The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-02-13
CHICAGO.
The warren County dli.J Bond
l.'.s4 o. Cases. 1"'

4 SsAVGoN
oHIoAeo, Feb. 12.-In the United
States Circuit Court Judge Drummond
has anulled the demurrer to the excep-
tons In the Warren County bond caSes
The suits are Of public interest, not only
on account Of tho amount involved, bnI
as presenting new phase Of the liability
o. toWns and corporations on their bonds
Issued in aid Of the building OF railways.
Ihe arguments were very elaborate, Ex-
Chiei y usttce Lawrence and Mr., Harding
appearing for the County OF Warren. and
Judge ]. G. Wilson and E. B. MciJao0
for the bondholders. Tho case lnyolyeS
the legality Of 100000 In bonds Of the
County Of Warren, In aid of the Rock.
ford, Rock Island & 81. Louis Railroad
Company. Before the bonds were issued
certain Of the taxpayers fled q bill In
ohancery In the Circuit Court Of that
County to epjoin the Board OF Superyis.
ors from Issuing the bonds, alleging that
no sufficient notice Of the election al
which the bonds were voted was given,
and that the County officers had acted
collusiVely with tho railway comDsny IN
issuing the bonds. Upon hearing the IN.
junction was dissolved by the Circuit
Uourt on the 2Sd Of January, 1871. Two
days after the bonds were issued and req.
istered In the State Auditors office, and
were subsequently, put on the market and
sold. After the dissolution OF the inIunc.
tton and issue oil the bonds, the complain.
ants appealed 10 the Supreme Court Of
the State, where the decree olthe Circuit
Court was reversed and the bonds de-
clared to be unauthorized and void.
Thereupon the taxpayers filed second
bill making as new parties the defendants,
as they had not known of the issue Of the
bonds, and asking for Q like decree as In
the first chancery suit, which second bill
is still pending. The Portsmouth Savings
Bank OF New Hampshire, and Augustus
Post, Of New York, having purchased the
ponds IN question In open market without
any actual notice OF the pendency Of
the chancery proceedings in the
State Courts, Immediately commenced
the present suits for the recovery OF un-
paid interest on the coupons Ia July last.
The county pleads the adjudication Of
the State Supreme Court, declaring the
bonds invalid, and insists that the pep.
dency OF the chancery proceedings was
nouce 70 tue PURCHASERS Of The bonds. To
those pleas the plaintiff" filed replica.
tlons setting forth that they are bona.
tde purchasers for thegyalue, and that
they had no actual notice Ol the per.
dency OF caancery suits, Dor apy notice
that the bonds were invalid. The
county demurred to the -replicstions,
Claiming that the pending Of the suit was
3 notice. l-its-demuErer, which Judge
Dfumtnond Overruled, holding that the |
doctriue OF tlispendeFs does not apply 10 |
commercial paper, and also In eF- |
Iect reati1rmiDg the principle that when.
ever there is a statute authorizing mu-
nicipality issue cI bonds, and it does issue |
them they are not liable to beimpeach.
ca in the hands OF bonatdc purchaser. |
The above ruling was III pursuance OF the
case of Aliott %, Supervisors Of Fond do |
Lac county, In sixteen, Wallsce. In that |
case the question oflispenders was involy. |
ed, but the Supreme Court Of the United |
states on affirming the validity Of the |
bonds DID not refer TO this question in any |
manner. Judge Drummond ID this point |
is understood to have differed from the
ruling In the case above referred 10. hui
felt bound TO follow its decision. The
present case will shortly be tried on the
facts, and the defendants will be allowed
to bring up this disputed point on the mo.
lon for new trial.