Tracts

Purchasers of the bonds of a municipality issued to aid the building of a railway, which recite a compliance with the law authorizing their issue, are not required to ascertain conditions imposed by the proposition voted on, which do not appear in the bonds; Chilton v. Gratton, 82 Fed. 873; they have a right to assume that the conditions have been complied with; Evansville v. Dennett, 78 Fed. 966, 20 C. C. A. 142. See as to power to subscribe; 12 Am. & Eng. R. R. Cas. 689; 15 id. 621, 655; ratification; 12 Am. & Eng. R. R. Cas. 651; effect of recitals; 12 id. 524; 16 id. 584, 675; 2 Am. & Eng. Corp. Cas. 291, 320. See also an extended discussion of cases in the United States Supreme Court on municipal bonds in aid of railroads; 17 Am. L. Reg. n. s. 209, 609. See, generally, as to municipal bonds for public purposes; 1 L. R. A. 787, note; 15 Am. & Eng. Corp. Cas. 366; as to an election for issue; 40 id. 643; negotiability; 6 id. 693; over issue; 40 id. 5.35; limit of indebtedness; id. 584; 26 id. 473; fraudulent circulation; 2 id. 263; estoppel to deny validity; 2 Am. Ry. Corp. Cas. 626; power to issue; 6 L R. A. 728, note bona fide holder; 23 Am. L. Reg. N. 8. 310; 29 id. n. s. 380; mandamus, to enforce subscription; 12 Am. & Eng. Ry. Cas. 609; or to enforce payment; 15 id. 629.