Municipal Bonds.

Buffalo & I. R. R. Co. v. Judson et al. 7 Hun, 499, affirmed by Court of Appeals, May, 1877. Authority to issue bonds when railroad constructed through the town; afterwards Constitution prohibits town from issuing bonds. Held, the town could not issue bonds until railroad was completed through the town, and if not completed before adoption of Constitution, they could not be issued at all. 16 A. L. J. 14. See § 105, p. 405.

State ex rel. St. Louis L. C. B. & D. R. R. v. County Commissioners of Daviess County, 4 Cent. L. J. 224, Supreme Court of Missouri, October, 1876. Bonds to be issued on condition that road should run, or depot be built, within one mile of town, town cannot waive the condition. See § 135, p. 405.

Recitals.-County Commissioners of Leavenworth v. Barnes, 15 A. L. J. 160, Supreme Court of U. S. April, 1877. Recitals by officers authorized to issue, conclusive as to precedent conditions. S. P. County Commissioners v. Clark, 16 Am. Law Reg. 380, Supreme Court of U. S. March, 1877, and Vicksburg v. Lombard, 51 Miss. 111. See § 136, p. 409.

Estoppel.-County of Randolph v. Post, 3 Otto, 502. Authority given to town to issue bonds in aid of a railroad, the road to be completed at a period fixed, the town extended the time for the completion of the road. A town may waive a condition for its own benefit, and having done so is estopped to deny its validity. See § 136, p. 411, n. 4.

Negotiable, no Notice of Fraud.-Board of County Commissioners v. Clark, 15 A. L. J. 204, Supreme Court U. S. March, 1877.

Bona fide holder of municipal bonds, negotiable in form, is not affected by fraud of payee of which. he had no notice. See § 136, p. 411, n. 2.

Want of Power.-Melvin et al. v. Lisenby et al. 5 Cent. L. J. 15, Supreme Court of Illinois, 1877. Bonds in aid of railroad required to be registered, and act requires that they should have been voted for by a majority of voters living in the .county. A county was authorized to subscribe when a majority of votes cast at an election should be in favor of subscription. Bonds were issued and registered. A bill was filed by tax-payers to enjoin the collection of the tax. The court held that it would be presumed that the vote at an election held according to law, was that of the majority of voters living in the county. This seems to be in conflict with Harshman v. Bates County, 2 Otto, 569, and with former rulings in Illinois. See note to principal case, § 136, p. 414.

McClure v. Township of Oxford, 5 Cent. L. J. 47; Circuit Court of U. S. for Kansas, opinion by Waite, C. J. The bonds contained recitals showing that they were issued on the 15th of April, 1872, and that the election approving their issue was on the 8th of April, 1872. The statute under which they were issued required the act to be published in the Kansas Weekly Commonwealth before it took effect, and that thirty days' notice should be given of the election; it was published in the paper designated on the 21st of March, 1872. Held, That the bona fide holder was bound to know the statute under which the bonds were issued, to take notice of the condition as to the publication of the act, and consequently was chargeable with notiee of the date of publication of the act. Having knowledge of the date of publication, the recitals of the bonds, taken in connection therewith, informed him that the proper notice of the election, thirty days, had not been given, and the bonds are void. See § 136, pp. 412, 413.

Daviess County Court v. A. G. Howard, 16 Am. L. Reg. 429. A county was authorized to issue bonds to the amount of $250,000, and to subscribe to stock of a railroad to that amount. Bonds were issued in excess of that amount and sold at a discount to realize that sum. Bill by tax-payers to restrain tax, in payment of excess of $250,000, excess of bonds void. See § 136, pp. 412, 413.

The Town of South Ottawa v. Perkins, and Board of Supervisors of Kendall County v. Post, 4 Cent. L. J. 442; s. c. p. 132. Bends of a town issued under a law printed and promulgated by the State authorities, in the hands of a bona fide purchaser without notice, may be defeated by showing from the journals of the House and Senate that the law was not enacted in accordance with the Constitution of the State. Such an act under the decisions of the courts of Illinois is void, and the Supreme Court of the United States will follow those decisions.

This decision was made at a rehearing of the case. At the first hearing it was decided that the bonds were valid. See p. 139. Quære. Does this case go any further than to affirm Elmwood v. Marcy, 2 Otto, 289? See § 136, p. 413.

County of Callaway v. Foster, 3 Otto, 567. A county is authorized to issue bonds, without vote of electors. Afterwards the Constitution prohibits it. The subscription to the stock of the railroad was actually made before the adoption of the Constitution, although the bonds were issued after that period. The bonds are valid. See § 146, p. 412, n. 3.

State . Green County, 54 Mo. 540. Railroad A. authorized to construct branch B. The county was empowered to subscribe to the branch road. Railroad A. was consolidated with railroad C. The bonds were issued to railroad C., which was vested with all the powers and rights of railroad A. The bonds are valid. See § 136, p. 412.

