Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1889-02-09
SATURDAY, FEBRUARY 8.
THAT FUNDING BILL AGAIN.


1t is painful tb witness the activity OF
some people in New Mexico in their ell
forts to prove to the world that New Mex
leo is not fitted for statehood. First we
have the scandalous Albuquerque memo
rial Next we see some of our own peo-
pie appear in the role OF regulators OF
the public debt.
We also notice that the Las Vegas
Optic, evidently acting upon one sided
information, advocates their dishonorable
views.
Riobt here WI find also several citizens
advocating these views, and petition in
the matter signed at Cerrillos has been
presented to the legislative assembly.
The Las Vegas Optic seems to admit
that council bill No. 1872, which gives rise
to all this runlpus is upon the whole
fair and advantageous measure. 1t con-
templates a grant of power to counties
and municipalities to fund matured and
unmatured bonded or warrant indebted
ness for thirty Years, at rate not to eX-
coed per cent per year.
It creates no hew debt, but, in view of
the fact that Ssh Miguel has outstanding
IL per cent BON s, Santa Fe outstanding
g per cent bonhs, and other counties a
large bonded Indebtedness bearing ex-
cessiye rates Cd interest, seeks to relieve
the tax payerA by reducing the rate OF
interest to 6 Ter cent or less and by ex-
tending the tirJe of payment of the prin-
cipal instead Of subjecting the property
Of the several counties and municipalities
to heavy and unbearable taxation on the
approaching maturity of their bonded
obligations and before they are able to
bear the pressing burden. The law pro-
posed is almost literally copied from the
Kansas refunding statute, which has been
in successful oberation in that state for
several years. But it is asserted that the
bill, if passed will enable the county COM
missioners to efund the railroad bonds
voted in 1879 aid of the New Mexico &
Southern Paci e Railroad company. 1t
is this debt wi ch the opponents of the
bill seek to destroy. 1t is not pretended
that the bondsIwere not voted for OH due
notice and sued afterward in pursuance
of the vote, Under such signatures as
those of Antorto Ortiz y Salazar, Luciano
Baca and FeliE |e Delgado, and under the
county seal. It is not denied that this
county issued these bonds nearly ten
years ago and by recitals upon their face,
introduced thbm to the financial world
as binding contracts. We all know
that year after year the people,
in honorable compliance with their
contract, have submitted to taxation and
paid thousand of dollars on account of
the interest uI bn these obligations. 1t is
also true that \ few years ago these bonds
were tenderedlto Hon. William N. Coler,
a distinguished jurist and capitalist Of
New York, al ID the author of Cooler Oh
Municipal Sed critics." one of the ablest
counsel in tn united States on the sub
ject of municipal and commercial law.
Before purchk sing the securities, Mr..
Coler was shofFn strong written recon-
mendation oil their integrity and value
emanating frtl b our Board Of Trade and
numerous les5ing citizens, whose names
can if necessity be furnished.
On the faitll of the recitals on the bonds
and these ASST Fances Of our leading tax
payers Mr.. CIDER bought the bonds and
sold them again, reserving to himself only
part of thd interest coupons. From
time to time, lie has collected the interest
from our county treasury. He is an in
dulgent creditor. Norefusal to pay interest
was ever madf by the county until re-
Gently, but BECAUSE Of the inadequacy Of
the tax collections and because the taxes
collected for the purpose were unlawfully
frittered away large amount Of coupons
fell into arrears. In order to save ques-
ton as to thb statute of limitations, a
friendly suit UPON overdue coupons was
brought against the county, but not
pressed. No Reputation was yet even
thought Of. Indeed, upward of 5000
interest was laid last year on this in
debtedness, after the inception Of the liti-
cation. According to law, judgment
against the co}nty is collected by a special
tax without delay. A judgment in the
pending litiglt ion against the county
would lead I'd Ybppressive taxation. Mr.. |
Coler, unwill1g to be harsh, agreed with
Mr.. Seligmapf chairman Of the board of
county comm Bsioners, to extend the col
lection of any ouch judgment over period
of five or sill ears, and also to aid the
county to bcure correct survey of
its assessable zeal estate. 1t was assumed
that this agreement would be carried out
six months % ). But new influences were
at work and, dddenly, the board entered
into an arra1E cement with the county at
torney and bme other lawyers to pay
them $6,oo0l Lsh and $4,000 as a con-
tingency, for advocating in the courts the
policy of rel Notation. We shall have
something 1. ther to say about this ex-
traordinary i oceeding. 1t is enough to
say now that Innocent purchasers Of ne
gotiable bond are never required to look
beyond the eitals Of the bonds them
selves, and, those recitals and the