Quincy v. Cooke - 107 U.S. 549 (1883)
U.S. Supreme Court
Quincy v. Cooke, 107 U.S. 549 (1883)
Quincy v. Cooke
Decided April 16, 1883
107 U.S. 549
The General Assembly of Illinois enacted, March 27, 1869, a statute as follows
"The acts of the City Council of the City of Quincy, from June 2, 1868, to August 28, 1868, in ordering an election on the proposition to subscribe $100,000 to the capital stock of the Mississippi and Missouri River Air Line Railroad Company, and the subscription of said stock, and all other acts of said council in connection therewith, are hereby legalized and confirmed."
In conformity with the vote of the citizens of Quincy cast at such an election, the council had, by an ordinance of Aug. 7, 1868, subscribed for that amount of said capital stock; but neither the election nor the subscription was authorized by law. After the statute took effect, negotiable coupon bonds were, by virtue of it and the ordinance, issued in the sum of $100,000 to the company by the city, and the latter received therefor an equal amount of said stock. In a suit by a bona fide holder of coupons detached from the bonds, held that they are valid obligations of the city.