Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1910-07-19
AUDITOR AND THE
BOARD ARE RESTRAINED FROM
ISSUING BONDS TO G. M.
BEcHTEL AS CONTRACTED FOR.
INJUNCTION FILED
WITH CLERK TODAY
ORDER WAS SIGNED BY JUDGE M.
A. ROBERTS LAST NIGHT AND
CORNELL WILL FILE ANSWER
MONDAY; HEARING NEXT WEEK

by the ming OF restraining olu@'
this morning with the clerk of the dis
trict court, County Treasurer }. ".
Curran, Auditor G. w. McCarty, the
members Of the board of supervisors
and George M. Bechtel & Co., OF Dav.
export, are enjoined from carrying out
the contract for the issuance OF bonds
entered into by the above parties last
Wednesday. The signers OF the petl-
ton of restraint are Samuel Mahon
S. H. Harper, G. 0. Taylor and w. r..
Daum, and the order enjoining the
county officials from carrying out tho
$1,000 bond contract was signed by
Judge M. A. Roberts last night.
The, Contract Questioned.
| The petition is lengthy one and
names all of the above as parties to
the issuance of bonds. 1t is claimed
in the petition referring to the con-
tract entered into between the county
and the Davenport firm that the sale
| is illegal. The contract IN question
reads substantially as follows:
"For approximately $4,000 per
cent funding bonds, under date of July
| 1, 1910, to become due and payable.
one-fifth of amount April l., 1921-2-3-4
and 1925, we will pay $50,5OO. Pay any
accrued interest that may accrue be-
tween the date Of the bonds and the
date of their delivery and in addition
furnish blank bonds and legal pro-
ceedings free of expense to the county.
"The county to furnish us with GER
titled copies of all proceedings suf-
ficient to evidence the validity Of the
bonds to the satisfaction Of our at
'torney.
(Signed) George NJ. Bechtel & Co.
by George Wait.
"The above foregoing proposition
being accepted, we agree to deliver
above described bonds to George M.
Bechtel & Co., of Davenport, Iowa,
when issued.
(Signed.) 81. v. Curran, Treasurer.
81. w. Reinhard,
"a j. Fairchild.
"A. L. Reynolds
Board of Supervisors
Outstanding Warrants.
The petition sets forth the amount
of outstanding Indebtedness of Wa
pello county subject to be funded by
the issuance of bonds as follows:
Warrants drawn on county
farm fund ...............$ 5,192.09
County bridge warrants -. 7,059.14
General fund, county ...... 16,O94,44
General fund, overdrawn =. 1S,345.73
Total s41,691.4O
Provides for Bridge Fund.
The petition then cites the law
which forbids the taxation Of Ottumwa
for the county bridge fund on the
grounds that the bridges are located
outside of the city limits. This. clause,
however, was provided for in the cor
tract between the county and the
bond firm is of little value as a cause
for action against the contract.
The petition AYERS that no resolu-
ton has been passed by the board au-
thorizing the issuance of the bonds.
This, the board says, is incorrect. Such
a resolution, the members say, was
passed and Is on record.
Did Not Seek Better Terms.
The petition states the contract
purports to have G. M. Bechtel & Co.
sell the bonds before they have been
issued and hence have no rights under
the law to do so. It further claims that
the treasurer has not made an effort
to sell or exchange the bonds at any
better terms than stated in paragraph
III Of the petition citing the contract.
Finally it prays for the recall and
cancellation of the contract forth
with. without notice, and that the
beard OF supervisors be enjoined from
passing any resolution for the issue OF
bonds based on county bridge war
rants, unless stated in the contract
payable by tax levied outside limits Of
TIE city.
Stopped by Order.
The contract was entered into July
between the county officials named
in the petition, and George Wait, rep
resentative Of George NJ. Bechtel &
Co. Of Davenport. Following shortly
upon the supposed conclusion of the
articles of agreement, representa-
tive of N. w. Harris & Co., of Chicago
called upon the officials and is said to
have stated to them that the bonds
-ere sold too high, that four and half
or four and quarter per cent was
about the right price to pay for such
bonds. George Wait of the Davenport
concern, had already left, and the
board became unsettled as to the &C
la % 60