Municipal Corporations – Financial Powers – Power to Expend Public Funds in Aid of Industry

Taxpayers and voters of Frostburg, Maryland, sought to restrain the holding of an election under enabling legislation to obtain authority both to issue municipal bonds and to devote the proceeds to acquiring a site and contributing to the cost of construction of a building for sale to a private manufacturing company. The chancellor issued an injunction against the holding of such election on the ground that the enabling act, in authorizing the use of public funds for private purposes, was unconstitutional. On appeal, held, reversed. The location of new industry in furnishing employment and increasing the financial well being of the community serves a “public purpose.” City of Frostburg v. Jenkins, (Md. 1957) 136 A. (2d) 852.