Opinion of the Court.

"Second. Fire department fund-to defray the expenses of purchasing grounds, erecting engine houses thereon, purchasing engines and other fire apparatus, and all other expenses necessary to maintain the fire department of the city;

"Third. General street fund to defray the expenses of opening, widening, extending, altering and vacating streets, alleys and public grounds, and for grading, paving, curbing, graveling and otherwise improving, repairing, and cleaning the streets, alleys and public grounds of the city, and for the construction and repair of sidewalks and crosswalks, and for the care thereof;

"Fourth. General sewer fund-to defray the expenses of sewers, drains, ditches and drainage, and the improvement of water courses;

"Fifth. Bridge fund for the construction and maintenance of bridges;

"Sixth. Water fund

for constructing reservoirs and cis

terns, and providing other supplies of water;

"Seventh. Public building fund-for providing for public buildings, and for the purchase of land therefor, and for the erection and preservation and repair of any such public buildings, city hall, offices, prisons, watch-houses and hospitals as the council is authorized to erect and maintain, and not herein otherwise provided for;

"Eighth. Police fund for the maintenance of the police of the city, and to defray the expenses of the arrest and punishment of those violating the ordinances of the city;

"Ninth. Cemetery fund;

"Tenth. Interest and sinking fund-for the payment of the public debt of the city and the interest thereon;

"Eleventh. Such other general funds as the council may from time to time constitute."

"2701. The council may also raise such further sum annually, not exceeding three mills on the dollar, of the assessed valuation of the property in the city, as may be necessary to provide an interest and sinking fund to pay the funded debts of the city and the interest thereon."

The refunded debt of the city, consisting of new bonds

Opinion of the Court.

issued to take up old ones, would constitute a "class of indebtedness." "This designation," as stated by the learned trial judge, "would show ex vi termini also that they are payable out of the sinking fund." The class of indebtedness does sufficiently appear. The bond is not an original bond, but a refunded bond, and its payment is referred to the sinking fund. One who examines the bond and the act would not have the slightest doubt as to the class of debt or the fund for its payment. The case of Barnett v. Denison, supra, is not applicable. The act conferring authority to issue the bonds in question in that case required that the bonds should show the purpose for which they were issued. This was held a reasonable requirement, and one of which the purchaser was bound to take notice. If the purpose stated was an unauthorized one, it gave him notice; if none was stated, then the purchaser took the risk of the bonds being issued for an unauthorized purpose. Here there has been a substantial compliance, whether the requirement be regarded as mandatory or directory. The act should not be construed as requiring refunded bonds to show more than the fact that they are refunded bonds. The primary purpose of the requirement is such identification of the debt as will designate the fund out of which it is payable, having reference to the funds established by section 2695. In the Barnett case the object of the act in requiring the purpose for which the bond was issued to appear on the face of the bond was to apprise the purchaser of the purpose, that he might inquire as to the lawfulness of the issue for that purpose. Under the act we are construing, "the requirement," as observed by the Circuit Court, "touches only the incidents of liquidation." The statement on the bond that it is a refunding bond, i.e. a bond issued to take up bonds falling due, sufficiently answers the requirement of the statute.

1

3. It seems to us that the representations made on the face of the bonds estop the city, as against a bona fide holder, from disputing the fact that these bonds were issued to take up old

1 For the grounds upon which the court below based its judgment, see ante, p. 547.

Opinion of the Court.

bonds falling due. Power was conferred by the act upon the common council to issue new bonds to take up bonds falling due. The question as to whether there were any such bonds is referred to the council. The old bonds, on the facts found by the Circuit Court, were at the least colorable obligations. The council determined to issue new bonds and to take up the old ones. It seems to us that under these circumstances it did not devolve upon the purchaser of the new bonds to look into the validity of the old bonds which had been refunded. He might well rely upon the representation made to him on the face of the bond as to the existence of old bonds falling due.

