Page:Federal Reporter, 1st Series, Volume 2.djvu/555

 548 FEDBBA.L BE70BTEB. �in the case of Brodie et al. v. McCabe, Collector, (not yet reported,) which was a proceeding by tax payera to enjoin the levy and collection of taxes in excess of the maximum allowed by the Arkansas constitution of 1874. �Section 9 of article 16, of that constitution, provides as follows: "No county shall levy a tax to exceed one-half of 1 per cent, for ail purposes; but may levy an additional one- half of 1 per cent, to pay indebtedness existing at the time of the ratification of this constitution." �Section 6 of the act of March 6, 1877, under which com- plainant's bonds were funded, and the new bonds now heid by it were issued, provides that "it shall be the duty of the county courts issuing bonds under the provisions of this act to levy a special tax of sufficient amount to pay the principal and interest of said bonds as they shall become due, not to exceed the limit of taxation, together with ail other taxes levied during that year, prescribed in the constitution of the state." �In commenting upon that clause of the act, the supreme court of Arkansas, in the case supra, observe that "those who took or might take these bonds evidently submitted to the constitutional limit of taxation under the present constitu- tion;" and undoubtedly such is the fair presumption, unlesa the contrary is made to appear in any given case by the terms of the contract. It does not appear that auy of the bonds issued under the act in question were before the court, and it certainly was not called upon to oonstrue, and did not assume to pass upon, the written contracts under which the complainant claims. The most the court could have intended to assert is that where a crediter of the county funds has bonds under the act of 1877, without any stipulation preserv- ing the obligation of the original contract, those obligations are waived and substituted by such as are consistent with the constitution of 1874. But it was clearly within the power of the parties to agree that the non-payment of the compro- mise bonds, or of the interest thereon, for a specified period, ehould annul the new bonds, and restore the parties to their rights before the agreement of compromise was entered into. ����