While, as a general rule, federal courts will accept the
interpretation put by the courts of a state upon its own
constitution and statutes, yet where the law has not been
definitely settled, it is the right and duty of federal courts to
exercise their own judgment.
A presumption that the duty devolving upon the officers of a
county of ascertaining the conditions upon which bonds of the
county may be issued was properly exercised should and does
accompany and guarantee such bonds.
County bonds issued under statutes and sections of the Code of
North Carolina which permit bonds to be issued to enable counties
to subscribe to stock when necessary to aid in the completion of
any railroad in which citizens of the county may have an interest
held to be valid notwithstanding that the supreme court of
the state had decided in another action that such bonds were
invalid.
This suit was brought in the United States Circuit Court for the
Western District of North Carolina by the respondents against the
petitioner, to recover on certain coupons attached to bonds alleged
to have been issued by Stanly County, State of North Carolina, in
part payment of the subscription of said county to the capital
stock of the Yadkin Valley Railroad Company. The bill alleged the
following facts:
The Yadkin Valley Railroad Company was organized as a
corporation under the laws of North Carolina to construct and
operate a railroad running from Salisbury in that state, south to
Norwood, a point in Stanly County.
The incorporation of the said company was under and by virtue of
chapter 236 of the Acts of 1870, passed by the legislature for that
year, and the said chapter was amended by an act of the
legislature, chapter 183 of the Acts of 1887.
The county, being desirous of aiding in the construction of said
road, and acting through its proper authorities, subscribed the
amount of $100,000 to the capital stock of the company in pursuance
of the authority and power conferred upon the said county under and
by virtue of the acts of the Legislature of North Carolina as above
set out; and, also, under and by virtue of sections 1996, 1997,
1998, and 1999 of the Code of North Carolina, all of the said acts
and sections of the Code of North Carolina having been enacted and
become laws in accordance with the constitution of the state.
The county still holds the stock and derives benefit from the
road in increased facilities for transportation, greatly increased
value of the lands of the county, and from the taxes paid thereon.
A copy of the bonds was attached to the bill, and is inserted in
the margin.
*
Page 190 U. S. 439
The bonds were exposed for sale, and the respondents became
purchasers of them in good faith, and at the highest market price,
and without any notice, express or implied, that there was any
suggestion of their being void, invalid, fraudulent, or otherwise
than perfectly legal in their issue and sale.
Interest on the bonds issued, as the same has become due, has
been paid for the last four years. The coupons due and the amounts
thereof are as follows:
48 Stanly County coupons, Nos. 2,46, 48, 49, and
72, $60.00 each . . . . . . . . . . . . . . . . . .
$2,880.00
33 Stanly County coupons, Nos. 81, 92, 95, 96,
98, 108, 110, 112, 116, 118, 120, all numbers
inclusive, $30.00 . . . . . . . . . . . . . . . . . 990.00
---------
Making the sum of . . . . . . . . . . . . . . . $3,870.00
Page 190 U. S. 440
The payment of said sums was demanded at the proper time and
refused, although the said total sum had been collected from the
taxpayers of the county by the board of commissioners, in pursuance
of the power conferred upon them, and was in the hands of I. W.
Snuggs was the trustee of the bondhold-treasurer of the county, and
having received the same for the payment of said interest, he
became and is the trustee and agent of the bond and coupon holders,
and therefore holds the same "for the use and in trust for
complainants." The complainants are informed and believe that the
reason why said treasurer has not accounted to them is that he has
been restrained by a certain process of injunction, issued by one
of the superior courts of the State of North Carolina in a suit
brought in the name of the board of commissioners, and in the names
of James P. Nash and G. R. McCain as plaintiffs, and against the
said I. W. Snuggs as defendant, but that complainants were not made
parties to the same, nor was any other bondholder. The treasurer
and board of commissioners, unless restrained, will dispose of the
fund collected as aforesaid. An injunction was prayed, and the
statement of an account, and the appointment of a receiver
asked.
The answer attacked the validity of the bonds, and averred that
their invalidity was adjudged by the supreme court of the state in
the case of
Commissioners v. Snuggs, 121 N.C. 394,
"and that there has been no other decision or judgment given by
said supreme court in conflict with the aforesaid decision; but
that the said decision is uniform with the decision of the same
court, delivered in the case of
Bank v. Commissioners, 119
N.C. 214, which are the only two cases in which the principle, or
validity of these bonds has ever been before the supreme court of
the state."
