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the exercise of the discretion, which the law had reposed in them within certain limits, of fixing the quantum of punishWe are willing to concede this, since it is urged by our correspondent, although it involves the court in the nonsense of reversing a judgment for the purpose of admitting evidence to guide the jury in doing what they had already done; for they had already fixed the punishment of the accused at the lowest limit allowed by law for the degree of crime of which they found him guilty. Conceding, then, this to be the ground of the ruling on this point, what result does it necessarily involve? It necessarily involves the conclusion--and this seems to us the doctrine which, under this view, the case necessarily decides-that where a man deliberately kills another out of revenge for a previous insult, if it turns out that the “general character of the deceased for turbulence, violence, bloodshed and recklessness of human life" was bad, the slayer ought not to be punished as severely as though the general character of the slain in these particulars was good. We can not see but that this result is substantially the same as that stated by us in our previous observations upon this case. Mr. WHARTON Says-and his language has been many times quoted by judges with approbation-that "it would be a barbarous thing for A. to give as a reason for killing B., that B.'s disposition was savage and riotous.” 1 Whart. Crim. Law, 7th ed., § 641. We think it would be equally barbarous to allow a man who has deliberately killed another out of revenge to urge in mitigation of his punishment that the deceased was a man of "general bad character for turbulence, violence, bloodshed and recklessness of human life." Such a man, until he is convicted of crime, is entitled to the same measure of protection before the law as the best or most exemplary citizen; and any rule of law which punishes the murderer of such a man less severely than the murderer of a good man, makes him unequal with the latter before the law, in respect of the right to live, and correspondingly diminishes that protection which the laws of his country promise to every citizen, without respect of persons.

justly do so. It would seem, however, to argue most forcibly that where such a state of things exists, the barriers which the common law has erected for the safety of society should be by the courts vigiantly guarded and preserved.

Upon the second point adverted to by our correspondent, we cheerfully concede, upon a re-examination of the case, that the language of the learned Chief Justice that the "circumstances of the killing should be viewed in connection with the good or bad character of both the defendant or the deceased," probably had reference to the circumstance of the particular case, the good character of the deceased having been put in evidence; although this remark was not made in connection with that part of the opinion which discusses the error of the court below in charging upon evidence of the good character of the defendant.

The Validity of Exemption Laws which Operate upon Existing Contracts.

We publish elsewhere a brief opinion of the Supreme Court of South Carolina in the case of Cochran v. Darcy, the importance of which consists in the threefold fact that it reverses a wellconsidered decision of the same court in the case of Re Kennedy, 2 South Car. N. S. 216; that it interprets the decision of the Supreme Court of the United States in Gunn v. Barry, 15 Wall. 610, as going to the extent of holding that exemption laws which operate upon contracts in existence at the time of their passage are void; and that, in following this interpretation of that case, it runs counter to the weight of adjudications in other states.

With respect to Gunn v. Barry, there seems to be room to question whether it goes to the extent of holding that exemption laws which operate retroactively upon contracts in existence at the time of their passage are to that extent unconstiIt does hold that where a person has tutional and void. obtained a judgment, which by the law of the state is a lien upon the realty of the judgment debtor, a homestead law enacted subsequently to the rendition of such judgment and But we apprehend that every judge and criminal practi- before the levy of execution, which seeks to discharge the tioner is aware that questions of this kind are generally sprung debtor's property from such lien, is so far unconstitutional and as mere devices to excite the sympathies of ignorant jurors void, and does not abridge the jurisdiction of the state courts and to distract their attention from the real issues of the case. to afford the judgment creditor satisfaction out of such propIn England and in some of the American states where the erty. This was the precise point in judgment, and this is what rights of society in criminal trials are guarded, and where the learned reporter, in writing his head-note to the case, judges are accustomed to hold juries well in hand, we appre- manifestly understood to be the scope of the question decided. hend that no advocate of repute would attempt to get in such But while this is true, it is possible that Mr. Justice SWAYNE, testimony under the circumstances of Fields' case. But in pronouncing the opinion of the court, used language strong where an unchecked rein is given to the advocate, he is never enough to warrant the deduction which the Supreme Court of He says: wanting in devices to perplex the judgment and excite the South Carolina make as to what the case decides. emotional nature of the ignorant and weak juror. He plays "The effect of the act in question, under the circumstances upon him as he would upon a musical instrument, and brings of this judgment, does not merely impair, it annihilates the forth any desired sound. "Govern the ventages with your remedy. There is none left. But it reaches still further. It fingers and thumb; give it breath with your mouth, and it withdraws the land from the lien of the judgment, and thus will discourse most eloquent music." destroys a vested right of property which the creditor had We may be permitted to note, in conclusion, that in run-acquired in the pursuit of the remedy to which he was entitled ning over the 47th volume of Alabama Reports a second time, we find in it no less than ten murder cases. Of these, one comes up on a point of practice-a motion for a discontinuThe other nine are appealed from judgments of conviction of felonious homicide in some of its degrees; and of these nine, eight are reversed. We shall not undertake to draw any inference from this fact. At this distance we could not

