Grand Rapids Herald-Review Newspaper, September 17, 1913, Page 1

-— Grand VoLt. XXIV. No. 10 Granp Rapids, Irasca County, MINN., WEDNESDAY SEPTEMBER 17, 1913 VILLAGE COUNCIL REFUSES INTEREST Two Per Cent Interest Allowed First | State Bank on Orders is Held Out. WILL BOND TO PAY THE BALANCE} $1,335.32 Alleged to Have Been I legally Paid Will be Settled in Court—Matter Discussed at Counc'l Meeting. The financial embroglio between | the First) State bank and the vil- lage of Grand Rapids has attract- ed more than ordinary attention to municipal affairs, because of the peculiar nature of the contro- versy. The matter came up for consideration before the council at | its special meeting Saturday even-/ ing and developed some spirited statements by Attorney Cc. G McCarthy on behalf of the council and President A. C. Bossard of | the First State bank. Following the default judgment entered against the municipality for the sum of $12,794.45 prineipal, and interest amounting to $2,813.34, it became the duty of the council to make a levy on the taxable prop-, erty of the village to take care of the debt, and in this way the dis- cussion arose. Mr. Bossard took occasion to express resentment at the statements and insinuations that had been circulated concern- | ing himself and the institution wit ; which he is connectéd. He was president of the village council in 4909, when the orders in question were issued, and which the First | State bank, of which he was also/ president, cashed for the holders thereof. The order for which judg- ment has been given were issued ! in payment of the Third street pavement. At that time the vil- lage had no funds on hand to pay, for the work proposed to be done, and an arrangement was entered into between the council and the First State bank whereby the | bank would take orders issued for | improvement purposes, and for | which accommodation the village would allow the bank 2 per cent | interest in addition to the 6 per | eent allowed by law. This under standing involved the taking up of; the orders by the village within; sixty days from the time of issue. | Had the village made good accord-| ing to agreement the bank would! have netted interest on the trans- acticn at the rate of 18 per cent | annum. It was proposed to. sell | the bonds of the village to refund the orders. One concern made! an offer of about 90 cents on the dollar for the bonds. President, {Bossard objected to making so large a sacrifice on behalf of the taxpayers and advised delay in the, matter hoping to make more ad-|} vantageous arrangements later on. The fact that he was presiding officer of the village and at thej same time president of the bank to which was paid a discount of 2} per cent had been referred to, he said, as evidence that he had one hand in the village exchequer drag ging out interest money and with the other depositing it in his bank.! “At that time,” said Mr. Bossard, “T owned ten per cent of, the capi- tal stock of the First State bank. The bank is capitalized. at $10,000. Compare the interest that I would derive from my paltry bank stock and the amount of additional taxes I would have to pay on my holdings in the Itasca Paper company and other interests in ihe village, as a result of the i:oproved.ents Taade at that time and by which this debt was cre- ateu, and I will submit to any fair- minded man if such a charge could have any foundation in fact. In any event,” he continued, “if the First State bank has taken a jissued under date of December 43, ‘order pilbe Ger ‘fault, four orders were witheld from the principal amounting to 1,624.32, to offset the discounts, of the village, made a statement to the members of the council in which he disclaimed any sympa- thy with any proposition caleulat- ed to deprive the holders of vil- lage warrants of one cent to which they might be justly entitled. But neither was he in sympathy with, any individual or concern that at- tempts to exact from the taxpay- ers more than is justly due. When a committee representing the vil- lage council called on him some time ago to retain his services he stated then he did not believe there was any defense to offer against the payment of the warrants and the interest as agreed upon, and he did not believe there should be. He regarded it as an honest debt, and should be paid. Upon investi- gation, however, he had found a condition that was not anticipated. He found 4 per cent had been paid on dome of the orders instead of 2 per cent. “At any rate,” said Mr. McCarthy, ‘“‘we find a village order retained to represent the a 1910, for $561.67, marked ‘for dis- | count,’ that cannot be traced to any, other source for its existence ex- cept in payment of an additional: two per cent on orders issued in: 1909 and on which 2 per cent had been paid in that year. “This was made payable to the First State bank.” Another matter to which Senator MeCarthy called attention was a discrepency of $1,000 in the interest charge as computed by the bank and prey sented as part of the judgment se- cured by the bank against the vil-j| lage. The principal in the judg-, ment was $12,794.15, and