Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-03-28
SATURDAY EVENING. MARCH %
MISREPRESENTATION OF
SINKING FUNDS.

MiSAPPRCPRlAItO OF rE
SINKING FUNDS.
The most r-eprehensible action OF
the late Legislature which may have
the most unfortunate consequences
for the Territory, is the m~isappropria-
ton Of the sinking funds which were
raised for the payment OF the bonded
debt. Apart from the inherent wrong |
of this transaction, the danger Is that |
as soon as it is known, ii will des-
troy the credit of the territory. Here
tOfOre every effort has been made to
meet the interest on the bonded debt
ne II became due and beginning in
1891. the Territory has been gradually
bnviar in the bonds themselves as
money for the purpose was available.
The result has been a good financial
reputation which has been substan-
tially valuable in reducing the inter
est at which the territorial bonds
could he placed. Now, however, all
this work or years has been Imperfect
Nv legislation that many will be temp
ted to call a most outrageous act OF
public dishonesty. In fact, it is one
OF the few cases on record where a
state or territory attempted to use
n sinking fund which was sacredly de-
voted 10 the payment of its debts.
Every act which authorizes an issue
OF territorial DoUuS HAS ~ pIoNluc a
sinking fund fer their ultimate pay
ment or they would not be salable.
IN 1854. the legislature authorized an
issue Of bonds TO build the first CAPT
tol. The bonds being payable in TWEEN
~ years. In September. 1904, $685. 900
of these bonds will become due and
tho remaining 500. 900 will be due in
March. 1905. The law of 1884, which
l. ChaDtcr IS of the Session OF Laws
Of thGt legislative session. is o
found i'm the compiled laws OF 1897.
Section 34e5. 1t provides for a sink
in. fund - accumulate money grad
uallv with which 10 meet the bonds at
maturity. and in order to prevent any
misuse OF il. declares in distinct
wcras that the fund is "TO be used
for the redemption of bonds only, or
for their purchase as hereinafter pro-
vidcd. and for nc other purpose what
soever." This law was printed on
The bonds and from faith in the pro-
visions thus made. purchasers came
forward and bought them.
TIE last report or the treasurer,
dated Fchrusry IS. 1908. and publish
cd in the New Mexican. showed that
ever SIN9.O 900 was at that time in the
sinking fund for these bonds, having
hcan gradually accumulated from tax
alton year by year. The entire sum
the legislature voted to take out and
spend together with all the taxes
that will come INTO this fund before
.Julv l. An act of greater public dis
honesty to impair the credit of the
Territory could hardly be originated
This money was raised exclusively FOL
the sinking fund. II does not belong
10 The territory but to the bondhold
crs For years it has been carefull!
accumulated so that il might be read!
e. pay the bonds when due.
There was anothers sinking fund, Ina
for tho payment of The provisional In
G~cbtadness bonds. and in this FUND
tearN vas $685. 900 on February 2S
This also YVES appropriated by the leg
isiature: making S142. 600 of cash OF
hana Illegally voted away, besides al
that viii come in before July. Their
can be no doubt that this is an ind
ra7t viaia,iSn not of any ordinary law
fus if the Constitution of the Unite'
s 81 EFF. Among The importan
niir ;mlas there formulated into tn
n~saaental law is this; n stat
rhrll pass any law impairing the obi
cation of contracts" Article L. Sectiol
10 The formation n maintenance
of the sinking funds was a part @
thec contract between New Mexico an
the holder Of every bon issued unde
the act of 1884. II cannot be violate
without direct conflict with the Cor
stiiution of the United States An
single ~hondholder can obtain an IN
function 10 prevent the money tina
was raised . pay him. from beinl
psea FAR other purposes. The NeS
Mexican has no doubt that a humble
% them will take action speedily I
prevent the misappropriation OF thes
funds.
- ...o tlara was a cubtarfug
To deceive the unwary. but hones
LEGISLATOR. But the idea that the mol
ev viii be paid back from the ale {
lands is ridiculous. The excuse {
every emhezzler ia that he means I
r~w hack sometime. There may no b
lend sales OF any consequence 10
yaarr. ard if a legislature can chang
= TAM which establishes a sinkin
fsrts aa3 rse the money in 1t. 1t ca
ShHrge the law again. and use all tn
0f cells Of land sales. IL this actio
&c the legislature is allowed to stan'
nc 3nc en- depend on any law herea
ter. Ii is , great pity that some vel
COED objects and territorial education
al institutions were TO be added by IN
mi appropriated money, but ths
should have been thought of in tim
Honesty and good credit are above a
things and any embarrassment mu'
be charged I'D TO uuWiSe dSeutS WI
-re willing TO accept money that the
kew belonged honestly to Others
- sc.ne people il may seem strang
that Councilman A. B. Fall of FL Pas
Teas. was one of the originators
ana voted for the intended misappr
Driatic1. not TO use the word iootin
Of The sinking funds. but to tho'
who know something of the insit
workings Of the 35th Legislative A
ssnhi~. Il is NO surprise that u
terms reform and economy were u.s.
onlv as cioaks TO hid the real int
RI the so-cailed reformers who spol
frcm The housetops to impress q
nubiic with their honesty and pu
lie snis~isetness. Fortunately. Ter
torial Treasurer j. H. Vaughn W
stand between the intended misapp
priation Of the sinking funds and q
credit of the Territory He will
fuse 10 pay any warrant drawn on q
sinking funds under the illegal m
appropriation Of the general app
priation law and will keep !
funds as long as they are In his c.
f,ay for the purpose for which tn
were created and from which purpo
1900 ~ 1a0o1v dfvortQd md