Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-13
Commission TURNS
DOWN SCHOOL FUND
INVESTMENT
Declines to Approve Proposals
Made by State Treasurer
Maroon Action ADDS New
Chapter 10 Controversy

ain, state loan commission coms
,rt.iua GOV. w. a. Mcdonald, Auor.
I'm General Frank w. Clancy and
secretary Of state Antonio Lucero
Yesterday az meeting held mt Santa
Fe. formally dlsapprovcd the propo-
sals for Investment of The state school
rnnd totallhg $139,539.fS, submitted
lA state Treasurer O. y. Maroon
News of the loan commissioners
actian was rumorcd late yesterday af-
8qn0on, and was confirmed on the
arrival Of Mr. Marion from Santa re
INST night However Mr. Maroon
whom asked over the telephone for q
statement on the commissions ae-
lion. said there was nothing doing
iist now. but that later he might
Nave something to say for publication.
Despite Mr. Marrons refusal to
make statement II is stated on good
authority that the session though
brief. was stormy. The commissions
action adds another chapter TO the
lonc-drawn ont controversy between
Inc commission and the state treas
uicr
The proposals for investment Of the
school funi Of the state were pre-
sentel To the commission in The OF
fco 81 the stafc treasurer yesterday,
cach member Of the commission hav-
Inc COPY OF Inc letter from the
treasurer. embodying tho terms of
the proposals for the investment of
thc state school fund After TINS let
Ter had been read, it was suggeste
bv lhe attorney general that the meme
hers of the commission retire 20 the
attorney generals office ana thor
flame q reply. Ia about an hour, one
al The stenographers in the office Of
the attorney general delivered 90 the
treasurer communication to the ee-
feet chat the proposals made by tho
state treasurer for the investment Of
Che school funds were not approved
Is the commission. II is said that no
reasons were assigned for their reiec-
ton hy the commission.
The proposals submitted by Treas
mer Marion are contained in the fo.-
lowing letter to tho commission.
Bon William G. Mcdonald
Governor OF New Mrxico
Hon Antonio lgcero,
Secretary Of state
Hon. Frank ~. CLANCY,
Attorney General,
Commission appointed under the
Constitution to approve the Bonds on
other Securities i'm which any portion
of the school Fmd shall be Invested
Gentlemen
Under the provisions of See. Z, 81
Art NiI. of the Constitution of New
Mexico, 7 have the honor 70 report
that ut the present time there Is in
the permanent school FUND the sum
of s1G9.539.7S Tine provisions OF
said sec. Z, require that the principal
OF the permanent school fund SHAH
be invested In the bonds Of the state
or Territory Of New MeSico or Of any
county city. town, board Of education
or school district therein. With the
further provision that the Legislature
made by three-faurths vote Of tho
members elected to each house pro-
vide that said funds may be invested
in other interest bearing securities
The legislature Of the state of New
Mexico Of the year 1915 by j. IL. No
Ia. proTidcd "That the principal oil
tha permanent school fund may he
invested ia an interest paying deposit
in amy bank or banks in this state in
the manner hereinafter provided.
and said }, Il. No. IA provided tina
bofore the making of any deposit Of
the permanent school fund in anl
bank or banks applying therefor lh'
said bank or banks shall make, exc
cute and deliver q bond to the state
Of New Mexico in a penalty whicf
shall not he less than one and one
fourth of the amount of deposit ap
piled for. conditioned that such banl
or banks would promptly pay ovet e
the parties entitled thereto ali of sucl
moneys Ia its hands upon lawful de
nand made therefor and woulC
whenever tltereunto required by Law
pay over To The state Treasurer sucl
moneys. And it further provided tina
the surety under such bond shall b
a surety company authorized 20 do
business under the laws CA the stat
which said bonds shall be approves