Arizona republican., 1897-09-19
ARIZONA'S NAME REDEEMED
The Yavapai Subsidy Bonds
 Have Been Refunded
The Territorial Loan Commission Yesterday Restored the Credit Of This Scoffed At Territory In the Estern Money Centers.

The territorial loan commission yes terday performed a mosti efficient | service to the territory in restoring | it's public credit It funded the P. & A. c. bonds, that is, the Yavapai rail? road subsidy bonds, generally alluded to as the "Yavapai bonds." The bonds were issued by Yavapai county in 1886 under authority of an act of the legislature of 1885, to aid in the construction of the Phoenix & Ari- zona Central railroad, which was built and operated until it was forced out of the field by s. F. P. & P. competi- tion. There were 240 of the bonds, $1, 900 each, bearing per cent inter est Twenty seven of the bonds were taken up by the county and the re- maining 213 funded yesterday were bought by Kitchen & Co.,, b1 1okers, 26 Wall street, New York.
 When the railroad, in aid of which the bonds were issued, passed out of existence, there came a growing teR<- the obligation. It was not deepTooted or widespread at first, as willy be here inafter shown.
 
 class of cou,Gty or Territorial indebt- edness prltTided for in the original | funding act. Nor when the provisions 6The bet were extended in 1894 was te made to include this class of in debtedness. Early in the legislature of 1895 memorial to congress was adopted praying for further exten- sion of the provisions of the funding act. This memorial was, by the way, adopted on the motion of representa- tives from Yavapai county and no dissenting voice was heard. In 1896 congress acted upon the legislative memorial and it was made proper to fund the Yavapai subsidy bonds and other classes of county indebtedness which had heretofore been excluded from the operations of the funding act.
 No objection would probably have been heard, but c territorial campaign was approaching and since the ex- tension of the funding act had been secured by Delegate N. o. Murphy, the nXayapai bonds becAme a campaign ggn is is
 e.N The action Of congress was as-
 filed by all varieties of repudiation- [sts and corruption was charged Vthough no good reason was offered why the obligation to the P & A. C. bondholders should not be discharged
 The road had been built in good faith. The proceeds of the bonds had been applied to the purpose for which they were intended and the bonds themselves had gone upon the mar ket. A question as to the power of the legislature to authorize the crea- tion of this indebtedness, had been raised, but it had also been set at rest by the legalizing by congress of the bonds. if they needed legalizing. In the same way congress at the passage of the original funding act and by its extension in 1894 had legalized other territorial indebtedness created by legislatures with doubtful authority under the Harrison act.
 Hon. John c. Herndon, a democrat recognizing the legality of the bonds advised the board of supervisors ot Yavapai county to request the loan commission to refund them. A for nal request was made, but was alter ward rescinded. The democratic ad- ministration of Governor Franklin was bitterly opposed to the refunding and nothing was done about it until the succession of new loan commits sion. In the meantime all classes o1 Arizona securities had fallen into i'll rapute in eastern markets and cap- italists had one answer to offers o1 Arizona paper, How do we know thai your obligations will not be repudi ated?"
 The opposition to the action taker by the commission yesterday is no