delivered the opinion of the court.
This wаs an action upon several coupons for interest .annexed to bonds issued by the late city of Carrollton, in Louisiana, to the Jefferson City Gas-light Company, a corporation created .under the laws of that Statе, for laying gas-pipes through certain .streets of the city, and introducing gas for the use of its citizens. The bonds were indorsed by the president of the company, with its- guaranty, for the payment of their principal and interest. His authority tо make this guaranty, so far as it relates to the interest, was denied by the company; but the Circuit Court held that ,the admissions and evidence in the case showed a prima facie case of liability:
The bonds were issued pursuant to an ordinance of the city, which provided for the payment of the interest thereon, but-.made no provision for the payment of the principal; and for this omission, and because they were issued in aid of a private corporation, their validity was questioned by the city of New Orleans, upon, which the liabilities of Carrollton were cast upon its annexation to that city; and as it was contended in answer to this position that the legislature had subsequently, *651 in the act of annexation, legalized the issue, the power of the legislature to do this was denied, but the Circuit Court 'held that the legislature possessed the power; and the- city of New. Orleans was adjudged bound to pay the bonds.
The record shows that the bоnds were issued after the work had been- done for which the contract was'made and the gas had been introduced into the city, and that they' were transferred to the plaintiff for a valuable consideration.
Two questions are presented for our determination: —
1st, Whether the'Jеfferson City Gas-light Company is liable on the guaranty made by its president for the interest, on the bonds; and,
2d, Whether it was competent'-for the legislature of Louisiana to legalize the issue of the bonds, if for any cause they were originally invalid, or, more properly, to compel their payment by the city of New Orleans.
The contract embraced the stipulations contained in the ordi *652 nance, and the. indorsement of the• guaranty of the company by its president on the bonds was- a substantial, compliance with. both. The language used, guaranteeing “ the payment of the principal and interest,” only declared in terms what would have been implied from a simple guaranty of the bonds. It is not denied that the president was the proper оfficer to execute whatever guaranty was authorized.
The second of these grounds is not without force. An aet of the legislature of Louisiana, passed in March, 1855, had declared that the Constituted authorities of incorporated towns and -cities in the State should nоt thereafter “ have power to contract any-debt or pecuniary liability, without fully providing in the ordinance creating the debt the means of pacing the principal and interest of .the debt or contract,” This enаctment imposed a restriction upon' the creation of liabilities by municipal bodies, which could.not bé disregarded. It was intended to keep their expenditures, within their means; and its efficacy in that respect would be entirеly dissipated, if debts contracted in violation .of it were, held legally binding upon the municipalities.
Assuming, then, that the' bonds were-invalid for the omission *653 stated, they still represented an equitable claim. against the city. They were issued for wоrk done in its interest, of a nature which the city reqiiired for the convenience of its citizens,. and which its charter authorized. It was, therefore; competent for: the legislature to interfere and impose the payment' of thé claim upon the city. The books are'full 'of cases where claims, just in themselves, but which, from some irregularity ;or omission in the proceedings by which they were created, could •not bfe enforced in the courts of law, havе been thus recognized and!their payment securéd. ' The power of "th§ legislature to' require the payment of' a cláim'for which an equivalent- has been-received, and from the payment.of which the city can only escape on technical grounds, would seem-to'be-clear. Instances will readily occur'to every one, where great wrong and injustice would .be done if provision cohld. not be made for claims of this character. For example, services' of th'e highest importance and'benefit, to a city may be rendered/in defending-it,’pex’haps, against, illegal and extortionate demands; or moneys may ¡be advanced in unexpected emеrgencies to meet,-possibly,-the interest, on its securities when its means have been suddenly' cut off, without' the previous, legislative or municipal sanction required to give the parties rendering the, services or advancing the moneys a legal claim against the city. .There would be a great. defect- in the power of the -legislature if it could' not in such cases require payment for the services, or a.reimbursehxent of the moneys, and the raising of thе necessary means .by taxar. tion for that .purpose. A very different question would be pre- . sented, if tlie attempt were made to apply the. means raised •to the payment of claim's for which no consideration hаd;been received by the city.''
The act of 1874; which annexed Carrollton to New Orleans, provided that all. property,, rights, and interests of every kind of the formex; city should be vested in the latter, and that the debts and liabilities, of Carrоllton, “ including the. funding and improvement bonds, and the bonds issued' to the Jefferson City Gas-light-.Company, and known as gas bonds,’’should be assumed and paid* by the city of New Orleans ; and that city was . in terms declared liable'-therefor. ’ Independently of this lеgislation, the liabilities of Carrollton would have devolved
*654
with its property upon New Orleans on the annexation to that city, so far, at least, that they could be enforced against the inhabitants and property brought by the annexation within its jurisdiction.
Broughton
v. Pensacola,
The Constitution of Louisianа of 1868, which provides that' no retroactive law shall be passed, does not forbid such legislar tion. A law requiring a municipal corporation to pay a demand *655 which is without legal obligation, but which is equitable and just in itself, being founded upon a valuable consideration received by the corporation, is not a retroactive law, — no more so than an appropriation act providing for the payment of a pre-existing claim.- Thе constitutional inhibition does not apply to legislation recognizing -.or affirming the- binding obligation of the State, or of any of its subordinate agencies, Avith respect to past transactions. It is designed to prevent retrospective -legislation injuriously affecting individuals, and thus protect vested rights from invasion.
Judgment affirmed.