Hornblower v. City of Pierre

231 F. 496, 1916 U.S. Dist. LEXIS 1748
CourtDistrict Court, D. South Dakota
DecidedFebruary 18, 1916
StatusPublished
Cited by2 cases

This text of 231 F. 496 (Hornblower v. City of Pierre) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hornblower v. City of Pierre, 231 F. 496, 1916 U.S. Dist. LEXIS 1748 (D.S.D. 1916).

Opinion

ELLIOTT, District Judge.

This is an action brought by the plaintiffs against the defendant upon 10 certain city warrants of the city of Pierre, for $1,000 each, dated July 29, 1890, consecutively numbered from 3614 to 3623, inclusive, and also upon 10 warrants of the said city of Pierre, dated July 29, 1890, for the sum of $500 each, numbered consecutively from 3591 to' 3600, inclusive, and judgment is demanded for the sum of $15,000, with interest thereon at 7 per cent, per annum. Upon a stipulation in writing, waiving a jury, the case was tried by the court, without a jury. '

- Upon a careful review of the testimony, I find little dispute upon [498]*498the facts material to the issues. I find, from the evidence, that under date of July 28, 1890, the city council of the city of Pierre passed a resolution, as follows:

■ “It was moved that the sum of $25,000 for public improvements be appropriated and warrants ordered drawn for the same, payable to Ooe I. Crawford, and upon motion the roll was called and the members answered their names and voted as follows: Alderman Coy voted aye, Hilger, aye, Haugen, aye, Meade, who voted aye, McNamina, who voted aye, Robinson, who voted aye. Absent and hot voting, Alderman Kleiner. So the motion was carried and the warrants ordered drawn.”

The warrants in question were issued pursuant to said action by said city council. The undisputed testimony is: That thereafter the city auditor presented said warrants to Coe I. Crawford, in whose favor they were drawn, and he thereupon, at the request of such city auditor, indorsed each of these warrants without recourse.

The said city auditor did not deliver said warrants to said Crawford, or leave them in his possession, but took them away with him, and thereafter delivered said warrants to- the National Bank of Commerce at Pierre, S- IX, for the use of a committee of citizens of the city of Pierre, known as the “Capitol Campaign Committee,” of which John Sutherland was the chairman or president, intending that the proceeds of all said warrants were to be used'for the purpose of defraying the expenses of said capítol campaign, and thereafter B. J. Templeton, who at that time was mayor of the city of Pierre, and president of the said bank, negotiated the sale of said warrants to plaintiffs. That the National Bank of Commerce, or B. J. Temple-ton, paid nothing for said warrants, either to said Crawford or to- the said city of Pierre. That said Templeton, president of said bank, went to tire city of Boston, and interviewed plaintiffs, and arranged for the sale of these warrants for the use and benefit of said Capitol Campaign Committee; the arrangement not being entirely consummated and being subject to further investigation on behalf of plaintiffs. That plaintiffs, for the purpose of determining the financial condition of the city, made inquiry of the city officials, and in addition to the representations which had been made by Templeton, orally, to- the plaintiffs at Boston, Mass., a certificate was made by the city auditor, under the seal of the city, and sent to the plaintiffs, which was introduced in evidence and is referred to as Exhibit A, as follows:

“Exhibit A (Copy).
Statement of the Einancial Condition of the City of Pierre This 22d day of July, 1890:
Assessed valuation ............................................ $ 3,154,965
Real valuation (estimate) ..................................... 10,000,000
Total bonded debt:
Eire bonds ......................................... $ 5,000 00
Park bonds ........................................ 15,000 00
Eunding ............................................. 25,000 00 $ 45,000
Total outstanding warrants ................................ 120,000
Total city debt ............................................ $165,000
“I certify that the foregoing statement is correct.
“H. E. Dewey, City Auditor.
“(Seal of the City of Pierre.]”

[499]*499It further appears that upon receipt of this communication, the plaintiffs wrote a letter, Exhibit B, as follows:

“Exhibit B (Copy).
“B. J. Templeton, Esq., Pierre, So. Dakota—Dear Sir: The papers which we asked for when you were in Boston arrived this morning, and seem to be, with two exceptions, what was required. In the' first place, the city auditor, in his valuation of the city, gives it $3,154,965, outstanding bonds $45,000, total outstanding warrants $120,000, and a total city debt of $165,000. This is about $9,000 more than assessed valuation allows, 5 per cent. Doubtless there is some explanation of this which we do not know. Of course, these warrants, issued over and above 5 per cent., would not be legal, unless there is something about it which we do not understand. We also inclose certificates of legality of warrants, which we wish you would ask the city attorney and Mr. Johnston to sign, and return to us. The certificate ol’ legality which they have sent on does not mention any issue of warrants, but reads as if all warrants issued by the city council were legal.
“Tours truly, [Signed] Homblower & Weeks.”

And the president of the National Bank of Commerce wrote, upon the stationery of said bank, a letter, Exhibit C, as follows:

"Exhibit O (Copy).
“B. J. Templeton, Adolph Ewert, A. P. Earr,
“President. Cashier. Ass’t. Cashier.
“The National Bank of Commerce,
“Capital, $75,000.00
“Notice: Holders of City of Pierre warrants Nos. 2592 to 2601, inclusive, and 2661 to 2738, inclusive, will present the same for payment. Interest on the said warrants will stop from Aug. 1, 1890.
“H. E. Cutting, City Treasurer.”
"Pierre, South Dakota, July 30, 1890.
“Hornblower & Weeks, .Boston, Mass.—Gentlemen: I arrived home all O. K., ‘top side up with care,’ and am wading through about a foot deep of letters, including yours of the 26th inst The auditor, in making his statement to you, was in error in this: He gave the bonded indebtedness as $45,000, and warrants $120,000. The fact is the funding bonds of $26,000, which I sold to S. A. Kean & Co., Chicago, were part of the $45,000 item, and the proceeds take up so many of the outstanding warrants, as you will by the inclosed notice from the city treasurer, so that the statement should read:
Bonds .............................................. $ 45,000
Warrants ........................................... 95,000
Total debt .......................................... $140,000
—which is within the limit, and in addition our tax levy just made will yield us about $70,000, and we have called an election to vote bonds to take up all outstanding warrants, as I explained to you.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Langan v. Van Dusen
108 N.W.2d 470 (South Dakota Supreme Court, 1961)
George E. Hart, Inc. v. Board of Education
278 Ill. App. 132 (Appellate Court of Illinois, 1934)

Cite This Page — Counsel Stack

Bluebook (online)
231 F. 496, 1916 U.S. Dist. LEXIS 1748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hornblower-v-city-of-pierre-sdd-1916.