by the law as it stood when the judgment was recovered. It is, in effect, taking one person's property and giving it to another without compensation. This is contrary to reason and justice and to the fundamental principles of the social compact. * * The legal remedies for the enforcement of a contract, which belong to it at the time and place where it is made, are a part of its obligation. A state may change them,

provided the change involve no impairment of a substantia they apply to contracts entered into or debts contracted before their adoption, are in violation of the constitution of the United States, and therefore void. The Homestead Cases, 22 Grattan, 266. And the same conclusion appears to have been reached in Kentucky with reference to an exemption law of that state, in Kibbey v. Jones, 7 Bush, 243

right. If the provisions of the constitution or the legislative act of a state fall within the category last mentioned, they are to that extent utterly void. They are, for all the purposes of the contract they impair, as if they had never existed. The constitutional provision and statute here in question are clearly within that category, and are therefore void."

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Some of the cases, however, which affirm the validity of If from this language, taken in connection with the facts of the retroactive features of such laws, contain language limitthe case, Gunn v. Barry is to be understood as deciding that ing the legislative power to the enacting of exemption laws homestead laws which by their terms operate upon contracts which are reasonable, and which go no farther than to make in existence at the time of their passage, are, so far as they an exemption consistent with the humane grounds of pubthus operate retroactively, void, without reference to the ques- lic policy in pursuance of which such enactments are sustion whether a judgment lien has attached to the property tained. Thus, in Stephenson v. Osborne, 41 Miss. 119, 130. prior to the passage of the exemption law, it is contrary to the ELLET, J., delivering the opinion of the court, said: "The understanding of several of the earlier judges of the same court, legislature exercises this power according to its own views of as expressed in dicta which have been quoted and relied on humanity and sound policy. But it is not without its proper by the state courts in numerous instances. Thus, in Bronson limit, and it may be abused. Every party is entitled to an v. Kinzie, 1 How. 311, 318, Chief Justice TANEY said: "A adequate and available remedy for the enforcement of his state may regulate at pleasure the modes of proceeding in its contract, and any legislation which impairs the value and courts in relation to past contracts as well as future. benefit of the contract, though professing to act on its remIt may, if it think proper, direct that the necessary implements edy, would impair its obligation. It is not competent for the of agriculture, or the tools of a mechanic, or articles of neces-, legislature, under color of an exemption law, so to obstruct sity and household furniture, shall, like wearing apparel, not the remedy upon contracts as to render it nugatory or imbe liable to execution on judgments. Regulations of this de- practicable. An abuse of the legislative discretion in this scription have always been considered, in every civilized com- respect would demand the interposition of the court. We do munity, as properly belonging to the remedy, to be exercised or not undertake to intimate what would amount to such abuse; not by every sovereignty according to its own views of policy such a question would be one of great delicacy and difficulty. and humanity. It must reside in every state to enable it to secure We only mean to say that the power of the legislature over its own citizens from unjust and harassing litigation and to pro- this subject is not unrestricted by the constitution, and that tect them in those pursuits which are necessary to the existence cases may arise in which it will be the duty of the judiciary and well-being of every community. And although a new remto arrest its exercise." So in the case in Kansas, the court edy may be deemed less convenient than the old one, and may say, per CROZIER, Ch. J.: “It must not be inferred that a in some degree render the recovery of debts less tardy and diffi-, state is omnipotent upon this subject, and that if it can fix cult, yet it will not follow that the law is unconstitutional." In the amount at one acre in a town, it may increase it to ten or the later case of The Planters' Bank v. Sharp, 6 How. 301, 330, twenty acres, and in a like proportion in the country. Its Mr. Justice WOODBURY enumerates laws exempting tools or action will not be constitutional if it be apparent that its obhousehold goods from seizure as an example of legislation re-ject was not so much to secure the well-being of the citizens specting the remedy which might be applied to existing contracts. And so in Ogden v. Saunders, 12 Wheat. 213, 291, Mr. Justice JOHNSON says that "it is equally the duty and right of governments to impose limits to the avarice and tyranny of individuals, so as not to suffer oppression to be exercised under the semblance of right and justice."