There were proper replications made to the answer. The case was
submitted on the pleadings and certain exhibits, some of them being
the records of the suits in the courts of North Carolina.
The grounds upon which the bonds are claimed to be invalid are
indicated in the opinion. A decree was entered declaring and
adjudging the bonds to be valid obligations of the County of
Stanly; that complainants (respondents here) in the suit
Page 190 U. S. 441
were
bona fide purchasers and holders thereof; that I.
W. Snuggs was the trustee of the bondholders, and held the sum of
$6,000 as such trustee, for the benefit of the bondholders, under
and by virtue of the law and the orders of the board of
commissioners of the county, and for the sole purpose of paying off
and discharging the interest due on the bonds as set out in the
bill. The decree also appointed a receiver for said sum, and
ordered that said I. W. Snuggs pay the same to the receiver. It was
further adjudged that the Board of Commissioners of Stanly County
be enjoined from in any manner interfering with the execution and
performance of the decree. The decree was reversed by the circuit
court of appeals, and the cause was remanded "with directions to
dissolve the injunction, discharge the receiver, and dismiss the
bill." 96 F. 284. A rehearing was granted, and the decree of the
circuit court was affirmed. 113 F. 705.
MR. JUSTICE McKENNA, after stating the case as above, delivered
the opinion of the Court.
It will be observed that the bonds recited that they were
"issued by authority of an Act of the General Assembly of North
Carolina, ratified the third day of March, A.D. 1887, entitled 'An
Act to Amend the Charter of the Yadkin Railroad Company,' and of
sections 1996, 1997, 1998, and 1999 of the Code of North Carolina,
and authorized by the majority vote of the qualified voters of
Stanly County at an election regularly held for that purpose, on
the 15th day of August, A.D. 1889, duly ordered by the Board of
Commissioners of Stanly County."
The Act of March 3, 1887, referred to, was an amendment of the
act by which the Yadkin Railroad Company was incorporated
(1870-1871), and was declared by the supreme court of the state
not
Page 190 U. S. 442
to have been passed in accordance with the constitutional
provision requiring the yeas and nays to be entered upon the
journals of each house of the general assembly.
Bank v.
Commissioners, 119 N.C. 214;
Stanly County v. Snuggs,
121 N.C. 394. The ruling was decided to be binding upon this Court.
Wilkes County v. Coler, 180 U. S. 506,
S.C., ante, p.
190 U. S. 107.
The same objection does not lie to the sections of the Code of
North Carolina recited in the bonds, and the controversy in the
pending case turns upon the meaning of those sections and the
effect of the recitals in the bonds.
Section 1996 provides as follows:
"The boards of commissioners of the several counties shall have
power to subscribe stock to any railroad company or companies, when
necessary to aid in the completion of any railroad in which the
citizens of the county may have an interest."
This section and the four succeeding sections were the
reproductions of a statute passed in 1868-69, a few days more than
a year after the constitution of 1868, and were passed upon and
interpreted by the Supreme Court of North Carolina in
Stanly
County v. Snuggs, 121 N.C. 394. The court said:
"It is most reasonable to conclude that the policy and purpose
of both the constitutional provision and the statute [code
provisions] were the same, the only difference being that, in case
of state aid, no approval by vote of the people was required, while
a majority vote of the people was required in cases of county aid.
The object of the statute must have been to provide, by a general
act, means by which the counties, without special legislation for
each county by separate bills, might be enabled to complete
unfinished railroads in which the counties had a pecuniary
interest. At the time of the enactment of the statute of 1868-69,
and always since that time, any county of the state, duly observing
the limitations of section 7 of Article VII of the constitution,
and under an act passed according to the requirements of section
14, article II, of the constitution, could and can subscribe to the
capital stock of the railroad company, whether unfinished or to be
begun. The act of 1868-69, however, considering the condition of
affairs then existing -- that is, that there were counties which
had a pecuniary interest in railroads
Page 190 U. S. 443
that had been begun but were unfinished, enabled such counties
to make subscriptions of bonds to complete such unfinished roads at
the earliest moment and with the least cost, by a general law
passed according to section 14, article II, of the constitution.
This reasoning leads us to the still further conclusion that at the
time when the act of 1868-69 was brought forward in the code,
section 1996, and the four succeeding sections, it could have had
reference to no cases except those where the counties had a
pecuniary interest in unfinished railroads at the adoption of the
constitution of 1868, and that therefore the code sections could
not apply to the present case, because the Yadkin Railroad was not
begun to be constructed until about 1889."
