This was an action brought by the plaintiff in error to recover the amount of certain interest coupons attached to municipal bonds, which, it is alleged in the petition or complaint, were made, issued, and delivered by the defendant, a municipal corporation of Kansas, to aid in the construction of a railroad running within and through its corporate limits, under and in pursuance of an act of the legislature of the state of Kansas, entitled 'An act to enable municipal townships to subscribe for stock in any railroad, and to provide for the payment of the same,' approved February 25, 1870, under and in pursuance of an order of the board of county commissioners of the county of Cherokee, and under an in pursuance of a vote of more than three-fifths of the qualified voters of the township, voting at an election duly held therein for such purpose, being negotiable bonds payable to bearer. It is further alleged 'that afterwards, to-wit, on December 15, A. D. 1871, each of the said bonds, with all the interest coupons thereto attached, was put upon the market and sold and delivered to bona fide purchasers for value, the same passing from hand to hand like other negotiable securities. That afterwards, to-wit, on April 11, A. D. 1872, each of the said bonds, with all the interest coupons thereto attached, was duly registered in the office of the auditor of the state of Kansas, according to law, and the fact that each of the said bonds was so registered was then and there, under the hand and official seal of the said auditor, in writing duly certified and indorsed upon each of the said bonds, a copy of which said certificate and indorsement is filed herewith, made part hereof, and marked Exhibit B.' It is also alleged that after the issuing and delivering of the said bonds, and before the maturity, either of the bonds or of any of the coupons sued upon, they were sold and delivered to the plaintiff for the price of 90 cents on the dollar thereof in cash.
The following is the form of the bond:
'No. ___ UNITED STATES OF AMERICA. ($1,000.
'COUNTY OF CHEROKEE, STATE OF KANSAS.
'Spring Valley Township Bond.
'Know all men by these presents that Spring Valley township, county of Cherokee, state of Kansas, acknowledges itself and is firmly bound to the Atlantic & Pacific Railroad Company in the sum of one thousand dollars, which sum the said township therein promises to pay to the said Atlantic & Pacific Railroad Company, or bearer, at the office of Northrop & Chick, in the city of New York, and state of New York, on the fifteenth day of December, 1886, together with the interest on the first day of July in each and every year, until this bond matures, at the rate of seven per cent. per annum, which interest shall be payable annually on the presentation and delivery at said office of the coupons of interest hereto attached.
'This bond being issued under and pursuant to an order of the board of county commissioners of Cherokee county, in the state of Kansas, by virtue of an act of the legislature of the state of Kansas, approved February 25, 1870, entitled 'An act to enable municipal townships to subscribe for stock in any railroad, and to provide for the payment of the same;' and authorized by a vote of the people taken on the fourth day of February, 1871, as required by law, upon the proposition to subscribe one hundred and fifty thousand dollars to aid in the construction of the said railroad, which proposition was voted upon on the day aforesaid, and three-fifths of the votes of said township being cast in favor of said proposition.
'In testimony whereof the said board of county commissioners of Cherokee county have executed this bond by the chairman of said board, under the order thereof, signing his name hereunto, and by the clerk of said board attesting the same and affixing the seal of said board.
'This done at Columbus, Cherokee county, this fifteenth day of December, 1871.
'[Seal of Cherokee county, Kansas.]
WM. H. CLARK,
'Chairman Board of County Commissioners.
'J. G. DUNLAVY, County Clerk.'
The certificate of registration is as follows: