the restriction is unconstitutional and void. The legislature may require counties to issue bonds for the amount of its indebtedness.4 A county cannot ratify an act which it was not originally authorized to perform.5 1 Reineman v. C. C. & B. H. R. R. 7 Neb. 310. 2 Reineman v. C. C. & B. H. R. R. 7 Neb. 310. 3 Chester & L. N. G. R. R. v. Caldwell Co. 72 N. C. 486. 4 Jefferson Co. v. People, 5 Neb. 136. 5 Treadway v. Schnauber, 1 Kako. 237. § 19. No public work or improvement of any description whatsoever shall be done or made, in any city, in, upon, or about the streets thereof, or otherwise, the cost and expense of which is made chargeable or may be assessed upon private property by special assessment, unless an estimate of such cost and expense shall be made, and an assessment, in proportion to benefits, on the property to be affected or benefited, shall be levied, collected, and paid into the city treasury before such work or improvement shall be commenced, or any contract for letting or doing the same authorized or performed. In any city where there are no public works owned and controlled by the municipality, for supplying the same with water or artificial light, any individual, or any company duly incorporated for such purpose under and by authority of the laws of this State, shall, under the direction of the Superintendent of Streets, or other officer in control thereof, and under such general regulations as the municipality may prescribe for damages and indemnity for damages, have the privilege of using the public streets and thoroughfares thereof, and of laying down pipes and conduits therein, and connections therewith, so far as may be necessary for introducing into and supplying such city and its inhabitants either with gas-light or other illuminating light, or with fresh water for domestic and all other purposes, upon the condition that the municipal government shall have the right to regulate the charges thereof. For amendment of § 19, 1885, see p. 127. Improvements. - Measures calculated to produce a public benefit through the medium of a corporation is within the reserved powers of a State.1 A statute allowing a municipal corporation to set off a claim for benefits against damages is valid.2 A municipal corporation may repair or build court-houses or jails.31 1 Stockton & V. R. R. Co. v. Stockton, 41 Cal. 189. 2 Baldwin v. Newark, 9 Vroom, 158; Loweree v Newark, 9 Vroom, 151. 3 McLin v. Newbern, 70 N. C. 12. Street assessments.-The power to levy and collect assessments for municipal improvements rests alone upon constitutional authority.1 "Assessment" includes all the steps necessary to be taken in the legitimate exercise of the power.2 The legislature may authorize cities and villages to levy a special assessment, for improvement of streets, upon property peculiarly and specifically benefited in proportion to such benefits.3 Assessments may be made against the property peculiarly benefited, but only to the extent of such peculiar benefits.4 The legislature may confer this power upon other municipal corporations than those designated. The foundation of the power to tax specially is the benefit conferred on the owners of the property. The act of taxation must itself distribute the burden or provide the standard by which such distribution is to be made. Legislation which provides for a fair and equal assessment of property benefited will be sustained, but not where such assessment is impossible. A local assessment for a general public benefit is unconstitutional, but the expense of improving a sidewalk may be charged wholly to the owner. 10 The corporate authorities are alone entitled to judge whether extending a street is necessary or not.11 An assessment on property in proportion to its frontage is not unconsti tutional.12 The frontage rule of valuation cannot be applied where the street or improvement is made through rural or suburban districts.13 An assignment upon adjacent lots, of their share for improvement of a street, is in the nature of a tax, and it is in the discretion of the legislature to provide for the mode of such assessments.14 Special assessments should not exceed benefits.15 1 Hurford v. Omaha, 4 Neb. 347. 2 Hurford v. Omaha, 4 Neb. 347. 3 Zanesville v. Richards, 5 Ohio St. 589; Baker v. Cincinnati, 11 Ibid. 534; Bank v. H. 3 Ibid. 1. 4 State v. Mayor of Newark, 8 Vroom, 415. 5 State v. Lancaster, 4 Neb. 541, adhered to in Abbott v. Dodge Co. 8 Neb. 124. And see Harward v. St. Clair Drain Co. 51 Ill. 130; Hepler v. Drain Commrs. 53, 105; Gage v. Graham, 57 Ibid. 144; Board of Directors v. Houston, 71 Ibid. 318; People v. Highway Commrs. 15 Mich. 351; People v. Ingham Co. 20 Ibid. 95. 6 Wistar v. Philadelphia, 80 Pa. St. 505. See Pusey's Appeal, 83 Pa. St. 67. 7 State v. Hudson Av. Commrs, 8 Vroom, 10. 8 Ballentine's Appeal, 85 Pa. St. 163. 9 Lovenz's Appeal, 69 Pa. St. 352; Huidekoper v. Meadville, 83 Pa. St. 156. 10 State v. Mayor of Newark, 8 Vroom, 415. 11 Wilson v. City of Charlotte, 74 N. C. 748; Tucker v. Raleigh, 75 N. C. 267; Young v. Town of Henderson, 76 N. C. 422. 