and he adds: "Taxes, it is everywhere agreed, can only be
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