Henry Billings Brown

“ In this state of affairs the legislature of Arizona on March 10, 1887, passed an act (Rev. St. Ariz. p. 361) constituting the governor, auditor, and secretary of the territory loan commissioners of the territory, with the duty of providing 'for the payment of the existing territorial indebtedness, due and to become due, and for the purpose of paying, redeeming and refunding all or any part of the principal and interest, or either, of the existing or subsisting territorial legal indebtedness, with power to issue negotiable bonds therefor. ”

“ Any person holding bonds, warrants or other evidence of indebtedness of the territory or any county, municipality or school district within the territory, existing and outstanding on the 31st day of December, 1890, may exchange the same for the bonds issued under the provisions of this act at not less than their face or par value and the accrued interest at the time of exchange ”

“ The first section of the act requires the funding of all outstanding obligations of said territory and its municipalities, and all outstanding bonds, etc., of the territory and its municipalities, 'heretofore authorized by legislative enactments of said territory, bearing a higher rate of interest than is authorized by the aforesaid funding act, approved June 5, 1890,' which said bonds, etc., 'have been sold or exchanged in good faith in compliance with the terms of the acts of the legislature by which they were authorized' ”