The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-05-23
INJUNCTION
AGAINST BOND
SALE is ASKED
Attorney For Taxpayers
Protesting against Commits
siOners' Action Argues
GET NEW BOND OFFER
Offer to Pay So. 100 Premium
on 100000 of Bonds Is
Made in Court

arguments were maze Dc1Oft
Judge Fred Jansonius this afternoon
in the petition of several local tax
payers for injunction against the
county commissioners to prevent
sale of from $4,000 to 100000 OF
2O-year county refunding bonds at
5i4 percent interest at par. The
taxpayers who began the suit were
J. p. Spies. A. W. Lucas. T.. A..
Hughes and H. j. Duemeland.
Judge JansOnlus at the conclusion
Of arguments of +. B. Cox, appear
ing for taxpayers, and +. S. Allen,
county attorney, took the matter un-
der advisement
On the one hand Mr.. Cox alleged
the commissioners acted secretly
and that the sale of bonds at the
price they proposed to sell them
would cost the county $4,000 in 20
years. He presented an affidavit of
r.. A. Hughes offering to purchase
the bonds at par and $500 pre-
MUM. of 100000 bonds were sold,
or 81 $50 if $4,000 bonds were sold.
Mr. Cox, opening his argument
said the majority of the board of
county commissioners members
Bachman, Moynier and Swanson
having taken the act--acted secret
ly and in such manner as to indi.
cate fraud or a failure to serve th1
taxpayers they took an oath to
serve.
He said inquiry was made by
bond house representatives of the
auditor, and they were told that tha
board would not sell bonds. This,
he said. combined with lack of no.
tice of meeting, was evidence Of
secret action.
He said his legal position was
that the board of county commits
sioners under the law had power to
sell bonds without advertising for
bids, but that it was their duty un-
der their oath not to do anything
that would insure to the detriment
of the taxpayers.
He held that the resolution of the
board to sell the bonds did not con-
stitute n contract, and that the tax
payers asked that the commissioners
be enjoined from completing the
contract. He said under the law it
was obligatory on the county COM
missiOners to make record of their
actions, and that this was not done
in this case. He said their was af-
firmative evidence Of secrecy in
that the auditor, johnson, either in
tentionally or unintentionally was
Informed and informed bond buyers
that the county would not sell
bonds.
He filed with the court an affda-
Wit by F.. A. Hughes that on May
l. 1928 the bonds were worth at
least par at 5 percent, and the offer
to buy them at premium.
He argued that an injunction
could be granted when there was
abuse Of discretion shown.
Aliens Reply
County Attorney Allen declared
that the auditor had no power or
authority to go around saying what
the board of commissioners would
or would not do, and that the bonds
buyers should have gone to the COM
missioners. He said legislative
act requiring counties to go on a
cash basis on July was responsible
for the decision of the commission
ers to sell bonds.
He said he did not think the board
should be branded as fraudulent be-
cause. he said, they had not abused
their discretion far enough to have
the court stay "you cannot do this"
He said that Mr. Hughes was able
to buy the bonds, he might do so TO
win his lawsuit or he might have
arrangements with other bond
houses to take over the bonds.
Mr.. Allen read list of recen.
bond sales in the state including:
Ward county 51-2 percent bonds
at 10l; McHenry county 51-2 bonds
at 101; Dunn county percent bonds
at par; Mountrail county 5l-2 per-
cent bonds at 10l. He said these
offers were no better than the IA
percent Burleigh county bonds.
He said the court would be going
a great ways under the evidence to
say that the board acted fraudulent
ly and secretly and abused discre-
ton.
He said that if the commissioners
had made a Legal contract which
he did not think they had, there
was nothing the court could do; II
they had not the commi ssioners
could not be trusted to 60 ahead and
make the best sale possible.
Mr.. Allen said Mr.. Cox had re-
ferred to drastic action" to be
taken if the court did not grant an
injunction and declared this was, go
N