The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-05-09
TAXPAYERS
: MAY LOSE IF
SALE OBTAINS
Action of County Commission
ers in Meeting on May l
Brought in Question
AGREED TO BOND SALE
Taxpayers Alleged Purported
Contract For Sale Unlaw-
full and Fraudulent
AGREED TO BOND SALE

Suit to restrain the Burleigh coun-
tv board OF commiss ioners from ratl-
rving~ or proceeding under any con-
tract for the sale Of funding or re-
funding bonds as purported to have
been entered into last week was filed
in the district court today by }. +.
Spies. A. w. Lucas, f. A. Hughes and
II. J. Ducmeland, az taxpayers
Judge Jansonius granted an order
70 show cause why an injunction
should not issue, returnable on May
233 at 2 p. m. O'Hare and Cox are
attorneys for petitioners.
The taxpayers alleged that the sale
# ratified would subject the plain
titrs and other taxpayers similarly
situated to undue and unnecessary
'and burdensome taxes for period of
twenty years.
A motion was passed at the meet
ing of the commissioners on May l
for sale of not less than $50,000 nor
more than 100000 of refunding
bonds to take up outstanding war
rants on July when under law OF
the legislature the county is required
to 90 on a cash basis. The commits
sioners present were Messrs. Swan
son, Moynier and Soder. Messrs.
Patterson and Bachman were absent.
The commissioners present agreed
to sell the bonds to w. l.. Slayton &
Co. and Kalman and Wood of Min
neapolis, Auditor johnson told The
Tribune after the meeting. The in
tcrest rate was to be IA per cent.
No. bids were asked for by the COM
missioners.
Won't Sign, He Says.
81 will never as chairman of the
board sign these bonds,' said f. e..
Patterson, chairman of the board to-
day. II RdvisAd against bonding the
county on general principles but
urged the members who came to me
in my room( where / have been con-
fined by sickness at all costs to ad-
vertise for bids on the bonds so that
the very best rates could be had. The
rate secured was not as favorable as
could be secured l find after talking
with bankers and business men OF
Bismarck. Until l am mandamGsed,
= will not sign any of these bonds. l
was not present at the meeting at
which the bonds were sold"
E. S. Allen, states attorney, de-
clared that he was against the propo-
sition as his correspondence shows
and that he feels that valid con-
}s.tract has not been entered upon"
1t is expected that the Board OF
County Commissioners will meet Fri
day when the situation is canvassed
it is hoped that the matter will be re-
scinded, as the taxpayers generally
feel that if bonds must be issued
they can be sold at much better
figure then named in the contract
which this suit most properly seeks
to set aside.
Mr.. Patterson said that on this
issue at least he is in complete ac'
cord with Mr.. Spies and Mr.. Hughes
and trusts that the sale can be SET
aside, and that he SO stated before
the action was started.
PurpOrted Contract.
The plaintiffs suit says that or
May 1, 1928, Commissioner c. A
Swanson, purporting to be acting
chairman of the board, attempted tt
enter into a purported contract il
behalf of the commissioners for th'
sale of the bonds, and that "said de
fendant, C. A. Swanson, in attempt
ing to enter into the alleged con
tract binding the county of Burleigh
as aforesaid, did unlawfully ant
without authority of law, sign, as act
ing chairman Of the Board of Count!
Commissioners Of Burleigh county
= the following certificate attached t.
and made a part of proposal il
writing for the purchase of aforesai
bonds as follows: "It is hereby Ger
tilted that the foregoing bid was dull
accepted by resolution of said Boar
of County Commissioners this frs
day of May, 1928, and that said Ger
tifcate was attested by the defend
ant, Frank j. Johnson, as county au
ditor of Burleigh county, North Da
kota. That aforesaid certificate S
signed by the.defendant, c. A. Swan
son and attested by the defendant
Frank j. Johnson, is wholly false an
untrue in that the bid described i
said certificate was not submitted t
or acted upon or accepted by resolu
tion of the Board of County Commits
sioners on the first day Of May, 192;
or at any other time"
The complaint says that man
times prior to May l persons repre-
senting bond firms asked Count
Auditor johnson if the county II
tended to sell bonds and that he il
formed them that the county had n
Intention of selling bonds in the nea
4pture, and say they believe TIM
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