Pine Bluff daily graphic., 1916-12-12
Judge Elliott Holds Board Without Authority, Except
 When People Vote Bonds.
DECLARES CONTRACT
 OF SALE IS VOID
Chancellor Indicates He Believes Board Acted in Good Faith, but Rules Directors Without Power.
 Agreement Ordered Cancelled.

Holding that the board of directors of Special School district of Pine Bluff is without authority to issue bonds without submitting the question to the voters in a special election, Judge John M. Elliott yesterday is- sued an order perpetually restraining the board from issuing bonds for a new school "without first complying with the provisions of the law" and , declaring null and void the contract , entered into by the board with Gunter 6 Sawyer, Little Rock bond brokers. The board will appeal from the decis- ion.
 The decree was entered in the suit instituted by property owners, and styled J. w. Dutton vs. Board of Di- retcors of Special School district of Pine Bluff. The action was instituted on behalf of the plaintiffs by Attor- neys H. K. Toney and Rowell & Alex ander, the complaint charging that the board had acted without authority, and that the bid of par was not as good as could have been obtained if the pro- posed issue of bonds had been offered at public sale. Attorneys Coleman & Can't represented the board.
 
 tion that the board had acted in good it does not possess the power to issue bonds without the issue being ap- proved by the voters.
 Judge ElliOtt's Decision.
 Judge Elliott's decision in the suit follows:
 "Now, on this day, comes on this cause to be heard, comes the plaintiff by his attorneys, H. K. Toney and Rowell & Alexander, and comes the denefadnts, Board of Directors of Special School district of Pine Bluff, Arkansas, by their attorneys, Cole man & Can't, and this cause is heard upon the complaint of the plaintiff, the answer and demurrer of the de- fendant, and on the demurrer of the plaintiff to the answer of the defend ants.
 "The defendants admitted in open court that the school board of Pine Bluff, Arkansas, had not advertised the issue of bonds herein as required under the law, as found in Kirby's digest, section 7696 to 7699, inclusive. Therefore, the court is of the opin- ion that the demurrer to the complaint should be overruled and that the de- murrer of the plaintiff to the answer should be sustained, and it is so order ed.
 "Thereupon, the defendants refused to plead further, and it is ordered that the injunction prayed for in the complaint should be granted.
 "1t is therefore considered, order ed and adjudged that the injunction prayed for in the complaint should be granted and the contract of the board of directors of Special School district of Pine Bluff with Gunter 6 Sawyer should be and is hereby declared null and void, and the said board of direc- tors of Special School district of Pine Bluff, Arkansas, is hereby perpetually restrained and enjoined from issuing or delivering any bonds or evidence of indebtedness to said Gunter 6 Saw legged contract heretofore existing be- tween the said board of school direc- tors and Gunter & Sawyer; and the said board of directors of Special School district of Pine Bluff, Arkan- sas, is hereby perpetually restrained and enjoined from issuing, selling or delivering any bonds or evidence of indebtedness of said district for the purpose of erecting new school building without first complying with the provisions of law thereto pertain ing; and the said board of directors of Special School district of Pine Bluff, their agents or employees, will fail not to obey this restraining order under penalty of the law providing for viola tions of such orders, and the defend- ants will pay the cost of this suit, and 1t is so ordered. The defendants ex- cept to the courts order and find ings and prays an appeal to the su- preme court which is granted.
 "JOHN M. ELLIOTT,
 "Chancellor." /" The demurrers referred to in the decision are similar, the defendants contending that the complaint did not contain facts sufficient to form cause of action, and the plaintiff arguing that the answer did not contain facts sufficient to constitute defense.
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