In Error to the Circuit Court of the United States for the Northern Division of the Western District of Washington.

Action by the First National Bank of Central City against the City of Port Townsend, Wash. From a judgment in .favor of defendant, plaintiff brings error.

The plaintiff in error brought an action in the court below to recover judgment against the defendant in error for the aggregate amount of ¡50 warrants issued by the latter, of date February 18, 1898. together with interest thereon at 6 per cent, per annum from February 19, 1898. The complaint alleges that ail the warrants were made payable out of the indebtedness fund of the city, that 16 of them were issued to the Bank of British* Columbia in part satisfaction of a judgment of that hank against the city, that 14 were issued to the Manchester Savings Bank in part satisfaction of a judgment of that bank against the city, and each of the 30 warrants is made the subject of a separate cause of action. The form of the warrants is as-follows:

“Port Townsend, Wash., Feb. 18, 1898.

“By order of city council, Feb. 17. A. D. 1898, of the city of Port Townsend, Wash., the treasurer of said city will pay Bank of British Columbia or order $500.00 for part satisfaction of judgment of Bank of British Columbia v. City, with int. at 6r/o per a. Indebtedness Fund.

“[Seal.] * August Jludenhauseu, City Clerk.

“D. II. Hill, Mayor of the City of Port Townsend.”

The complaint alleged that on February 19, 1898, the warrants were duly presented to the treasurer of said city of Port Townsend, and payment demanded, and that payment, was refused for the want of funds, and the warrants were so indorsed. The complaint, further alleges the assignment of said warrants to the plaintiff in error,'and that on May 11, 1910, the warrants were presented to the treasurer of the city at his office, and payment was demanded and refused. The complaint further alleged that other warrants of the same date, numbered consecutively from No. 2 to 159. inclusive, of the face value of $65,983.47, were issued: that at the time when they were Issued the city was authorized to levy and collect an annual tax, within the maximum of six mills on the dollar upon the taxable property of the city, for the payment of the same; that the city has failed and neglected to levy in any year since the plaintiff's warrant was issued more than a small fraction of tile tax which it; was authorized to levy and collect to supply the indebtedness fund of said city with money for the payment of the warrants which were payable out of such fund, and failed and neglected to levy any tax whatever for said fund in the year 1909, and has failed and neglected to pay any of the said warrants.

To the complaint the defendant in error demurred on two grounds: First, for failure to state facts sufficient to constitute a cause of action: and, second, for failure to commence the action within the time required by law. The demurrer was sustained on the ground that the warrants were issued to satisfy judgments against the defendant in error. Thereupon a judgment was entered dismissing the action.