Scotland County v. Thomas, 16 A. L. J. 51, and 5 Cent. L. J. 33, Supreme Court U. S. A railroad was chartered from A. in Missouri to the State line in the direction of B., in Iowa. This road was then consolidated with an Iowa railroad from B. to A., the consolidated railroad having all the priviliges of the original roads. Scotland County was empowered to subscribe to the first read in Missouri. The bonds issued to the consolidated road are valid. The case is distinguished from Harshman v. Bates Co. 2 Otto, 569, but the distinction is not at all satisfactory. See § 136, p. 413.

Limit to Rate of Tax.

A. T. & T. F. R. R. v. Woodcock, 4 Cent. L. J. 528, Supreme Court of Kansas, January, 1877. Rate of tax limited to one per cent. A levy of eight mills additional to meet a deficit of the preceding year, is void. See § 129, p. 376.

Change in the Charter of a Corporation.-Effect on Debts. Broughton v. Pensacola, 3 Otto, 266. A change in the charter of a municipal corporation, by amendment or by a new charter, embracing substantially the same corporators and the same territory, does not affect its identity so as to relieve it from previous liabilities incurred, although it has different powers, administered by different officers. See § 132, p. 390.

Barkley v. Levee Commissioners, 3 Otto, 258. A public corporation, having specific powers as to levees within a certain district, is superseded in its duties by a law dividing the district and creating a new corporation for one portion, and placing the other under charge of the local authorities. If there be a judg

ment against the old corporation, mandamus will not lie to enforce the assessment of taxes for its payment, there being no officers to whom the writ can be directed. See §§ 132, 144, p. 456.

Illegal Municipal Tax.

Board of Commissioners of Tippecanoe County v. Lucas, 3 Otto, 108. The legislature may direct an illegal tax in the hands of a municipal corporation to be restored to the tax-payers from whom it was collected, if not restrained by the Constitution of the State. It infringes no provision of the Constitution of the United States.

Lea v. City of Memphis, 4 Cent. L. J. 528, Supreme Court of Tennessee, April, 1877. Debt against a city cannot be offset against a tax due. See § 142, p. 439.

missioners in their discretion in

Long v. Commissioners of Richmond, 4 Cent. L. J. 333, Supreme Court of North Carolina, January, 1877. Courts will not interfere with a board of comthe exercise of the powers intrusted to them. Where it is alleged that the tax levied is not sufficient for the purposes of the county, the court will not interfere. See § 143, p. 450.

Compelling Payment of a Municipal Debt.

Badger et al. v. U. S. ex rel. Bolles, 15 A. L. J. 160, Supreme Court of U. S. April, 1877. Board of auditors of a town (supervisor, town clerk, and justice), who have refused to audit a claim, when a mandamus is applied for to compel them, resign and their resignations are accepted. The statute under which these officers are elected allows them to hold office for one year, and until others are chosen or appointed in their place and have qualified. There is no vacancy in the offices, until the successors of these officers have qualified. See §§ 144, 456.

Local Assessments.

Zoeller v. Kellogg, 4 Cent. L. J. 47; St. Louis Court of Appeals, October, 1876. An assessment for local improvements greater than the value of the property assessed cannot be enforced. See § 146, p. 464.

Carpenter v. Jennings, 77 Ill. 250. A statute allowing the benefit derived from opening a highway over land, to be set off against the damages due for taking the land is unconstitutional. See § 151, p. 492.

T. & L. R. R. v. Kane, 15 A. L. J. 434, Supreme Court of New York. The property of a horse railroad, sleepers, ties and rails for construction, is liable to assessment for constructing a sewer. See § 148, p. 473.

Thomas v. Gain, 4 Am. L. T. Rep. 1; s. c. 4 Cent. L. J. 307. A sewer assessment upon lands benefited according to superficial area is not valid. Nor is such an assessment valid, unless the owners of the property have an opportunity of being heard before it becomes a charge on the land. See § 151, p. 495.

Customs, or External Revenue.

Dutiable Value, § 2907.-The commissions are an element of this value, and are charged not on net value of invoice, but on gross value after adding all other charges. Tr. Cir. 23 Int. Rev. Rec. 5. See § 155, p. 527.

Goods Imported by Manufacturer.-Value ascertained by reference to similar goods when sold for export to other countries. If all manufactured are sent to United States, then cost of material, with manufacturer's profit added, should be looked to in ascertaining market value. Tr. Cir. 23 Int. Rev. Rec. 149, 200; see also Ibid. 167. See § 155, p. 524.

Twenty per cent. Penalty, § 2908.-Value declared on entry 640 francs, the appraiser added 100 francs for charges, and 100 francs, the 100 per cent. addition on charges added under act of June 22, 1874-making the entire amount 640+100 100 840 francs. = This made the sum greater than the entered value by 10 per cent.-the twenty per cent. penalty was imposed on the 840 francs. This was correct. Tr. Cir. 23 Int. Rev. Rec. 15, 54, 166. See § 155, p. 528.

100 per cent. Penalty.-When charges are omitted at time of entry in the invoice, the fact that the importer subsequently voluntarily reports such charges to the collector does not relieve him from the penalty. Ibid. 54.