It will be observed, therefore, that the supreme court decides
that the interest of the county must have been
pecuniary,
and the railroad must have been begun
at the adoption of the
constitution of 1868.
To this case, the respondents oppose the contentions that its
interpretation of the constitution and code sections is (1)
incorrect, and this involves the further contention that we may
exercise an independent judgment of them; (2) that the recitals in
the bonds were assurances to
bona fide purchasers that the
conditions expressed had been fulfilled. In other words, the
recitals were assurances that the county had a pecuniary interest
(assuming such to be the interest meant) in the Yadkin Railroad,
and that the road had been begun before the bonds were issued --
even begun before the adoption of the constitution of 1868. As far
as the contention includes both dates, we may immediately dispose
of it. We cannot assent to the view that purchasers of the bonds
could have assumed that the railroad had been begun before the
adoption of the constitution of 1868. The adoption of the
constitution antedated the charter of the company. It would
therefore be extreme to hold that purchasers of the bonds could
have assumed that the railroad had been begun before it was
authorized to be built, or that a different act of incorporation
could have been assumed from that which the bonds themselves
indicated. Commercial securities must necessarily be fortified by
many presumptions, as
Page 190 U. S. 444
we shall hereafter have occasion to remark, but it would be
straining somewhat to hold that a purchaser of bonds issued for a
subscription to the capital stock of a railroad company could
assume that the company existed prior to the time stated in the
bonds or was incorporated by a different statute than that
mentioned. Pretermitting consideration of the other conditions for
a time, we are brought to the contention of the respondents, that
we are not constrained to follow the opinion of the Supreme Court
of North Carolina.
The general rule undoubtedly is that we accept the
interpretation put by the state courts upon the state constitutions
and statutes. There are exceptions to the rule, and the case at bar
presents one of them. The rule and its exceptions are stated in
Burgess v. Seligman, 107 U. S. 20, and
the many cases by which the rule was sustained are collected in a
note on page thirty of the opinion. In that case, a statute of
Missouri provided that the stockholders of a corporation at its
dissolution were liable for its debts. It also provided that no
person holding stock as executor, etc., or holding stock as
collateral security, should be personally liable, but the persons
who pledged the stock should be considered as holding the same, and
be liable. The Supreme Court of Missouri held that the exemption of
the statute did not extend to persons receiving from the
corporation it self stock as collateral security. This Court
decided to the contrary, and held that it was not bound to follow
the decision of the supreme court of the state. The question
presented was regarded as one of commercial law and general
jurisprudence, and the right to exercise our own judgment was
asserted. It was said that state decisions were to be followed when
they had become a rule of property, and that
"this is specially true with regard to the law of real estate
and the construction of state constitutions and statutes. Such
established rules are always regarded by the federal courts, no
less than by the state courts themselves, as authoritative
declarations of what the law is. But where the law has not been
thus settled it is the right and duty of the federal courts to
exercise their own judgment, as they also always do in reference to
the doctrines of commercial law and general
Page 190 U. S. 445
jurisprudence. So, when contracts and transactions have been
entered into, and rights have accrued thereon under a particular
state of the decisions, or when there has been no decision of the
state tribunals, the federal courts properly claim the right to
adopt their own interpretation of the law applicable to the case,
although a different interpretation may be adopted by the state
courts after such rights have accrued."
Burgess v. Seligman was applied in
Folsom v.
Township Ninety-Six, 159 U. S. 611, to
sustain the validity of bonds issued by the defendant township to
aid in the construction of a railroad. The power to issue them
depended upon several statutes and the constitution of the state.
After the bonds were issued, the supreme court of the state decided
that the statutes authorizing the issue of the bonds were
unconstitutional. There had been no decision to that effect prior
to the issuing of the bonds. We held that the decision of the
supreme court was not binding, and construed the constitution and
statutes for ourselves, and sustained the bonds.
It was, however, said in
Burgess v. Seligman that, even
in cases in which we may exercise an independent judgment, if the
question seems "balanced with doubt," we will "lean towards an
agreement of views with the state courts." But we are unable to
yield that deference to the decision in
Stanly County v.
