City of Port Huron v. McCall

To an understanding of this case a brief summary of the facts is essential.

Under certain legislative acts purporting to empower the city of Port Huron to grant municipal aid to the Port Huron Lake Michigan Bailroad, the city subscribed a large sum to the stock of the company engaged in building that road, and issued bonds for the amount of the subscription. These bonds were negotiable, and soon passed from the railroad company into the hands of purchasers.

Subsequently to these issues, in the case of People v. Township Board of Salem 20 Mich. 452, this court decided that it was incompetent…