Arizona weekly citizen., 1886-05-01
THE PORT LOBOs BONDS.
Findings of Fact as Filed by the Dis
 trlet Court.

The title of the case involving the val
 idity of the Pima County bonds issued | in aid of the Tucson and Gulf of Califor- mia railroad, resulting ID their recovery,
 was The County of Pima, ys. Theodore
 l.. Stiles, assignee for the creditors of
 Hudson < Co.,, banking copsrtnershlp composed of Charles Hudson and James
 II. Toole: The Anglo California Bank
 (Limited); The Tucson and Gut; Of
 California railroad company and J. NcC
 Elliott Gs County TreRsurcr of the CoGn-
 ty of Pima" It came duly on fer trial on
 April 23d, 1886, with counsel for the var
 iuus interests present. Thomas Hushee,
 the present County Treasurer, Was sul.-
 s.Ituted for J. McC. Elliott, his predeces.
 sor in office. The railroad company
 failed to app sr and answer and default
 against it was entered, and the action
 against the Anglo California Bank was
 dismissed, 1t being shown that they.held
 no interest in the bonds. Trial by jury
 was waived aud documentary and other
 evidence was submitted to the Court for
 consideration and decision. The sypop- sis of the findings of fact is as follows:
 The firm of Hudson * Co. failed and
 suspended on the 9th day of May, 1884.
 the entire property being assigned to | Theodore l.. Stiles for the benefit of the | creditors.
 That the Board of Supervisors was composed from January lst 1855, to No.
 vember 9th, 1883, of James Fl. iOOle (Of
 Hudson & Co.,, A. D. Otis and M. G. | Samaniego. From November 3th, 1883, to December 18th, 1883, of A. b. Ous, W. c. Davis and NJ. G. SamanIego, and
 from December 18th, 1883. to September | II, 1881, of 4. ID. Otis, Walter l.. Vail | and M. G. SamaniegO.
 The Tucson and Gull of California | Railroad Company was incorporated on
 February 9th. 1882.
 Chas Hudson ard James II. Toole were
 part of the original incorpOrstors of sad
 railroad company, each becoming the
 owner of Sl0OOO of the capital stock, ,;and
 were elected directors of said road on
 the 9th day of February, 1882. James u. Toole continuing such until the Sth
 day of April, 1881, and Charles Hudson
 until the 9ih day of May, lSSl On Feb
 ruary 7th, Charles Hudson was elected Treasurer of said road, and both were
 active in the Enlargement of the con-
 pany's affairs.
 That James II. Tools from about
 January lst, lSS3, untll about November 3d, 1883, was chsirmsn Of the Board of Supervisors.
 That during all these times 4. D. Otis was member of the Board and
 voted for and consented to the issuance Oi the bonds to said railroad while he
 was a secret owner of 1000 of the stock of said railroad company, which the directors had promised tO issue to said Que upon demand without the payment Of any consideration, excepting his aIl and assistance as supervisor ID securing the donation of bonds from the county. A subsequent RppOuiOnnent made by Charles NJ. Stgruss, president of the rail road company, and Chss. Hudson, di- rector, SlO0,OUO of the capital st cE was set apart to said Otis and at his request was covered and secretly carried in the name of D. $. Psyton, his brother in-law.
 That the Legislature empowered the Board of Supervisors Co issue bond not 10 exceed S2O0UOO to sid in public en- tefprises.
 That on or about \ pril 19ib, 1883. Chas. 1 NJ Strauss, president, and l. E. Pomroy, | secretary of said railroad company, with | ont any authority from said company, filed with the clerk of the Board of Su- pervisors a petition purporting 70 be from sad railroad company, proposing 10 build railroad and telegraph l.ue, aud asking the Board to issue and de liver SlO0UOO of the bonds of Pima coun- ty in aid O. said road.
 Tint at Rn alleged meeting of said Board, Gin fact Rn illegal meeting of said Board, and not composed of the persons authorized by law to hold the same or act in the ma;ter.) said petition was considered and fu, ther hearing ordered On April 2s;h. 1885.
 On the 2Sth dIy of April, JS>3, Jas II. Toole, A, D. OtIs and M. c. 5amaniegc, claiming to ac. es Board of SupervIs- org, assumed to hold meeting of said Board and assumed to act on said apph cation and took the matter under advise ment.
 On the 5i day of May. 1883. said mem bers of the Board of Supervisors assem- bied to hold meeting, and thereby the votes of James ii. TOole and 4. D. Otl- in favor of and Nj. c. SamanIego opposed to the issue of bonds, said application , to tue amount ot SjO,OOO was allowed | i and the DInutes of the proceedings Of that day are quoted m the findings.
 That on the 4th day Of Augus', 1883. c said James H. Toole, A. D. OtIs and N [ c. SBmaniegO, assumed to act Gs super $ visOrs and assumed to hold meeting
 .N.N e.. 4 sE E. application of said railroad for dona- c ton of bonds, and without authority Oi V law caused to be entered upon thelr | minutes an order issuing fifty One-thOu- | sand dollar bonds of Pima county in q exchange for five hundred shares of the O stock of the company. |
 That each and all of said meetings of t said pretended board were special mee.- q .ngs and that no call was made there V Tor by majority of the board, nor was 2 iny call whatever entered on the rec o ,Tds, nor was any notice gwen nor the business to be performed specified any ' al. q
 That at all times J. $. Woods WIS the 9 July authorized, qualified and acting Q Probate Judge of Pima County. q
 That at all times and dates of the Q holding of these pre;ended meetings, hat ssid Jas. II. Tocie end A. D. Otis, Ii constituting majority of the Board. O were actually stockholders and owner c f the capital stock of said railroad com D ,any and both were Individually pe- H interested in tue bonds they O ssumed to officially issue, and were ii hereiore disqualified from acting [, herein. II That said ]. 5. Woods, probate judge. ti -as never notified of the disqualification o. f said A. D. Otis and James II. Toole, D nd WAS not requested or permitted to h ci and had DO know ledge thereof. @. That subsequently acting upon the E u,hoTIty of said pretended orders, the of ierk of the District Court, snd Ja,nes el ]. Toole, chairman of the Board. and l e, .aimiDg to act Gs such while still a l is and assuming to act by fu lthOrIty of the pretented orders O, the n, Oard, sealed with the seal of the cour, st ity bonds of SlOJO each, with coupons. IS importing tO be the bonds Of Pima tE 0unty. g That on or about August Itb, 1Ss3, the lr erk of the Board, under direction of of