US SUPREME COURT DECISIONS

When at the time of creating and issuing a negotiable evidence of indebtedness of a municipal corporation in a state, the highest court of a state has construed the law under which it purports to be issued, rights accruing under that construction will not be affected merely by subsequent decisions of the same court varying or departing from it.

When negotiable evidences of indebtedness of a municipal corporation in a state are created and issued under laws which have not, at the time of issue, been construed by the highest court of the state, its subsequent construction of them is not conclusive on federal courts, although they will lean to an agreement of views with the state court.

This was a suit at law to recover on municipal bonds issued in payment of a subscription to railroad stock. The facts which make the case are stated in the opinion of the court. chanrobles.com-red

Page 116 U. S. 357