ERROR to the District Court of the United States, for the District of Iowa, the case being thus:
The city of Muscatine was incorporated, A.D. 1851, by the legislature of Iowa, and by its charter made 'a body corporate, and invested with all powers and attributes of a municipal corporation.' 'The legislative authority of the city,' says this charter by its 19th section, 'is vested in a city council;' which council, the charter goes on to declare, 'is invested with the following powers,' the powers being set forth essentially as follows:
'1. To secure the inhabitants against fire, and violations of the law and the public peace; to suppress riots, drunkenness, gambling, and disorderly conduct; and generally to provide for the safety, good order, and prosperity of the city, and the health, morals, and conveniences of the inhabitants.
'2. To impose penalties for the violation of its ordinances.
'3. To establish and organize fire companies, and to provide them with fire apparatus.
'4. To regulat the keeping and sale of gunpowder within the city, and to provide that no building of wood shall be erected within designated parts.
'5. To have the control of the landing on the Mississippi River, and build wharves, and regulate the landing, wharfage, dockage, &c.
'6. To provide for the license, regulation, or prohibition of exhibitions, & c.; billiard tables, ball and ten-pin alleys, and places where any games of skill or chance are played.
'7. To make ordinances in relation to the cleanliness and health of the city.
'8. To regulate cartage and drayage within the city, and make prohibition of animals running at large within the city.
'9. To provide for the establishment and support of schools in the city, and for the government of the same.
'10. To audit all claims against the city; to provide for the keeping of the public money of the city, and the manner of drawing the same from the treasurer.
'11. To establish the grade of the streets, alleys, and wharves.
'12. To prescribe the manner of calling the meetings of the citizens, except for the election of officers.
'13. To appoint street commissioners and officers.
'14. To cause the streets and alleys of the city to be paved.
'15. To borrow money for ANY object in its discretion, if at a regularly notified meeting, under a notice stating distinctly the nature and object of the loan, and the amount thereof, as nearly as practicable, the citizens determine in favor of the loan by a majority of two-thirds of the votes given at the election.
'16. To fill vacancies occurring in any of the city offices by appointment of record, to hold, in the case of election officers, until the next regular election and the qualification of the successor.'
In addition to the power thus given by the charter to borrow money, the legislature of Iowa had, on the 25th of January, 1855, passed certain acts; [the same acts referred to ante, p. 220, Gelpcke v. The City of Dubuque, No. 81.] One is entitled An act regulating the interest on city and county bonds.' The first section enacted, 'that railroad companies might issue their bonds at such a rate of interest and sell them at such discount as might be necessary, and that they should remain legal and binding.' The second section, 'that whenever any company shall have received or may hereafter receive the bonds of any city or county, upon subscription of stock by such city or county, such bonds may have interest at any rate not exceeding ten per cent., and may be sold by the company at such discount as may be deemed expedient.'
With this charter and these enactments in force, it was proposed by certain persons that the city of Muscatine, Iowa, should borrow money and subscribe to the stock of the Mississippi and Missouri Railroad; an ordinance was accordingly passed, July 23d, 1855, to take the vote of the citizens, in order to see whether two-thirds of them, as required by the article 15, ante, p. 386, were in favor of borrowing the money. The ordinance enacted essentially as follows:
The election shall be upon the following propositions:
1st. To rescind a vote given, &c., authorizing the council to borrow $45,000, to be subscribed on stock of the Iowa Western Railroad, and also to rescind a vote given authorizing the council to borrow $50,000, to the subscribed on stock of the Muscatine, Iowa City, &c., Railroad.
2d. To borrow for a term of years, not exceeding twenty, on the bonds of the city, at a rate of interest not higher than ten per cent. per annum, $130,000, to be subscribed on stock in the name of the city to the capital stock of the Mississippi ad Missouri Railroad Company.