Omaha daily bee., 1899-06-08
WANTS HIGH SCHOOL BONDS
First National Bank Serves Notice on the
Board of Education,
DETERMINED TO ENFORCE THE CONTRACT
Cashier Hannah Shows that His Bid
for the S87, 900 Issue was No
BIuR and Was Made in
Good Faith.

Cashier Hannah OF the First National bank
| has notified the Board of Education in nc
uncertain terms that whatever his attitude
might be toward the selection by the board
of the Oakland avenue property as the site
! for the new High shcool building his bid
| for the issue of bonds was no bluff on his
part and that his bank stands prepared to
take the bonds at any moment Further
than that, he yesterday notified the board
that his bank expected the bonds to be is
sued and delivered on or before July / next
This is the first definite statement by Han
nan that he really intended to take the
bonds and was evidently called forth by the
action of the board at It's meeting Tuesday
night i'm adopting a motion offered by Mem
Der Stewart that the matter OF issuing bonds
be postponed for the purpose Of giving an
opportunity to Investigate as to whether or
not the injunctions now in force against the
board are to be dissolved and the board re-
leased from further annoyance by litigation.
The following notice was served by Mr.. Han
nan yesterday morning on Secretary Ross
and each individual member of the board:
To tie Board of Directors of the Independ-
ent School District of Council Bluffs Ia,
| and d. l.. Ross, Secretary of said Board
Gentlemen: You are hereby notified that
| in pursuance Of the resolution adopted by
| you accepting the bid Of the First National
| bank OF this city and the contract made
] with your treasurer for the bonds proposed
| to be issued on the 1st day of July, 1893,
| in the sum of $67 ,000 We have procured
| the opinion of counsel as to the validity Of
| said bonds; that such opinion has been ac-
| cepted by us and to the parties to whom
| we propose making sale of said bonds ana
! that we are now ready to accept such bonds
from you and take them up as soon as they
! can be issued and we hereby notify you
| hot ehall eXpect said bonds to be 1S-
| sued and delivered to us on or before the
| 1st day Of July, 1899.
/ FIRST NATIONAL BANK Of Council
Bluffs, Ia, by Charles r. Hannah,
Cashier.
| Threatens Mnndnmus Proceedings.
In conversation with some of the mem
| bers of the board yesterday, Cashier Han
nan said that his bank was determined to
get the bonds, and that If the board re-
| fused to issue them by the date specified
| in the contract he would apply to the
| courts for mandamus to compel 1t to do
so. He said his bid had been made in good
| faith and showed a letter corroborating
| his statement that he had sold the bonds
| to eastern parties. The report that his bid
| had not been made in good faith and was
| fer the purpose of tying up the new high
| school was, he said, without the slightest
i foundation, and his notice to the board that
his bank intended to compel the board to
| issue the bonds to 1t was sufficient
| answer to such reports.
President Sims, who alone Of the board
| has been anxious from the start to dispose
| of the matter of issuing bonds and thus
' getting the money in the school district
treasury, was much pleased at the action
taken by Cashier Hannah, as he is of the
opinion that it must necessarily force the
| matter to final issue. The board ratified
the contract entered into between Treasurer
Davis of the school district and the First
| National bank for the sale of the bonds on
Its bid and President Sims says that in his
| opinion the board must stand by its action
| and issue the bonds by the date specified
namely, July / of this year.
Should the litigation prevent the erection
| of the new high school for year or more,
and the district be compelled to pay inter-
| est on the issue of bonds without being
| able to use the proceeds of them 1t is the
! general opinion that in the long run the
| district would not be the loser, as the court
would compel the parties who have brought
the suit against the board to put up a
| cost bond which would cover any expense
the district might be put in the matter of
paying interest on the bonds while the
money was lying idle in the bank.
| While taking in the Herrick exhibition,
on Thursday, at P. c. DeVol's, see the gen
\ stn in