Arizona weekly journal-miner., 1896-12-02
WHAT IT MEANS.

IL IS doubtful lt s great many
 people in this county realize what
 the exact results would be by the
 funding of the YavspSi County Re
 demption and RsilroSd Bonds, com
 monIy known as the r S A. C.
 bonds, and it is equally doubtful
 whether they realize Vhst the effect
 would be 10 repudiSte them, or, if
 you please, to contest them in the
 courts to a successful issue. The bonds now draw seven per cent and
 are payable ID 1916. Should the
 bonds not be funded, and should the case go into the courts Aad De decided against the county, II would
 mean that YSvspsi county would
 have to pay the back interest in full,
 which would amount to between
 S40.0OO and S50,OO0; and would have to continue the payment of seven
 per cent interest and would have 10 pay the entire amount Ot the principal in 1916. This would
 bs the direct and immediate results of losing the case in the courts. The
 time for funding will have passed long before the case can be de- termined iu the courts, so that the
 opportunity for doing so will have
 passed. But even should 1t not have
 passed, it is not likely that the
 holders of the bonds will agree to
 takiug five per cent after having
 gone to the expense of establishing
 the validity of these seven per cent
 bonds in the court. The accrued
 interest would have to be paid, at once, which would necessitate sn extra tSx levy 10 meet this amount.
 Should the courts decide that the
 bond issue IS illegal then COconino
 county would press her suit. which
 has already been prepared, for the recovery of nearly Sl0O,0O0, which she has paid to this county as her share of this indebtedness. If the courts decide that these bonds are illegal snd not just claim against the county, they can hardly fail to establish the validity of Coconinos claim for paying for bonds, which are illegal This would necessitste a heavy tax rate to meet this lisbil- ity. The result of winning the suit would also result in deprecisting the credit of the territory very materially, making it practically im-
 possible 10 negotiate securities of any kind. Just how much the ter ritory would suffer in this respect. of course no one can estimate.
 So that taking either horn of the dilemma We may, it IS case of tails I lose, heads you win" So far as this county is concerned. This is 8 simple, plain statement of the case unvsrnished by any sentiment, or personal feeling, and l the question is one which should be 1 looked st from s practical business standpoint. That the county will i get the worst of the deal DO matter | what may come seems evident. That . it got the worst of it during the eI- isJence of the road, there gre prob l ably but few who will deny.
 Now as 10 the proposed funding of these bonds. What IS ofered' The offer is msde to exchange them Tor fifty year bond, the accrued in- .erest to be included in the bonds, snd not 10 be paid immediately. This means that the time for final pay ment of the principal IS post poued from 1916 to I946, 6 time when 1t will not trouble many, if suy, of the present taxpayers. The rate of interest Is reduced from seven Q five Der cent sud the annual iu- crest can be paid without sny sddi- ionsl tax levy by an economical of county affairs. The pest evidence of this is the fsct that or seven years the county paid seven per cent on the full amount of the bonds with the same rate of taxa ion as st present. Since then the original amount of the bonds have ,een reduced, Or, to state be case more nearly sccu- Ite, the county paid in round numbers nearly S20,OoO per year in rterest, for about seven years, with
 tax rate the same as st present; TberesS the interest under the pro- 'osed funding act would be from I3,OOO to S14,OOO.
 The JoURNAL-MINER has DO sI 10 'rind in this matter. and has Do ( ersonsl interest, directly or indi- ( ectly, other than ss 6 taxpayer. Its !, roprietor does pay 6 respectable lm in taxes each year, asum which, hile not Ss large ss some others, C
 probably Ss great 6 burden to q ieet as any one in the county, hence s Eould be unwilling to add a single { ollsr more 10 1t, and hence hss the Il Iterest of every taxpayer st heart, s ecEuse IL is s personal interest. $