The same views have been taken by the courts of last resort in several of the states. Bigelow v. Pritchard, 21 Pick. 169; Rockwell v. Hubbell, 2 Doug. (Mich.) 197; Morse v. Goold, 11 N. Y. 281 (overruling Quackenbush v. Danks, 1 Denio, 128, 3 Denio, 594, and 1 N. Y. 129); Cusic v. Douglas, 3 Kansas, 123; Maxey v. Loyal, 38 Ga. 531; Hardiman v. Downer, 39 Ga. 425; Hill v. Kessler, 63 N. C. 437; Farley v. Dowe, 45 Ala. 324; Sneider v. Heidelberger, ibid, 126; Stephenson v. Osborn, 41 Miss. 119. In the case in Alabama the exemption law of that state (Code of Ala., § 2955) is held

to be retroactive and to divest the lien of an attachment levied before its passage, but is, nevertheless, held to be constitutional and valid. Sneider v. Heidelberger, supra. The Court of Appeals of Virginia, however, has, in a recent exhaustive opinion by CHRISTIAN, J., in which all the judges concur, decided that the provision in the constitution of that state and the act of the general assembly passed in pursuance thereof, known as the homestead exemption law, so far as

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as to enable them to hold large amounts of property with a view of making it available to their own aggrandizement for other purposes than that of homesteads. The state is the sole judge of the proper extent of the exemptions within the limits above indicated; and so long as the extent of the exemption shall be in accordance with sound policy and humanity, and no greater than shall be reasonably necessary to protect the citizens in their pursuits necessary to their existence and well-being, its action must be sustained, although it may here and there work an individual hardship." Cusic v. Douglas, supra. So in Re Kennedy, supra, the court (WILLARD, J.) assert that "it is within the power of the state to exempt the lands and personal property of a debtor, to a limited amount, from liability on account of an existing indebtedness, so long as such exemption does not, in effect and intention, impair the obligation of such contract.”

For the opinion in Cochran v. Darcy, which we elsewhere publish, we are indebted to William Stone, Esq., counsellor at law, of Charleston, South Carolina.

threatens to sue the Cincinnati Commercial for libel, on account of some ---JUDGE R. B. WARDEN, one of the biographers of Chief Justice Chase, criticism of his conduct by that journal in connection with the use made by him of certain papers of Chief Justice Chase.

Legislative Exemption of Railway Property from
Taxation-The Iron Mountain Railroad Case.
SPENCER TRASK v. CONSTANTINE MAGUIRE, THE ST.
LOUIS AND IRON MOUNTAIN RAILROAD COMPANY,
THOMAS ALLEN, S. H. LAFLIN, G. B. ALLEN, SAM-
UEL COPP, S. GANDY, A. TRASK, AND H. G. MAR.
QUAND.

The terms "stock of the

strike us as possessing much force.
company" imported the capital stock of such company, the sub-
scribed fund which the company held, as distinguished from the
separate interests of the individual stockholders. The language
of the amendatory act did not qualify this meaning; that only
declared that other property of the company should also be
deemed capital stock, and the additional provision that it should
be vested in the respective shareholders, according to their re-
spective shares, only meant that they should have the interest of

Supreme Court of the United States, No. 106, October Term, 1873 shareholders in the property, according to their respective shares.

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1. Iron Mountain Railroad-Exemption from Taxation. The property of the present Iron Mountain Railroad Company, created in 1867, is not exempt from the power of state taxation; but it was otherwise as to the property of the first corporation by that name, created in 1851.

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this prohibition the legislature, although it undertook to confer upon the present company all the immunity from taxation which the old company enjoyed, had no power to do so.

