Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-09-01
WILL HAVE TO Be
SHOWN BY
COURT
STATE TREASURER SAYS He WILL
NOT INVEST SCHOOL FUNDS IN
ROAD BONDS AS GOVERNOR, AT,
TORNEY GENERAL AND SEC'Y OF
STATE ASK OF HIM.
REASONS ARE GIVEN
IN Mr.. MARR0N'S REPLY

State Treasurer O. n. Marion, viii
returned several days ago from an eN
tended stay in California Saturday ad
dressed letter to the governor, secre
tary of state and attorney general, il
reply 10 communication from them
in which he reiterates his refusal tt
invest the state school funds in New
Mexico road bonds as directed by the
officials named, and giving his reasons
therefor Treasurer Marion still
maintains that the responsibility fol
selecting a proper investment for the
funds rest solely with him as state
treasurer and not with the officials
named. who constitute a board, under
the provisions of the constitution. the
duty of which is TO veto or dlsapproVe
anv investment of school funds by the
state treasurer, providing such invest
rnent shall be unsafe or that other In
I vestments equally safe ana providing
La greater return for these funds are
! proposed and open. Mr.. Marion IN
sists that there can he no valid obJec-
tion to his investing the school FUNDS
in the various banks which bid lor
them, providing surety bonds covering
the deposits are furnished TO guaran'
tee the interest to be paid ana Inc
finds that may be invested. he IN
tends to stand upon this decision until
l.,l hn ~
issue. His letter follows;
Albuouerque. \. NJ, Aug %
Hon, William c. Mcdonald, Governor
Hon. Antonio Lucero Secretary OF
State: Hon. Frank w. Clancy. At
torney General.
Gentlemen | have been absent IN
California since the 27th day of July
and upon my return your letter of the
2Sth of July was on my desk, Whlch
accounts for its not having received
attention before.
had hoped that | made my posi-
tion clear to you III my letter under
date of July 12th, 4ir which ! stated
that in my Judgment The burden rest
ed upon me as state treasurer, TO ma
an investment for the school moneys
which while safe. would produce the
greatest income for the benefit OF
our common schools, while the con
stitution attempted to safeguard these
funds by comforting upon you 'he
right to veto any investment you
deemed unsafe or improper. com
nenting on YOUR view that you had
right to direct the investment of these
funds in securities bearing low rate
OF interest I said Il must Respectfully
decline to invest these funds as at
tempted to be directed by you unless
am ordered to do 50 by a proper
judgment of the court.
Thoroughly believing then, as now
hat there could be no valid oblectloh
to an investment OF these school
moneys with banks who would give
surety company bonds to guarantee
their repayment | requested you
either to approve them or point out
some valid objection. Instead OF 40
ng so YOU now say, I'VE now dis /
rinctly advise you that we disapprove ,
,f any such deposits in bank as may |
nave been heretofore made. and again !
state that we do approve of the state /
highway bonds as a proper invest
nent of the permanent school funds,
md that we will not at the present
ime approve any other form OF IN
-estment." and you then add In
his matter we are acting in exact ac-
.ordance with the mandate of the
onstitution. while you are attempting
O set up your individual judgment
sainst the order of the constitution
nd against the judgment of the Off
ers to whom alone the constitution
ommits the approval of the invest
lent of the funds.
While | greatly regret that my {
anse of fidelity to my trust compels {
le to disagree with your board {
nd the chief law officer of the state /
his construction of the constitu-
on and the laws governing those In i
yet in view of the severe t
neuase you see fit to employ in q
our letter ] trust | may be pardoned l
II suggesting that if the legal views 1
lerein stated were very confidently v
I'D. my previous invitation to test i
e correctness of those views in the I
ate courts, the only tribunals who V
N pass upon them. would have been f
,cepted instead of continuing the o
in the public press. That Ii
vitation | again extend to you. if Il
VI still have confidence in the opin- Il
n that I am in the wrong. and until r.
at invitation is accepted by you ! Il
all feel further justified in ignoring e
" further direction from your board d
ncerning these investments. X
Permit me to say further that this
Inclusion has been reached not from IL
y pride in my own opinion or au- G
ority, but solely because the current
hool funds of the state are woefully D
adequate to the demands upon them. h
d the investment proposed by me II
II yield approximately twenty-seven fl
ndred dollars (s2,700.00l per year la
ore than the securities which you c
int out for me to accept. and it is |
t even claimed by you that the ii
nlls guaranteed by surety company C,
Continued on page five). @: