Town of Lansing v. Lytle

Citations

• 38 F. 204
• 1889 U.S. App. LEXIS 2809

Syllabus

<p>1. Railroad Companies — Muricxpal Aid — Bonds—Action to Compel Cancellation.</p> <p>A county judge, assuming to act under act N. Y. May 18, 1869, permitting municipal corporations to aid in the construction of railroads, rendered a judgment appointing commissioners to execute bonds of a town. The bonds were accordingly executed and delivered to the railroad company, but before delivery a writ of certiorari issued from the supreme court to review the judgment, which was afterwards reversed. In an action against a transferee of the bonds to compel their surrender for cancellation, held, that defendant had the burden of showing that he, or some -one under whom he claimed, was a bona fide holder for value. - - •</p> <p>2. Same — Bona Fide Holder — Evidence.</p> <p>A Texas banker, from whom defendant obtained the bonds, testified that he was informed by a resident of New York that the bonds, which were of the par value of §75,000, could be bought for §50,000, and that he bought them of a stranger to him, residing' in New Orleans, for $50,000, without making any inquiry as to their history or value, acting upon the assumption that the purchase Was a good one because suggested by such informant; that he got with them $10,000 in overdue coupons, but that that circumstance made no impression on him; that he paid for the bonds with a check signed by him as president of his bank, which check was produced from the drawee bank, at New Orleans, and was not shown to have been paid by the Texas bank; that he left the bonds at the place of purchase for several months, when he took them to New York, where he interviewed his informant, because he did not know whether he made the purchase for himself or for such informant, and afterwards sued on the coupons. Held, that his testimony did not show him to be a bona fide purchaser for value. '</p> <p>3. Same.</p> <p>Defendant testified that the banker, who was a confidential friend and financial supporter, offered to buy a third interes