City of Terre Haute v. Terre Haute Water-Works Co.

The questions presented by the first and third paragraphs of the appellant’s complaint are the same, and may be thus stated:

First. Has a municipal corporation the incidental authority to sell stock subscribed by it in the capital stock of a water-works company incorporated under the laws of this State ?

Second. Is there any provision in the law under which the city of Terre Haute is incorporated, or in the law under which the water-works company is organized, prohibiting the sale of such stock? Of these in their order, -

We have no hesitation in holding that a municipal corporation may sell…