Snuggs, notwithstanding our respect for the learned tribunal
that delivered it. We are unable to construe the code sections as
having had "reference to no cases except those where the counties
had an interest in unfinished railroads at the adoption of the
constitution of 1868." The prohibition of the constitution was
directed to the state; the power given by the code sections was
directed to counties. It is easy to conceive the reasons which
induced the different provisions. The state might indeed not have
desired to extend its general aid beyond what had been done or
commenced. Local interest might be different, and the exact
fulfillment of the conditions upon which aid could be granted was
assured, and any abuse guarded against, by requiring a vote of the
people. Besides, there is no reference in the code sections to the
constitution of 1868, or any retrospective implications in them.
The language is that
Page 190 U. S. 446
which would naturally be employed to express a present and
continuing power, to be exercised as occasion should arise. And the
contemporaneous construction sustains this view. There was a vote
of the people of the county authorizing the subscription, and not
through all the publicity and discussion of the canvass, not in the
proceedings before the board of commissioners when the subscription
was made, was there an intimation expressed, as far as the record
shows, that the power by the counties of the state was limited by
and depended upon what existed at the date of the constitution of
1868. And for four years a tax was levied and interest paid on the
bonds.
As we have seen, section 1996 confers power on the boards of
commissioners of counties
"to subscribe stock to any railroad company or companies, when
necessary to aid in the
completion of any railroad in
which the
citizens of the county may have an
interest."
These conditions, as we have also seen, were defined to mean, by
the supreme court of the state, in
Stanly County v.
Snuggs, an interest of the county, as distinguished from the
interest of its citizens, and a pecuniary interest, as
distinguished from that which comes from the facilities afforded by
a railroad, and the completion of a railroad to signify one begun,
but not finished. These definitions may be disputed, and are
disputed.
A county is in many ways a distinct legal entity from its
citizens, but it is created for their benefit, and its duties and
powers are conferred to be exercised for their welfare. This is
true even of its ordinary and governmental functions; it is
especially true of the power to subscribe to the stock of a
railroad company, and, in conferring such power, the predominant
thought would be, not the interests of the county as such, but the
interest of its citizens as such. And the language of the Code of
North Carolina conforms to and exactly expresses the thought --
accurately marks a distinction between the county, acting through
its board of commissioners, and the citizens of the county, and
provides that the interests of the latter shall induce the exercise
of the powers and duties of the former. Such interest could not be
pecuniary -- could only be that which comes from the possession and
advantages of railroads. And
Page 190 U. S. 447
the same consideration would seem to lead to a different
definition of the word "completion" than that given by the Supreme
Court of North Carolina. Of course, there can be no completion of a
thing which has not been begun, but it does not follow that the
legislature intended to express a distinction between railroads
which could receive, according to the degree of their construction.
The statute regards not actual construction, but aid to
construction. Its purpose is the production of a result, the
building of railroads, and it is manifest that aid given before
their commencement would be as efficient, and might be more
necessary, than that given after their commencement. It is not easy
to conceive what purpose would be subserved by confining the aid to
roads which have been begun, and there would be certain
embarrassment in deciding the degree to which construction must be
advanced. However, these are but passing observations. We may rest
the validity of the bonds on the right of a
bona fide
holder, from their recitals, to assume that the county had the
interest claimed and that the railroad had been begun before
subscription to its stock was made. It makes no difference whether
the existence or nonexistence of those conditions could have been
ascertained by inquiry. Purchasers were not expected to be at or
near the sources of information. The bonds were not offered in
Stanly County only, or in the State of North Carolina only. They
were expected to be offered in the financial markets of the other
states of the Union, even offered in the financial markets of the
world. They were payable to bearer. They were expected to have, and
their value, to an extent, depended upon their having, almost the
currency and sanction of money. If a buyer of bonds is chargeable
not only with want of power to issue them (a considerable risk, as
the records of the courts show), but also with the performance of
conditions in pais, their value would be much diminished. And what
good would such a holding subserve? The affairs of a county can
only be administered by its officers, and to their attention and
duty its interest must be entrusted. When the power to issue bonds
therefore depends upon the existence of conditions, the local
officers are charged with the duty and the responsibility of
ascertaining
Page 190 U. S. 448
them, and the presumption that the duty was exercised should and
does accompany and guarantee the bonds in every financial market.
And this Court has so decided. In
Evansville v. Dennett,
161 U. S. 434, the
bonds passed upon recited that they were
"issued by the City of Evansville in payment of a subscription
to the Evansville, Henderson & Nashville Railroad Company, made
in pursuance of an act of the Legislature of the State of Indiana,
and ordinances of the city council of said city, passed in
pursuance thereof."
