THE HOME TOWN NETWORK, Lake PLacid Florida

THE SEBRING AMERICAN
Tuesday, October - 11, 1927
INJUNCTION SUIT CIRCUIT JUDGE W.J.BAKER ISSUES FINAL DECREE Contracts Between Lake Placid Land Company and Commission of the City of Lake Placid Are Nullified by Court's Decision COMMISSIONERS TO PAY COSTS New Golf Course Will Be Completed By Lake Placid Land Company For the Coming Season, Colonel Lee Announced Last Night
(By American Staff Reporter) LAKE PLACID, Oct. 10. - Two meetings of the Lake Placid commissioners were held last night, one at the town hall. The commissioners arrived at the town hall but a few minutes later marched to the office of commissioner Jackson, adjoining his store, and held a meeting there. Later they adjourned and returned to the town hall where they held another meeting. It was short. The secretary called the roll, no minutes were read of the meeting held Saturday night, following the conclusion of the injunction proceedings, and there being no business before the commission the meeting was adjourned until next Saturday night. The American's representative was the second meeting in the town hall, but could learn nothing of what transpired. Colonel Lee, town attorney, however, stated that the Lake Placid Land Company would finish the golf course. It is unknown whether the commissioners contemplate the purchase of the contemplated golf course in the future. Mr. Kirkpatrick was around the town hall before the commission went to Mr. Jackson's office. The victor in the injunction suit displayed the final decree of Judge Baker which places the cost of the proceedings incurred by the complainant on the commissioners. Mr. Kirkpatrick remarked that "he had just begun." LAKE PLACID, Oct, 8. - Judge W.J. Baker this evening permanently enjoined the commissioners of the Town of Lake Placid from issuing municipal bonds for the purchase and improvement of the tract of land on which the municipal golf course is now being constructed. Before handing down and enjoining order, the Judge called the members of the commission before the bench and stated that his ruling constituted no disparagement against them. He said he believed the commission acted in good faith in their transaction and there was no question of the honesty of purpose; the price of the land, according to the evidence, was not excessive, and the location was all that was to be desired, but the contract was illegal, and null and void, because one of their members was directly interested in the selling corporation, which is in opposition to public policy. The Supreme Court of the state has held that no public official shall deal with himself, regardless of his honesty, good faith or the benefit accruing to the community, the Judge further stated. Judge Baker referred to the agreement between the Lake Placid Land Company and the Lake Placid Club, which had been introduced as evidence by counsel for the complainant, and stated that while both parties had been protected the city had no protection whatever, which was either a lack of judgement or bad judgement on the part of the commission. As a result of the order all work on the golf course has been stopped. What effect it will produce is not known at this time,	Although the commissioners contended that the very life of the town and its future growth is dependent on the golf course being completed for the coming season. The momentous decision was made following a day of hearing and testimony and the concluding arguments of Judge Bell, counsel for E.C. Kirkpatrick, the complainant, and Col. Lee and Attorney Treadwell for the defendants. The Hearing opened with the reading of the minutes of the June 29 meeting when W.F. Coachman was elected by the newly elected commissioners of the town to represent the tax district in which the Lake Childs Company and the Consolidated Land Company are the biggest Landholders. The new charter provides that the town be divided into tax districts and that the largest owners of land in the outlying districts nominate at least two people to represent them on the commission, the commissioners to elect one of the nominees to the board. A.M. McAuley, the minutes showed was the commissioner elected under the character provisions to represent the district in which the Consolidated Land company and the Florida Industrial company were the largest land owners. Sam Conley, secretary of the Consolidated company and secretary an treasurer of the Lake Placid Land company, testified that all stock in the later company was held by W.J. Kelley, the president. He denied that Commissioner Coachman held stock in the Placid Land company, but admitted he held a director's qualifying share of the stock in the Consolidated and was chairman of its board of directors. The complainants alleged that Mr. Coachman and Commissioners Jackson and McAuley were interested directly or indirectly in the Lake Placid Land company which sold the tract of land in question to the town, and therefore the contract was null and void. The complainant then introduced the agreement between the Lake Placid Land Company and the Lake Placid Club. This was the agreement referred to at the hearing a week ago, which was subpoenaed by the court on motion of the complainants to show the connection of the land company with the club company. By terms of the agreement the land company deeded 3,000 acres to the club free of cost, provided the club expended $1,750,000. on improving the tract and aided to land company in disposing of several thousand acres in and around the town of Lake Placid. The Club would receive ten percent on the sale of land made through its effort. The agreement provides that the $1,750,000. improvement must start no later than April 1, 1929 and be finished by 1933. In case the club failed to go through with their part of the agreement, the land deeded to it would revert to the Lake Placid Land Company. It was this clause that played a part in the ruling of Judge Barker. He contended that both parties to the agreement were protected, but that the town of Lake Placid had no protection. He Qualified his statement by saying (continued on page 5)

