Alpena argus. [volume] (Alpena, Mich.) 1893-1909, 1893-04-19
Presque Isle County Bonds Declared
Illegal.

The following is from the Detroit Free
Press Of April 12th
Outside OF the murder Of Edward Moli-
tor in 1875 the county OF Pressure Isle is
probably best known to the people Of the
State of Michigan for number of shady
transactions in connection with the is
suance Of bonds at different periods Of its
existence. The county was reorganizedi In
1871 by act of the Legislature and soon
afterwards there was submitted to the
people OF that county a question as to
whether money should be borrowed with
which to erect a court house and jail.
The citizens voted In favor OF the Issuance
Of $4,000 worth of bonds for that pur-
pose. The bonds were negotiated and
the court house and jail were erected and
have been occupied by the county ever
since. 1t was during the erection OF these
buildings that rumors commenced to
spread that the bonds were not being used
for their proper purpose; in fact, rumor
was so bold as to declare that the Board
of Supervisors had manipulated the cleo
ton at which the issuance Of the bonds
was presented and had afterward pocket
ed part of the proceeds Of the sale Of the
bonds. Edward Molitor was the autocrat
OF the county, and these rumors added to
| the ill-feeling entertained against him
which finally resulted In his assassination.
The trial of the case OF w. j. Ashley,
Of Rochester, n. Y, against the Board Of
| Supervisors OF Pressure Isle county before
q Jury in the United States Court during
the past week recalled these facts. The
history Of the case goes back to the organi-
zation of the county and issuance Of the
court house and jail bonds. When those
bonds matured, payment was refused on
some Of them and several actions looking
towards their redemption were commenced
In the United States Court Among the
questions raised in those trials was one
involving the power of the county to issue
the bonds and another involving the reg
ularity OF the vote authorizing the issue.
The court decided In favor of the holders
of the bonds and all the judgments were
paid by the county, amounting to some
thing like $4,000.
In 1884 the Pressure Isle Supervisors,
by resolution reciting the fact that the
bonds Of 1871 were about to mature and
the desirability Of retiring them, appoint
ed committee to visit Lansing and OBJ
tain the proper legislation to retire the
old issue. On February 10, 1885, an act
passed the Legislature authorizing tho
board to issue not to exceed $4,000
| worth OF DOnus, tIe dCC pTOVluluB tndt
they should be exchanged at par value
for the outstanding bonds or that they
might be sold and the proceeds applied
towards that end. They were issued by
the board without going before the people
and countersigned by August Grossman,
chairman, Molitor's murderer. The bonds
were eighteen In number, 1000 apiece,
maturing one each year, and were ex-
changed for old bonds held by George j.
Robinson Of Alpena. They subsequently
came into the hands OF a Detroit banking
institution and some of them were sold
to w. j. Ashley.
The 1884 bonds maturing prior to JAN
uary 1, 1891, were paid, but about that
time the Board OF Supervisors repudiated
the issue Of 1886 as illegal, and Ashley
brought test suit on two Of his bonds.
Judge Swan charged him out Of court on
the ground that the original organization
OF the county in 1871 was defective and
that the bonds issued at that time were
illegal, and also because the law of 1885
was unconstitutional in permitting the
issuance OF bonds otherwise than In
obedience to vote Of the citizens OF the
county. Griffin & Warner appeared for
the plaintiff and Col. H. nj. Duffield fol
the county Of Pressure Isle.
The question in regard to the illegality
Of the bonds will be appealed to higher
court.