Omaha daily bee., 1902-12-17

missioners OF that county was submitted
to the supreme court this morning. The
auditor refused to register the bond because
the law under which it was issued is in
valid. Niles claims that even II the law
is invalid there is a prior law in force
which the supreme court had held TO be
constitutional, and that therefore the act
Of the commissioner in refunding the bond
was legal.
The purpose OF this suit is to determine
the validity OF several thousand dollars
worth of refunding bonds issued by the
county commissioners at the same time that
the bond held by Niles was issued. The
bonds taken up were issued to aid in the
construction of the Omaha & Southwestern
Railroad company in 1877. and bore s per
cent, while the refunding bonds bore only
5 per cent. The value of the bonds has
been affected by the uncertainty as to the
validity OF the act under which they were
issued in exchange for the old bonds.
This suit will settle the question as to their
validity.
Creditors Rights Involved.
A case Of some interest to holders OF
beneficiary certificates was submitted TO
commission No. 2 this afternoon. The
case involves the right Of creditors Of the
member of an order to the proceeds Of a
certificate on his life. Leon Richardson
of Seward county, holding a certificate in
the Modern Woodmen Of America for s., 1000,
died a year ago. This called for the pay
ment of the certificate. When he died he
was in debt to the amount Of several hun
dred dollars. The officers Of the society
were unable to find the heirs of Richard
son. The creditors had an administrator
appointed and made application to the
treasurer of the order to have the pro-
ceeds applied on the Indebtedness, when
they learned that no heirs had been found.
The oficers refused to pay anything, set
ring up that the statute under which
the association did business in the state
provides payment OF death benefits shall
only be made to families, heirs, blood re-
lations, afianced husband or af1anced wife,
or to persons dependent upon the mem
ber."
Suit was brought by the creditors in the
district court. The court decided adversely
to the claimants and the case was appealed
to the supreme tribunal. The creditors, in
their brief, declare that the case is an ex-
ception to the statute, because thsre are
no relatives. 1t is said that the statute
applies only where there are relatives and
is intended for the protection OF the homes
of the members, and when the reason for
Its existence is gone the proceeds OF the
certificate ought to go to the creditors. For
that reason 1t is claimed that there is a
resulting trust in favor of the creditors
and against the Modern Woodmen.
To this plea the association makes an
swer that there is no assurance that the
heirs are nom existent. That the associa-
ton has been holding the money for the
heirs and is still making search for them.
Even II the statute did not bar payment
to the creditors this would be enough to
keep the officers from making payment to
the creditors until SUFFICIENT time had
elapsed to give rise to the presumption tina;
there were no relatives within the degreo
provided in the statute for benehciaries
under fraternal beneficiary policies.
Villas VIII Not Talk Politics.
Hon. William F. Villas. postmaster gen.
eral under Cleveland, will appear before
the supreme court Wednesday as counsel
for the defendant in the case OF Tunni-
cIife against Fox. The suit originated in
Douglas county and involves property in
Cheyenne county. Mr.. Villas arrived in
Lincoln this evening and many citizens
called upon him at the Lincoln hotel to-
night. He would not discuss politics.