Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1895-04-11
On $4,000 Worth of
Territorial Bonds.
Securities Which Were to the
Fore in the Campaign.
The Loan Commission Employs an
Expert Under Recent Legis-
lative Act.

Au 1mpOrtan meeting OF the Loan
Commission was held yesterday, Gov
ernor Hughes and Territorial Auditor
Leitch being the only mem bers in at
tendance. Territorial Treasurer Cole
and M. W. Kales, of the National Bank
OF Arizona were present.
The Importance of the meeting lies in
the fact that arrangements were entered
into to replace a territorial bonded in
debtedness amounting to $76,095.79,
bearing interest at 10 per cent. with
territorial per cent bonds.
Mr.. Kales submitted the following
proposition to the com mission. "The
undersigned hereby offer to EXCHANGE
the following described territorial bonds
of Arizona at par and interest to date
for territorial five per cent funding
bonds allowing the interest &C.
crued On the latter bonde," here
follows a description of the bonds
to be. refunded. They are. the
Gillet and Tiger mine wagon road
bonds of the date of April l, 1879. to
with interest now due amounting to
$2O5O.46; Florence and Globe city wagon
road bonds, of date of March 1, 1879,
fifteen years with interest at 10 per
cent, bonds and interest now due
amounting to $11, ,lO9 90; Tucson and
Globe city road bonds OF same date and
conditions, amount $A,l09. 20; Terri
torisi prison fifteen year bonds from
March l, 1880, bonds and interest now
due amounting to $31, ,S26.99. Total
amount included in the offer, $76, ,095,-
70. The proposition was accepted and
the territorial treasurer was directed to
take up these bonds and issue in their
stead territorial FIVE per cent funding
bonds of the mum bers 1886 to 1909 in
elusive.
All the refunded bonds are past due
the prison bonds having matured
on March l of this year and the others
on March l, or April l of 1894.
These wagon road bonds were heard
of during the late campaign. 1t was
made public during the heat of the
campaign while charges of party dis
honesty and mismanagement were be-
| ing courteously exchanged that tho
.
Henev. had directed Territorial Audi
tor Boone, to refuse to issue warrants
| in payment of some OF these bonds
which had been presented. These
bonds happened to be in the hands of a
San Francisco broker who. had repre-
sentative in the territory collecting
others.
The agent having purchased another
installment of the bonds, was notified by
the broker that he would receive neither
those already held by the agent or any
other territorial securities, the action of
the attorney general having been con-
strued by him to be the initiatory step
in a reputation by the territory of its
obligations. 1t was also reported
that the broker had threatened
to discredit the territory in the east
and even to 60 before the senate COM
mittee on territories and offer his ex-
perience as an argument against state
hood.
The bonds passed into the hands
of the National Bank of Arizona. Dur
ing the last legislature measure was
introduced into the council for the res
toration OF the bonds. or to make them
a preferred Indebtedness. Objection
was brought against the bill that it was
calculated to serve no purpose. The
action of the sttorney-general. was not
recognized as authoritative. Conse-
auently the bonds had not been invah-
dated and no legislative enactment was
necessary to restore them. The bill
never got out of the committee to which
it had been referred.
Another important action OF yester-
days session of the loan commission
was the appointment OF Sellm M
Franklin as an expert under an act by
thelate legislature to remedy defects
in the records of the loan commission.
His pay is $500 including expenda'
; lures for stationery.