Arizona republican., 1898-01-27
Arizona is naV Really al Right
 in the Financial World
SUPREME COURT DECISlON
Affirming a Judgement by
 Judge Street on January 8
Sustaining the Validity of tho Terri torial Funding Bonds and Folding the Existence of the erriiorial Loan Commission bove Question

The supreme court yesterday af- firmed the judgment of Ju ge Street in the case of E. B. Gage ct al vs. Gov erncr McCord and the territorial loan commission. The decision sustains he validity of the so-called Frankli. ad- absurdity of the view that the exist ence of the lean commis lien ased on January 1, 1897, under the pravis- ions of the act of June 6, 1896, ex- tending and amending the provisions of the funding act.
 The full text of the decision rea- dered by Sloan, J., and concurred in by Doan and Davis, A. J., is as fol- lows:
 The appellant brought suit in the court below as a taxpayer to enjoin the board of loan commissioners and the territorial treasurer from attempt ing 10 sell, hypothecate or otherwise i dispose of certain bonds issued by said board for the funding of ter itor- ial indebtedness under the authority Of the act of congress approved June 18th, 1890, and known as the fund ing act" Those bonds are alleged to bear date of January 18th, 1896, and to have been signed by B. J. Franklin as governor, c. M. Bruce as territorial secretary. and C. P. Lietch as territorial audi tor, and to have been coun.ersigned Npy P. J. Cole, who was then and there Ne duly qualified and acting terr.tor- treasurer; that upon the execution
 aid bonds, they were by said loan
 s issioners delivered to the said
 Ince -ial treasurer, and that ever sf( .;onyo ave remained in the DOS sessl asd territorial trea.urer r and his cessors in office for dispo- sition as D gided by said funding act. That since 70 execution of said
 bonds and thS delivery to the terri torial treasurel he said persons com posing the board lean commits ssion- CTS at the date o hid execution and delivery have been \cceeded in office
 by the a:ppellees. NdN McCord as
 governor, Charles H.!A kers as sec reuary anG George w. VNkers as audi tor, and that the tern5rorf treasurer who countersigned the said ends has been succeeded in office by \ppellee C. w. Jphnstone, who is now du y | qualified and acting territorial hean urer. The complaint alleges thy khe 1 present board of loan commissiS ana the present territorial treasy
 nave arranged for the sale and disf sltlon Of the said bonds signed bv IA n5rmer loan commissioners and couny tersigned by the former territorial tneasurer, and propose to use the pro. ceeds thereof for funding and sat;s- fy1ng the fundable debts of the ter ritory.
 The injunction is asked for upon three grounds as stated in the com- ]! plaint:
 i First. The board of loan com- mlssloners and the territorial treas urer have, since January list, 1897. Dy congressional enactment, ceased 10
 nave any power or authority to neg = tate, sell or dispose of bonds fir fund- l ing purposes.
 Ss cOnd- That even if the loan com
 m1ssloners and treasurer have auth orlty at this time to fund the out standing territorial Indebtedness. and TOT that purpose to dispose of territor-
 lal bonds, the bonds in question are
 invalid, and the officers of the terri tory have no authority to disposa of the same because they are net signed by the present loan commits sioners and countersigned by the present ter rltorial treasurer, but by their preda-
 cessors in office
 Third. That the said bonds are in- ] valid because not in he form as pre- l scribed by law.
 We will consider these in their or- | der.
 In support of the first of these
 grounds conltended by appellant, reli- 1 ance is had upon the provisions of the
 act of congress approved June 9th,
 1896, which reads as follows:
 "An act amending and extending ! the provisions of an act of congress, i entitled An Act approving with
 amendments the funding act of Ari-
 zona,' approved June 25th, 1890, and
 the act amendatory thereof and sup
 plementary thereto approved August
 3rd, 1894.
 1 Be dC enacted by the senate and | house of representatives of the Unit
 ed States of America, in congress as-
 sembled, That the provisions of tha l act of congress approved June 25th
 1890, and August 3rd, 1894, authoriz-
 ing the funding of certain indebted l ness of the territory of Arizona, are
 hereby amended and extended SO as to authorize the funding of all out l standing Oh1iPatiOns of said, territOrv
 and the counties, municipalities. and
 school districts thereof, as provided ir the act of congress approved Junt
 18th, 1890. until January 1st, 1897