UNITED STATES SUPREME COURT DECISIONS ON-LINE
KELLEY V. MILAN, 127 U. S. 139 (1888)
127 U. S. 139U.S. Supreme Court
Kelley v. Milan, 127 U.S. 139 (1888)
Kelley v. Milan, 127 U.S. 139 (1888)
No. 206
Argued April 4-5, 1888
Decided April 23, 1888
127 U.S. 139
ERROR TO THE CIRCUIT COURT OF THE UNITED
STATES FOR THE WESTERN DISTRICT OF TENNESSEE
Syllabus
In this case, certain negotiable bonds, issued by the Town of Milan, Tennessee, were held to have been issued without lawful authority.
A municipal corporation, in order to exercise the power of becoming a stockholder in a railroad corporation, must have such power expressly conferred by a grant from the legislature, and even such power does not carry with it the power to issue negotiable bonds in payment of the subscription unless the latter power is expressly, or by reasonable implication, conferred by statute.