Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1908-03-28
SUIT IN COUNTY COURT BANKERS DECLINE BONDS
Claim Defeat il Law Authorizing
the Issue,
SCHOOL BOARD IN PLIGHT
Reasons Assigned BY New Yorker,
For Refusing To Take school
School Bonds.

~~t-~~* ~6atNo%
fact pretty generally known here
i the refusal of n. W Harris & Co.
! the New York bankers, to take the
$4,000 bonds OF the Martinsburg
school district after having bought
them last February, Their refusal TO
take the bonds Il based on an alleged
defect in certain laws affecting the
bonds, enacted in the West Virginia
legislature in February. 1907
The acton of the New York bank.
ers was a great disappointment to the
board of education and 10 the people
nf Martinsbnrg generally, because, as
y known, 100000 Of the bond issue
was to be used In the erection of
much-needed school house In TIE third
ward. But one alternative was left
and that was TO sell the bonds over
/ ASdtts HIS Tire UOdiu vi CuuIdtlOu
has been trying to do for the last two
weeks or more but the effort so far
has been unavailing. Indeed further
effort to sell the school bonds at this
time would be regarded as futile for
obvious reasons.
This means that Martinsburg will
not have new school building this
year nor next year either for that mat
! ter, for the reason that the Legislature
would. have to amend the law regard
ing The school bond Issue before the
| question could again be submitted to
the voters of the district.
The following extracts from the let
\ ter az n. w. Harris & Co. declining
ne school bonds and addressed to
Mr. w A. Pitzer. secretary OF the
board of education, under date of
March 6, 1908, will be read with IN
terest as giving the reasons why the
bonds were declined.
ltitlilHE ~ Wal lAnCOutE
school district bonds we regret to adj
wise you that upon examination OF the
proceedings, our attorneys found a
fundamental defect in the laws affect
ing the school district The bonds
purport to be issued under section IL.
chapter 10 of the laws OF 1907. Chap
ter 20 of the laws Of 1907, likewise
affecting the school district, amends
and re-enacts section IL and through
some serious inadvertance, in the
opinion Of our attorneys, has destroy
ed the power contained in chapter 10
by which the school district was au-
thorized to issue bonds.
I'VE have been corresponding with
your attorney, Mr.. A. G. Nadenbousch.
and wrote him again yesterday, as
per carbon enclosed, and in our cor
respondence we have explained quite
fully the reasons why our attorneys
consider that the school district has
no power, whatever to issue bonds
and consequently they advise US that
they cannot approve the bonds in
question; and they further inform us
that in their opinion the school dis
trict is entirely without power, under
the existing laws, to issue bonds ano
that any bonds issued would be void.
Messrs. Harris & Co. further state
that they regarded the bonds as
very good investment when they
bought them and would be glad to buy
Martinsburg school bonds at some FIJI
ture time, should the conditions all |
be Favorable.
Mr. Nadenbousch, the attorney OF
the board of education. answered this I
and other letters Of the same tenor
very fully, meeting every objection
raised by the New Workers and show
ing how the law enacted in the inter-
est Of the Martinsburg Public library
did not invalidate the law authorizing
the school bond issue enacted six days
before, quoting numerous decisions in
proof thereof But the New York !
bankers we're obdurate when their at
tcrneys discovered what they contend
is defect in the law relative to the
bond issue and so the matter was
dropped pretty hard.
The following letter addressed to
Mr.. j. B. Stewart, Huntington, who
had been swarded the contract 70
make the plans, etc, OF the proposed
third ward school building, very con !