Page:Federal Reporter, 1st Series, Volume 8.djvu/662

 648 FEDERAL REPORTER. �of money the said principal and securities agree aiid promise to pay to said county, for tlje use and beneflt of railroad interest f und, on or before the twen- tieth day of June, A. D. 1884, with interest thereon from the date hereof at the rate of 6 per cent, per annum, said interest to be paid annually on the twentieth day of June of each and every year until the whole debt shall be fully paid oti iind discharged: now, therefore, if the principal and sureties shall well and truly pay, or cause to be paid, the said sum of money borrowed, and the inter- est thereon, according lo the teiior and effoct of this bond, then this obligation shall be void, otherwise it shall remain in full force. But it is expressly agreed and understood that all interest not punctually paid wben due shall, when due, be added to the principal, and shall bear interest at same rate as the principal until paid ; and it is f urther agreed and understood, as a condition of this bond, that should default be made in the payment of interest when due, or should the said principal to this bond fail to give additional security hereto when lawfully required, in either case both the principal and interest shall become due and payable forthwilh." �The answer of the garnishee proceeds to state that said bond was signed, sealed, and delivered by the said garnishee and hor said security into the hands of the treasurer of Ealls county; that said bond is not due, and the said money borrowed by the said garnishee from said county court of Ealls county is not due ; that at the time of the service of the garnishment upon her she did not owe the defendant any money, nor does she owe the defendant any money now, unless the court shall adjudge that she owes the defendant upon the bond executed as above, and the statement and recitals of facta above made. �Upon the filing of this answer plaintiff moved for judgment upon the ground that it sufficiently appears from the answer that the money loaned to the garnishee was money which had been paid into the county treasury for the benefit of the St. Louis & Keokuk Eailroad interest fund, and therefore money which should now be applied upon the plaintiff's judgment, the judgment having been con- fessedly rendered upon bonds issued to aid in the construction of that railroad. On the other hand, the garnishee insiats that she is not liable to pay said loan to the county, or to be required to pay it to plaintiff, until the expiration of the four years within which, by tho terms of the bond, she was to make payment. �The fact appears to be that certain taxes were collected by the authorities of Rails county under a law of the state for the purpose of paying the interest upon certain bonds issued by the county to aid in the construction of the St. Louis & Keokuk Eailroad. After the collection of said taxes, litigation arose as to the validity of the bonds, and thereupon the legislature authorized and required the county ��� �