United States v. J. K. Mullen Inv. Co.

This is a companion case to United States v. John K. & Catherine S. Mullen Benevolent Corp. (C. C. A.) 63 F.(2d) 48 . We refer to that decision for a general statement of the situation.

The present case was brought by J. K. Mullen Investment Company based upon the establishment of local improvement district No. 9 in the village of American Falls for the construction of cement sidewalks and crosswalks in that village. The aggregate principal of the special assessment improvement bonds issued therefor was $25,500. It is alleged that assessments were made to pay said bonds, “but that through mistake or inadvertence the levies and assessments so made and levied were not in fact sufficient to pay the principal and interest on said bonds as the same became due and payable or at all.” The bonds were payable ten years from date, that is, on September 1, 1926, together with interest on said sum from date thereof, September 1, 1916, until paid, at the rate of 7 per cent, per annum payable semiannually. Each bond' provided that it was redeemable at the option of said village after a certain date therein- specified.

-It is alleged that J. K. Mullen purchased 14 bonds of $500 denomination,…