The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-19
ARE THE BoNDSMEN LIABLE2
The Sureties of the Defaulting Township Trus-
tees To Be Settled by the Federal Court.

A case testing the liability of the bondsmen Of
the absconding township trustees. who issued the
fraudulent warrants, is on trial in the federal
lawyers interested in the different suits which
have been filed are hanging about awaiting an
opportunity to expound the law on the points
involved. The case on which the test is being
made is the suit of Walter Stanton, the New
York capitalist, against the bondsmen of Jacob
Shipley, the trustee Of Gregg township, Morgan
county, for the sum of 81. 500. It is claimed by the
plaintiff that the trustees bondsmen are liable
for the face value of fraudulent warrants which
he issued. The statute upon which the suit is
based is the act Of 1883 relating to the liability
of trustees and their bondsmen. The counsel for
the defendants claim that there was no indebt-
edness contracted by the issuing of the warrants,
because the township received nothing of value
as a consideration; that the warrants are not
commercial paper, and that the holders took
them as a risk, with the knowledge that a
school township has no power to borrow money
or to issue any such bonds. The defense
is based upon Sections 6OO6 and 6O07 Of the Re-
vised Statutes, which provide that whenever it
becomes necessary for the trustee of any town
ship in this State to incur, on behalf of his town
ship. any debt or debts whose aggregate amount
shall be in excess of the fund on hand to which
such debt or debts are chargeable, and of the
fund to be derived from the tax assessed against
his township for the year in which such debt is
to be incurred, such trustee shall first procure
an order from the Board of County Commission
ers OF the county in which such township
Is situated, authorizing him to contract
Board of County Commissioners shall grant
such order the township trustee shall file, in
the auditors office of his county, q petition set
ting forth therein the object for which such
debt or debts are to be incurred and the approx
innate amount required, and shall make affidavit
that he has caused notice to be given of the
tendency Of such petition, by posting notices in
not less than five public places in his township.
at least twenty days prior to the first day Of the
session of said board" These requirements.
the attorneys for the defendants claim, were not
complied with, and, therefore, the bondsmen of
the dishonest trustees cannot be held liable for
the payment of the fraudulent warrants.
Suits are pending against the bondsmen of all
amount for which judgn . hts are asked is
about $40. 900. The same questions are involved
in all the cases, and the result of the suit against
Shipleys sureties will practically end the litiga-
ton in the matter. The bondsmen of Trustee
Kitz are represented by Duncan, Smith g. Will
son, and the other attorneys engaged in the
different cases are Col. James III. Jordan and
Hon. George A. Adams. of Martinsville; Hon.
S. B. Voyles and Mr.. Zering, of Salem; Judge
Baker and j. Fl. ONeil. of Washington. Daviess
county; Mr.. Applewhite, of Seymour; Mr.. Nc
Cabe. of Warren county, and Hiram Brownlee,
of Grant county.