The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1893-12-02
NEWS NJ VS. Of SOUTH DAKOTA
Decision in the Huron Bond Case
Expected Today.
saaportsd That Criminal hc.ions Are Likely
to Grow Out Of Disclosures Made
During the Progress Of the
TriaI..Misc

SIOUX FALLS, $. D., Eov. est is
expected that a decision will be
cached today in the case Of the Ma
tional Life Insurance company of Monr-
pelier, Vt, against the board of educa-
ion OF Huron, involving the validity uf
s6o,O0O of school bonds sold during tho
.ast capital campaign. The motion of
/ The defendants for direction of a YER.
dict was overrrlcd by the court on the
ground that the motion was pre-
naturely made and was not COM
petent until the evidence had
oeen put in by the defense.
Saturday was taken mp with the
witnesses for the defense. FL. j. Rice,
1t t:ie time the bonds were issued
mayorof Huron, b. X. Rowley, city
auditor; J.iG. Klelnme, treasurer of the
school board and the city. and 8. NJ.
Mills member of the board. were put
On the stand. by these witnesses it
was undertaken to show that but 81, 900
of the S60.O00 was ever received by the
school board; that for the other s55, 900
! non-transfera BILE city warrant was
given the board, and that there We're
no fnnds in the treasury to meet the
warrant, which itself was worthless, be-
cause it was issued in excess of the cor
>. stitutional Limitation of Indebtedness;
thnt OF the $4,000 received by the board
k4,30o was turned over to the city and
anat only S5oo was ever expended for
the construction of school building:
that IL cheap foundation wns put in and
hat no other work has been done: that
the money so turned over to the city
was expended in the last capital cam
paign for the Illegal purpose of intiu-
enclng votes.
fhe defense raised several important
constitutional questions upon which
the case will undoubtedly turn. They
introduced evidence to show that the
school board made no provision for Il
tax 70 meet the interest and for sink
ing fnnd to take care of the principal,
which provisions they claim TO be a
necessary nntecedent condition before
legal bonds could have been issued
his point was argued at length and
seemed to make n grentimpression upon
the court. The defense also attempted
70 show that the plaintiff was not an
innocent holder of the bonds In 1ues-
= ton Evidence was introduced to
show thatthe original purchasers were
not in law innocent holders rs they
had bought the bonds for os4 per cent,
the law defining an innocent holder
as one who had bought ut 9s per cent.
The defense also claimed that the Ma
tional Life had secured the bonds after
the interest was in default and could
not therefore be nn innocent
holder. The defense also claimed that
the plaintiff company did not pay
anything for the bonds and that the
original purchasers, the New England
Trust company, were the real parties
in interest. The defense also put in
evidence to show that at the time the
! bonds Were issued the school board was
neither a bona iide or de facto body
and did not have power to issue the
bonds.
This case is attracting much atten-
ton through the state and through the
country generally as it involves the
gnlidity of bonds to the amount Of
100000 It's understood that Huron
men generally are behind the school
board in their attempt to repndiate
these obligations. There is a report
/. that criminal actions are likely to de-
celop from the questions arising in this
rase.