Show St Joseh Land Card Co To Initiate Damage Suit L As a result of the recent decision of Jud Judge Jude e Tillman q I Johnson of the local federal court courtin court in the case of Joseph B B MacLean of San Fr Francisco against the St SL St Josph Joseph Josfph Land compan company in which the ass again the property of the defendant and other land owners within the Bonneville irrigation district f fr for f r the purpose of of meeting principal and interest on the bonds floated to the district di were declared legal the defendants will wUl immediately initiate tw two separate actions according initiate to HarryS Harry'S Harry S Jo Joseph seph presidia president of jpe he company One of them will be a suit for foran foran foran an amount yet et un against the Anglo Paris An lo London Banking the original purchasers of the irrigation diS district bonds and theother the theother theother other an appeal tp 13 the circuit court of appeals on J Judge dge Johnsons Johnson's de- de decision decision de decision in which fine pic he constitutionality ty of the Utah irrigation district act ac t will be attacked SALE OF BOND BONDS tS BASIS ASIS I Th The e damage suit to Mr Joseph will be base based upon the al- al al alleged illegality of the sale of the th e bonds for n a pr price price e below the statu statu- I tory statutory minimum which it is claimed was allowed by the he directors of the th e district as a res result lt of the persuasion thit of the bank Illis It is claimed by the th e St it Joseph Land company that the th e bank agreed to take over the bond bonds s upon tuck Shat-tuck the provisions ns that the Shat Shat- tuck allowed Construction n company be al- al al lowed to construct construct ct the district The construction company according to the allegation traded work for for bonds banks and then sold the thc bonds to the bank bank at dollar the rate of 11 pI cents on the dol- dol dol lar while the st state te law forbids the their then sale l sale for less than 95 cents It is further alleged that the construction company banks was organized organized by the bank and obtaining used by itS i it as a mens of ob- ob ob oh below tanning possession of the bonds be- be be low ow the statutory minimum COST PLUS METHOD it it t is claimed the wo work k was done ton on a plus cost-plus basis whIch ran up the cost of constructing the he project milking making necessary th the assurance of 75 in bonds instead bythe of voted by y the members of the district I t I In l a sate age in l Ia MacLean Lean I Imade made dete ti tint t ant nt Judge J I declared that the fhe he bonds were valid since they had cached the hands of innocent purchasers The last de- de decision decision de decision forcing thi the land owners to pay their assessments to protect the bond bond- holders bond holders leaves only oily one resource open I to the land own owners rs according to Mr Joseph damage damage suit against ag the bank The They ivil vil base their suit Mr 11 Joseph says on he allegation that the bank knowingly violated the law lawin lawin in negotiating for the sale of the bonds I VALIDITY QUESTIONED ED oIn a o In the Jua Judge e Johnsons Johnson's recent decision fhe he SL St Joseph Land nd company will attack the constitution constitutionality constitutionality of the irrigation it district act and hence the v validity of the Bonne Bonne- Bonneville Bonneville Bonneville ville irrigation district which was organized d unde it on the ground that the act docs does not levy assess assess- ass assessments ss- ss I ments accor accord ing to benefits but sim- sim simply Sim- Sim Simply sim simply ply on a basis ot o the number of acre acre- feet acre feet of water used d us 1 The in in the district started start started ed when the as assessments proved to tobe tobe be more than tig thi the farmers could meet and it was necessary necessary to sell some of the land for irrigation taxes The I St Joseph Land Landt Land company protest protest- protested protested led 1St ed against the foreclosure of tax liens hens a against its I land held by Mac Mac- Macean Mac MacLean L Lean ean an on the ground of the illegality of o of f the bonds arid the unconstitutionality unconstitutionality of f the district ct as they will set forth again n their appeal andin and andin andin in their damage suit Tribune uit Tribune nit Tribune |