Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-10-04
State Treasurer Files Response
to Mandamus Writ in Case
Of Investment Of School
Fund in Highway Bones.
NO AUTHORITY EVEN 10
ISSUE BONDS, ALLEGED
Respondent Declares Govern
or, Secretary and Attorney
General Merely Seek to
Save Issue from Failue.

state Treasurer %. n. Marion has
flied his answer to the writ OF man
damus from tho supreme court sued
out against him nt the instance of the
state land board with the trcnFuror's
approval as "a means Of getting into
the courts the controversy regarding
the investment Of the stale school
funds In the state road bonds. AIR.
Marion has refused and his answer
sets forth that he siill refuses to in
Ncat the school moneys Ia securities
bearing q lower rate OF interest than
inc funds are earning az present. IA
spite of the order OF the loan board.
consisting OF the governor. secretary
uf state ami attorney general
The treasurer asserts In his answer
that he intends to continue the funds
which have heretofore been on de-
post with various banks In said
hanks until some other form OF In
Ncstmcnt is found yielding AN oquai or
greater per cent OF interest to said
fund than is now being received from
the said banks therefor"
Mr. Marion says that when no
qualified ne received si1O.453.52 OF
permanent school funds Of the state
legally and properly invested by the
territorial treasurer as follows; First
National bank Of Las Vegas, S72. 076-
20: First National Of Tucumcari. S23.-
29a.,S: First State Rank ana Trust
60. of Roswell Sl6.0S3.7s. Tho hanks
were paying interest as follows: First
National of Las Vegas 90 per cent.
First National of Tucumcari, 2 Is per
cent. First state Of Roswell. / a per
cent Mr.. Marion states that the
banks gave bond of solvent, roiia
bile surety company In the penalty %
twice the amount Of the deposit the
bonds being approved by the goFcrn
az. auditor and treasurer The treas
urer states the monies stlll remain
ON deposit in tho sd'rne banks. which
arr thoroughly solvent and thc bonds
az ample security as ever while the
interest is sim paid at tho Same rate.
Tho answer further shows that In adj
diiion go the foregoing monies. SiO.-
ISL 80 WAS paid the treasurer on No
Vombor 90. 1919. by tho United states
90 the credit OF HE permanent school
fund. Ou nm opinion from the at
torucy general. the treasurer address
ed letter to each hank In the state
nFking bids FOR the deposit 81 the
funds mud thereafter deposited them
with thc state Bank Of Commerce 81
clayton. "a 6 i-2 per cent. the bank
being solvent and safo and approved
by tho governor. auditor ana troasur-
or. bond being given Ia due ana sat
isfactory form and amount Tho
money Is stln In tho Clayton hank
earning G i-2 per cent II is pointed
out that tho legislature In the 1913
session passed House Joint Resolution
No "a, directing the investment of
the school funds in hanks offering the
highest rate of interest with proper
surety company bonds Al a meeting
of the state loan board June 10. 1913.
the treasurer was authorized 60 again
ask for bids from the banks ~ the
state Bids were received irom thir-
ty-slx banks. the interest offered
ranging as high as b. 6 and per cent.
The bids arc made an exhibit accom-
pnnyinG Mr. Mnrron's answer.
ON July 1, the loan board, after
the treasurer had submitted the bids,
passed the following, resolution.
Resolved That all Of tho bids re-
ccivcd from the various banks for de-
posts of the permanent school fund
VIC NfIfA'NffNf NNlN NlNi Hkt lhNN w Wv
iue said funds in the state highway
bonds. tho difference Ina the rate OF
Interest received which would De
about four cents per annum per capt.
"a Of school children as shown by
tho last enrolment being so small as
10 ba more than offset by the hcnc-
fits to Doe derived from the consiruc-
ton OF highways to the schools thom-
selves as well as 10 all other inter-
csts"
Tho treasurer further shows that he
advertised ns directed boy law FOR bids
on the state highway bonds ana on
opening the bids on June i6, 1913, the
highest bid received was ~ or 20 per
cont discount upon the face value OF
the bonds which bids were rejected
The respondent declares he has had
uo authorization To- issue the highway
bonds or Invest the school funds there
in except "such " any as was con-
tanned IN the direction 90 advertise the
said highway bonds for sale az above
specified aud in the resolution OF
July g."
rho treasurer declares that he be-
ucNos The board Ia rejecting tho bids
of the banks ala not intend TO pass
upon the safety Of such Investment
or Tho resulting benefit 20 the school
fund. that The hoard was convinced
of the snfcty Of the investment pro-
posod by the hanks, ana That the
nnount of income 90 be thus derived
was greatly superior Co the amount
which would bee derived from invest
ment in the highway bonds; but that
The said resolution was made by th"
said board with the Illegal ANA wrong
ful purpose intent ana object OF com
melting your respondent To invest the
rafd school funds In the state nigh
way hnndn because NO other purchas-
ar could bee found therefor who would
rid In accordance with the terms Of
the statute authorizing the same.
-, 1. .....,. .f..,.t atnf.a his H4Ilpf That