Omaha daily bee., 1909-01-07
WATER BONDS ARE ENJOINED
Catherine B. Nash Company Goes Into
the Federal Court.
ATTACKED ON MANY POINTS
Charged Election Was Illegal and
that City Has No Right to Issue
Bonds in the Amount
Voted.

on petition OF the Catherine II. Nash
company of Omaha Judge Smith McPher-
son OF the United States circuit court yes
terday issued a temporary injunction re-
straininR the city officers and city council
of Council Bluffs from selling or disposing
of any Of the $4,000 bond issue for the
construction of the proposed municipal
water works plant and restraining further
proceedings in the suit brought in the name
of L. II. Jensen TO test the legality of the
proposed bond issue until the questions at
issue in the United States court are deter
mined. The restraining order so far as It
relates 70 the Jensen action does not pre-
vent the dismissal of the test suit.
The petition and order issued by Judge
Mcpherson were filed In the United States
circuit court here yesterday by Crofoot &
Scott Of Omaha. attorneys for the G. B.
Nash company. which owns considerable
real estate In Council Bluffs. The mayor,
members of the city council and L. H.
Jensen are made defendants. Notices of
the restraining order were served on the
several defendants yesterday by Deputy
United States Marshal Cole.
The suit is based on the allegations that
the proposed $4,000 bond issue is Illegal
and contrary to the provisions of the con-
s~titution OF the state Of Iowa and that the
suit brought by l.. H. Jensen is not being
prosecuted In good faith.
Grounds for suit.
The petition is a lengthy document COW
ering eleven pages of typewriter matter,
1t sets forth that the plaintiff company
owns real estate in Council Bluffs to the
value of over $4,000, upon which it pays
annually over $500 in taxes. A list of the
real estate holdings OF the company is at
tached to the petition.
In the first place it is claimed that tbs
proposed bond issue is illegal for the rea.
son, as 1t is alleged, that the indebtedness
of the municipality is in excess of the con.
stitutional limit. The constitution Of thu
state prohibits the mourning of indebtedness!
in excess of 5 per cent Of the actual valu,
of the taxable property of the city. TIL,
value of the taxable property is given ii
the petition as s4,212, $40, while the Indebted
ness Of the city is said to be $1,000.
Regarding the section of the state Law
which permits the voting of bonds in ex
cess of the 8 per cent limitation for tn,
purpose OF purchasing, erecting or main
tanning and operating water works plant
and other public utilities such as eIectri
light plants. gas works, power plants. etc.
the allegation is made that this section o
the statutes is absolutely unconstitutiona
and void, insofar as It attempts TO author
iEe the mourning of indebtedness in an.
manner and for any purpose in excess o
the constitutional limit.
Legality Of Election Attacked.
1t is also alleged that the petitions 70
the submission Of the proposition to issu,
bonds were insufficient. 1t is alleged tina
they were signed by less than 200 qualified
persons, instead of 2i4. the number o
signers claimed. The law. as quoted II
the petition, requires a majority of tn
qualified electors to sign.
The further allegation that the specia
election held on October q was illegal /
made. Seven distinct and separate reason
for the alleged illegality of the election
are set forth in the petition, as follows;
That women voted contrary to the con
stttution.
That the statute that permits women I
vote provides for separate returns of thei
vote. which was not done.
That women voted in other precincts tina
those in which they resided.
That the polls were not kept open in al
cases from Z a. M. to Z p. M, as requires
by law.
That many persons were permitted I