The corporation in question was created to constuct a railroad from a point in the city of St. Louis to the Iron Mountain and Pilot Knob, in Missouri, with liberty to extend the road to the Mississippi river, or to the southern part of the state. The When the Exemption ceased -The exemption in favor road was constructed from St. Louis to Pilot Knob, a distance of of the original company from taxation ceased when the state toreclosed its statutory mortgage or lien, under the act of February 19, 1866, and purchased the property. about eighty-seven miles, with a branch to Potosi. During the New Constitution of Missouri.-Effect of its Prohibi- progress of the work, and in order to aid in its construction, the tion against Exemptions from Taxation.-In July, 1865, the new constitution legislature of the state, previous to 1860, passed various acts proof Missouri went into effect, by which (art 11, sec. 16) the legislature is absolutelyviding for the loan of the bonds of the state to the company. All prohibited to grant to railroad companies an immunity from taxation; and under the acts referred for the terms of the loans to an act passed in 1851 to expedite the construction of the Pacific railroad and of the Hannibal and St. Joseph railroad. (Laws of Missouri of 1851, p. 267.) That act provided that no part of the bonds should be delivered to the company until it signified its acceptance of them to the secretary of state, by filing in his office a certificate of such acceptance under the corporate seal of the company and the signature of its president; that such acceptance should be recorded, and upon its record should become to all intents and purposes a mortgage of the road of the company, and every part and section thereof, and its appurtenances, to the people of the state, to secure the payment of the principal and interest of the bonds. That act authorized the governor, in case default was made in the payment of either the interest or principal of the bonds, to sell the road and its appurtenances at auction to the highest bidder, or to buy in the same at such sale for the use and benefit of the state, subject to such disposition in respect to the road or its proceeds as the legislature might thereafter direct.

Appeal from the Circuit Court of the United States for the Districts of Missouri. A brief report of the case in the court below will be found in 2 Dillon C. C. R. 182, note.

Mr. Rombauer, for the collector; Messrs. Dryden & Dryden, for the Iron Mountain Railroad Company.

Mr. Justice FIELD delivered the opinion of the court. The question presented for our determination in this case is, whether the property of the present St. Louis and Iron Mountain Railroad Company, a corporation created under the laws of Missouri, is, by an irrepealable legislative grant, forever exempted from all state and county taxes. Two corporations bearing that name have existed in Missouri, the second succeeding the first in the possession and ownership of its road and property. The first was created by an act of the legislature of the state, passed in March, 1851; the second was formed in July, 1867, under an act of the previous year authorizing the incorporation of the purchaser or purchasers of any railroad, or any part, section, or branch thereof, which had previously been, or might thereafter be, forfeited to or sold by the state.

Under the different acts, bonds of the state to a large amount were issued to the company; its acceptance of them in proper form was given to the secretary of state, and the acceptar ce was duly recorded, and from the date of such record the state acquired, for the payment of the principal and interest of the bonds, a lien upon the road and every part and section thereof and its appurtenances.

The company failed to pay the interest on these bonds. It does not appear for how long a period the company was thus in default, nor is this material. It is sufficient to say that in 1865 the right of the state, under the provisions of the acts cited, to interfere and sell the property, had become complete. Before a sale, however, was made the legislature passed another act for the sale of this and other railroads by the govenor, and the foreclosure of the state lien thereon. This act, which was approved

The property of the first corporation was undoubtedly exempt from state and county taxes. The act of incorporation adopted as part of it a provision of another act, which declared in terms that the stock of the company should be thus exempt. (Laws of Missouri of 1851, p. 479.) It is true that at this time a statute was in existence, passed in 1845, which declared that the charter of every corporation subsequently granted should be subject to alteration, suspension, and repeal at the discretion of the legislature. But from the operation of this provision the company was expressly exempted by an act amendatory of its charter, passed in 1853. (Laws of Missouri, of 1853, p. 296.) From that time at least the ex-in February, 1866, among other things required the governor to ademption of its stock from state and county taxation was placed beyond legislative interference. The amendatory act also declared that all the engines, cars, wagons, machines, and other property belonging to the company should be deemed a part of its capital stock, and be vested in its respective shareholders, according to their respective shares. All the property of the company was thus placed within the exemption which attached to the original stock; that designated was to be deemed a part of such stock, as well as that originally embraced by this term.

