pM'tywho has Innqcently. made these Innocent representations su.trers the party tocgntil!'Q$ in, error, and to act·on the bttllef that no mistake has this,from tpe time of the discov!!ry, becomes, in the contemplation of this court, ·. fraudqlent even though it "faa not orlgtnaJ.1,/' .
'riiisprinciple applfes with greater. force where the representaoriginally false. If the party making it repent, he must flll1yUndo the consequences of his wrong. Vague hints and more dollbtful warnings will only aggravate the wrong, and. ':Will furnish no protection if the fraud. continues to mislead, and was an inducement to action. We find no evidence in this case of any effort to complainant, but much calculated to throw him off his gnl:n'd and continue the deception. The conclusion upon the whole case is that the'decree of the circuit court must be reversed. The prayer for relief as against defendant Watrous must be granted, with. from date of each payment to him. Defendant Van Deusen must account for the proceeds of all shares sold by him, with InteI'est, and all. shares standing yet in his name will be canceled. Defendants will pay the costs of the cause.
IlIXOHANGE NAT. BANK OF ATomSON v. WASHITA OATTLE 00.
(Oircult OQurt, E. D. Missouri, E. D.
PBA9TICE-I'RODUOTION Oll' BOOKS AND PAPERS.
April 27, 1894.)
The power given the courts to order the production ot books and papers (Rev. St. § 724) Includes power to grant an Inspection before trial, with permission to make copies.
This was an action by the Exchange National Bank of Atchison, Kan., against the Washita Cattle Company. Plaintiff moves for order for the inspection of books and papers. McDonald & Howe, John T. Cochran, and B. P. Waggener, for plaintiff. Lee, McKeighan & Priest, for defendant. THAYER, District Judge. This is a motion by tbe plainti1f to obtain an inspection .of the defendant's books and permission to take copies of entries therein, the case being now at issue. The jurisdiction to make such an order must be derived from section 724, Rev. St. U. S. as the state statute is not applicable. Gregory v. Railroad Co., 10 Fed. 529. The statute (section 724) says nothing about an otder for the inspection of papers and permission to take copies of entries, etc., but it must be presumed that the purpose of compelling a party to produce his books is- to enable the opposite party to examine them, and, if necessary, to make copies of entries. Therefore it is reasonable to hold, and the court· so decides, that the power to order the production of books includes the power to grant an inspection; and so it was ruled by Judge Love in Gregory v. Railroad Co., supra. In some cases it :las been decided that, on motions of this kind, the proper order to be entered is to require the production of the books at the trial. Merchants' Nat. Bank T.
BRECKINRIDGE. COUNTY V. M'CRACKEN.
State Nat. Bank, 3 Cliff. 201, Fed. Cas. No. 9,448, and Iasigi v. Brown, 1 Curt. 401, Fed. Cas. No. 6,993. Other courts have adopted the practice, which seems to me more reasonable, of granting an inspection previous to the trial. Bank v. Tayloe, 2 Cranch, C. C. 427, Fed. Cas. No. 2,548; Jacques v. Collins, 2 Blatchf. 23, Fed. Cas. No.7,167; and Gregory v. Railroad Co., supra. Upon the whole, I conclude that an order of inspection, with perm.ission to take copies, should be granted. Ordered on the written application of the plaintiff by its attorney, due notice of which has been given, that the plaintiff's attorneys have leave to inspect the records of the Washita Cattle Companycontaining the proceedings of its stockholders and board of directors, and. to take copies of such entries or proceedings therein as. they may deem necessary, such examination to be made at the defendant's office or elsewhere between the hours of 9 a. m. and 3 p. m. on any week day or week days, between April 30, 1894, and May 14, 1894, and said defendant, its officers and agents, having the custody of such records or books, are hereby required to permit such examination to be made.
BREOKINRIDGE COUNTY v. McCRACKEN et al. (two cases). (Circuit Court of Appeals, Sixth Circuit. Nos. 113 and 142. March 6, 1894.)
RAILROAD COMPANIES-'MuNICIPAL AID-PARTS OF COUNTIES.
The charter of a railroad company (Act Ky. Feb. 24, 1888) provided that any county through which it might pass, or any magisterial precinct or precincts of such county, might subscribe to its capital stock (section 9); that, when any precinct or precincts made such subscription, bonds of the county should be Issued, showing on their face the precincts making the subseription, which alone should be bound to pay the bonds (section 10); and that its provisions should not apply to a defined portion of R. precinct in a county named (section 19). Held, that the residue of R. precinct, not excepted from the provisions of the act, might join with another precinct of such county In making a subscription, and joint bonds be Issued therefor. The charter of a railroad company (Act Ky. Feb. 24, 1888) authorized the magisterial precincts of counties through which it should pass to subscribe to Its capital stock (section 9), and provided that such subscriptions should be paid by taxes levied In such precincts alone. Such a subscription was made jointly by one precinct and part of another, the residue having been expressly excepted from the operation of the charter. Held, that the assessor might be required to list separately the property of the district making such subscription, and liable to a tax therefor, under Acts Ky. 1891-93 (volume 1, p. 283, § 4), which requires him to make separate books for each "taxing district of his county, by wards or other subdivisions, as convenience may require."
2. SAME-BoNDS-TAXES TO PAy-ASSESSMENT.
Act Ky. April 9, 1873, which provides that, before county bonds Issued in aid of a railroad are delivered, the president of the road shall give bond for the faithful application of their proceeds to the construction of the road, has no application where the road has been completed before the bonds are delivered. .