the inter- est charge submitted by the bank through its attorneys was $3,983.29. ; These figures looked large to Mr. McCarthy and he referred the or- ders to County Treasurer Mc- Mahon to figure up the interést. Mr. McMahon found an excess charge cf more than a thousand dollars in the interest account. Investiga- tion developed the fact that one. village order for $1,000, with in- toresi, Was 1 cluded as an interest charge. " c-der was issued to 3 Rapids ‘mprovement! company. payable June 4, 1913, It was held ly the bank and ‘was not included in the list of orders sued. In this way it might have been included in the judgment and yet remained outstanding. Cashier Bolter explained to a representative of the Herald-Review, that this mistake was made by deducting the principal, $12,794.15 from the total amount claimed by the bank, which included the thousand dol- lar order in question, which left the balance, $3,983.29, of interest. In the taking of judgment by de- allowed, which is claimed to be contrary to law. The face of the interest orders paid total $1,335.- | 32. The bank has made answer to! the claim of the village, alleging | this amount was paid for services. | It is said the village council will, take up the matter of issuing the; bonds to take care of the judgment, | and thus make the payments in one, two and three years. This’ would relieve the heavy burden on the taxpayers that one year’s levy would inflict. It is said assurances have been given the council that the bonds will be taken by local capital if the issue is made. RAILROAD WILL HELP BIG FORK Forty-Two Mile Stretch to Craig All Done Except Five Miles. cently as a member of the Itasca county Grand jury, told the Herald Review that Big Fork people are to have some better railroad ac- comodations, soon, as the connec- tions will soon be completed from that place to Big Falls. The International Lumber Com- ‘MILLIONAIRE LEADS pany has constructed a road from work some time gao. dollar from the village, or is ask- ing for a dollar, to which it is not justly entitled, we are willing to|Big Fork to Craig, a distance of | pay it back, or withdraw the claim, as the case may be.” torney McCarthy, who had: been work on a piece of railroad from 42 miles and all of tat is com- At-|Dleted except a strip of about five) to this economical manner of ex- miles ‘hear Craig. Big Falls to Craig, completing the | The Rainy River Lumber Com- | el’s worth of sinkers. pany has more recently been ba pids | ‘LAND SALE INTEREST GROWS LARGEST HELO) COUNTY FAR 1,621 Acres Disposed Of At The Farmers Reporting Mzny Products Regular Monthly Offering Which Will be Shown at the By The State Auditor. Coming Exhibition. BETTER ROADS HAVE BEEN HELP AMUSEMENT PROGRAM ARRANGED Prospect Bright For Much Larger | Hibbing and Grand Rapids Base Number Of Sales In The Ball Teams to Play Last Day Future To Investors —Football Game Friday And Settlers. September 26. At the September sale of state | aud school lands the largest num- per of acres were sold that has | been sold at any time during the summer and fall monthly sales. Thursday, Friday and Saturday, a In the entire list there wore fan 1,62 acres disposed of mostly - The weather*has so far been fa- r-idents of Itasca county. ‘vorable for the gathering of farm Tne weather is so fine now that' products and the picking of seed it is not a difficult.matter for corn. The fact that no frost ef any one desiring to look at land consequence has as yet appeared All Itasca county people will be glad to learn that much progress is being made with the arrange- ments for the Fair to be held heve race, one half mile between Rapids and Coleraine. eis The program of sports wed good enough to attract the /atten- tion of any one who may be desir- ous of practicing. The foot ball game one afternoon and* a base ball game the other, gives'a lively tint to the occasion. ; : fair in this county seems to be taking a real hold. This ean be seen by the general interest .dur- ing the past week. So many farm- ers have remarked that they have something to bring to the exhibi- tion that it seems that there must be a great display. The management has had printed a large sized poster, and these are being distributed in every part of the county. The provisions for entertainment were never looked after in as thorough going a ‘style as thisyyear. . Those having * articles | which will classify under the premiums offered, and for that matter spe- cial articles unlisted, are. again, reminded that to make the dtasca county fair a notable success these articles or products should be shown. Let’s all pull together and make the fair an event long to be- re- membered. Again, pull together, don’t hang back. This is your in- terest as much as it is that of those who are managing the fair. ; £e get in with your exhibits of corn, potatoes, rye, barley, wa- to do so. Then the ground is dry-! will go a long way toward a suc- ing up and the roads are easily cessful exhibit. * passable for almost any kind of a Dr. Mary Luther, specialist in vehicle. Then the fact that the charge of the Baby Health Contest great