Arizona republican., 1921-06-07
OLD RAILROAD BOND PROCEEDINGS TAKEN
 UNDER ADv|SEMENT

After a hearing yesterday of the mandamus suit brought by Coconino. Pima. Yavapai and Maricopa coun- ties to compel the state auditor and treasurer to recover nearly s2.000.00O in bonds and accrued interest in- cured by these counties through the issuance of bonds to promote the construction of railroad from Selig- man through Prescott and Phoenix to Tucson, Judge Stanford took un- der advisement an order by the de- fendents to dismiss and also the order to issue the writ of mandamus.
 The motion to dismiss the pro- ceedings was made by w. F.. Ryan. special attorney for the defendants. on the grounds that the superior court had no Jurisdiction in the mat ter, holding that it was a case that the federal courts should decide be- cause the act of congress in June. 1910. authorizing the admission of Arizona as "a state contained pro- vision reserving the exclusive juris- diction in this case to the federal courts. Mir. Ryan also held that the complaint of the counties in its in- tended effect was suit against the state and the consent of the legis- lature to the filing of such a com plaint had not been granted
 George D. Christy. deputy county attorney for Maricopa county. opened the argument in the case and stated the case to the court Mir. Christy said that the act of congress fin grant, ing l.o00. 900 acres of land to tho state to be sold and the proceeds to be distributed among the counties | for the redemption of the bonds made | 1t mandatory for the auditor and the | treasurer to audit and distribute the | funds in accordance with this act | The fund, he said. had not been | raised by taxation and was not a | state fund. and therefore needed nc state legislation to make it neces- sary for the payment of the fund accrued from the sale of the lands
 MT. Christy declared the defense ol the defendants that they had no rec. ords of the amounts was without foundation.
 | c. B. Wilson of Flagstaff. specia ! counsel for the counties. said the ac | of congress in setting aside 1000, 900 acres of land for tne refunding O
 the bonds did not designate who wa
 to divide the fund. but left that ul | to the state legislature 10 decide Each of the counties. ne said. wa
 entitled to the interest 1t had pail on the bonds prior to tne funding O the bonds by the state legislature and was entitled to the interest pai' since the bonds were refunded Be
 cause the act left the matter open
 Mir. Wilson said. mandamus pro
 ceeding was the only course left [
 the counties.
 trafA arm -|
 an objection to any arguments bein
 made on the merits or demerits of tn case until the court had ruled on th
 motion of jurisdiction in the mattel Judge Stanford overruled the objec
 tion. Mir. Ryan for the defendanti then closed the argument and sai that the main purpose of the grar of land was to pay off the bond [ The act made the state assume th . bonds, he said, and If the fund q l present was used in paying off th 5 interest the purpose of the trust the state was thwarted- If a sui } ficient amount of money was nevs
 received in the fund. after the inter , est was all paid. to pay off the bond | then it would be the duty of the sta' B by taxation to pay off the amour E of the bonds. he said. Mir. Ryan at 2 vised the court that the state treat
 urer and auditor did not have q records in the matter to determir
 the amount He pointed out that Il | report of the treasurer at the tin
 of the funding of the bonds shove
 different amounts than those giys : by the counties in their suits as Il
 amount of the bonds
 The suit arose over the failure
 the treasurer and auditor to pay Il
 counties upon demand the amou
 now in the treasury derived from Il
 sale of the lands in the land grar
 The bonds, totaling about $l.0oo.o were issued between 1883 and 1ss nd in some manner were turned ov