The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-06-09
ACTION TO ENJOIN
ROAD BOND SALE
IS FILED
Test Suit on Validity of Sale
of Half Million Dollar Is
sue Contains Interesting
Points.

Santa Re, y. NJ June g-Althougn
actual sale of the hal, million dollar
state roa bond issue will not takeI
place until saturday. the test suit 90
try the validity OF the proposed safe 20
the bidders, