Arizona republican., 1902-06-27
LOAN COMMISSION MEETING
To Consider Proposition for Fundin g
 Pima County Bonds.

\ called meeting of the territorial lean commission, the first held in more than two years, was held at the office Of the governor yesterday for the pur- pose e considering the application of the holders Of the famous Pima county railroad bonds tc have them funded into territorial bonds in accordance with the late decision of the supreme court of the United States. The bCnd., were not funded, but . rather interest ing meeting was held. The members Ci the commission present were Gov elrcr Murphy and Secretary StCidard. Auditor Nichols, the other member was cut of town. Meetings of the loan commission have net been held Of late because the twentieth legislature Tur- ported tc abolish the commission by passing an act to that effect, and it was net until the decision of the su- preme court few weeks ago that it was established that the legislature had nc power to abolish the comlris- sion. The pCWerlcssness Of the Iegisla- ture in the premises is due to the crea- tion Of the commission by an act Of Congresses. somewhat superior body. The lean commission --as created for the purpose of enabling the people of AriZC1a 10 carry the various county and territorial debts at q lower rate of interest. Previously some of the coun- ties were paying as much as 10 per cent interest CI their obligations. The loan commission funding law enabled the cCIntias tc convert thcir bonds into teftitOrial bends bearing a much lower interest rate, the counties thus paying int the territory, and bondholdars were llsased because they had better se- curity. Governor Murphy has always insisted that the legislative act abol- ishilg the commission was invalid. but he has held that it would not be proper fer the commission t0 perform any Of it's functions until it's status was cs- ta niished by the United States supreme court.
 On behalf cf the holders of the Pima county bonds appeared yesterday Judge William T. Barnes. of Tucson. as an attorney, and Bird s. Colcr, of New York, as the financial representative oc the owners of bonds. For Pima coun- ty Attorney Rochester Ford and l. M. Jacobs appeared, by invitation cf the s.C VsInor. Judge Iiarfias presented a certified opinion of the supreme court nj the United States, uphClding the val iditY of the bonds and affirming the legality of the loan commission. and he stated that the bCndholders, now that tho questions in dispute were settled. wished to present their bonds, as pro- Vided by law, and receive territorial bonds for them. Governor Murphy in Cuired whether the supreme court of the territory had yet received the man. dato of the higher court. and Judge Barnes explained that the mandate had not been received because Of the courts s adjournment, but he suggested that this was an unirlpcrtant fCrmality and was analogous to a judgment debtors insisting upon the service Of an exc cuticn before meeting q judgment final ly rendered against him. Governor Murphy inquired of MT. Fcrd whether Pima county was making any objec- ticns and Mir. Ford replied that the county vas objecting to the funding cf the bonds at this time. He read q telegram from John q. Carlise stating
 that pending the presentation of q mo- ticn for q rehearing of the case the cn.:Tt had granted q stay in the issu-
 ance of the mandate until the 2d of
 July, and MT. FCrd stated that the county wished to postpone the funding
 unti! the arrival Of the mandate in due course. Governor Murphy suggested that he thous nt it would be better to
 await the arrival Of the mandate com polling the commission to fund the bends, and asked for the views of Sec rstary Stoddard. The secretary stated that he was of the same mind. and the proceedings were praC tically closed. Tn friendly conversation which ensued between the representative Of the b3ndholders and the county it deVel- oped that nobody doubted that it would be necessary s"on to fund the bonds ! ard that the burden for Pima county i would be lassened by making the in I tcrcst rate lower as soon aS rossihlc 1 It seemed to be he general conclusion 1 that territorial bond bearing per
 cent would sell at par. Mr. Ford i thanked the covernor and the commits
 sion fer the uniform courtesy and con- i siieraticn shown Pima county from tho 1 inception cf the litigation, and tho meeting adjourned.
 -C--