The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1893-09-09
The Alturaa Bond Case.

me AlLurda BOAQ Case
The case of the Saving & Loan
Society, a corporation, complain
ants, vs. the County of Alturas,
ct. al, defendant, has been decided,
says the Boise Statesman, by United
States Judge William B. Gilbert, of
Portland, in favor of defendants.
The case grew out of the division
of Alturas county and suit was
brought to force the payment of
interest on the old Alturas county
bonds.
When Alturas county was divided
there was a bonded Indebtedness Of
$500, 900. which the legislature ap-
portioned between new Alturas and
the other counties, Logan, Gilmore
and Bingham, on a basis of the as
sessment of 1888.
Alturas was dissatisfied with the
division and contested the law, the
decision upholding the measure in
question. Since the decision Altu-
ras county has been dissatisfied
with the apportionment and refused
to take any steps to adjust the por-
ton of the debt to be paid by the
respective sections of the divided
county, although the other counties
were willing to abide by the appor-
tionment and adjustment as made
by the legislature and appointed
experts under the law, who were to
meet an accountant to be appointed
by Alturas and adjust the debt.
Alturas refused to appoint an ad-
juster or to in any manner recog-
nize the right of the legislature to
adjust the debt as it had done.
The interest on the bonds becom-
ing due, Logan county rendered
Alturas $40, 200 for her share. This
was accepted by Alturas and paid
on the interest. Gilmore and Bing-
ham raised by tax their portion of
that interest, but refused to pay it
over to Alturas county until the
latter complied with the law.
Thus the matter rested until the
amount of interest due and unpaid
reached about $4,000, when the
d-holders, the complainants,
brought suit in equity in the D. S.
Circuit Court, in which suit they
sought to have the court make new
adjustment of the Indebtedness of
old Alturas, and an apportionment
different from the one made by the
legislature and more favorable to
Alturas as it now exists. They also
wanted to force the new counties
to pay the interest on the bonds di-
rect to them, instead of it first going
through the hands of Alturas.
Demurrers were filed on behalf OF
Logan, Elmore and Bingham coun-
ties. The real contest was between
the complainants and Alturas on
the one side, and Logan, Gilmore
and Bingham on the other. The
position taken by the demurrers
was that suit in equity would not
lie; that the legislature had full
power both to divide the county
and to adjust the debt in the man
ner followed.
United States Judge Beatty hav-
ing, as a member of the legislature
and as an attorney, been interested
for Alturas county, refused to act
as Judge in the case and the cause
was submitted to Judge Gilbert,
who sustained the demurrers on the
ground that there was no equity in
the bill as shown by its averments
and that it was competent for the
legislature when it divided the coun-
ty to make an apportionment of
the indebtedness of the old county,
and that as long as Alturas was able
to pay this indebtedness the bond
holders must look in. the first in
stance directly to it, leaving Alturas
to collect from the other counties
under the law. The demurrer went
directly to the merits Of the case
and the decision practically dis
poses Of the matter SO far as the
lower court is concerned.
Itnow remains to be seen whether
the complainants will amend their
bill or appeal from the decision or
dismiss the case. They will prob
ably take such course as the attor-
neys for Alturas county recommend
as, while Alturas appears as a de-
PENDANT, her interests will have been
best subserved when a decision is
rendered in favor of the bond
holders.
1t will be remembered Alturas
county attempted during the last
legislature to have enacted law
providing substantially for the same
thing Judge Gilbert refused to grant.
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