Harvey

— Action upon a promissory note, to which the defendant pleaded a failure of consideration. Plaintiff recovered judgment, and the defendant has appealed. The cause was tried upon an agreed statement of facts, from which it appears that the note sued on was given for the purchase by the defendant from the plain *161 tiff of one of a series of five thousand one-thousand-dollar bonds that had been issued by the Blue Lakes Water Company, a corporation duly organized and doing business under the laws of this state. The agreed statement also contains the various steps taken by the corporation in the matter of its issuance of the bonds; and it is contended on the part of the appellant that by reason of the failure to take certain other steps which he claims are required by the statute, the bonds are invalid, and therefore the consideration for his note has failed.

The sufficiency of the acts done by the corporation in. the issuance of the bonds is the only question presented, in the points of the respective counsel, and upon this question we have been referred merely to section 359 of' the Civil Code, designating the steps to be taken by a corporation for the issuance of its bonds, and…