Schieffelin v. Hylan

An injunction is sought to prevent the carrying out of a resolution of the board of estimate of the city of New York. The resolution provides for the sale of $4,500,000 of corporate stock of the city (long term bonds). The proceeds of $1,000,000 of this stock are “ for redemption of special revenue bonds issued for the purpose of providing funds to meet the expenses of the public service commission.” The proceeds of the balance ($3,500,000) are “to be paid into the general fund for the reduction of taxation.” The entire issue has been authorized on the theory that certain expenses of the…