Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-05-14
House of Representatives Has
Before 1t Biggest Problem
Confronting Legislatures So
luton Not Apparent,
S1,7OO,OOO ASSUMED
FOR TWO COUNTIES
Terms of Enabling Act Must be
Complied with Even When in
Conflict with Constitution of
New State.

| Especial Dispatch TO tine Morning Journal
| Santa Fc, y. NJ, May 13.-rhere Is
| one piece of legislation that was In
! troduced In the house of representa-
| tives early in the session of which
little public notice has been taken,
| but which, In the magnitude OF the
financial interests involved and the
complicated legal difficulties with
which ii is surrounded. Is easily the
| biggest bill that has been or will be
introduced in either house during the
session.
The measure in question Is House
| Bill Al, Entitled an act In relation
to the debts and liabilities OF the ter
ritory of New Mexico and the debts
| of the counties thereof assumed by
the state of New Mexico under Its
| constitution" 1t embraces ffty-one
printed pages and Is as full of legal
| complications as an egg is OF meat.
| The lawyers of the legislature have
been wrestling with II for several
weeks, and the committee on ways
and means to which 1t was referred,
| is having the time of its sad young
life trying to reach an agreement as
| 10 tNG TtDOTl Which, Will pt
| ted On the bill.
The history OF this legislation runs
| back to the early days of New Mexico,
| when railroads were very scarce and
very much In demand. The county OF
Santa Fc wanted branch line of the
Atchison Topeka Il Santa Fe rail-
road from Lamy to santa Fe. and the
county of Grant wanted branch of
the same road from Deming to sill
yer City. Both counties were willing
to pay good money to secure these
branch lines, and, consequently both
issued bonds, the proceeds of which
were given as a bonus to the railroad
for the building of the lines in ques-
ton.
Then came decision of the SUI
preme court of the United States, de-
claring the bond issues null and void,
and shortly thereafter an act of con-
gress validating them in such a man
ner as to remove the legal objections
that the court had interposed to them.
| Then. again. the debt was refunded
and new bonds. covering the princi-
pal and interest of the original bonds,
| were issued and fioated.
| Grant county has kept up the pay
ment of interest on her bonds. but
| Santa Fe is badly in arrears, and at
! the time of the admission of New
| Mexico to statehood, the combined
| debt of the two counties amounted.
II is estimated. to $f,700.000. In the
nabling act special provision was
made for the payment Of these bonds,
4 Of land
granted to the now state for this pur-
| pose, with the proviso that If any Of
the land so granted remains after the
| payment OF the debts in question. such
remainder and the proceeds thereof
| shall become a part of the perma-
nent school fund.
Whether this provision of the en-
| abling act requires that the lands
granted by the United States must be
sold or leased and the proceeds APP
piled directly to the payment of the
| debts of Santa Fe and Grant coun-
| ties, or whether II liz permissible for
| the state TO issue more bonds upon
| the security of the lands, is one of the
| big questions that is now troubling
! the lawmakers. The constitution
provides for the issuances of more
bonds. and House Bill Al is drawn In
compliance with the constitution;
| but il is generally conceded that "
there is a conflict between the consti-
tuition of the state and the enabling
act which brought that document
into existence, the enabling act must
prevail.
IL is the contention of those oppos-
| ing the bill now pending i'm the house
| that not only Is the bond plan pro-
posed to be enacted Illegal as in con-
travention of the enabling act. but
| that as matter of policy IL is i'll
advised. They say that to iesue new
bonds for the purpose OF paying on
old bonds is merely matter of bor-
rowing from Peter to pay Paul. and
that it will saddle the state with
| new Indebtedness when the means to
pay on the present one is ready at
hand.
House Bill Il also provides for the
assumption by the state OF all other
county Indebtedness. amounting ap-
proximately 10 s3.3Ooo00. No land
was granted by congress to pay this
Indebtedness. and there Is consider
able opposition on the part OF some
of the. members Of the legislature 10
com bining the two propositions In
one bill.
Strong pressure is being brought to
bear on the ways and means commit
tee 10 make a favorable report on the
bill. The work in behalf Of the,
measure has been very qui5i, but none