The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-01-09
WASHINGTON NEWS.
SUIT AGAINST pARxEassuaa
Decided In Favor Ofths clty-BrIsf History Of the
AetIOn-DlelsOn Held for the Grand Jury-COa'
tenpIltsd Removal OF Federal oiielAis-A
Painful Episode In the ssnEts Yesterday.



was rendered by the Supreme Court OF the
United States to-day, that the act Of the
Legislature OF West Virginia, passed De-
cember 10Th, 1867, authorizing the City OF
Parkersburg to issue its bonds for the pur.
pose Of loaning money to persons engaged
in manufacturing was invalid, and the
bonds issued under it are void as against
the city.
The suit in which the decision mem
toned above was rendered, was No. l24 on
the Supreme Court docket, the city OF
Parkersburg being appellant and Isabella
Brown and others appellees. The case was
originally tried in the United States Circuit
Court for this district, Isabella Brown and
others suing the city for 5000, held in
bonds Of the city. part OF an issue OF
$40. 900. issued in 1873, and payable to Mr..
J. O'Brien & Brother twenty years after
date, the loan being to aid and encourage
them in the establishment OF machine
shops in Parkersburg, aud the bonds Issued
by authority Of the act of December 10,
1858, At the time the bonds were issued
and loaned 10 the 0'Briens they gave
a deed Of trust on certain real and personal
property owned by them to 0key johnson,
as trustee, TO secure 10 the said city the
payment OF the interest and portion OF
the principal OF the bond. The bill COM
plains that the city fraudulently stopped
payment OF the interest. coupons, on ac'
count OF which there was considerable due
complainant and other holders OF the
bonds, and that the city allowed the per-
sonal property so conveyed in trust
TO be squandered and sold and the real
estate 10 remain unprotected, SO that it
became deteriorated In value. The bill,
as originally filed, prayed for receiver, an
account and sale Of this trust property, and
application OF the proceeds to the payment
of the. bonds and coupons, and adecree
against the city andtthe O'Briens for any
deficiency that might remain after such ac.
counting, sale and application. After the
filing OF the bill the other holders OF the
residue OF the $4,000 in bonds became
parties by petition. :,
The city answered, claiming that the
bonds were invalid, because issued In aid
Of private enterprise, and In violation ef
the Constitution Of West Virginia, and also
because the proceedings prescribed by the
act OF the Legislature authorizing the issue
had not been followed, and denying the
city's liability to pay the bonds or interest
coupons.
The suit was won in the Circuit Court on
the 23d Of September, 1870:
In the meantime the 0'Briens had been
declared bankrupt, and such Of their prop.
erty as was not covered by the deed OF trust
was sold by the assignee. The property
covered by the deed OF trust was also sold
and bought in by the city. The Council
kept it In repair and rented it when a
tenant could be secured.
The case was taken up, the city alleging
error because the Court failed to hold the
bonds void on account Of having issued in
violation OF section s Of article 10 Of the
Constitution OF West Virginia, adopted
August 90, 1872.
There were several other points at issue,
but this was the one on which, according
10 the dispatch above, the suit was yester-
day decided,