The City of Galena v. Corwith

• Decision Date: 30 September 1868
• Citation: 1868 WL 5135,95 Am.Dec. 557,48 Ill. 423
• Parties: THE CITY OF GALENAv.HENRY CORWITH.
• Court: Illinois Supreme Court

48 Ill. 423

1868 WL 5135 (Ill.)

95 Am.Dec. 557

THE CITY OF GALENA

v.HENRY CORWITH.

Supreme Court of Illinois.

September Term, 1868.

WRIT OF ERROR to the Circuit Court of Jo Daviess county; the Hon. BENJAMIN R. SHELDON, Judge, presiding.

This was an action of debt, instituted in the court below, by Henry Corwith, the defendant in error, against the City of Galena, the plaintiff in error, upon two bonds of said city, for the sum of $500.00 each. The defendant pleaded the general issue, want of consideration, and that the city had no authority to issue the said bonds. The cause was tried before the court and a jury, and a verdict found for the plaintiff for $1,182.50. A motion for a new trial was made, which the court overruled, and rendered judgment on the verdict, to reverse which the case is brought to this court by writ of error.

Mr. LOUIS SHISSLER, for the plaintiff in error.

Mr. D. W. JACKSON, for the defendant in error.

Mr. CHIEF JUSTICE BREESE delivered the opinion of the Court:

It is insisted by the plaintiff in error, that, inasmuch as the charter of the City of Galena granted the power to borrow, upon the faith and pledge of the city, so much money as they might deem necessary and expedient, not exceeding twenty thousand dollars in any one year, and to issue bonds, scrip, or certificates therefor, and that the money so borrowed to be expended and applied in liquidation of the debts of the city, and in the permanent and useful improvement thereof, that thereby the city is prohibited from funding its existing debt, and giving written evidence thereof, either by bonds bearing interest and on long time, or in any other form the parties might agree upon.

One single question will, we think, settle the present difficulty. The power in the charter to borrow this money, permits it to be expended in the useful and permanent improvement of the city. Now, suppose the whole amount is borrowed, and all expended in improvements, has the city no power to provide for its existing debt, which may be twice twenty thousand dollars?

Every corporation, or every natural person, has the undeniable and inherent right to pay its debts, or provide for their payment--to fund them, if that be deemed the best policy, and issue the necessary evidences thereof. It will not be denied, municipal corporations have power to contract debts, and without limit, unless restricted by their charters. Having this power, it follows they can provide for their payment,...