number of new roads con-jat the Minnesota State Fair, 1913, contracted or under consideration ' will be at the rest pavillion on the will open up the back woods is Fair Grounds on Friday and Satur- clearly seen by those who want ! day, Sept. 26 and 27, to meet the land and so the large area sold, mothers of Itasca County and to is the result. It is thought by consult with them as to the bes those who are acquainted that if kway to feed, clothe, and treal the road building keeps up the young children. Each child will Le land will be sold rapidly from this | weighed, measured, and examined time on. ‘separately and privately and each Charles O. and Mathilde Peterson:mother privately conferred with of Lake Elmo purchased the largest as to the needs and requirements. holding, 651 acres. The other pur- Dr, Luther is an authority on chasers were: Nels Lind of heron, children’s diseases, Iowa; Alexander Edner and Aaolph ther should miss this opportunity, Edner, Elmer Edner, Alice haner, Ro get the advise of one of the all of Marble; Andrew Bagley of best women physicians in the Liepold, Frank Dreary of Nash- Northwest, on the treatment, not wauk, Warna Lerea of Bovey, Emil only of children in general but of Nurmi of-Bovey, Warren roppe cf her own child in particular. Marble, Michael A. Keating of Rosy, No charge is made for this ser- ‘Keaton Willes of Deer River, and,vice. Each score card filled out Margaret Livingstone of Duluth. | by Dr. Luther constitutes an entry in the “aby Health Contest of the County Fair, in which prizes are offered as follows: Boy under 18 months, $5. Girl under 18 months, $5. Boy over 18 months and under 30 ‘months, $5. Girl over 18 months : 80 months, $5.00. THE SIMPLE LIFE Express Company Head Says Rich People Do Not Enjoy Life | The committee in charge of the Owns Much Land Here. ' sports for the coming county fair L. W. Fargo, multi-millionaire, have lined up a number of con- bachelor and president of the tests and games for the last two American Express Company was a days andhave this week mac business visitor in Grand Rapids , their report. on Friday and Saturday. Mr. Far-'. On Friday there will bea foot go is not connected with the Inter-{ball game between the Grand Ra- State Iron organization but he pids high school and the high owns a lot of land around Grand school alumni. The purse to be Rapids and has just completed q $25.00. Then some jumping will lease of it to the mining company. |take place. The first is a broad It was in connectiion with thejjump, free for all, prize $2.00 and lease that his recent] visit was'$i.00. High jump; free for all, made. . !first prize $2.00 and second prize, Mr. Fargo is worth about $200,- | $1.00. Running broad jump, free for, and under | 000,000, but his manner of living is all, first prize $2.00, second prize, decidedly simple and he can gener-, $1.00. ally be depended upon to make} Two running races for boys un- some remarks about the unpleas-' der 15 years have been scheduled. ant ways of the rich people. One j The first is to be a 100 yard dash, of his observations is “Deliver prizes of $1.50, $1.00 and 50 to me from the Rich.” He claims jbe given. The next is to be a 50 that the wealthyy people get. very| yard dash with prizes of $1.50, 1.00 little out of life and of course his’ and .50. : own course is not similar to those |. Then there will be a bicycle of his classj free for all, one half mile; first, You can be sure he is no spend- | prize, $5.00 and second prize $3.00. thrift, neither does he live toa) A hay fight is to closg the sports high. The morning that he arrived! on Friday with a prize of $5.00 to Pete Peterson, ex-mayor of Big} 5+ the Rapids hi i i ae Fork, who was in Grand Rapids re’ aga aes cen 0 ae Billodeau restaurant and ordered a! On Saturday September 27, there cup of coffee for breakfast: His will be a base ball game between intentions seemed to be to let | Grand Rapids and Hibbing, , purse it go at that but the waitress | $50.00; 100 yard running race free thought he looked too prosperous; for all, first prize, $3.00; second to pass with such a meager ex~|prize, $2:00; third prize $1.00; 50 pendiutre and so tried to persuade| yard dash free for all, first $3.00; him to be a real spender. Req] second $2.00; third $1.00. sponding to this solicitation this millionare’s big hearted, open-| first, $10.00; second, $5.00; handed, generosity asserted nigke| 40 third and he made a purchase of a nick-| 440 yard dash free for all—first, That is $5.00; second, $3.00; third, $2.00. vhat most of us would call the} 220 yard dash—first,$5.00; secon: simple life and our readers will) $3:00; third, $2.00. thank Mr. Fargo heartily for hav-| Fat Man’s race for men wefgh- ing so obligingly called attention |ing over 200 pounds, twa prizes, $3.00 and $2.00, : istence. and no at One half mile dash free for all—!Company is suing the railroad for | The final event will be a relay | ter melons, corn, hogs, sheep, cat- tle, poultry, jellies and canned berries, knitting, darning,. sewing, school work and anything that will show the other fellow that yow can deliver the goods. It’s all for