THE SEBRING AMERICAN

Tuesday, October - 11, 1927

INJUNCTION SUIT

CIRCUIT JUDGE W.J.BAKER
ISSUES FINAL DECREE

Contracts Between Lake Placid Land Company and Commission
of the City of Lake Placid Are Nullified
by Court's Decision

COMMISSIONERS TO PAY COSTS

New Golf Course Will Be Completed By Lake Placid Land
Company For the Coming Season, Colonel
Lee Announced Last Night

(By American Staff Reporter)

LAKE PLACID, Oct. 10. - Two meetings of the Lake Placid commissioners were held last night, one at the town hall. The commissioners arrived at the town hall but a few minutes later marched to the office of commissioner Jackson, adjoining his store, and held a meeting there. Later they adjourned and returned to the town hall where they held another meeting. It was short. The secretary called the roll, no minutes were read of the meeting held Saturday night, following the conclusion of the injunction proceedings, and there being no business before the commission the meeting was adjourned until next Saturday night.
The American's representative was the second meeting in the town hall, but could learn nothing of what transpired. Colonel Lee, town attorney, however, stated that the Lake Placid Land Company would finish the golf course. It is unknown whether the commissioners contemplate the purchase of the contemplated golf course in the future.
Mr. Kirkpatrick was around the town hall before the commission went to Mr. Jackson's office. The victor in the injunction suit displayed the final decree of Judge Baker which places the cost of the proceedings incurred by the complainant on the commissioners. Mr. Kirkpatrick remarked that "he had just begun."

LAKE PLACID, Oct, 8. - Judge W.J. Baker this evening permanently enjoined the commissioners of the Town of Lake Placid from issuing municipal bonds for the purchase and improvement of the tract of land on which the municipal golf course is now being constructed.
Before handing down and enjoining order, the Judge called the members of the commission before the bench and stated that his ruling constituted no disparagement against them. He said he believed the commission acted in good faith in their transaction and there was no question of the honesty of purpose; the price of the land, according to the evidence, was not excessive, and the location was all that was to be desired, but the contract was illegal, and null and void, because one of their members was directly interested in the selling corporation, which is in opposition to public policy. The Supreme Court of the state has held that no public official shall deal with himself, regardless of his honesty, good faith or the benefit accruing to the community, the Judge further stated.
Judge Baker referred to the agreement between the Lake Placid Land Company and the Lake Placid Club, which had been introduced as evidence by counsel for the complainant, and stated that while both parties had been protected the city had no protection whatever, which was either a lack of judgement or bad judgement on the part of the commission.
As a result of the order all work on the golf course has been stopped. What effect it will produce is not known at this time,

Although the commissioners contended that the very life of the town and its future growth is dependent on the golf course being completed for the coming season.
The momentous decision was made following a day of hearing and testimony and the concluding arguments of Judge Bell, counsel for E.C. Kirkpatrick, the complainant, and Col. Lee and Attorney Treadwell for the defendants.
The Hearing opened with the reading of the minutes of the June 29 meeting when W.F. Coachman was elected by the newly elected commissioners of the town to represent the tax district in which the Lake Childs Company and the Consolidated Land Company are the biggest Landholders. The new charter provides that the town be divided into tax districts and that the largest owners of land in the outlying districts nominate at least two people to represent them on the commission, the commissioners to elect one of the nominees to the board.
A.M. McAuley, the minutes showed was the commissioner elected under the character provisions to represent the district in which the Consolidated Land company and the Florida Industrial company were the largest land owners.
Sam Conley, secretary of the Consolidated company and secretary an treasurer of the Lake Placid Land company, testified that all stock in the later company was held by W.J. Kelley, the president. He denied that Commissioner Coachman held stock in the Placid Land company, but admitted he held a director's qualifying share of the stock in the Consolidated and was chairman of its board of directors.
The complainants alleged that Mr. Coachman and Commissioners Jackson and McAuley were interested directly or indirectly in the Lake Placid Land company which sold the tract of land in question to the town, and therefore the contract was null and void.
The complainant then introduced the agreement between the Lake Placid Land Company and the Lake Placid Club. This was the agreement referred to at the hearing a week ago, which was subpoenaed by the court on motion of the complainants to show the connection of the land company with the club company.
By terms of the agreement the land company deeded 3,000 acres to the club free of cost, provided the club expended $1,750,000. on improving the tract and aided to land company in disposing of several thousand acres in and around the town of Lake Placid. The Club would receive ten percent on the sale of land made through its effort. The agreement provides that the $1,750,000. improvement must start no later than April 1, 1929 and be finished by 1933. In case the club failed to go through with their part of the agreement, the land deeded to it would revert to the Lake Placid Land Company.
It was this clause that played a part in the ruling of Judge Barker. He contended that both parties to the agreement were protected, but that the town of Lake Placid had no protection. He Qualified his statement by saying
(continued on page 5)

