Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1896-01-30

CITY'S ANSWER IN Gas BOND
CASE FILED.
Sweeping Denial Of the Legality Of
the Gas Bonds-A Long Recitation
Of the History Of the Bond Issuing
Some Strong Accusations.

the interest on refunding bonds ISSUED
to cover the so-called gas bonds. Il
is lengthy document and recites ir
detail the history Of the bond voting
council meetings etc. Some Of the
charges against Abilene citizens seem
unnecessarily severe but it remains
for the courts to decide what basis
they may have. One point is made
on the name III. G. Huhn" appearing
in a council meeting record. No
such man ever lived here. But H.
G. Fisher was a member Of the coun-
Gil and his name while omitted in
that particular place appears in an
other paragraph Of the same pro-
ceedings, hence careless penmanship
may have something to do with it.
In substance the answer is:
1t denies each and every allegation
except as admitted in the answer. 1t
denies that the plaintiff is an innocent
holder Of the coupons but claims that
they were passed to him after
maturity to enable him to maintain
this action and without consideration
and that both bonds and coupons are
illegal and Of no effect.
Then follows detailed history Of
the bond issue beginning with the as
sertion that Sept. l, 1887 certain
persons then living in Abilene soon
ceived the idea Of defrauding the city
out Of its funds" and formed pre-
tended corporation for the purpose or
pretense Of digging or boring for
natural gas" 1t recites that G. W.
Brilliant called the council meeting
as acting mayor when in fact A. W.
Rice was mayor and says Brilliant
had no right to call the council meet
ing to consider the gas bond PROPOSE
ton. Further it alleges that two
councilmen, r. A. Brown and H. G.
Fisher were not notified Of the meet
ing. The proceedings Of the council
meeting Sept. 80, 1887, are given in
full at which it was resolved to re-
quest the mayor to call a special
election to vote on bonds for $4,000 to
be exchanged for 500 shares in the
Abilene Natural Gas Co. No ordin-
ance was adopted as to the election
and it does not appear from the
records that an election was ever
called in pursuance Of said request to
mayor as provided by law. At the
election Oct. IS, 1887, the city cast
4SS votes on the bond question but
there were more than 1000 voters in
the city hence this was a minority.
But the bonds were declared carried
and were issued to be exchanged for
500 shares of stock.
The answer goes on to say that the
city had no right to make any con-
tract with corporation Of private in
dividuals and adds: your pleader
further says that the said A. W. Rice
who was at that time mayor of said
city well knew at the time OF said
election and afterwards that the city
Of Abilene had no legal power to is
sue such bonds for the purpose Of sub
scribing to the capital stock Of said
corporation or gas company but that
the said A. W. Rice was a member Of
and part owner Of the stock Of said
company or association and that
knowing the said bonds to be illegal,
be together with other persons inter-
ested in said gas company conspired
TO defraud said city or such persons
as he might induce to purchase said
bonds by issuing the said bonds SO as
Aforesaid illegally voted upon to said
gas company and Immediately refund
ing the same under the statutes of
5he city, state Of Kansas, under the
belief that such refunding would bar
he said city Of Abilene from setting
up fraud and illegal character Of the
ponds so as aforesaid first issued"
1t says that the bonds being issued,
he city never received any considera-
ion or value therefor, that they were
till in the city's hands when another
ouncil meeting was held June 80,
1888, to consider the matter. This
meetings. minutes are quoted, author
zing the issue Of the refunding bonds,
ow in question. 1t says that one
III. g. HUM" voted on the resolution
D issue refunding bonds when he was l
OF member Of the council; that no
office was given Of special meeting ,,
n the purpose Of "refunding said /
onds" and no ordinance was adopted \
n the matter; that the refunding 4
onds, being issued without real au-
lority, were turned over to II. C.
peer without any consideration, that
lat at this time the gas bonds had
ot passed nut Of the hands Of the
ty, that the last named bonds were u
't issued to refund any existing in Il