Arizona republican., 1921-10-25
STATE ORDERED ID ALLOW CLAIMS IN
 RAILWAY BOND CASE

The Arizona state treasurer and state auditor are required in a pre- emptory writ of mandamus issued yesterday by Judge R. C. Stanford in the superior court, to audit, allow and approve the claims of Pima, Yavapai. Coconino and Maricopa counties against the state treasury to recover nearly S2. 900 900 in bonds and accrued interest incurred by these counties through the issu- ance Of bonds to promote the build ing of the Arizona Central Rail way from Seligman, AriZ, through Prescott and Phoenix to Tucson. l The order was asked in q suit brought by the counties in Decem- | Der, 1920. The defendants vester- day gave notice of appeal to the supreme court and Judge Stanford ordered stay of proceedings in the case pending the perfection of the appeal.
 The writ of mandamus further ordered the state treasurer and auditor to credit each of the coun- ! ties with the amount of their claims after they had been allowed. The | defendants are directed after pay | ing from the funds raised through | the land grant now in the state | on the bonds. to apportion the re- maining amount to the counties and are also directed as funds become available from the land grant in l the future, to apportion these amounts to the counties after all
 current interest then due on the | bonds has been paid.
 ! In issuing the writ of mandamus i the court stated it found that each
 of the counties acting under a legis- | lative act of the territory had is
 sued and delivered bonds for the building of the road as follows;
 Pima county, S2O0.O00; Yavapai | county S293. 200: Maricopa county. s200,0O0; and that upon the form
 it had assumed one-third of the bonds issued by Yavapai county. The court further found, it stated, ! that the United States supreme
 court on October 26, 1894, had held
 that the bonds issued by Pima
 county were invalid and that by
 virtue of this decision the bonds
 of the other counties became in valid, and that congress by an act
 of June 6. 1896. had validated the
 bonds of the counties.
 The court stated it found that
 the original bonds were cancelled
 under the funding act of the state leElSlalQEe dtiu tIldL iASN DOA4No h'%NN
 interest were issued as follows
 Maricopa county, $209,550, which in
 cluded $1I,510 in interest; HaYapai
 county. $337, ,96S.46, including ST.
 g6g .46 interest: CoconiEo, Sl59,OOoS9
 including S6.O25.47 interest; and
 Pima. S3I9,79l23, including interest
 of Si69.79l23. and that under the
 refunding act. each of the counties
 became indebted to the state IF
 those amounts The court also
 found. it stated that congress by
 the enabling act of June 20. l9lO had granted .000, ,000 acres Of lano
 to the state of Arizona for the re- demption of bonds and interest anc
 that the state had received the grant and had selected a greater , portion of the lands. The cour'
 stated it also found that approXl' . mately S235,O ,O0O had accrued in th' state treasury to date from the rent aIs and sales of these lands
 The bonds involved in the sui i were issued hy the counties beiweeI IsS2 and 1887 and tOtaled neari! $I .OOO 900. They were issued To z the purpose of building marrow : gauge railroad from Seiigman |
 Tucson, but in some manner un
 known, the bonds were turned owe
 to the railroad company by tn ! counties before the work Of build } ing the road began. The rallroa' : company then sold the bonds to - third party and allied to build tn . | road.