San Antonio v. Mehaffy - 96 U.S. 312 (1877)
U.S. Supreme Court
San Antonio v. Mehaffy, 96 U.S. 312 (1877)
San Antonio v. Mehaffy
96 U.S. 312
1. The twelfth section of the Act of the Legislature of Texas entitled "An Act to incorporate the San Antonio Railroad Company," which authorizes the City of San Antonio to subscribe for the stock of said company and issue bonds to pay for the same is not repugnant to the provision of the state Constitution of 1845, requiring that "every law enacted by the legislature shall contain but one object, and that shall be expressed in the title."
2. Certain bonds or securities issued by the City of San Antonio, March 1, 1852, recite that
"this debt is authorized by a vote of the electors of the City of San Antonio, taken in accordance with the provisions of an act to incorporate the San Antonio and Mexican Gulf Railroad Company, approved Sept. 6, 1850,"
&c. Held that the city is estopped from denying the verity of the recital, and that the bonds or securities are valid in the hands of a bona fide purchaser for value before maturity.
3. The fact that the principal securities delivered to that company were not sealed is immaterial, because the act under which they were issued expressly authorized those charged with the duty of making the subscription to "issue bonds bearing interest, or otherwise pledge the faith of the city."