This case comes under the class of cases of which Town of Coloma v. Eaves, 92 U. S. 484, Hackett v. Ottawa, 99 U. S. 86, and Chaffee County v. Potter, 142 U. S. 355, are examples. The observation of Mr. Justice Campbell, in Zabriskie v. The Cleveland, Columbus and Cincinnati Railroad Company, 23 How. 381, 400, and repeated by Mr. Justice Clifford, in Bissell v. The City of Jeffersonville, 24 How. 287, 300, is applicable here. It is this: "A corporation, quite as much as an individual, is held to a careful adherence to truth in their dealings with mankind, and cannot, by their representations or silence, involve others in onerous engagements, and then defeat the calculations and claims their own conduct has superinduced." The recitals in the new bonds as to the fact of there being old bonds falling due, and that the new bonds were issued to take up the old, might well lull an intending purchaser into security. The defense which the appellant might have made against the old bonds it has elected not to make. It should not now be permitted to set up such defense as against a bona fide holder of its refunding bonds.

The judgment must be

Affirmed.

Statement of the Case.

AMERICAN ROLL PAPER COMPANY v. WESTON.

APPEAL FROM THE CIRCUIT COURT OF THE UNITED

STATES FOR

THE WESTERN DIVISION OF THE SOUTHERN DISTRICT OF OHIO.

No. 76. Argued June 7, 1993. - Decided November 20, 1893.

Claim 2, viz., "The combination, in a roll-paper holder, of a hanger or bracket and a spring-knife, substantially as set forth," and claim 5, viz., "In a roll-paper holder, a knife-carrier or yoke, substantially such as described, provided with means for keeping the knife to its work," of letters patent of the United States No. 301,596, dated July 8, 1884, and granted to Richard Whisler Hopking for "improvements in roll-paper holders and cutters," held void because anticipated by the prior public use of an unpatented machine containing substantially the same mechanism. The proof of one well-defined case of the prior public use of a patented invention is as effectual to annul the patent, as the proof of many such

cases.

Before TAFT and LURTON, Circuit Judges, and SEVERENS,

District Judge.

The case is stated in the opinion. For convenience of reference, however, the specification, claims and drawings of letters. patent No. 301,596, dated July 8, 1884, and granted to Richard Whisler Hopking, being the letters patent in suit, are published in full and are as follows:

"To all whom it may concern:

"Be it known that I, Richard W. Hopking, a citizen of the United States, residing at St. Louis, in the State of Missouri, have invented certain new and useful improvements in rollpaper holders and cutters; and I do hereby declare the following to be a full, clear, and exact description of the invention, such as will enable others skilled in the art to which it appertains to make and use the same.

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My invention relates to means for supporting and paying off roll, wrapping, or other paper; and its object is to provide means by which such paper may be used and handled in a convenient way, and by which any length of strip required may be torn or cut from the roll.

Statement of the Case.

"It consists, first, in the combination of a hanger or bracket and a spring-yoke, said yoke being adapted to spring into and carry a solid core or roller, upon which is mounted a roll of paper.

"It consists, second, in the combination, with a roll of paper, of a hanger or bracket and a spring-knife.

"It consists, third, in the combination, with a roll of paper, of a hanger or bracket, a spring-yoke or holding device, and a spring-knife, the knife being so adjusted as to hug or press against the side of the roll, whatever be its size.

"It consists, fourth, in a roll-paper holder provided with a knife whose ends are bent inwardly to act as guides for the paper as it is unrolled.

"It consists, fifth, in the combination, with a holder or bracket, of a knife-yoke or carrier having springs so adjusted as to keep the knife to its work.

"It consists, sixth, in the combination, in a roll-paper holder, of a bracket or hanger, a spring-yoke connected with said hanger at one end and loosely inserted in the ends of a roller or core which carries the paper, a knife connected with the bracket or hanger by means of a knife-yoke, and means for keeping the knife against the side of the roll.

"In the drawings, Figure 1 is a front elevation of my device, and Fig. 2 is an end elevation of the same.

"A represents the roll of paper, suspended or projected from the hanger or bracket B by means of the yoke C. This yoke is preferably of one piece, and passes through a hole or slot in the block B, and having its arms bent to form a spring and its ends curved to pass a short distance into the roller or core C', thus suspending the roll and allowing it to turn freely on the ends of the yoke.

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"D is a blade, having its ends d bent at right angles, so as to guide the paper when it is unrolled, in order that it may be cut straight. The knife is connected with the bracket B by means of the knife-yoke D', made preferably of one piece, and passing through eyes or staples b, driven into the bracket. The ends of this yoke are riveted to the knife, as shown.

"d'd' are two coil springs wound on the knife-yoke, as