The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1902-10-09
Injunction Dissolved.
Judge Little Renders Opinion in
Bond Issue Case.-No Evil
denCe Of Fraud or ColluSion.
ACTION OF COMMISSIONERS SUSTAINED

Judge Little on Thursday handed
down an opinion in the case instituted
against the County Commissioners by
M. A. Bibby restraining them from
disposing of the 100000 County bond
issue to J. N. Thompson, Of the Farm.
ers National Bank. The opinion dis
solves the Injunction and puts an end
to the proceedings. The opinion is as
follows:
"As appears by an inspection of the
minute book, there was presented to
the Commissioners a proposition by J.
NJ Thompson, offering to buy the
whole issue of the bonds for the sum
of 100000, which proposition was
thereupon accepted and the award of
the bonds was made to him at his bid.
The bonds were sold at their par value.
In the transaction of the business OF
September end, the two commission
ers were acting under the advice of
counsel and the resolutions then ad-
opted were prepared by counsel.
ave have no difficulty in finding
the foregoing to be the facts, from the
testimony taken at the hearings and
from an inspection OF the official min
utes kept by the County Commission
els.
"Whether or not at the meeting OF
the Commissioners with Mr.. Schoch,
he then assigned a reason why 1t would
be better for the Commissioners to
make the bonds at 4 per cent. inter
est, that they could get premium or
that the bonds at that rate would have
market value in the excess OF their
par value from 8 TO 4 per cent.
"Whether or not il was then agreed
or assented to that there should be a
public letting, and opportunity given
for competitive bidding tor the purch-
ase OF the bonds proposed to be issued;
or an opportunity given for the bank
of which Mr.. Schoch was the repres-
entative, to bid upon the bonds ;
whether or not Messrs Kitchen and
Fisher knew at and before the sale OF
the bonds to Mr.. Thompson on Sep
tember that they were worth more
than the price for which they sold them
and had market value in excess oi
theit par value, are all matters OF fact
which we cannot find from this testl-
mony. The testimony as to these
matters is too contradictory. MIR.
Krickbaum testified that he had one
or more conversations with Mr.. Schoch,
at which the other Commissioners
were not present. This may or may
not account for the contradictory testl-
mony, as to what was said at the
meeting in The banking house.
"The county is bound only by what
the Commissioners do within theil
powers and the resolutions they adopt
and have entered upon their records
The county ought not to be bound BY
the loose declarations of the Commls
sioners and their understanding as to
what may be the facts touching par
ticular matters.
SIT is certain that the County Com
missioners took 40 action, relative te
affording an opportunity for competl
tive bidding in the proposed sale O
bouds, and the making advertisement
thereof-otherwis the minutes OF pro
ceedings would show it. A part o
their business is to see that true ano
proper record is made of their pro
Ceedings.
"There is no legislative provision
making 1t the duty of public ofticers
when about to issue and make sale o
bonds of municipalities, to first give
notice by advertisement or otherwise
of public letting of the bonds; or tha
they will receive proposals for the pur
chase of bonds; and making it thel
duty to accept the highest price offer
ed by responsible parties, after oppor
tunity shall have been gwen by com
petitive bidding.
"While the law does not prescribe
it as duty that officers OF municipal
tiles, when about to let contracts iol
the construction of public improve
ments and make sale CT bonds OF any
incorporated district, must first make
advertisement inviting competition II
the bidding, they should, nevertheless
do so. Such procedure would be
safer for the public interest, and better
and safer for the reputation OF the IN
dlviduals who, for the time, are charg
ed with the guardianship of the public
interests"
Judge Little at this juncture cites
number of legal authorities O
a similar nature in substantiatlon o
the stand taken by him in the present