Arizona republican., 1898-01-09


 that a demand was made and protests as well; yet. the court is of opinion that the class e1 indebtedness which was created by the issuing of bonds to a railroad cd1ppany after having passed into tn andnot innocent pur- contemplated kinnunnet of congress, passeds5V lanI amendments theretd
 demand of the coun
 ''The bonds had
 control of the board
 and it would not be M bower of the board to compel u holders of the bonds to accept the finding bonds of the territory in lieu thereof, that choice would lie entirely with tho holders of the bonds and it would be sufficient for such holders to make a demand upon the loan commissioners for funding bonds of the territory in exchange for the bonds of Yavapai county.
 'It is also objected that when the loan commissioners, on the 17th day of September, 1897, did deliver fund ing bonds of the territory to the hold CTS of the Yavapai county bonds, which had been issued to the Prescott & Arizona Central Railroad company, that they had no power to act, by linn itation of law, for that the ac bf June 6, 1896, limited the time to Lhe first day of January, 1897. Tn this, tha court is not able to agree with counsel for by the reading of that act, it ap- pears to the court that the limitatio9 of time referred to the indebtednes5v which had accrued before January 1, 1897, and not to the action of the com missio1ers. It is in evidence that tho holders of the bonds had made de+ mand on the loan commissioners for the territorial funding bonds some time in 1896; and that action on tho matter had been deferred by. tue loan commissioners on their Ow& motion
 Whether or not the act Of March 12, 1885, of the Thirteenth legislative assembly of Arizona authorizing the issuing of the Yavapai county bonds was within the power of the legislak ture to enact, and whether the bonds that were issued in pursuance of said act were originally valid or not, the court does not feel called upon to eide. The only question Is as whether the loan commiss;on shcd be restrained from exchanging terl torial funding bonds for bonds issu under that act; and the court will das termine that upon the act of congress, approved June 6, 1896, section 2 6f whts is as follows:
 "'That all bonds and otA eyid sncen of indebtedness heretofore funded U the loan commission of Arizoaa under the provisions of the act of congren approved June 25, 1890, and the al amendatory thereof and supplemen0 0' thereto, aperoved August 3, 1894, are hereby declared to be valid and legal for the purposes for which they were issued and funded and all bonds and other evidences of indebtedness he-e- tofore issued under the authority cf the legislature of said territory n hereinbefore authorized to be fandes are hereby confirmed, approved and validated; and may be funded as in this act provided until January 1. 1897, provided that nothing in this scs shall be 50 construed as to mako the government of the United States liable or responsible for the payment of any of said bonds, warrants or other approved, confirmed and made valid and authorize to be funded Approved June 6, 1896)
 And the court holds that under that act all bonds which had been is sued by virtue of the legislative as sembly of Arizona were permitted to be funded into territorial hun bonds. That the act of congress- ep proved June 6, 1896, made valid all o9 the bonds which were issued under 0o< legislative act of March F, 1885. This Is made certain and the construction of the language of that cong essional act becomes the more easy of inter pretation under the history which surrounds its passage, for 1t mus. be remembered that the legislative ss- sembly of 1895 passed 2, memorial to congress, asking for the enactment e some such law. The text of such mex morial is as follows. to-wft:
 Whereas, Under the various ac.s of the legislative assembly of the ter ritory of Arizona, certain of the cou1- ties of the territory were authorized to issue in aid of railroads and other quasi public improvements and did. under such acts, issue bonds, which said bonds were sold in open market, in most instances at their face value. and are now held at home and abroad hv nersons who in good fai,h invested