The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1894-05-17

THuFsDAs. iday II. sag.
THosE ToHN poN,.c.


There IS much misapprehenssvn. in tie
minds OF meny. both residents az the
city and ofthe township OF Sank Centre
relative to the trouble which has S ~,
out OF failure to adjust or pay sile
town beuds issued BY The towssl;s 81
SauS centrsii aidof the Little Falls
Dakota railroad. These beds nees
issued in 1882, before the eli I No ;rcs,,.
poratea and wheE il was ps al p
Gel ofthe township. ia the stn 81 SIP s
600, with int rest at eight per cent.
run ten years, the lass inssa ,ment 8
terest to be paid with the face Of tie
bends. In December 1892 the bonds te.l
due and remain unpaid. ana suit has
been brought by the owners 81 III. -
against the township OF Sank c atrs
When the village 81 Sank Centre WI s
cornorated under the general law. which,
was subsequently, declared rucons4it,,-
tional. long before city charter was oh.
tanned no provisions were made III tie
separate corporations for the pavment
OF these bonds. whicl, wers. IN t. ms.
against the township only; but tie
equities were SO strongly in favor Of the
village, and aiterward OF the city, paw
ing its proportion OF the debt, that rs
serious objection had ever besa rails I'd %
to the time the creditors brought. suit .
enforce the payment of the principal
Several years ago a law was pass ed ems
pouring and requiring the then xsilaa :
to pay its proportion. to be desersninesls
by the ratio of its assessed valuation rs
that of the township-aud about three
fourths Of the interest has been RAISED
and paid by this municipality, the towa
ship paying the remainder.
When the bonds fell due in Dsesmhsr
1892. no provisions had been made for
meeting the principal. and negotiation
were entered into by the township and
CITY authorities on the one side and tie
creditors on the other to have the
bonds EXTENDED at a lower rate of inter.
est. The creditors expressed tl;emsslxss
as willing to let the matter ress iadesl-
nitely providing the interest was paiE,,
and still more tavorab,. proposition
to extend the bonds at six Per csaa
Meantime several joint meetings. az tiie
township and city authorities wee held
each having their attorneys,N II aiinsgs
being retained by the township ana Cay
Attorney Kelsey for the city. An
ment was made as to theeamounts each
were to assume, the town to pay ohc-.
third and the city MISUNDERSTOOD
and $4,000 respectively. During NJ ills
time the creditors were ciamosing for ils &
interest. which had been With held pc nd
ing negotiations. Then arosea quest ION
as to the method OF fixing ito the ey ssleilz
ces OF the deitas between the city and
township and the creditors And r,gft
here occurred the 1nfog tuaatc litch
which resulted in breaking Of ali neso
atioEs. and the result was that suit was
broughs by the creditors against he
township. the party appearing upon The
face OF the bonds as the debtor. TIE
misunderstanding was Somewhat CON-
plicated. and like most cases. of-the Elnd
it IS difficult to SO explain it rs to do fpif
justice TO both parties. Ccstai8ly tae.
HERALD has no disposition to make IS
repre- sentation or statements not RI
strict accordance with sNact facfs.
The township was DESTROYS ofa diY.-
sion of the obligation so that IT might.
proceed to pay Gifts share and getr rid of
the debt. The city felt that such action
on its part would overburden its tax
payers, and desired to defer payment.
The township finally waived its desire
and expressed a Willingness to extend
the bombs. But how? The city eorisa
not increase its bonded indebtedness
any further, but expressed willingness
to continue the payment of interest as IT.
always had done. The question had
arisen as to whether the bonds were
technical debt against the city, but they
were conceded by all to be moral OBJ;
CATION. The city proposed that the,
township officers execute new coaptyne
at six per cent. the city agreeing to bird
itself legally, if possible, and morally, So.
far as the council could bind itself a "a
the city, to continue payment as agresa
upon. And right here the troable Or
CURED. The township officers wers
advised by their attorney that they had
no right to execute these coupons, and
the city council was insistent thar they
had, or at least that it was the only way
to do, and that there was no occasion to
fear the results Of such action as there.
would be no objection to their doiag 80
on the part of any one who could legally.
object, providing any one could And 50
the split came. 1t was then sngeest 81
that the back interest be paid and fsr-
ther time for an agreement gained, asssi
this proposition was, at first. agreed
to by the city council. hut snbsr-
quently refused as it was thought
that it would only defer, and not set.
complications which, had arisen. The.
bond holders, in letter to Mr. Boss,
urged this course. Threatening suit if the
interest was not paid, and expressil
the hope that matters might be settled.
without suit.
But unpleasant things had been said
on both sides, and the two bodies dfifte1
further and further apart Suit was
brought against the township in The die
trict court, ard the attorney for the
township made motion in court that
the city be implicated as a co-defendant.
The city employed Mr.. REYNOLDS OF ST..
Cloud as additional COUNSEL, and th
motion was argued against by him. bat.
subsequently, objection was PRACTICALLY
withdrawn, and the court granted the
motion. The creditor plaintiff then.
amended his complaint to include the
city, anu this complaint was denIurred
to by The city. The demurrer was over
ruled by the court and The decision has:
beenappealed from to the supreme court
of the state, and it now awaits argn-
meut there.
So the matter stands at this time. and