Constitutional Minutes; Reese v. Watertown; 105

The. Un. Does the US Constitution grants federal courts the right to take possession of a city and sell it if the city refuses to pay its debts. Back in 1873 that was the argument used by one disgruntled investor when he discovered the bonds he bought from Watertown Wisconsin were worthless. The bonds were used to attract railroad development. Mr Reese sued the city for $10000 but before the papers were served the entire city council resigned. The council repeated its mass resignation twice. And finally Mr. Rhys unable to collect took his case to the U.S. Supreme Court. The judges decided that the Constitution did not allow courts to take over water county property to repay the debt. The judges agreed that the city owed Riess money and that the Watertown City Council was the only body that could repay it. But since the city council

had resigned Mr Reese never recovered his ten thousand dollars. I can feel with a constitutional minute. The.