Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1899-04-14
Judge McPie Holds That San Miguel
County Commissioners Exceeded
Their Authority,
MUST BE EXACT
Judgments Can Not Be Paid by Special
Tax Levies Action of Commissioners
Oircumscribed by Statute and Must
Be Within the Law.

place of Chief Justice Mills, has handed
down a decision in certain tax cases
heard in chambers at Las Vegas, in
which Messrs. Veeder & Veeder APP
peared for the territory as special coun,
sci, and Messrs. H. L. Waldo, r. E.
Twitchell and Frank Springer for the
defendants.
There were three cases, one entitled,
The Territory of New Mexico VS..
The A., Il. & s. T. Ry. Co., A., 7. & S.
+. RID. Co.. N. M. & S. P. Rd. Co. and
the New Mexican Rid. Company, this
case is docketed as No. 1909. Another
case, No. 49Os, is entitled, Territory VS..
A., T. & S. f. Hospital Association. No.
4907 is the Territory of New Mexico vs.
Las Vegas Hot Springs Company.
BY consent, trial of No. 1909 was pro-
ceeded with and the other cases were to
abide the decision in this. The territory
brought this suit to collect a large
amount of money claimed to be due on
account of unpaid taxes upon property
in San Miguel county for the years 1891
to 1896 inclusive, which the defendants
refused to'pay, claiming that the assess
ments and levies were without authority
of law. The plaintiff introduced in evil
dence the orders of the county commits
%sioners, tax rolls, etc, with a supple
mental order as a m%andamus, issued by
Chief Justice Mills, requiring levy to be
made to pay judgments. The defend
ants objected to the admission of these
records and documents, claiming that
they show on their face nc lawful
assessment, no description of property
assessed, and do not separately desig-
nate the property of the defendants SUBJ
ject to municipal, city school or special
tax and are not made out according to
law.
Among the taxes which the defend
ants declined to pay were assessments
for interest upon certain territorial
bonds. In this matter the court holds:
In 1889 the legislature enacted a law
for the better administration of its
finances. This system differed from the
former in that a fiscal year was created,
particular funds were established for
which taxes might be levied and a limita-
ton put upon the taxing power in the
following language: thereafter all
taxes levied for territorial purposes shall
be for the benefit of the above named
fund and to raise money to meet the de-
mand upon the same and for no other
purpose whatever" These provisions
are still in force but some additional
funds have been provided for. The tax
levy for the 41st and 42d fiscal years
was limited to 7 mills each year, and for
the ADD and 44th, ''for territorial pur-
poses was limited to 81 mills for each
year, to be distributed among the ten
funds named in the section 2 of the Act
of 1889.
Levies for 6 mills were made in San
Miguel county ''for territorial purposes
for the AID and 44th fiscal years and in
addition levies for four funds, which
were identical with four funds named
in the Act, as follows: Penitentiary in
terest and sinking fund, so mills; capitol
interest fund, Az mills; provisional in
debtedness fund, SO mills; current ex-
pense interest fund, .27 mills.
The defendants paid the taxes as
sessed against them for territorial pur'
poses to the amount of 61a mills, but re-
fused to pay that assessed for the foul
additional levies and questioned the
validity of the assessments. The court
finds that the interest to pay which
these levies were made, was upon the
bonds of the territory, which were au-
thorized by legislative enactment and
became the funded debt. The levies
were made for paying interest upon this
debt and for no other purpose.
The bonds being authorized by legis.
lative enactment became the funded OF
public debt of the territory. In the law
authorizing these bonds provision was
made for levies to pay the accruing in
terest and for sinking funds to pay the
principal. 1t was provided that sit shall
be the duty of the territorial auditor tt
make an estimate of the amount Of
taxes required to be levied and collected
in each county to pay the interest upor
the bonds"
This did not prevent the legislature
from having the right to adopt any 9th
err method for the purpose in view, and
the Act of 1889 really withdrew from
the auditor all occasion for performing
the above duty. by authorizing the levy
and collection of taxes for the particu,
lar funds, so that it was unnecessary
for the auditor to make the estimate and
the defendants were justified in refus.
ing to pay the additional levy made by
direction of the auditor as they had
paid the tax imposed under the legisla.
tive act for the same fund.
AS to the general county taxes, the
laws of 1882 permitted a levy of ~ mills
and in 1889 this limitation was raised sc
as to add 4 mill when necessary to meet
or to cover q deficit. In 1897 this amend.
ment authorizing the 4 mill was re.
pealed.
In utter disregard of this limitation,
San Miguel county in 1891 levied fol
county purposes s mills. in 1892 s mills
and in is93 XIX mills. The levies were