Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-04-16
EXCEPT WHERE ABsOLUTELY FOR THE MAN
.GEMENT OF IT'S INTERNAL AFFAIRs,n

First, they were absolutely prohibited b,
an act Of congress in 1878, aud it was
fraudulent evasion of the territorial lav
by pretending that they were issned fo
the purpose of aiding In the construction
of TWO roads when they we're intended II
apply to the construction of only ON
road.
The railroad received the bonds an,
held them until $42,350 of interest ha,
accrued--the citizens from the very frs
refusing to pay them, and the law beint
80 weak that the holders
DARE NOT UNDERTAKE ToFoRCE COLLECTION
At this time the railroad company soil
the bonds to Nessrs. Coler & Co., of New
York, at little less than SO cents On tn
dollar, including the accrued interest, O.
will appear from the following Telegram
of the broker who sold them:
"Silver City, N. NJ, March 23rd,
wv. T. Thornton National Hotel, Washing
ton, ID. G.
"Fifty thousand dollars bonds and $42,
$50 past due coupons, Santa Fe county
issue, sold at sixty-four fiat.
(Signed) GEORGE Fl. UTTER"
1t will thus be seen that the bonds wer'
taken as speculation, not a dollar't
worth of stock being issued by the New
Mexico & Southern Pacific railroad tt
Santa Fe county as consideration, ant
the county therefore absolutely received
no benefit except the construction of the
branch road eighteen miles in length.
After Messrs. Coler Il Go. had obtained
these bonds they brought suit to recover
the defaulting interest, and obtained
judgment for seventy odd Thousand dol
lars, Messrs. Catron, Knaebel Dc Clancy
Tor the plaintiffs. The deci
sion of the supreme court of the terri
tory affirming this judgment will be found
inthe 27 Pacific Reporter.
An attempt was made upon the part OF
the citizens to appeal this case to the su
preme court of the United States-the
citizens Offering to pay the entire ex
pense of the appeal, making transcript
and all costs in connection Herewith
which was refused
BY THE COUNTY COMMISSIONERS,
the commissioners being entirely unde,
the influence Of the bondholders. The
bondholders afterwards, through the in
auence of their attorney, Mr.. j. H. Knae
bel, secured the passage through the ter.
ritorial legislature of refunding act, and
the $25O,OOO Of Santa Fe county bonde
included in the Coler amendment are the
funded bonds issued under this act te
take up the original $l50,000 issued witt
accrued interest. How completely the
bondholders dominated this Legislature
will be proved by an examination Of thu
law--chapter 10, page, 146, laws of New
Mexico of 1891 which provides not only
for the refunding of the bonds, but makes
it
PENITENlIARY oFFENsE TO REFUSE
to levy the tax, or for the collector to
refuse to collect the taxes to pay overdue
interest on these bonds.
In 1880 or 1881 there was organized
under the laws of the territory, a railroad
running from Cerrillos by way of Santa
Fe to Espauola, distance of about sixty
miles. This read was known as the Texas,
Santa Fe & Northern railroad.
1t Was provided (see section 1925, Com
piled Laws of New Mexico,) that "the in
of each intended corporation
before filing articles of incorporation
must have actually subscribed to the cap
ital stock of the corporation at least
81 900 for each mile of the road and its
branches, and at least 10 per cent thereof
must have been paid for the benefit of
the corporation to the treasurer appoint
ed by the subscribers IN it's articles of in
or its attorneys in fact. as
The stock subscribed or pretended to
be subscribed under the provisions of
this law was bogus subscription, a por-
tion of the subscribers being absolutely
lnsolvent, and the 10 per cent required to
he paid in cash was paid by each sub
scriber depositing his check with the
treasurer of the company as cash.
NOT ONE OF THESE CHECKS
held by the treasurer as paid, but that were
held by the company until it was enabled
to obtain subscription from the citizens
OF the territory for about $l25,000, when
they took up these checks for the amount
Having thus made fraud.
ulent organization, and obtained private
subscriptions upon the strength of it, the
Te xas, Santa Fe & Northern Railroad
company began the construction of its
road, expended the amount OF subscrip
tion by the citizens, and became indebted
for labor and material furnished In the
additional sum of about 100000. Upor
this Indebtedness various judgments were
obtained in the district court of Santa FL
county, as appears from the records o.
Santa Fe county. The road was sold, tht
various transfers being as follows:
On the 9th day of February, 1885, P
L. vandeveer, as special master, con veyet
the property to George G. Preston. (Se,
book O, page IA. The confederation O.
this deed was $1,000.
The sale was made under CONSOLIDATED
decree in the case of James B. Ormar
and others versus The Texas, Santa Fe
Northern Railroad Company; and also tn,
cases Of Adam Hager, 8. L. Bachelor
Lionel D. Saxton and many others In suit.
foreclosing mechanics liens upon ths
property OF tn0 AOOVo ndmeQ ratifOdOs
The property was bought by George @
Preston, the deed conveying to said Pres
ton all OF the right, title and interest o.
the Texas, Santa Fe d Northern Railroad
COMPANY to the San Juan division Of sale
road commencing at Espanola and ter
minating at Santa Fe, including all Of tn,
grade and grading, bridges, ties, culverts
timber and other material and right-of
way.
"MR. pR1cE, OF NEW YORK;
In Record book 0, page 10, on the 19tl
day of May, 1885, for $1,000, Is recorde,
the fact that George C.Preston and wifi
bv deed conveyed to Calvin 8. Brice an,
wife, of New York, all the right, title an,
interest in the Texas, Santa Fe d North
ern railroad which be had acquired b,
deed from vandeveer heretofore men
toned describing the property in tn
CONTINUED on Fourth Pase.l