County of Tipton v. Locomotive Works - 103 U.S. 523 (1880)
U.S. Supreme Court
County of Tipton v. Locomotive Works, 103 U.S. 523 (1880)
County of Tipton v. Locomotive Works
103 U.S. 523
1. A general statute of Tennessee required the county courts, when thereunto authorized by a popular vote at an election held for the purpose, to subscribe for stock in a railroad company. A special statute was subsequently passed which, without requiring the submission of the question of subscription to a popular vote, conferred power on the county courts of the counties on the line of a particular railroad to make, and on the company to receive, a subscription for its stock. Held that the special statute is not in violation of the provisions of sec. 8, art. 1, or of sec. 7, art. 11, of the Constitution of Tennessee of 1834, infra, p. 103 U. S. 525.
2. A county, having lawful authority, issued its bonds in payment of its subscription to a railroad company. Between the latter and another company a consolidation was about to take place upon condition that the county court would, on an extension of time being granted, levy and collect a tax sufficient to pay the amount due on the bonds. The county court accepted the proposition and gave the requisite assurance. The consolidation thereupon took place. Held that the county was estopped from denying the validity of the bonds in the hands of a bona fide holder to whom they were transferred for value by the consolidated company.
The facts are stated in the opinion of the Court.