Appeal from the Circuit Court of the United States for the District of Montana.

Bill by the city of Helena against the Helena Waterworks Company to enjoin the issuance and sale of water bonds and the making of a contract for the construction of the city water system. From an order granting an interlocutory injunction, the city appeals.

The appeal in this case is taken from an interlocutory injunction issued on February 11, 1909, enjoining the appellant from issuing or selling $600,000 of its water bonds, and from making any contract or incurring any indebtedness for a water system or supply, and from collecting from the appellee a tax of one mill, or any other amount, for the payment of interest on the bonds. The appellee, as complainant, in its bill sot forth facts showing the invalidity of tho issue of the bonds, and upon the bill and the answer of the appellant thereto tho court found and adjudged that the issue was unlawful and void, and thereupon granted the interlocutory injunction. The appellant objected to the jurisdiction in the court below, both by demurrer and plea, on the ground that it did not appear from tho bill that the requisite jurisdictional amount was involved in the controversy. The bill alleged that the matter in dispute exceeds the sum of $2,000, exclusive of interest and costs; I hat the appellee is the owner of real and personal property in the city of Helena, of the value of several hundred thousand dollars, on which taxes have been levied and collected by the city; that the assessed value of the taxable property of the city of Helena, for state and comity taxes for the year 1907, was the sum of $10,799,050, and for the year 1008, $11,629,834: that on September 24, 1908, the city council of said city passed a resolution, which was approved by the mayor, levying a tax for the payment of interest upon said water bonds of one mill; that if the bonds are issued, and become obligations on said city, the taxes on the property of the appellee within the said city, to pay interest on said bonds and provide a sinking fund for the redemption thereof, will exceed the sum of $10,000.