Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-02-19
Measure Pending Before House
Would Give taxpayers Ben
eft of Interest on All County
Funds,
MAKE SWEEPING CHANGE
IN PRESENT CONDITIONS
Bill If Passed, viii Increase
School Fund Revenues $780,
900 or More Than Interest on
S500,000 Bond Issue.
Morning Journal Bureau,
The Palace Hotel,
\. Al IL 4

Santa Fe, n. NJ, rep Is.
The house committee on juoiciary
this afternoon presented report
which the house adopted, recommend
ing the passage of house bill No. so,
bv Mr. Roberts OF COlfaX county.
which if enacted as law. Will make
sweeping changes in the present dis
position of county funds and which
will add almost Immediately thirty
thousand dollars to the school fund
of the several counties. As the law
now stands no interest is required to
be paid upon county deposits by the
banks in which such deposits are
placed. the placing of deposits being
left entirely to the several county
treasurers, although the banks are re-
uuired to give bonds. The law as re-
CARDS territorial deposits, requires
that three per cent interest be paid
by territorial repositories upon terri
torial funds placed IN their hands
As it now stands, such banks as pay
interest on county funds pay the inter-
est TO the county treasurer who may
put il in his pocket as part of the
porquisifies ,Gf his oGg' thus adding
a very considerable Hnrs IN the larger
counties. to such porquisites.
In few of the counties no inter
est at all is paid on county deposits
while in q few of the other counties,
county trcasurors are said to receiv"
a high rate of interest The law now
pending before the house proposes to
place county funds on the same basis
as territorial funds and to allow all
banks in the county an equal oppor-
tunity to apply for such funds, to re-
quire that interest be paid at not less
than three per cent and that such IN
tcrcst shall be added to the general
school fund of the county
Following is a text of the bill.
House Judiciary Committee Substitute
for House Bill No so, an Act to
Provide for the Furnishing of Prop
er Bonds by Territorial and County
Officials. Providing for the Collcc~
ton of Interest on Public Moneys,
and for Other Purposes.
BE it Enacted by the Legislative AS
sembly of the Territory of New
Mexico:
Sec 1 That ali bonds required by
law. or hereafter required by law to
be given or furnished by all tcrritor-
al, county and municipal Officers,
who receive keep and disburse public
moneys, shall be furnished by such
bonded official, executed either by
some surety company authorized to
do business In tho territory OF New
Mexico, or personal surcties. Before
any surety company shall be autho-
rized to execute and become surety
on any such bond or be accepted as
such, said company shall, IN addhtion
to the requirements now provided by
law authorizing such company or
companies to do business in the terri
tory OF New Mexico, be required 20
deposit with the treasurer OF this ter
ritory not less than twenty-five thou
sand dollars. lawful money of the Uni
ted states, bonds of the United States,
bonds of any state or territory or OF
any county in amy state or ter
ritory in the United States or
bonds of any city, town or school dis
trict in the territory of New Mexico,
Of the par value of twenty-five thou
sand dollars: Provided, however 1t
shall be the duty of the treasurer, of
the territory. before accepting any
such bonds to make careful inquiry
into the financial condition Of the
state. territory, county or municipa litN
or school district the bonds Of which
may be proposed for deposit. and if,
! I'm the Judgment of such treasurer
such bonds so proposed for deposit,
do not offer valid and sufficient se-
curity he may reject any of such
bonds so offered
| Sec. 2 ANY surety or trust com
| pany organized cor TO be hereafter
organized within the territory Of New
| Mexico. upon compliance with all the
other conditions prescribed by the
laws Of the territory shall be accept
ed as suretics upon such official
bonds. upon making a like deposit
with the treasurer of the territory.
| Sec. 3. The deposit provided for
in section I Of This act shall be- held
| by the treasurer Of the territory Of
New Mexico for the benefit and se-
curity Of the bencficiaries named in
said bonds. executed by said surety
company. residing in the territory oi
| New Mexico. and no portion of said
deposit shall be- surrendered 10 such
surety or trust company until all
claims against such company in this
territory shall have been satisfied
Provided. however. that such com
panv. SO long a. ii shall not hr In dr-
fault on any Of It's obligations In this
territory. shall have the right to cliU
the Interest coupons from any bond
or bonds SO deposited and to collect
/ all interest on interest bearing obli-
cations deposited aud, with the con-
sent Of the treasurer, may exchange
other bonds of equal value and like
tenor for any bonds on deposit.
Sec. 4 All persons qualifying as
sureties on any bond. by this act re-
uuired and provided for. shall be hons
fide residents Of the territory Of New
Mexico and owners of unincumbered