The bonds were dated May 1, 1858. Other bonds were issued
December 1, 1870, in payment of the subscription of the city to the
stock of the Evansville, Carmi & Paducah Railroad Company. The
recital in the latter bonds was as follows:
"By virtue of an Act of the General Assembly of the State of
Indiana entitled 'An Act Granting to the Citizens of the Town of
Evansville, in the County of Vanderburg, a City Charter,' approved
January 27, 1847, . . . conferring upon the city council of said
city power to take stock in any company authorized for the purpose
of making a road of any kind leading to said city, and by virtue of
the resolution of said city council of said city, passed October 4,
1869, ordering an election of the qualified voters of said city
upon the question of subscribing $300,000 to the capital stock of
the Evansville, Carmi & Paducah Railroad Company, and said
election, held on the 13th day of November, 1868, resulting in a
legal majority in favor of such subscription, and by virtue of a
resolution of said city council, passed May 23, 1870, ordering an
issue of the bonds of the City of Evansville (of which this is a
part) to an amount not to exceed three hundred thousand dollars,
bearing interest at the rate of 7 percent per annum, for the
purpose of paying the subscription as authorized above. "
The charter of Evansville authorized the city
"to take stock in any chartered company for making roads to said
city. . . .
Provided, That no stock shall be subscribed or
taken by the common council in any such company unless it be on the
petition of two-thirds of the residents of said city, who are
freeholders of the city, distinctly
Page 190 U. S. 449
setting forth the company in which stock is to be taken, and the
number and amount of shares to be subscribed."
The charter of Evansville was amended in 1865, but the amendment
was declared unconstitutional by the supreme court of the state,
and another act was passed in 1867. The latter act authorized a
subscription to the stock of the railroad company, when a majority
of the qualified voters of the city, who were also taxpayers,
should vote therefor. The ordinances of the city recited that an
election was held, but did not recite that a petition of resident
freeholders of the city was presented to the common council as
required by the charter, and no such petition was in fact
presented. The case came to this Court on certificate, and the
following questions were propounded: did the recital in the first
series of bonds put the purchaser upon inquiry as to the terms of
ordinances under which the bonds were issued? Did the recital in
the second series of bonds, those issued to the Evansville, Carmi
& Paducah Railroad Company, (1) put the purchaser upon inquiry
as to the terms of the resolution under which they were purported
to have been issued? (2) estop the city from asserting that the
bonds were not issued for a stock subscription upon a petition, as
prescribed by the charter; (3)
"was a
bona fide purchaser for value of the bonds
issued to the Evansville, Carmi & Paducah Railroad Company
charged, by the recitals in said bonds, with notice that they were
issued in pursuance of an invalid act, and in pursuance of an
election under it, or had such a purchaser a right to assume, from
the recital, that the prerequisites of both the valid act and the
invalid act had been observed by the common council before the
issuance of such bonds?"
Sustaining the validity of the first series of bonds, the court
said, by MR. JUSTICE HARLAN, it could not be doubted that the city
had the power to subscribe to the stock, upon the performance of
the conditions expressed in the questions propounded, and further
said they
"were only conditions which the statute required to be performed
or met before the power given was exercised. That there was
legislative authority to subscribe to the stock of these companies
cannot be questioned, although
Page 190 U. S. 450
the statute declared that the power should not be exercised
except under the circumstances stated in the statute."
And of the effect of the recital that the subscription was "made
in pursuance of an act of the legislature thereof," it was
observed:
"This imports not only compliance with the act of the
legislature, but that the ordinances of the city council were in
conformity with the statute. It is as if the city had declared, in
terms, that all had been done that was required to be done in order
that the power given might be exercised."
Passing on the second series of bonds, and expressing the
principle applicable,
School District v. Stone,
106 U. S. 183, was
quoted from as follows:
"Numerous cases have been determined in this Court, in which we
have said that, where a statute confers power upon a municipal
corporation, upon the performance of certain precedent conditions,
to execute bonds in aid of the construction of a railroad, or for
other like purposes, and imposes upon certain officers -- invested
with authority to determine whether such conditions have been
performed -- the responsibility of issuing them when such
conditions have been complied with, recitals, by such officers,
that the bonds have been issued 'in pursuance of,' or 'in
conformity with,' or 'by virtue of,' or 'by authority of' the
statute, have been held in favor of
bona fide purchasers
for value to import full compliance with the statute, and to
preclude inquiry as to whether the precedent conditions had been
performed before the bonds were issued."
