Arizona weekly citizen. [volume] (Tucson, Ariz) 1880-1901, 1891-07-18
THE FACTS IN THE FUNDING
BUSINESS.

the funding of the territorial indebted
ness. The Republican has been furious
in its onslaught on the board having
this gigantic task in charge. The
Herald on the other hand defended the
board and held them blameless in the
matter. AS the statements of the latter
are supported by documentary proof
they are certainly entitled to greater
credence than those made by the Re-
publican, more particularly as the state
ments made by the latter are contra
dlcted by the very documents with
which it seeks to prove its case. Acting
Governor Murphy in the Herald OF the
I3 inst, gives q careful resume Of the
entire case. For benefit of the general
public we publish the article in fall.
Ex-Governor Wolfey, for reasons best
known to himself, continues his attack
on the Funding board. AS the exgoy-
ernor in his article of the 18th instant
makes some sweeping assertions which
If uncontradlcted might misleRd the
public, the editor of the Herald has
taken it upon himself to investigate the
matter.
Acting Governor Murphy when called
upon for O statement at first replied
that lac had nothing whatever to say,
but upon second thought, be said:
81 deem it my duty to myself, to my
associates on the Loan Commission, and
to the people of the territory, to state
Al y n al nTf hnr
through Ignorance or malice has been
guilty of publishing gross and unwar
ranted Misrepresentation. In his anXI-
ETY. to fix blame and neglect of duty up
on me personally he writes this for his
paper:
Fair, honest criticism is good for the
public service, and the public officer
who takes exception to it needs watch
ing, and that very closely, too, The
acting head also denies that he has been
derelict or negligent OF his duty, and
by this We assume he means to include
the entire Funding Board,
This il a lure question of fact, and to
show that We have not been unreason
able or unfair in our charge we here
with give few facts.
sLast fall ex Governor Wolhey was in
New York City, and besides attending
to his private business, devoted consid
cradle time to trying to place odr terri
torial bonds, the advertisements at that
time being published for bids for the
bonds.
"He was so far successful as to enlist
az old personal friend of his to also give
his attention to placing our bonds, and
by the time the bids were opened this
old friend, Mr.. H., was enabled to put in
a bid. This was about Decemb Der 10th
1890. The bid, il We recall correctly,
was to take 100000 or SI,500,O00 of
our bonds at par; Mr.. H, however, to
be paid q commission, and his commits
sion was not an unusual or an unreason-
able one. AS far as we know no action
whatever was taken upon this bid. This
was before Governor Irwin came, and
the now acting head was then the head
of the Funding Board. This, remember,
was in December, and long before the
meeting of the legislature, and non
action could therefore not be charged ID
pending legislation.
81 am charitable enough to believe it
to be ignorance aud not malice that
prompted the Ex-Governor to make
statements devoid of even the SEM
blance of truth. The following is the
letter of the MIR. al" to which be refers,
written to the Loan Association in
December last:
New YORK OFFICE OF
RIVER & RAIL ELECTRIC Co., oFsOHIo,
AIDRIDGE Court, As BROADWAY.
New YORK, Dec. 81, 1890.
MAJOR F. d. Hammond, SECRETARY TO
LOAN COMMISSIONER, PHOENIX, Arr
IONA:
Sir:-Governor Wolhey has called my
attention to the matter of the territorial
loan advertised by you in the Arizona
Republican and for which there were no
bids.
With the high rates prevailing, it is
not strange that no bids were offered.
In fact l do not see how you can place
them within paying bonus or discount
flor it amounts to the same thing in the
shape of commission.
Now according to the bill passed by
congress you cannot sell the bonds for
less than par, or at greater rate Of in
terest than five per cent. Yet, by late
decision Of the supreme court of the
state OF Washington, loan commissioners
in the same position as you, were upheld
in paying substantial commission for
placing bonds, which commission was
really an inducement in getting parties
10 take the bonds.
You are doubtless aware of your pow.
ers in this regard.
/ have already looked into the matter
thoroughly and l think that, through
various channels that have, lean place
the bonds.
To do this | shall want reasonable
time, say ninety days and a commission
of six per cent.
/ may be obliged to market the en-
tire loan abroad, hence the time re-
quired.
AS to the commission the saving in in.
terest over present rates will make it up
in two years.
Respectfully yours,
E. j. HORTON.
at will be noticed that Mr.. Horizons
letter Is dated Dec. 3lst and not Dec.
10th, and instead of making bid for the
bonds he askes to be made the agent Of
the territory to try TO place the bonds at
per cent commission for his own SER
vice and he requests 90 days time in
IL