Re-appraisement.—If goods have been misdescribed in the invoice, that mistake may be corrected, and the goods appraised at their actual grade as found on inspection. Tr. Cir. 23 Int. Rev. Rec. 169. See § 156, p. 531.

Costs and Charges. For these there is no appeal for a re-appraisement; the remedy is an appeal to Secretary of Treasury under § 2931. Tr. Cir. 23 Int. Rev. Rec. 15. See § 157, p. 539.

Protest.-Important changes proposed as to overcharges and protests. Tr. Cir. 23 Int. Rev. Rec. 22-24. See § 161.

Sundays and holidays are included in the ten days for lodging protest. Tr. Cir. 23 Int. Rev. Rec. 34. See § 161, p. 571.

Priority of the United States.-There is no lien given by § 3466 on the property of the debtor in the hands of the administrator, but only a right of prior payment out of the proceeds in his hands. Taxes and funeral expenses are not "debts due from the deceased" in the sense of that section; they are to be deducted before paying the United States. United States v. Eggleston, 23 Int. Rev. Rec. 113. See § 160, p. 561.

&c.—Construction of act of February

Tonnage Tax on Northwestern Frontier, 27, 1877. Tr. Cir. 23 Int. Rev. Rec. 201. Canadian vessels, tax on tonnage 30 cents under this act, as construed by Secretary of Treasury. Tr. Cir. 23 Int. Rev. Rec. 169. See § 162, p. 574.

Classification of Merchandise.

Gauthier v. Bell, 23 Int. Rev. Rec. 210. Fresh fish, frozen together and imported in barrels, are not "fish fresh for immediate consumption," under § 2505 of R. S. U. S., and exempt from duty.

If caught in American waters, they are exempt, but proof of that fact must be made in the mode prescribed in the treasury regulations. See § 158, p. 551. United States v. Kaub, 23 Int. Rev. Rec. 211. German lottery tickets are not "paper and manufactures of paper," but are more appropriately classed as "printed matter."

Decisions of treasury department not binding on the courts, but they give material aid in construing acts of Congress.

A machine composed of materials liable to different rates of duty, if materials are readily separable, duty should be assessed on each of the materials separately,

and not on the whole machine, at the rate of the material subject to highest duty. Opinion of Solicitor General, approved by Attorney General, 23 Int. Rev. Rec. 229. See § 158, p. 551.

Transportation in Bond by Bonded Carrier.-" Continuous route," this expression does not require that the lines shall meet exactly at a given point, the first line is held under bond until delivery to the second line. Tr. Cir. 23 Int. Rev. Rec. 89. See § 157, p. 545.

Illegal Importation.

United States v. Jordan et al. 23 Int. Rev. Rec. 9.

false invoice is illegally imported under act of 1873.

Merchandise entered on a

Suits brought before June

22, 1874, are not affected by the Revised Statutes repealing this act.

The act of July 18, 1866, did not repeal this act, and it was not repealed until 5996 of R. S. U. S. was enacted. See § 163, p. 583.

Internal Revenue.

Assessment of Tax.-The decision of the assessor or commissioner as to the assessment of the tax is conclusive in an action for the tax; it cannot be questioned collaterally. Letter of Commissioner Raum reviewing the decisions on the subject, 23 Int. Rev. Rec. 5.

Vinegar. If in its production alcohol is evolved, then the manufacturer becomes a distiller, and must comply with the statutes as to distilled spirits. United States v. Distillery 390 Eleventh Avenue, 23 Int. Rev. Rec. 147.

Distilled Spirits.—A corporation may engage in distilling and give the bond required by law. Opinion of Attorney General Devens, 23 Int. Rev. Rec. 141.

But the stockholders are individually liable for the taxes due by the corporation for distilling. Opinion of Solicitor General Phillips, 23 Int. Rev. Rec. 141. Brandy made from Grapes.-Regulations for the transportation in bond, and export of such brandy with drawback. Commissioner Raum, approved by Secretary of Treasury, 23 Int. Rev. Rec. 157.

that used by employees, is liable to Com'r Raum, 23 Int. Rev. Rec. 29.

Tobacco.-Tobacco used as samples, and tax, and manufacturer must account for it. Dealers in tobacco stems are liable to a special tax as dealers in leaf tobacco. Com'r Raum, 23 Int. Rev. Rec. 237.

Imported Tobacco Scraps may be transferred from customs bonded warehouse to internal revenue bonded warehouse for manufacture, without being stamped with internal revenue stamps, and without being put up in packages according to § 3362 of Revised Statutes. Tr. Cir. 23 Int. Rev. Rec. 55.

Export Bonds.-Proof required for discharge of, amended circular requires certificate to show value of goods. Tr. Cir. 23 Int. Rev. Rec. 50.

Banks and Bankers.—A banking house purchased and used for banking purposes, whether from the authorized capital of a corporation or the personal funds of a private banker, is deemed capital employed in that business, in the sense of § 3408 of the Revised Statutes. The only deduction in assessing the monthly tax of one twenty-fourth of one per cent., is that part of the capital invested in U. S. bonds. Opinions of Attorney-General Devens, 23 Int. Rev. Rec. 126, and Com'r Raum, Ibid. 157.