THE SEBRING AMERICAN
Tuesday, October - 11, 1927
KIRKPATRIC WINS INJUNCTION SUITE AT LAKE PLACID (Continued from page 3) If the Club people of the town build the municipal course and the Club people changed their plans and decide not to come to Lake Placid, the city would have to course on its hands, with only two golfers in the 72 square miles which the corporate limits comprise, and the Club would lose nothing by leaving. The Lake Placid Land company, in that event, would not lose as the tract deeded to the Club would revert to the land company. Any doubt that may have existed regarding activity in real estate in this section was dispelled by testimony of J.E. Simms, of McAuley and Simms, real estate agents of this "Big little town." Mr. Simms testified that the Antone Schneider tract, adjacent to the site of the municipal course was sold recently for $46,000. to the Lake Placid Homes company, composed of Mr. Coachman, J.K. Stuart, son of E.C. Stuart, Mr. Simms and A.M.McAuley. The tract, which was originally considered as the golf course site, contains about 170 acres, about 36 of which front on Lake June. The first activity in real estate started by the organization of the Lake Placid Land Company, into which various holdings of the Consolidated Land Company, The Tropical Investment company, the Lake Childs company, and several other companies and individuals, were placed: The first sale of land was to the town of Lake Placid for the municipal golf course. O.C. Parrish, tax collector and tax assessor of the town, was questioned regarding the 1926 and 1927 assessments, and the amount of the taxes paid by the various companies which are interested in the Lake Placid Land company. Mr. Parrish testified that the 1927 assessment is only on the property in the area of the old City of Lake Stearns and did not include property in the new area taken in by the new charter. C.J. West and E.W. Kelley living in the outlying districts, testified that in their opinion there was no need of a golf course. Final arguments were heard when court reconvened following the noon recess, Judge Bell argued for several hours and sited case after case where, higher courts have ruled that contracts between public officials and companies in which they are interested, either directly or indirectly, are opposed to public policy and illegal, regardless of the character of the officials, their honesty and faith or of the ultimate benefits to the community, and asked the court to enjoin the commissioners from carrying out the contract. Colonel Lee delivered a short argument on the valuation of the land, and the honesty of the purpose of the commission. Attorney Treadwell pleaded the necessity of the commissioners' action, and argued that the rule of public policy was broad and flexible. He contended that the issuing of an injunction would strangle the project underway at Lake Placid, and asked that the court deny the petition of the complainant. Just what action will be taken by the commissioners has not been determined. The question of Mr. Coachman's connection with the commission has been solved, as the commissioner resigned a few weeks ago and O.F. Gardner, manager of the Lake Placid Land Company, was appointed in his place, Mr. Gardner is a newcomer to this section and assumes the same powers and privileges of an elected commission by a provision in the new charter.	That clause of the new town charter dealing with appointment of representatives to be elected to the commission at present seems to be in conflict with the common law of the state. The Lake Placid Land company is the largest taxpayer in one of the tax districts, and the charter provides that the largest taxpayer is to have a representative on the commission, not elected by the citizens but appointed by the commissioners elected by the taxpayers. The Situation is as follows: The Consolidated Land company and several other land companies and individuals organized the Lake Placid Land Company, which in turn sold 150 acres to the town of Lake Placid at a price of $350. per acre. The commission borrowed $30,000. from the Lake Placid Land Company for a period of one year, with interest at eight percent. The commissioners signed promissory notes for the loan, and agreed to sum in municipal bonds bearing six percent interest all of which became void by the court's decision Title to the 150 acres, however, had not been vested in the city. It is also understood that the Lake Placid Land company has not received its title for the tract sold to the city. To date about $15,000. has been spent on improving the land to which the city has no title. In reality it has spent the Lake Placid Land company's money on the Lake Placid Land company's property. What becomes of the balance of loan is a question. Judge Barker took the right step in protecting the rights of the taxpayers of Lake Placid, in the opinion of many citizens, inasmuch as the Lake Placid Land company and the Lake Placid Club protected their interests. There is no doubt, however, that Dr. Dewey and his club members will come to Lake Placid. About $75,000. is now being spent in remodeling and adding to the Lake Placid Inn, and arrangements are being made to care for the large number of club members, said to be about 100 who plan to spend the next season at lake Placid. Dr. Dewey president and founder of Lake Placid Club, leaves the north on October 17 and will motor to this town, it has been learned from a reliable source. The Sebring American was the only Highlands County paper to have a representative at the trial of Kirkpatrick vs the Lake Placid Commissioners. This newspaper believed the case to be one of the most important coming before the Circuit Court for a long period and will give its readers complete information in detail as the case proceeds through the courts. The case has been reported without favor to either of the litigants.