On the argument some attempt was made from the use of the term stock in the original act, and the language of the amendatory act that the property should be vested in the respective shareholders, according to their respective shares, to establish the position that the exemption extended only to the separate shares of the individual stockholders. But the argument does not

vertise for sale the different railroads, with their appurtenances, rolling stock, and property of every description, and all the rights and franchises thereto belonging; and to sell the same at auction to the highest bidder, in pursuance of the several acts creating a lien thereon. It also provided for the appointment of three commissioners to attend the sale of the different roads as advertised, and to bid in the same for the use and benefit of the state for an amount not exceeding the respective liens thereon; and in case the roads were struck off and sold to them, to take possession of and hold the same, with their appurtenances and property, and again, after due advertisement, inviting proposals for the purchase of the different roads, their lands, appurtenances, and franchises, to resell the same. Under this act the St. Louis and Iron Mountain railroad was advertised for sale, with its rights and privileges, and at the sale was bid in by the commissioners for the state. However

broad the terms of the advertisement, the interest sold could not extend beyond the property upon which the state at the time held a lien, and this was the entire road of the company and its appurtenances. But as the property was sold to the state, it is unnecessary to determine whether, if the sale had been made to a third party, the immunity from taxation possessed by the company would have passed to the purchaser. When the state became the purchaser the immunity ceased; the property stood in its hands precisely the same as any other unencumbered property of the state, exempt from taxation, not by any virtue of any previous stipulation with the company, but as all property of the state is thus exempt. Subsequently the road and its appurtenances, and all the franchises, which, under the new constitution of Missouri, adopted in 1865, were transferable by the state, were sold by the commissioners to McKay, Vogel and Simmons, who conveyed the same to Thomas Allen, who with others, in July, 1867, became incorporated under the name of the St. Louis and Iron Mountain | Railroad Company. That company is still in existence, and is one of the defendants herein. To it Allen transferred all the rights and privileges acquired by him from his vendors, and all of which they acquired from the state. The acts under which the sale was made provided that purchasers of the road should have all the rights, franchises, privileges, and immunities which were enjoyed by the defaulting company under its charter and laws amendatory thereof, subject to the limitations and conditions therein contained, and not inconsistent with the act authorizing the sale. The new company thus acquired all the immunity from taxation which the original company originally possessed, if it were competent for the legislature at the time, under the new constitution, to confer this privilege. The question, therefore, is whether the legislature was competent to grant the immunity claimed, under that constitution, which went into operation on the 4th of July, 1865, previous to the passage of any of the acts authorizing the proceedings under which the new company acquired its rights.

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The 16th section of the 11th article of that instrument provides that "no property, real or personal, shall be exempt from taxation, except such as may be used exclusively for public schools and such as may belong to the United States, to this state, to counties, or to municipal corporations within this state;" and the 27th section of the 4th article declares that "the general assembly shall not pass special laws * exempting any property of any named person or corporation from taxation." These provisions require no explanation; they are absolute prohibitions against the grant of any new immunity from taxation, unless railroad companies of the state existing at the time are excepted from their operation. Such exception is claimed under the "Ordinance for the payment of state and railroad indebtedness" which accompanied the constitution and was adopted with it. That ordinance first provides for the levy and collection from different railroads, and among others from the St. Louis and Iron Mountain Railroad Company, an annual tax of ten per cent. on all their gross receipts for the transportation of freight or passengers (not including amounts received from and taxes paid to the United States) from the first of October, 1866, to the first of October, 1868, and fifteen per cent. thereafter; and then enacts that the tax shall be collected from the companies only for the payment of the principal and interest on the bonds of the state issued for their benefit, or on bonds guaranteed by the state; that if any of the companies refuse or neglect to pay the tax thus required, and the principal or interest of any of the bonds, or any part thereof, remain due and unpaid, the general assembly shall provide by law for the sale of the railroad and other property and the franchises of such company under the lien reserved to the state; and that whenever the state becomes the purchaser of any railroad or other property, or the franchises thus sold, the general assembly shall provide by law in what manner the same shall be sold for the payment of the indebtedness of the company; that no railroad, or other property

or franchises purchased by the state, shall be restored to the defaulting company until it shall have first paid the interest due from it, and that no sale or other disposition of any such railroad or other property, or its franchises, shall be made without reserving a lien upon the property and franchises thus sold or disposed of for all sums remaining unpaid.