12 Burnet v. Sacramento, 12 Cal. 76; People v. Burr, 13 Cal. 343; Emery v. Gas Co. 28 Cal. 345; Emery v. Bradford, 29 Cal. 75; Walsh v. Matthews, 29 Cal. 123; Taylor v. Palmer, 31 Cal. 240; Crosby v. Lyon, 37 Cal. 242; Chambers v. Satterlee, 40 Cal. 497. 13 Seely v. City of Pittsburgh, 82 Pa. St. 360. 14 King v. City of Portland, 2 Oreg. 146. 15 Crawford v. People, 82 Ill. 557. ARTICLE XII. CORPORATIONS. 1. Corporations to be formed under general laws. 2. Dues to be secured by individual liability, etc. 3. Stockholders to be individually liable. 4. Corporations construed. 5. Banking prohibited. 6. Existing charters, when invalid. 7. Charters not to be extended, nor forfeiture remitted. 8. All franchises subject to the right of eminent domain. 9. Restrictions on powers of corporations. 10. Liabilities of franchise under lease or grant. 11. Corporation stock, restriction on issue of. 12. Election of directors-Cumulative or distributive votes. 13. State not to loan its credit nor subscribe to stock of corporations. 14. Corporations to have office for transaction of business in stocks. 15. Foreign corporations, conditions. 16. Corporations, where to be sued. § 17. Transportation companies, rights and liabilities of. 18. Officers of corporations, restriction as to interests. 23. Temporary railroad districts. 24. Legislature to pass laws to enforce this article. § 1. Corporations may be formed under general laws, but shall not be created by special Act.1 All laws now in force in this State concerning corporations, and all laws that may be hereafter passed pursuant to this section, may be altered from time to time or repealed. 1 Ill. XI, 1; Ind. XI, 13; Iowa, VIII, 1; Min. X, 2; Neb. XI, 1; Nev. VIII, 1; N. C. VIII, 1; Ohio, XIII, 1; Or. XI,2; S. C. XII, 1; Tex. XII, 1; W. Va. XI, 1; Wis. XI, 1. And see Ala. XIII, 1; Ark. XII, 6; Kans. XII, 1; Me. IV, 14, Amend.; VIII, 1; Ohio, XIII, 2; Pa. XVI, 10. Colo. XV, 2, 3; Del. I, 17; Amend. Special legislation.-An act fixing water rates is unconstitutional so far as it attempts to provide a mode of charges different from that allowed other corporations under general laws.1 A special act cannot be converted into a general act by a declaration of the legislature in another statute that it shall be so considered.2 The power of the legislature to change the name of a corporation by special statute considered but not decided. A private corporation to supply a city with water cannot be created by special act. Exclusive franchises may be conferred by the legislature upon persons or corporations, and no restriction upon this power is imposed by the constitution, except as to the particular privileges specified therein.5 Corporations are created by authority of the legislature and not otherwise.6 To "create" means to make a charter which never existed before. This section reserves the right to impose taxes on a bank according to legislative discretion, notwithstanding a provision in the charter that the corporate stock in such bank shall not be subject to such taxation for other than State purposes; it forms a part of the contract with every corporation. The legislature is not the final judges of whether the casus judicis on which authority to repeal a charter is based.10 The new constitution subordinates charters thereafter granted to the power to make alterations therein.11 1 S. V. Water Co. v. Bryant, 52 Cal. 133. 2 San Francisco v. S. V. W. W. 48 Cal. 493. 3 Pacific Bank v. De Ro, 37 Cal. 538. 4 San Francisco v. S. V. Wat. Wks. 48 Cal. 494, denying Cal. State Tel. Co. v. Alta Tel. Co. 22 Cal. 398. 5 Cal. State T. Co. v. Alta Tel. Co. 22 Cal. 398. 6 Franklin Br. Co. v. Wood, 14 Ga. 80. 7 Cleveland &c. R. R. Co. v. Erie, 27 Pa. St. 388; Moers v. Reading, 21 Id. 200. 8 Iron City Bank v. Pittsburgh, 37 Pa. St. 340. 9 Ex parte Lee's Bank, 21 N. Y. 9. 10 Comm. v. Pittsburgh &c. R. R. Co. 58 Pa. St. 26. 11 Union Pass. R. R. Co. v. Philadelphia, 83 Pa. St. 429; Rader v. S. E. Road Dist. 7 Vroom, 273. § 2. Dues from corporations shall be secured by such individual liability of the corporators and other means as may be prescribed by law. Ala. XIII, 8; Ind. XI, 14; Kans. XII, 2; Nev. VIII, 3; N. Y. VIII, 2; N. C. VIII, 2; Ohio, XIII, 3; S. C. XII, 4. § 3. Each stockholder of a corporation, or joint-stock association, shall be individually and personally liable for such proportion of all its debts and liabilities contracted or incurred, during the time he was a stockholder, as the amount of stock or shares owned by him bears to the whole of the subscribed capital stock, or shares of the corporation or association. The directors or trustees of corporations and joint-stock associations shall be jointly and severally liable to the creditors and stockholders for all moneys embezzled. or misappropriated by the officers of such corporation, or joint-stock association, during the term of office of such director or trustee. Il. XI, 6; Ind. XI, 6; Iowa, VIII, 9; Minn. X, 3; Neb. XI, Misc. 7; Or. XI, 3. |