THE SEBRING AMERICAN

Tuesday, October - 11, 1927

KIRKPATRIC WINS
INJUNCTION SUITE
AT LAKE PLACID

(Continued from page 3)
If the Club people of the town build the municipal course and the Club people changed their plans and decide not to come to Lake Placid, the city would have to course on its hands, with only two golfers in the 72 square miles which the corporate limits comprise, and the Club would lose nothing by leaving. The Lake Placid Land company, in that event, would not lose as the tract deeded to the Club would revert to the land company.
Any doubt that may have existed regarding activity in real estate in this section was dispelled by testimony of J.E. Simms, of McAuley and Simms, real estate agents of this "Big little town." Mr. Simms testified that the Antone Schneider tract, adjacent to the site of the municipal course was sold recently for $46,000. to the Lake Placid Homes company, composed of Mr. Coachman, J.K. Stuart, son of E.C. Stuart, Mr. Simms and A.M.McAuley. The tract, which was originally considered as the golf course site, contains about 170 acres, about 36 of which front on Lake June.
The first activity in real estate started by the organization of the Lake Placid Land Company, into which various holdings of the Consolidated Land Company, The Tropical Investment company, the Lake Childs company, and several other companies and individuals, were placed: The first sale of land was to the town of Lake Placid for the municipal golf course.
O.C. Parrish, tax collector and tax assessor of the town, was questioned regarding the 1926 and 1927 assessments, and the amount of the taxes paid by the various companies which are interested in the Lake Placid Land company. Mr. Parrish testified that the 1927 assessment is only on the property in the area of the old City of Lake Stearns and did not include property in the new area taken in by the new charter.
C.J. West and E.W. Kelley living in the outlying districts, testified that in their opinion there was no need of a golf course.
Final arguments were heard when court reconvened following the noon recess, Judge Bell argued for several hours and sited case after case where, higher courts have ruled that contracts between public officials and companies in which they are interested, either directly or indirectly, are opposed to public policy and illegal, regardless of the character of the officials, their honesty and faith or of the ultimate benefits to the community, and asked the court to enjoin the commissioners from carrying out the contract.
Colonel Lee delivered a short argument on the valuation of the land, and the honesty of the purpose of the commission. Attorney Treadwell pleaded the necessity of the commissioners' action, and argued that the rule of public policy was broad and flexible. He contended that the issuing of an injunction would strangle the project underway at Lake Placid, and asked that the court deny the petition of the complainant.
Just what action will be taken by the commissioners has not been determined. The question of Mr. Coachman's connection with the commission has been solved, as the commissioner resigned a few weeks ago and O.F. Gardner, manager of the Lake Placid Land Company, was appointed in his place, Mr. Gardner is a newcomer to this section and assumes the same powers and privileges of an elected commission by a provision in the new charter.

That clause of the new town charter dealing with appointment of representatives to be elected to the commission at present seems to be in conflict with the common law of the state. The Lake Placid Land company is the largest taxpayer in one of the tax districts, and the charter provides that the largest taxpayer is to have a representative on the commission, not elected by the citizens but appointed by the commissioners elected by the taxpayers.
The Situation is as follows:
The Consolidated Land company and several other land companies and individuals organized the Lake Placid Land Company, which in turn sold 150 acres to the town of Lake Placid at a price of $350. per acre. The commission borrowed $30,000. from the Lake Placid Land Company for a period of one year, with interest at eight percent. The commissioners signed promissory notes for the loan, and agreed to sum in municipal bonds bearing six percent interest all of which became void by the court's decision
Title to the 150 acres, however, had not been vested in the city. It is also understood that the Lake Placid Land company has not received its title for the tract sold to the city. To date about $15,000. has been spent on improving the land to which the city has no title. In reality it has spent the Lake Placid Land company's money on the Lake Placid Land company's property. What becomes of the balance of loan is a question.
Judge Barker took the right step in protecting the rights of the taxpayers of Lake Placid, in the opinion of many citizens, inasmuch as the Lake Placid Land company and the Lake Placid Club protected their interests.
There is no doubt, however, that Dr. Dewey and his club members will come to Lake Placid. About $75,000. is now being spent in remodeling and adding to the Lake Placid Inn, and arrangements are being made to care for the large number of club members, said to be about 100 who plan to spend the next season at lake Placid.
Dr. Dewey president and founder of Lake Placid Club, leaves the north on October 17 and will motor to this town, it has been learned from a reliable source.
The Sebring American was the only Highlands County paper to have a representative at the trial of Kirkpatrick vs the Lake Placid Commissioners. This newspaper believed the case to be one of the most important coming before the Circuit Court for a long period and will give its readers complete information in detail as the case proceeds through the courts. The case has been reported without favor to either of the litigants.

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