Now, the argument of the appellants is that as the ordinance authorizes the legislature to provide for the sale of the franchises of a defaulting corporation, it can transfer under that designation immunity from taxation, if the company ever possessed such immunity; and that this was the effect of the sale of the St. Louis and Iron Mountain railroad and its franchises to McKay, Vogel and Simmons. And authority for this position is supposed to be found in the answers given by the judges of the Supreme Court of Missouri, in November, 1865, to certain questions propounded by the governor under a provision of the constitution authorizing him to take their opinion on important questions of constitutional law. The questions propounded were substantially these:

1st. Whether the provisions of the ordinance operated to suspend the right of the state to sell the roads named, or either of them, until there was a refusal or neglect to pay the tax imposed by the ordinance; or whether the state might order the sale of the railroads, or either of them, prior to such refusal or neglect; 2d. If the judges were of opinion that a sale of the railroads might be ordered before such refusal or neglect, whether such sale could be made "without reserving a lien upon all the property and franchises thus sold for all sums remaining unpaid," or, in other words, whether this clause constituted a condition of all sales of railroads ordered by the state, or referred only to sales made under the ordinance for refusal and neglect to pay the tax;

3d. If the judges should be of opinion that all sales of railroads by authority of the state were subject to the restriction mentioned, whether the words "all sums remaining unpaid " referred to the sums for which the railroad sold was in default, or to that portion of the purchase money not paid in cash at the time of sale; and 4th. Whether upon a sale of a railroad under a lien of the state the constitution authorized the state to receive, in payment of the purchase money, preferred or other shares of stock issued by a corporation purchasing the road.

None of these questions, as will be perceived, call for any opinion as to the effect of the sale of the franchises of a road, or the meaning of that term. They call only for an opinion upon the power of the legislature to order a sale of the roads, the liens to be reserved, the payments to be made, and the right to receive shares of stock of a purchasing corporation. The answer of the judges stated that the 5th section of the ordinance related to all sales of railroads, whether in default for not paying the interest on the bonds of the state or not paying the tax levied; that when the state had become the purchaser of any railroad sold under the lien of the state, the general assembly could provide in what manner such railroad could again be sold for the payment of the indebtedness which the state had incurred on account of bonds loaned to it or guaranteed for its benefit; that it would have had this power without the aid of the ordinance, but that no sale or other disposition of any such railroad, or other property, could be made by the state without reserving a lien upon the property sold for all sums remaining unpaid, and that the purchaser was required to make all payments therefor in money or in bonds or other obligations of the state; and then adds that the “legislature is left unrestricted further as to the time, terms and conditions of the sale." This language is supposed to determine that in the sale of such property the legislature is not bound by the provisions of the constitution we have cited.

But we do not think the language used justifies any such conclusion, but was rather intended to indicate that the ordinance imposes no other restrictions than those designated, and has no reference whatever to the clauses of the constitution in respect to which no opinion was asked.

It seems to us that the plain meaning of the ordinance, when it says that the general assembly shall provide by law in what manner the railroad and its franchises may be sold, is that they shall be sold in conformity with such law as the legislature may constitutionally pass, not by any law which it could devise if it had unlimited discretion in the matter. It would conflict with wellsettled rules of construction to hold that the language used authorizes any legislation regardless of the provisions of the constitution. And there is nothing in the authority conferred to provide for the sale of its franchises with the road of the defaulting company, which requires immunity from taxation to be embraced within them. The language evidently refers to such franchises as are essential to the operation of the road sold, without which the ownership of the road would be comparatively valueless, such as the franchise to run cars, to take tolls, and the like.

But if we are mistaken in this particular, we are clear that it never was intended by the ordinance to sanction, by the sale of the franchises of a defaulting corporation, the renewal of an exemption which had once ceased to exist, and which the constitution had declared should never thereafter be created. The inhibition of the constitution applies in all its force against the renewal of an exemption equally as against its original creation; and this inhibition the legislature could not disregard in providing for the sale of the property which it had purchased.

JUDGMENT AFFIRMED.

Railway-Aid Bonds-Legislative Authority-Recitals in Bonds-Previous Election.

F. W. HUIDEKOPER v. BUCHANAN COUNTY.

county, at said special election held therein as aforesaid, did assent to said subscription of 4,000 shares to the capital stock of the St. Louis and St. Joseph Railroad Company; therefore, it is ordered by the court that the county court of Buchanan county subscribe for and take 4.000 shares, to be paid for according to the order of this court, made on the 21st day of February, 1868." Subsequent orders of the court recite that the subscription was made, that the company complied with the terms and conditions which would entitle it to the bonds, and that the bonds were accordingly, from time to time, executed and delivered to the company to the full amount, in all, of $400,000. The record also shows that taxes were levied to raise the means to pay the interest on these bonds from time to time, and interest ordered to be paid until January 21, 1873, when the county court directed the treasurer "not to pay the interest due on the bonds of the county issued to the St. Louis and St. Joseph Railroad Company until further orders from this court."

