Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1900-02-17
Santa F. civ sonds

Santa Fe by its commissioners Ia en-
deavoriug to scale down it's tremen-
deus bonded debt, which amounts to
more Than one-half of the assessed val-
Tie Of the cOuntyA and for THAT purpose
has a., to its aid a committee of ten
of the leading citizens to procure a
settlement with its creditors at 20 cents
on the dollar, in new thirty year 1 per
CENT bonds, and when suits are pending
against the county to recover nearly d
quarter Of a million dollars of overdue
and unpaid interest, the action of tha
city council of Santa Fe in issuing
SO, 900 additional bonds, and expecting
to sell the same is an evidence Of faith
little less than supernatural, even If
the bonds were valid and authorized by
law. Under these circumstances the
New Mexican does not consider it at
all probable that even the most enthus-
iastic gold brick buyer would invest in
these securities. AT the same time,
experience has shown that the wise
ilAGll VI tlC VoSl \ VaEy victims, NliNiC
their rates of interest are concerned,
and fOr their benefit it is pointed out
that these ~so-called bonds are not au-
thorized by the law, and that no taX
payer would ever think of paying any
levies made to collect interest Thereon,
The ordinance authorizing the ISIS le
of these bonds was passed under chap
ter IS, Session Laws of 1899. This act
has no repeating clause, and must BE-
taken in connection with other exist.
ing laws on the same subject. Tt pro
vides in section /: The city council of
an cities of the first class are hereby
authorized to issue bonds OF the city
for the purpose of opening streets, con-
structing bitches, building water-works
and sewers, and constructing embank-
ments and bitches or other means for
disposing of storm or surface water,
thereby to prevent the destruction of
private or public property within the
limits Of said city
All of these purposes We're already
covered by section 2402, Compiled Laws
Of 1897, with the exception of the o.
ening of streets and construction of en-
bankments for the disposing of storm
or surface water, which section pro
vides that no debt shall be created fol
these purposes or bonds issued there,
for until the question shall have beer
submitted at a regular election at the
same time the city officers are elected
and shall have been carried by a ma
jority of the electors. who shall have
paid their property tax in the city fol
the previous year
The ordinance attempting to author
iZe the issue of bonds does not specify
which of the purposes named in the act
it to receive the benefit of the bonds
but enumerates them all, and in the
bond itself recites broadly that it is
issued 'for the purpose of carrying on
public improvements without desig-
mating any of them. In addition to the
ordinance and the bond not reciting for
what purpose they are supposed to be
issued. and the proposition not having
been submitted to a vote of the tax
payers, the act in question and the or
dinance under it are in direct conflict
with chapter 35. act of the 55th con-
gress, approved March a, 1898. That
act Of congress mtodiies what is known
as the Springer act" limiting territor-
ial Indebtedness so that "a municipal
corporation in any territory OF the
United States is authorized to issue
bonds "for sanitary and health pIr-
poses, the construction of sewers, wa
fireworks, and improvements of
streets, provided that before any bond
shall be issued, the mayor and common
council shall cause an election to be
held y - 4 and on the question Of
issuance of said bonds no person shall
be qualified to vote except he be in ali
respects a qualified elector and owner
Of real and personal property subiect
to taxation Within the municipality.
In case two-thirds of the qualified vot.
ers as above described shall vote afir-
matively for the issuance of said bonds
then the mayor and common council
shall issue the same and not otherwise.
" = " and rome of said bonds shall be
sold at less than their par value"
The ordinance in this case and the
law under which it is passed provide
hat the bonds shall not be sold for less
than 95 per cent of their par value, be-
ing in direct conflict with the above act
Of congress. The New Mexican has re-
Trained heretofore from any expression
on this proposed issue of city bonds.
thinking that the matter had been
dropped, but recently it has been re-
vived, it is said, and it is reported that
there is SOM prospect of selling these
bonds. 1T is only justice and fairness
to present creditors and possible pur-
chasers to point out the valueless char