Salt Lake Telegram | 1934-06-12 | Page 13 | Legal Action Holds up Bond Purchase

LEGAL ACTION HOLDS UP BOND PURCHASE Suit Sees Seeks to Restrain Issuance Issuance ance of Warrants Proposed purchase b by the state land board of in Sanpete county bonds Tuesday had been definitely definitely def def- blocked until district court at Manti acts on injunctive proceedings seeking to halt the issue State Auditor Julius C. C Andersen whom the suit seeks to prevent issuing issuing ing warrants for the purchase said the warrants will not be drawn Unless unless un Un- I less s the court acts on legality of the bonds by two Sanpete county taxpayers on grounds the Issue Issue Is is- sue suc was not submitted to a vote vole Observers said no service had been made on Mr 1 Andersen and that therefore he could issue the warrants warrants war war- rants but the auditor said there was wasa a moral obligation preventing him from allowing the state to invest in bonds of ot questioned legality The bonds were offered the thc land board by Lauren W Gibbs Gibb company of Salt Lake Cit City Mr Andersen said saida a spread of 9 per cent was exorbitant exorbitant exorbitant exor bitant