Weekly journal-miner., 1919-02-19
YAVAPAPS BONDS MAY
 BE PAID BY THE STATE.

YAVAPAI'S BONDS MAY
 BE PAID BY THE STATE l PHOENIX-When congress ill the Arizona enabling act gave the new state 100000 acres of public lands with which to cover bonds is- sued in payment of railroad subsi- dies, it appears there was no men, ton of railroads in the section and that it, therefore, covers also float ing indebatdness of a general Char acter. This is late discovery made by Attorney w. E. Ryan of the State Taxpayers association and by him passed on to State Auditor Boyce Thereby will come large and unexpected benefit to Pima county and substantial payments also to Yavapai and Maricopa coun- ties.
 R. R. Bond Issues.
 The land grant was based upon an extraordinary transaction in con gress which, on June 6, 1896, amend ed the Arizona funding act, inciden- tally legalizing 'al other outstanding bonds, warrants and other evidences of indebtedness" It happened that Arizona at that time had two bond issues that had been passed upon by the United States supreme court and called void. One was Of $l50,000 at 7 per cent, delivered by the super visors of Pima county after there ] had been built ten miles of mar row-guage line that was headed for Globe, but which went no further than the fcn-mile terminus. The second was of $291 900, issued by Yavapai county to T. s. Bullock for construction of a 72-mile broad gauge fhmsy sort between the pres Seligman and Prescott. This road stopped operation soon after the completion of the Santa Fe system from Ash Fork to Prescott. Also covered by the act was a third bond issue, of $200,OO0, given by Maricopa county 10 the Maricopa, & Phoenix railroad, which still is the Southern Pacific cntryway to the capital city. Nothing of illegality has ever been charged against this last bond issue.
 The act of 1891 was confirmed by congress in 1896, with extension of its scope to all state, county. munich pal and school district obligations, limited to January 1, 1897.
 Pima county's railroad indebted ness was funded in 1903 and the bondholders were delivered S318,0O0 of territorial bonds, though with ac- ceptcd stipulation of interest at only 3 per cent, a rate still carried In addition, under the terms of the en- abling act, the county may demand payment. of $235,24O of general in debtedness bonds, issued prior to the limitation date.
 Yavapai's Case
 Yavapai county today, on the aud itor's books, stands charged with $3l0163 in Az per cent railroad bonds and $2S,576 issued for pay ment of general indebtedness. Co conino county, which later was set off from Yavapai, is charged with $l59,0O0 of railroad bonds, consid- cred third of the gross indebted ness incurred through the Bullock subsidy. Yavapai has made claims that Coconino should pay third of the amount still charged against the parent county and there will have to be litigation before the dispute is decided.
 Maricopa county will profit by the liftin gof $267,636 of railroad and $14OOO of general indebtedness.
 In all, the land is expected to pay county debts of $l,332,254, out of total funded county indebtedness of 1 S1, ,967, ,804 If reimbursement is made for interest, there would be little left of the $3OOO,OOQ expected to be realized by the land sales, for Yav- pal alone has paid nearly $400,OO0 in interest on principal debt of $29l ,000
 It is probable that suit for settle ment of the dispute between Yava- pal and Coconino will be started soon, directed against the auditor.
 The state land commission already has selected 992,OO0 acres under the grant and has in this account about $l50,000 collected for sales made. Full payment will be slow, as the land is sold on a 3S-ycar purchase ,1,,