This is an appeal from a decree in the circuit court of the United States for the Southern district of Illinois, dismissing a bill in equity filed by the city of Jonesboro, in that state, against the Cairo & St. Louis Railroad Company, an Illinois corporation, the auditor of state, the county clerk, and sheriff of Union County, Illinois, and the 'unknown holders of the Janesboro city bonds, issued in aid of the Cairo & St. Louis Railroad Company.' The suit was commenced in one of the courts of the state. Its object was to obtain a decree perpetually enjoining the state and county officers, who were made defendants, from levying, certifying, and extending any tax for the payment either of the principal or interest of said bonds. There was no defense upon the part of those officers, and after publication against the 'unknown holders' of the bonds in the mode prescribed by the local statute, a decree pro confesso was passed, giving the relief asked, and declaring the bonds invalid as against the city. Subsequently, Luther R. Graves, a citizen of Vermont, presented his petition, in conformity with the state law, alleging his ownership of some of the bonds, and asking that the default be set aside, with permission to him to plead, demur, or answer under the orders of the court. The petition was granted, and he was made a party defendant. Thereafter, on his further petition, the cause was removed to the court from whose decree this appeal is taken.
The evidence shows that on the second day of March, 1868, a resolution was passed by the city council of Jonesboro submitting to the legal voters of that municipality, at its then next regular election, held April 6, 1868, the question whether that city should, upon certain named conditions, subscribe $50,000 to the capital stock of the Cairo & St. Louis Railroad Company, payable in bonds within 20 years after date at the option of the city, with interest at the rate of 8 per cent. per annum from date of issue. The election was held at the time indicated. Subsequently, by an act of the general assembly of Illinois, which became a law on March 3, 1869, entitled 'An act to amend an act entitled 'An act to incorporate the Cairo & St. Louis Railroad Company," approved February 16, 1865, authority was given to the several towns, cities, and counties through or near which that railroad might pass, and to the several townships in said counties which may have adopted, or might thereafter adopt, township organization, to subscribe for and take stock in the company, or to make a donation in aid of the construction of the road, and issue bonds for such subscriptions or donations, to be paid by taxation upon the property of the municipality issuing them. It was provided that no subscription or donation should be made, nor bonds issued, nor tax levied, unless a majority of the legal voters of the municipality, voting at an election called and held as provided in the act, should assent to the subscription or donation. But it was further provided in the same act 'that all elections heretofore had in any county, city, or town, in reference to a subscription to said railroad, are hereby declared legal and binding, and the county court of any county, and the corporate authorities of any city or town in which such elections have been already held, and a majority of the votes cast were for subscription, shall have authority to issue bonds for such an amount as was voted for, notwithstanding any insufficiency, informality, or irregularity in such election or in the notice thereof.' 3 Priv. Laws Ill. 1869, pp. 256-258.