Converse v. City of Fort Scott
ERROR to the Circuit Court of the United States for the Northern District of Kansas.
This was an action to recover the interest on certain bonds issued by the city of Fort Scott, Kan. One of the bonds (all of which were similar) is as follows:--
'No. 1. UNITED STATES OF AMERICA. $1,000.
'STATE OF KANSAS,
'City of Fort Scott, in the county of Bourbon:--
'Issued under the laws of Kansas, and in pursuance of an ordinance of the city of Fort Scott, approved Dec. 22, 1870. $25,000 subscription to the Missouri, Kansas, and Texas Railway Company.
'Know all men by these presents, That the city of Fort Scott, county of Bourbon, in the State of Kansas, hereby, for value received, acknowledges itself indebted and firmly bound to pay to the Missouri, Kansas, and Texas Railway Company, or bearer, the sum of $1,000, lawful money of the United States of America, which sum of money the said city promises to pay on the first day of July, A.D. 1890, at the Fourth National Bank, in the city of New York, with interest thereon at the rate of seven per centum per annum, payable semi-annually at the office of said Fourth National Bank, in said city of New York, on the first day of January and July in each year, or presentation and surrender of the annexed coupons as they severally become due.
'The city, the maker hereof, reserves the right to pay this bond at its option at any time before maturity.
'In witness whereof, the said city of Fort Scott has caused this bond to be signed, sealed, and delivered on its behalf and for its benefit by its mayor, and countersigned by its clerk, duly and legally appointed and authorized in this respect.
'FORT SCOTT, KAN., July 1, 1870.
'B. P. McDONALD, Mayor. [SEAL.]
'T. A. CORBETT, City-Clerk.'
(Across the face in red ink) $1,000.
Each of said bonds, in order to distinguish it from others of like character, was numbered, and, pursuant to law, was duly registered in the office of the auditor of the State of Kansas. Attached to each bond was the following certificate of such anditing; to wit:--
'I, A. Thoman, auditor of the State of Kansas, do hereby certify that this bond has been regularly and legally issued; that the signatures thereto are genuine; and that such bond has been duly registered in my office in accordance with an act of the legislature, entitled 'An Act to authorize counties, incorporated cities, and municipal townships, to issue bonds for the purpose of building bridges, aiding in the construction of railroads or other works of internal improvement, and providing for the registration of such bonds, the registration of other bonds, and the repealing of all laws in conflict therewith,' approved March 2, 1872.
'Witness my hand and official seal, this seventh day of January, 1873.
'A. THOMAN, Auditor of State.'
Attached to each bond were coupons falling due on the first days of January and July, one of which is as follows:--
STATE OF KANSAS.
'City of Fort Scott, in the county of Bourbon, will pay the bearer hereof thirty-five dollars, at the Fourth National Bank, in the city of New York, on the first day of July, 1872; being six months' interest on bond No. 1.
'T. A. CORBETT, City-Clerk.'
Mr. G. C. Yeaton for the plaintiff in error.
Mr. A. L. Williams, contra.
MR. JUSTICE STRONG delivered the opinion of the court.