Page:Federal Reporter, 1st Series, Volume 8.djvu/215

 CARI V. CITI OP OTTAWA. 201 �Iir.nois constitution of 1848, as interpreted by the supreme court of that state, expended to promote the general prosperity and welfare of the mimici- �piility." �It must be added, however, that the court did not consider that question the controlling one in that case, but disposed of that case upon the question as to whether the recital of the bonds there above quoted did not protect a bona fide purchaser for value. That case was before the court upon demurrer to the pleas interposed, by the city, which are substantially the same pleas on which issue is joined in this case. �The material facts, as they appear in evidence in this case, are these : �The charter of the city shows that the powers were fully delegated by it to the city council, which are set out in the recitals in the bonds . It also appears that on the fifteenth of June, 1869, the following ordi- nance was adopted' by the common council of the city : �"An ordinance to provide for a loan for municipal purposes. �'* Section 1. Be it ordained by the city council of the city of Ottawa, that the niayor of the city be and is hereby authorized to borrow in the name of the city, at a rate of interest not exceeding 10 percent., for the use of said city, to be expended in developing the natural advantages of the city for manu- facturing purposes, and that bonds of the city be issued therefor in sums of $500, with interest, payable annually ; said bonds to be payable, one-third in 5 years, one-third in 10 years, and one-third in 15 years after the date hereof : provided, that no application shall be made of the proceeds of said bonds except for the purposes aforesaid, and in the pursuance of an ordinance to be passed for that purpose by the city council, nor until the faithful application of the proceeds of such bonds to the purpose aforesaid shall be fully secured to the city. �" Sec. 2. Be it ordained that a sufflcient sum to pay the interest on said loan shall be annually provided by taxation and set apart as a separate fund, and to be applied to the payment of the interest on said bonds and for no other purpose. �" Sec. 3. This ordinance shall be submitted to the voters of the city, to be voted for or against at an election to be held for that purpose on the twentieth day of July, 1869. The manner of the determination shall be by depositing ballots, upon which shall be written or printed, 'Por the loan ordinance,' or 'Against the loan ordinance.' " �It further appears that the election called for by the last section of the ordinance was duly held, and that a majority of 823 votes was cast in favor of the ordinance, which the common council, on a can- vass of the votes, declared was a majority of all the voters of the city. ��� �