When
William McKinley became President of the United States in 1897, U.S. Senator
Henry Cabot Lodge and several Congressmen from New York recommended Stoddard as a nonpolitical candidate to replace Governor
Benjamin Joseph Franklin. McKinley nominated Stoddard to become territorial secretary on June 5, 1901, and Stoddard subsequently moved to
Phoenix in 1902. The primary duties of the secretary of the territory were to attend legislative sessions to record laws and resolutions, to record acts of the governor, to seal documents signed by the governor, to record articles of incorporation, to certify elections, to provide copies to the public of official documents, to have printed and published the laws of each legislative session, to store and secure the original legislative acts and resolutions, and other records, deeds, maps, etc., to distribute the published statutes as required, and to perform the duties of the governor when the governor was out of the territory or otherwise incapable. When Stoddard took office, the territorial secretary was the most financially lucrative position in the territorial government. This is because territorial law allowed the secretary to retain incorporation fees. It is estimated that Stoddard was receiving $40,000 per year (about $ per year in present-day terms) in fees, and he had built a side business that assisted foreign businesses to incorporate under Arizona law. His earnings were harshly criticized. An editorial at the time stated: Issac T. Stoddard, by virtue of being territorial secretary has made, during the first seven months in office, between $25,000 and $30,000. This money belongs to the territory and we see no reason why the territory or the citizens of it should pay a man of his ordinary ability at the rate of $50,000 or $60,000 a year for warming a leather cushioned chair and gracing the finely furnished offices provided by the people of the territory. The legislature should either pass a law providing that the fees of this office should go to the territory or increase the salaries of the Governor, Treasurer, and Auditor to proportionate amounts. The Secretary now receives salaries from the United States and the territory which many better qualified men than Stoddard would be glad to receive for the same work and there is no reason why the $50,000 or $60,000 should not go into the territorial treasury to pay territorial taxes. The
22nd Arizona Territorial Legislature changed the law in 1903, resulting in the fees going into the territorial treasury. In June 1903, Governor
Alexander Oswald Brodie was out of the Territory, making Stoddard the acting territory governor. At that time, 3,500 mostly "foreign" (
Mexican and
Italian) miners in the towns of
Clifton,
Morenci, and
Metcalf went on strike in a wage dispute related to the "eight-hour law". Mine "bosses" appealed to Stoddard for help. Stoddard quickly ordered the
Arizona Rangers to assist the local
Graham County sheriff in maintaining order. The contingent of fifteen Rangers and fifty
deputies requested additional support, and Stoddard subsequently sent six companies of the
National Guard (then known as the Arizona Territorial Militia). He also prevailed on President
Theodore Roosevelt, who agreed to send several units of
United States Cavalry.
Resignation After the law was changed, Stoddard was alleged to have continued to retain the fees, failed to provide accounting to an oversight committee, and burned records to prevent inspection. Charges were filed against Stoddard for "promoting the incorporation of companies in Arizona". Although not illegal, retaining the incorporation fees after the change in law was. In October 1903, he traveled to
Washington, D.C. to defend himself to
Secretary of the Interior Ethan Hitchcock, claiming the charges were made by "irresponsible persons". After intense criticism, he eventually tendered his resignation.
Thomas C. Platt, the powerful Senator of New York State, where Stoddard's father-in-law, Celora E. Martin, was a member of the
state's highest court, attempted to convince President Roosevelt to retain Stoddard, but Roosevelt refused and accepted the resignation effective April 1, 1904. ==Later life==