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KELLEY V. MILAN, 127 U. S. 139 (1888)

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U.S. Supreme Court

Kelley v. Milan, 127 U.S. 139 (1888)

Kelley v. Milan, 127 U.S. 139 (1888)

No. 206

Argued April 4-5, 1888

Decided April 23, 1888

127 U.S. 139

ERROR TO THE CIRCUIT COURT OF THE UNITED

STATES FOR THE WESTERN DISTRICT OF TENNESSEE

Syllabus

In this case, certain negotiable bonds, issued by the Town of Milan, Tennessee, were held to have been issued without lawful authority.

A municipal corporation, in order to exercise the power of becoming a stockholder in a railroad corporation, must have such power expressly conferred by a grant from the legislature, and even such power does not carry with it the power to issue negotiable bonds in payment of the subscription unless the latter power is expressly, or by reasonable implication, conferred by statute.





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