Page:Federal Reporter, 1st Series, Volume 9.djvu/763

 748 FEDERAL REPORTER. �8, 1873, authorizing the city of Duluth to fund the debt previously incurred for improving the harbor, and for other purposes. The bonds were payable in not less than 20 nor more than 30 years from the date of their issue, and bear interest at the rate of 7 per cent, per annum, payable semi-annually in the city of New York. The complainant became a bona fide holder of the bonds and coupons pre- vious to 1876. �It appears that on February 23, 1877, the legislature of the state of Minnesota created the village of Duluth out of a part of the terri- tory of the city of Duluth, under an act entitled "An aot to create the village of Duluth, * * * and to apportion the debts of the city of Duluth between itself and the village of Duluth, and provide for the payment thereof." �This act carved the village out of the city limits, taking and em- bracing in the village all the business part of the city andi business houses, the harbor, railroad depots and tracks, nearly all the dwell- ing-houses, all the population except about 100 inhabitants, and nineteen-twentieths of all the taxable propertyj and no provision was made for the payment of the debts of the city by the village unless cred- itors would accede to the terms imposed by the legislature as herein- after stated. It also appears that on February 28, 1877, an act was passed entitled "An act to amend the act entitled an act to incorporate the city of Duluth," approved March 5, 1870, and this act declared that the service of all summons and process in suits against the city of Duluth should be made on the mayor of the city, and that service made on any other officer should not be valid against the city. It also provided that the term of the ofEee of mayor should cease on the following April, 1877, and no provision was made for the election of a successor or for filling a vacancy; that no taxes should be levied without the affirmative vote of all, to-wit, four aldermen; and since the passage of the act there have never been four aldermen in the city qualified to act. There is a section authorizing the levy of taxes by the county of St. Louis, in which the city is situated, but all taxes thus levied and collected must be paid to the village of Duluth. �On the facts admitted by the demurrer the complainant is entitled to relief. The legislature undoubtedly had the right to create the village of Duluth out of the territory of the citj', and, as between the city and the village, apportion the existing indebtedness; but when the corporation which created the debt is shorn of its population and taxable property to such an extent that there is no reasonable expec- tation of its meeting the present indebtedness, and it is unable so to ��� �