The Sun Printing and Publishing Association, Appellants v. the Mayor, Aldermen and Commonalty of the City of…

Summary

The Court of Appeals held that the Rapid Transit Acts authorizing New York City to construct a railroad and issue bonds for its financing are constitutional and constitute a permissible "city purpose" under Article 8, § 10 of the State Constitution. The majority reasoned that railroads are public highways, necessary for the common welfare, and that the constitutional prohibition on municipal loans does not apply when the city itself builds and owns the road. The judgment of the Appellate Division affirming dismissal of the complaint was affirmed.