To this answer the plaintiff demurs.

Joseph Shippen and T. K. Skinker, for the plaintiff; Ensworth and Young, for the county.

DILLON, Circuit Judge.-The answer shows that there was an election held to enable the voters of the county to determine whether the county court should subscribe to the stock of the St. Louis and St. Joseph Railroad Company, and pay therefor in the negotiable bonds of the county; that more than two-thirds of the voters voting at such election were in favor of the proposition; that the county court thereupon made the subscription, and from time to time issued the bonds as the railroad company became entitled thereto by the terms of the submission. It is not denied in the answer that the plaintiff is a bona fide holder of the cou

United States Circuit Court, Western District of Missouri, No-pons in suit. vember Term, 1873.

Before DILLON and KREKEL, JJ.

1. Railway-Aid Bonds-Defences in Hands of Bona Fide Holders-Irreg

ularities in Holding Election.-Where legislative authority is conferred upon a municipal or public corporation to issue bonds on the sanction of the voters to be given at an election, and the officers of the corporation are by the law to decide whether the requisite sanction has been given, and they issue bonds which recite it, no irregularity in the manner of appointing the judges of the election, or in submitting the question, is a defence to the bonds thus issued, when in the hands of bona fide holders for value,

without actual notice.

This is an action upon coupons to bonds issued by the county court of the county of Buchanan in payment for stock subscribed to the St. Louis and St. Joseph Railroad Company. The answer sets out all the orders of the county court, from which it appears that on the 21st day of February, 1868, the county court ordered to be submitted to a vote of the qualified voters, at an election to be held on a specified day in April, 1868, the proposition whether the county court "should subscribe for 4,000 shares of the capital stock of the St. Louis and St. Joseph Railroad Company, amounting, in the aggregate, to $400,000, upon the terms following: said subscription to be paid for in the bonds of the county at par, payable twerty years after the date of their issue," etc.

Then follow conditions that the bonds shall only issue in installments as the work on the road within the county shall progress. The county court appointed certain persons named "judges of the election to be holden on, etc., for the purpose of submitting to a vote of the taxable and qualified voters of the county the question of the subscription of $400,000 to build a railroad known as the St. Louis and St. Joseph Railroad."

The record shows that the clerk of the county court "brought into court the returns of the votes cast, certified according to law," showing "that there were cast for the subscription to the St. Louis and St. Joseph Railroad, 1,968, and against it, 520

votes."

On the 13th day of April, 1868, the county court made an order of record reciting that "whereas, it appears, to the satisfaction of the court, that two-thirds of the qualified voters of Buchanan

The counsel for the county cintends that the bonds in question are void for three reasons :

1. That the county court had no power to appoint judges of the special election to be held on the 7th day of April, 1868, to decide upon the question of subscription, but that such power, under the act of March 21, 1868 (Laws 1868, p. 131, sec. 15), belonged to the board of registration.

2. That the question was ordered to be submitted to the “taxable and qualified voters" of the county, instead of the "qualified voters," as required by the constitution. (Art. II, sec. 14.)

3. That the submission was not an unqualified one, but contained conditions. These conditions related to the manner in which the bonds should be issued in case the proposition carried, and required work to a specified amount to be done by the company before it should become entitled to the delivery of an installment of the bonds. These conditions were in the interest of the county, and the orders of the county court show that they were complied with by the company.

It will be perceived that all of these objections relate to irregularities in the submission of the question to a vote of the people, and in the manner of appointing the judges of the election. It may be remarked that the record of the county court does not sustain the position of counsel of the county that the submission was to the "taxable and qualified voters." On the contrary, the submission was to the qualified voters. The use of the words "taxable and qualified voters" occurs in that portion of the order appointing the judges of the election, and is recitative only of the order, of submission, and its mis-recital is a matter of no importance.

There is, therefore, really but one objection to the validity of these bonds left to be considered, and that is whether, if the defendant's counsel be right, that the judges of election should have been appointed by the board of registration, this is a fatal defect.

It is not necessary in this case to inquire whether, if there had been no election whatever, the bonds would have been enforced against the county, notwithstanding the constitutional provision. (Art. II, sec. 14.)

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