Page:Federal Reporter, 1st Series, Volume 3.djvu/198

 LEWIS V. COVSTS OOUKISSIOiraiBS OT BATtBO0B 00. 191 �Lewis ». Codntt Commissionebs of Baeboub Cotjntt. {Circuit Court, D. Kansas. July 23, 1880.) �L MuNiciPAi.BoHi«— NESoTiABniiTT— Leoibi,atokb. — Il îs competent lor the legislature to make the negotiability of municipal bonds de- pendent upon tbeir deliveiy by the treasurer of state. �S. Bame — ^BosA FroB Purchasbb— Fkaud. — A purchaser of such bonds, purporting upon their face to bave been issued under the provisions of a statute containing such condition, is not a bona fide purchaser ■without notice, where such bonds were fraudulentlj issued, without being delivered by the treasurer of state. �Grant e Orant, for plaintiff. �Edward StUling and Thomas P. Fenlon, for defendants. �McCbaet, C. J. This is an action brought to recover jndgment upon certain municipal bonds issued by the author- ities of Barbour county, Kansas. By agreement of parties a jury bas been waived, and the cause submitted to the court upon an agreed statement of facts. �The defence is that the bonds were fravdulently issued, and that plaintiff is not a honafide holder for value. �The agreed statement shows, and counsel for plaintiff ad- mit, that the bonds were fraudulently issued, so that the only question for determination is as to whether the plaintiff is a honafide purchaser without notice. �The bonds upon their face purport to have been issued tmder the provisions of an act of the legislature of Kansas, 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, water powers, and other works of internai improvements, and providing for the registration of such bonds," etc. Laws 1872, c. 68, p. 110. �The eleventh section of the act is as follows: �"Sec. 11. That if the proposition for which bonds were voted be to aid in the construction of a railroad, or any bridge or other work of internai improvement, either by do- nations thereto or the taking of stock therein, then, upon the Bubscription being made therefor as hereinbefore provided, ����