El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-03-12
Doings of
NEW MEXICO
Legislature
Special to The Herald.

DAN - I'll L. ~ ~ W
Mexico legislature made history today
1t apparently broke loose from its old
bearings and together with special
message from the governor and veto
from him. it's actions today will cause
no end of comment throughout the
territory The veto message of Cover
nor Otero was as follows:
Il return to your body being the house
in which it originated, council substi-
tute for council bill No. Is. an act to
amend chapter So of the acts of the
thirty-third legislative assembly. with
out my approval. and with my objec-
tions to the same as follows:
Section five of the act authorizes the
taking up and funding into five per
cent bonds of all judgments or out
standing floating indebtedness accruing
since January 1, 1897. which have been
approved prior to the first of Febru-
airy 1901. and further authorizes the
sale of such new bonds at ninety cents
if the interest does not exceed four
per cent and at 80 cents on the dollar
if the interest is five per cent. thus
practically annulling the Bateman law
of 1897 and the Bursum act of 1899.
and recognizing a very large amount
of claims which were declared illegal
under the former. The amount can
not be estimated with any certainty.
but it will reach many thousands OF
-, ,,lx- in the
territory and put these claims. allowed
in plain violation of law, into bonds
bearing five per cent interest. This evil
is greatly enhanced. and the debt much
increased. by the provision allowing
these refunding bonds to be sold at
from ninety to ninety-five cents. in
stead of at par as provided for in the
Bursum act. If the four per cent rate
is too low to admit of the sale of these
bonds at par make the rate of interest
five. or even six per cent. but under
no circumstances should these or any
other bonds be sold at less than their
face value. To do so opens the door to
speculation and manipulation by which
the ldA payer 10 NiohStu anu OhiS u
few individuals receive any benefit
Section seven adds a new section to
the acts amended. which makes it the
duty of any board of county commits
sioners. upon the request of any hold
er of four per cent bonds issued under
chapter SIS. the Bursum act. to take
them up and issue in exchange there
for new bonds bearing five per cent in
terest This section invites the credit
ors of the counties. who had come in
and settled their claims
for bonds bearing four per cent inter-
est. to accept now new bonds therefor
bearing FIVE per cent. This addition
Of one per cent interest to the out
Dalities will in the aggregate prove a
burden which they can ill
afford to bear. Many of them cannot
low pay even the four per cent inter-
,st: and there is no moral obligation
,r equitable reason for inviting the
holders of these bonds to accept more
interest; they have voluntarily sur
their claims bearing a higher
ate for these four per cent bonds and
t is an excess of 1iberality to give
hem more. while there can be no pos |
ible advantage to the counties or the |
'eople derived from this measure.
In addition very much OF the In |
proposed to be recognized |
l,,t ,a1
With is in direct violation of section |
our OF the so-called Springer act of |
ongress prohibiting the mourning of
ny debt for any purpose in excess of
our per cent of the assessed value of !
he municipality; and is therefore void.
For these reasons l deem it my duty
S executive to return this bill to your
ody for further deliberation, as i can
OF think that it has had the due con-
Iteration and careful examination be-
pre- its passage in it's present form
'hich its great and far reaching i'm
ortance demands.
The veto was referred to the COM
littee on finance and was soon there
fter reported back to Cruickshank
18th a majority in report in favor of
assing the bill over Governor Otero's
etc. A minority report was also made.
he council thereupon passed the bill
YER the governors veto by a vote of
to 4. those voting in the negative be-
lg Burns, Springer, Hinkle and Eas-
y.
Educational Bill.
The council took up the Springer ed