"
Coloma v. Eaves, 92 U. S. 484;
Commissioners
v. Bolles, 94 U. S. 104;
Mercer County v.
Hacket, 1 Wall. 83;
Anderson County v.
Beal, 113 U. S. 227,
113 U. S.
238-239, and authorities there cited
Cairo v.
Zane, 149 U. S. 122."
And again:
"As therefore the recitals in the bonds import compliance with
the city's charter, purchasers for value having no notice of the
nonperformance of the conditions precedent were not bound to go
behind the statute conferring the power to subscribe, and to
ascertain, by an examination of the ordinances and records of the
city council, whether those conditions had, in fact been performed.
With such recitals before
Page 190 U. S. 451
them, they had the right to assume that the circumstances
existed which authorized the city to exercise the authority given
by the legislature."
In
Gunnison County v. E. H. Rollins, 173 U.
S. 255, the bonds passed on recited that all the
requirements of law had been fully complied with by the proper
officers in the issuing of the bonds. It was held that the county
was estopped from asserting, against a
bona fide holder
for value, that the bonds so issued created an indebtedness in
excess of the limit prescribed by the Constitution of Colorado.
See also Waite v. Santa Cruz, 184 U.
S. 302, where effect of recitals in bonds was thoroughly
considered, and the doctrine of prior cases repeated and
affirmed.
The application of these cases to that at bar is denied by
petitioners. The argument is (to quote counsel):
"The preliminary question, whether the railroad was incomplete
or the county had an interest, was not one as to which the
commissioners had peculiar knowledge, qualifying them to answer.
They had such knowledge as the whole public could obtain -- nothing
more. It was incumbent on the respondents to inquire about the
fact, because the incompleteness or completeness or the interest of
the county was a test of the existence of the power of the board,
not a condition precedent to the exercise of a power granted."
It is also said that counties having an interest were
constituted a class, and only members of the class could have
exercised the power conferred by the code sections. We think the
distinctions made are not substantial. No matter how you may
designate the interest of the county or the condition of the
railroad, they were facts which bore the same relation to the power
of the Board of Commissioners of Stanly County as the facts in the
cited cases bore to the power of the officers, the exercise of
which was sustained. It is indifferent whether you call the facts
which were to be ascertained tests of power or conditions precedent
or marks of a class. They were something which were to exist prior
to the exercise of the power, and the existence of which the law
imposed on the board of commissioners the duty to ascertain.
Decree affirmed.
�
190
U.S. 437ast�
*
"
EXHIBIT A"
"
(Copy)"
"
County of Stanly Six Percent Bond"
"Stanly County, State of North Carolina, is indebted to the
bearer in the sum of five hundred dollars, lawful money of the
United States, payable on the first day of July, A.D. one thousand
nine hundred and twenty, with interest thereon from the first day
of July, A.D. one thousand eight hundred and ninety at the rate of
six percent per annum, payable on the first day of July in each
year at the First National Bank of Salisbury, North Carolina, on
presentation and surrender of the respective coupons hereto
attached, as they severally become due and payable. This bond is
one of a series of eighty of the denomination of one thousand
dollars each, and forty of the denomination of five hundred, making
a total of one hundred thousand dollars, issued by authority of an
act of the general assembly of North Carolina, ratified the third
day of March, A.D. 1887, entitled 'An Act to Amend the Charter of
the Yadkin Railroad Company,' and of sections 1996, 1997, 1998, and
1999 of the Code of North Carolina, and authorized by a majority
vote of the qualified voters of Stanly County at an election
regularly held for that purpose on the 15th day of August, A.D.
1889, duly ordered by the board of commissioners of Stanly
County."
"This series of bonds is issued to pay the subscription of one
hundred thousand dollars made by Stanly County to the capital stock
of the said railroad, known as 'The Yadkin Railroad Company.'
Stanly County reserves the privilege of paying the principal and
interest of any or all of this series of bonds at any time after
the expiration of ten years, upon the board of commissioners of
said county first giving three months' notice of such payment in
some newspaper published in said county, when such bonds shall be
paid, according to number, beginning with number one."
"In testimony whereof, the Chairman of the Board of County
Commissioners of Stanly County hath hereunto subscribed his name,
for and on behalf of said board, and the clerk of the Superior
Court of Stanly County hath countersigned the same and affixed
thereto the seal of said superior court, this first day of July,
A.D. one thousand eight hundred and ninety."
"_____,
Chairman"
"Countersigned:"
"_____,
Clerk of Superior Court"