Arizona republican., 1893-12-29
THE LOAN COMMISSION.
Concerning the Sale of the
Bonds.
A History of the Litigation From the
Failure of the Purchasers to
Keep Their Contract.


at the Office of the governor yesterday,
the governor, chairman of the board,
presiding, there being also present the
other mem bers, Secretary Bruce and
Territorial Auditor Boone. J. Arm
strong scted as secretary. Attorney
General Heney and Treasurer James A.
Fleming appeared before the board for
the purpose of making statement with
reference to the contract of Messrs.
Seasongood and Meyer to purchase
$500, 900 worth of the per cent bonds,
their failure to accept the bonds and
make the payments required to carry
out the terms OF the contract and the
litigation which has ensued as conse-
quence. The statement OF the attorney
general showed that Messrs. Ssasongood
and Meyer had contracted to purchase
the last issue OF territorial bonds,
amounting to the sum of $500, 900, and
that they had paid to the loan commits
sion the sum of $4,000 at the time OF
executing said contract, to be forfeited
in case they failed to comply with the
terms of said contract, that as they had
refused to carry out the terms of the
contract they had forfeited the sum
named, which had been placed in the
hands of the territorial treasurer in his
official capacity. On July 20 while Mr..
Fleming was in New York-City he was
served with summons in suit brought
by Messrs. seasongood and Meyer to re-
hn of rrh Iah
they claimed should not be forfeited in
asmuch as they had performed their
part of the contract. Attorney General
Heney who was then in Washington
City was consulted by Mr.. Fleming and
employed Messrs. Clarke & Culver, of
New York, to defend the suit for the
territory. He expressed the opinion
that the sum of $4,000 was properly
and legally forfeited by Messrs. Season
good and Meyer, that it belonged alb
solutely to the territory, and that the
action taken would be successfully de-
Tended by Clark and Culver, and would
result in judgment in favor of the ter
ritory.
Secretary Bruce moved that the ac-
ton of the attorney general be approx
ed. The resolution having been Sec
onded by Auditor Boone, was unani-
mously carried. 1t was also unani-
mously resolved that the attorney gen
eral be empowered to conclude arrange
ments with Messrs. Clarke and Culver
for the carrying on of the suit of
Seasongood and Meyer against the ter
ritory.
Governor Hughes made statement
TO ic Of 70 OF IL ~ l.
bonds while in the east. He stated
that he had entered into negotiations
to place the bonds on the market, but
owing to the financial condition of the
country no sale had been effected so far.
The difficulty was all the greater from
the fact that the Equitabl Mortgage
company, OF New York. now in the
hands of receiver, held block of
$3.50, 900 worth of the first issue of terri
torial bonds which are now, and have
been for long time, on the market,
and which, according to reliable infor-
nation received, may have to be put up
at public auction and sold at whatever
price they will bring. He had been ad-
vised that it would be unwise to attempt
to effect a sale until those on the market
had been disposed of, and he so advised
the board.
Mr.. Fleming stated that he had gone
to New York to have the $500, 900 worth
of bonds taken out of escrow and ex-
pressed to Phoenix. When requested
for q statement of his expenses he re-
piled that he had to go to Philadelphia
on private business at the time, and
that he therefore, declined to make any
charge against the territory whatever,
except the sum of Sc, which was paid
by him for expressage OF the bonds to
Phoenix. Attorney General Honey be-
ing asked to present his bill OF expenses
incurred by his visit to New York for
the purpose of securing attorneys to de-
fend the suit, replied that he declined
to make any charge against the terri
tory.
The board then adjourned.