Shaw v. Independent School Dist. of Riverside
| Decision Date | 06 September 1894 |
| Citation | 62 F. 911 |
| Parties | SHAW v. INDEPENDENT SCHOOL DIST. OF RIVERSIDE. |
| Court | U.S. District Court — Northern District of Iowa |
Finding of Facts.
From the evidence submitted, the court finds the following to be the material facts in this case:
(1) The plaintiff, John H. Shaw, was when this suit was filed, and is now, a citizen of the state of Colorado, and a nonresident of the state of Iowa, and the defendant,as, when this suit was filed, a corporation created under the laws of the state of Iowa, being a school district situated in the county of Lyon Iowa.
(2) In the year 1883 the plaintiff, John H. Shaw, purchased, at one time, of a syndicate represented by John H. Gear, the following named ponds, dated July 1, 1881, for $500, which reads as follows:
'United States of America.
'State of Iowa, County of Lyon.
'The independent school district of Riverside, in the county of Lyon, in said state, for value received, promise to pay to-- or bearer, at the office of the treasurer in said district on the 1st day of July, A.D. 1891, or at any time before that date, after the expiration of five years from date of issue and after ninety days' notice, at the pleasure of said independent school district, the sum of $500, with interest thereon at the rate of seven per cent. per annum, payable semiannually, at the office of the treasurer in said district, on the first day of January and July in each year on presentation and surrender of the interest coupons hereto attached. This bond is executed and issued by the board of directors of said independent school district in pursuance of and in accordance with chapter 132, Acts of the Eighteenth General Assembly of Iowa, and in conformity with a resolution of said board of directors, passed in accordance with said chapter 132, at a meeting thereof held the 21st day of June, 1881.
'In witness whereof, the said district, by its board of directors, has caused this bond to be signed by the president and attested by the secretary this 1st day of July, 1881.
G. W. Stoop, President of said Board. 'G. R. Matthews, Secretary of said District.'
Also, bonds Nos. 10, 11, 12, 16, 17, 18, and 19, each for the sum of $1,000, and dated March 11, 1882 with interest coupons attached, and coming due March 11, 1892, and reading as follows: 'Number 10.
$1,000.
'United States of America.
'State of Iowa, County of Lyon.
'The independent school district of Riverside, in the county of Lyon, in said state, for value received, promises to pay to-- or--, at the office of district treasurer, in Riverside, on the eleventh day of March, A.D. 1892, or at any time before that date, after the expiration of five years from date of issue, and after ninety days' notice, at the pleasure of said independent school district, the sum of one thousand dollars, with interest thereon at the rate of seven per cent. per annum, payable semiannually, at the office of district treasurer in Riverside, on the eleventh day of September and March in each year, on presentation and surrender of the interest coupons hereto attached. This bond is executed and issued by the board of directors of chapter 132, Acts of the Eighteenth General Assembly of Iowa, and in conformity with a resolution of said board of directors, passed in accordance with said chapter 132, at a meeting thereof held the eleventh day of March, 1882.
'In witness whereof, the said district, by its board of directors, has caused this bond to be signed by the president of the board and attested by the secretary this eleventh day of March, 1882.
'G. W. Stoop, President of said Board. 'G. R. Matthews, Secretary of said District.'
(3) The bonds purchased by plaintiff formed part of a series numbered from 1 to 39, inclusive, issued to one C. W. Rollins in pursuance of a resolution adopted by the board of directors of the defendant district on the 11th day of March, 1882, reading as follows:
The bonds held by Rollins, and by him exchanged for the 39 bonds provided for in the foregoing resolution, formed part of what are called the 'Martin Bonds,' which issue was without consideration, fraudulent, and void.
(4) It does not appear from the evidence that C. W. Rollins was an innocent holder for value of the bonds by him exchanged for those issued under the resolution of the board of directors of March 11, 1882.
(5) It does not appear from the evidence that the syndicate who sold the bonds sued on, to plaintiff, were innocent holders for value of the bonds thus sold to plaintiff.
(6) It does not...
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City of Huron v. Second Ward Sav. Bank, 980.
...the debt was increased. In support of this contention, counsel cites Doon Tp. v. Cummins, 142 U.S. 366, 378, 12 Sup.Ct. 220; Shaw v. School Dist., 62 F. 911; Coffin City of Indianapolis, 59 F. 221, and Aetna Life Ins. Co. v. Lyon Co., 44 F. 329, 342. The case in hand, however, is clearly di......
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Board of Com'rs of Lake County v. Standley
...any legal indebtedness of the county. * * * Under the facts as they appear in this case, the bonds are to be treated as void.' Shaw v. School Dist., 62 F. 911, also cited counsel for appellant, was a case where refunding bonds were issued in excess of the constitutional limitation, and thos......