The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-05-11
COUNTY BOARD
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IN BOND SUIT
Resent Suggestions of Fraud
in Connection and Instruct
Attorney TO Answer
WOULD SAVE, CT A I M
Planned to Retire Warrants
Il and Release Money for
Crops, Is Explanation

{. y. Swanson, victor Moynler ana
AXel Solder, three members of the
county board of commissioners, who
made arrangements for the sale OF
from $4,000 to 100000 of bonds and
which action was held up until hear
ing May % by Judge Jansonius on
petition of tax payers, will stand by
their guns, they said today.
The three commissioners met TINS
morning at the court house, Commits
sioncr Patterson, who is i'll, and Com
missioner Bachman, who is abroad,
being absent. !
They instructed States Attorney
Allen to answer the suit brought in
District court, and to appear when
the hearing comes up on May %.
Commissioner Swanson, who was
acting chairman of the board when
the bond sale was made, was asked
why the commissioners had not ad-
vcrtiscd for bids. He declared that
the board thought they had good
ilal from the bond houses who Of
fcred to buy the bonds at 5 Ia per
cent interest and decided to take It,.
States Attorney Allen, in the in
formal conversation around the COM
missioners' table, interposed he
thought the commissioners were
wrong not to seek bids, and had been
wrong in not taking bids on furnish
ing of stationery and printing sup
plies.
Would Save, Claim.
Commissioner Swanson SAID that
the county was paying 7 per cent ON
warrants outstanding and that many
of the small banks in the county
which held the warrants wanted to
give them up to get funds to finance
the farmers this spring. IT the bond
sale were made, he said, the coun-
ty would take up the warrants, save
! 3-4 per cent interest for the tax
payers and release funds to aid in
financing the farm crops this year
Commissioner Moynier interposed
belief that there wasn't any objec-
tion to the commissioners action out
N the county, but that some people
IN Bismarck had per cent war
rants they didn't want to give up.
Commissioners Soder declared that
if the commissioners acted wrong
the protestants could go to the Gov
ernor and have them removed.
:, Under Old Law.
The commissioners were, they said
not acting under the law of 1928
which requires the county to 60 on
cash basis on July if it can sell
bonds or warrants, but were acting
under the old law giving them au.
thority to issue bonds to Tetire war
~lnt. The states attorney informally
said the commissioners were within
their legal powers in acting under
the old law.
"We're certainly not going to LEI
this suit pass by without answering
when they say we acted fraudulent
w." Commissioner Swanson said.
He. declared that the commission
ers' method was money-savine
method, but that the taxpayers in the
suit were objecting to saving money
There apparently is some difference
as to the amount of warrants out
standing, Auditor Johnson estimating
the amount yesterday at $4,000 ane
County Treasurer Flow saying today
a check-up showed around $16O,OOO.
The auditor reported to the com
missioners that tax collections dur
ing February and March were abou
35 per cent of the total taxes due
Suggestions from the states at
torney that Auditor Johnson shoult
have got in touch with bond houses
was met by a statement from hin
that he had destroyed notices from
a number of bond houses under tn
impression bonds would not be is
sued.
The recent sale of city school bond'
:, at less than per cent interest ais
ywas mentioned - the representative
of another bond house in the room
Commissioner Soder objected to re
marks of the taxpayers suit an
others and declared that the com
raissioners could, if the people want
Yed, cut out all maintenance on road
" and a lot of other stuff.
No further action on the bond sal
will be taken today, outside Of IN
structing the states attorney to an
swer the suit.