Yale Highway Dist. v. Oregon Short Line R.

The Yale Highway District, organized under the highway laws of the state of Idaho, is 15 miles long and from 1% to 6 miles wide, taking in. about.15 miles of the right of way of the appellee railroad company. In November, 1923, at an election held in tbe district, a bond issue of $75,000 was voted to construct' and maintain highways. In order to pay interest on the bonds and to create a sinking fund, an annual ad valorem tax on all taxable property in tbe district is in contemplation. The railroad company sued to enjoin the appellant authorities from negotiating or selling the bonds so authorized, and the District Court, on the authority of Oregon Short Line Railroad Co. v. Kimama Highway District, 287 F. 734 , affirmed in 298 F. 431 , entered decree in favor of the railroad com-pany. Defendants appealed.

It appears that the bond issue was voted by 10 persons possessing property within tbe district, with an assessed value of $5,076, out of the total assessed value within the district of $1,048,633, of which assessed value the property of the railroad company was $1,007,305. The complaint alleged that 96.-06 per cent, of the principal amount of the bonds and interest charges would…