Arizona republican., 1896-06-19
London Parties Refuse
 to Take Them.
They AIlege an Over Issue and
 lIlegality.
Sale Probably Defeated by Persons Interested in Non-Payment of
 Territorial Warrants.

The contract for the sale Of the ter riotiral bonds was made under the Hughes administration and it was the understanding that the issue was to cover the floating indebtedness of the territory, whatever it might be, at the time of delivery of the bonds.
 F. s. Belcher, president of the Phoe- nix National bank, was the appointed financial agent of the loan commission of the territory; and he conducted the negotiation whereby the bonds were purchased by firm in London. The sale was made through A. c. Frost & Co. of Chicago. This latter firm had as to the indebtedness of the territory and the legality of the bonds, and sub mitted a report to prominent counsel in Chicago, from whom favorable opin- ions were received. The London firm also made investigation through it's at torneys in New York city. The out come of all this carefulness was com municatiOn from the London firm to Frost & Co. of Chicago fully approving their, report, and expressing anxious willingness to take the full issue of the bonds at par.
 When Governor Franklin assumed charge of territorial affairs he was in formed by MT. Belcher and Treasurer Cole that the negotiations for the sale of the bonds had been successful There was a meeting of the loan commission whereat the bonds were immediately transferred to the possession of Treas urer Cole and he was instructed to pro- ceed to New York, transfer the bonds to the purchasers and receive the pur- chase money. c. M. Bruce, secretary of the territory, and member of the loan commission, was given full power to act for the loan commission in any event and instructed to accompany Treasurer Cole on his mission.
 When the treasurer and secretary ar rived in Chicago Frost & Co. exhibited to them cable advices from the London purchasers of the bonds, asking that the bonds be transmitted to them in London through the Guarantee Trust Co. of New York city, for collection, and informing them that the London parties would pay all necessary charg- es Arriving in New York Treasurer Cole in the presence of MT. Bruce, de- livered the bonds to the Guarantee Trust Co. This was on May 22, and on the 23d they were shipped to Lon don..
 While in New York MT. Bruce made diligent inquiry as to the standing Of the London parties, and was assured by the highest financial authorities that they possessed the best of regulations in the financial centers of Europe. Be that as it may, within the past few days the loan commission has received a communication from the Guarantee Trust Co., stating that the bonds had been presented to the London pur- chasers and they had declined to re ceive them, alleging that there was an over issue that invalidated them.
 The bonds were issued in strict com pliance with the law, there has been no over issue, they are perfectly good and valid bonds, and the reason giveI for refusal lacks every essential o1 sense or business probity.
 There is some cause for the refusa to take the bonds, and perhaps it may be good cause, looked at from certain standpoints, or from the front step ot certain interests, but today it is not ot sufficient tangibility to be placed be. fore the people in cold, but truthful print, and when fully ascertained may be responsible for sequel.
 No criticism can attach to the mem bers of the loan commission for this failure. They had every reason to be- ieve that a complete and positive sale had been made and whatever inf1u ences have been brought in to void tht transaction in the eleventh hour they are not responsible for
 An order has been forwarded to the Guarantee company to have the bond: returned to New York at once.
 REINSTATEMENT