Itasca county and her future greatness. JURY AWARDED $5,000 DAMAGES Court is Now Considering Damage “The Grand jury adjourned after the publication of the last weeks issue and reported two indictments.' One against Gust Karhonen of Sago for assault. The second one against Julius Blakis, for assault on Charles Johnson. The three suits against the First State bank previously mentioned were settled out of court. In the case of Walker ‘against Gross for the recovery of land title | a settlement was reached by Walk- er giving Gross a lease on the land. ; The case of the Gibson Lnmber Co., against Frank Seaman was also settled out of court. F. F. Price was awarded damages against W. E. Myers for the sum of $352.58, and interest from Jan- uary first, 1913. a has been reduced by Judge Stan- ton from 60 days to 10 days in the county jail. * court was taken up this week in the trial of the suit brought by Houston L. D. Leslie against J. T. Jones of Deer River. In. the suit Leslie claimed that during his ill- ness he engaged Jones as. an at- tendant and that his wife and Jones became too intimate. Les- lie and his wife have each filed Grand | eure The desire to hold a successful | Discount of $18,000 To $21.000 Bridge | The sentence of Samuel\Patelle | Bridge Co.; The Western Bridge A large part of the time of the divorce suits and in the suit of Mrs. Leslie she charges. her spouse with having been too inti- mate with other women: The jury gave Leslie a heart balm of $5,000, and the divorce cases and the counter claim will be considered at a later session of the court. At- torney Stark, representing Jones will ask for a new frial.,. The court has had before, it dur- ing the last two days the.suit of J. C. Sullivan of Stillwater against the Minnesota & Rainy River rail- road company. He claims damages in the sum of $5,000 for alleged over charges for freight. He claims that his company known.,as_ the Three J. Logging Company of Still- water was charged for freight more than was charged the Itasca Lum- ber Company. - The Minnesota Cedar & Logging a similar claim and it is rumored that others are awaiting the out- come of these. ; It has developed that the Itasca ‘Lumber company owned the rail- men BIDS F ' Asked By Bidders On $300,000 Issue DAY LABOR FOR THE STATE ROAD Chairman Of Board And Engineer Will Attend Good Roads ~ Convention To Be Held At Detroit At the meeting of the County commissioners on Thursday all of the bids for the $300,000 bonds re- cently voted by the county were rejected and a new advertisement for bids will be published in the near future. There were but three bids and these asked for discounts from the face of the bonds, rang> ing from $18,000 to $24,000. It has been figured out that the discount of $18,000 from the face value would make the bonds exactly. 5 per cent bonds which will be the same as 4 4-2 per cent bonds at par value. The three bidders were George Elder of Duluth,the Woods, Wells, Dickey Co., and Leonard Cash, the latter making an oral bid while the board was in session. This failure to disposq of the ‘bondg seems to'tie up the road work for some little time and as no one can definitely state what the outcome of the future bidding on the bonds will be it is -too soon to say when the improve- ments, eontemplated by the voters when the bonds were voted, will be commenced. One road contract was awarded Thursday, that known as Contract No. 128, a two and a half mile Stretch at Bovey. This was let to Henry Volke for the sum of | $2495. To avoid much of the difficul4 ties experienced in handling con- aract work the board has decided to have the work on the State road between Cohasseti and Deer River done by day labor. The contract for the building of the bridges on State rural high- ‘way No. 4, was awarded to the Hennepin Bridge Co. There were six bidders for these bridges. The Hennepin Bridge Co.; The North Star Bridge Co.; The Twin City Co.; The Massillion Construction Co. and C. G. Sedg- | wick. The Western Bridge Con- struction Co., made a lump sum’ bid on the six bridges of $27,000 while the successful bid totals for the six $25,230: The $25,230 allowed to the Hen- nepin Bridge Co., for the building of the six bridges is distributed as follows: Bridge No. 829, $1440; Bridge No. 830, $797; Bridge No. 831, $5685; Bridge No. 832, $3474; Bridge No. 833, $3520. The State Lift bridge will be constructed according to the contract for the sum of $10,300. The chairman of the board, G. M. King and the Road Engineer, 0. J. Lidberg, were selected as @ committee from the commissioners to attend fhe meeting of the Good Roads convention to be held at Detroit, Michigan, from. Sept- ember 29, to October 4. Will Get New Judgé Huson made arrangements while in Minneapolis a few days ago to get a new wooden leg. Not many people have had experience in this line, but those who have can verify the testimony of Mr. Huson tothe effect that it is a serious trial to go through. It is something on the order of get- ting a new set of teeth when the original measurements failed. to produce a fit. The joints and ex- tremeties of the limb must be cut Pe |