Omaha daily bee., 1908-12-24
SUIT TO TEST WATER BONDS
Brother Of Councilman Jensen
Appears az Plaintiff.
HINT OTHERS MAY INTERVENE
George s. Wright Indicates Water
Company t. Watching 60 See ~
the Suit IL = Bonaade
One.

ell Monday night m appropriatfng the sum
OF 500 to be expended in determining the
esality of the proposed Issue OF $4,000
bonds for the construction OF q municipal
water works system, what 70 said to be
a friendly suit was instituted IN thu dis
trict court. In the suit the court n asked
to restrain the city authorities from ne
gotiatirS or delivering the bonds.
L H.. Jensen, a brother OF Councilman
J. c. Jensen. chairman Of tha committee
or water works. and q member OF the
firm Of Jensen Bros. appears as piaintlff
In the action, although the papers In the
suit were originally made with the name
Of Fred Rasmussen, bookkceper for the
firm Of Jensen Bros, as plaintiff. For
some reason the name OF Rasmussen
wherever It appeared m the petition was
erased and that Of L H. Jensen substi-
tuted.
The suit Is directed against the city Of
Council Bluffs, Thomas Maloney. mayor;
A. w. Cassidy, city clerk; John Olson,
Oscar Younkermsn, c. A. Morgan, J. Chris
Jensen, w. 8. Rigdon, Otto s%kodsholm
James McMrlen and A. Bellinger, members
Of the city council.
The petition recites that on or about De-
cember q, 1908, the city council passed a
resolution providing for the execution, sale
and delivery of bonds in the sum OF $500. 900
for the construction of a water works
system, by virtue of q special election held
on October q. 1905. It rs alleged that there
was no legal authority for calling and
holding such election, and that the election
was not called and held according to law
and 1t is denied that. at this election. au-
thority was given by the electors for the
issuance of bonds.
1t Is alleged that unless restrained by
the court the defendants will proceed to
issue and sell bonds. and the plaintiffs
property will be ~wrongfully subjected to q
tax to meet interest and principal OF the
bonds. The plaintiff petitions that the de-
PENDANTS be restrained and perpetually en-
Joined from issuing. negotiating or de.
iivering the bonds or any part thereofi
that the proceedings be declared illegal,
that it be a%djudged that the proposed pro-
ceedings OF the council are an attempt to
create an Indebtedness I'm excess of the
constitutional limit OF indebtedness; thai
there is no authority for such Issuance OF
bonds.
Opinions of Attorneys.
w. H.KiIlpack. former county attorney
appears as attorney for Jensen.
I City Solicitor Kimball when asked con
corning the suit yesterday afternoon, said
1T is my understanding that this is {
friendly action brought under the author
ity given by the city council Monday night
1t is the purpose Of the committee having
in charge the floating of these bonds L
test every legal phase of tho case, in ordet
that there may be no question about tn
validity of these bonds. Every point viii
be raised that would be raised In any sui
Of this character"
w think this is a good move" sait
George S. Wright. attorney tor the Council
Bluffs City Water Works company. al
has been our belief all the time that Thu
bond issue was unconstitutional and W,
shall be glad to see a test made. 1t ma!
not be, however, entirely satisfactory L
the taxpayers to have the city approprl
ate more money with which to pay at
torneys. Such action is not as much Al
evidence Of good faith as II some inter
ested taxpayer or several OF them SHOULD
take enough interest In the matter to figh
the case. If 1t appears during the progress
of the trial of this action that this sui
is a mere subterfuge 1t is likely that som
OF the taxpayers who were opposed to tn
bond issue and are convinced that the issu
is unconstitutional will institute an actiol
which will be a real legal test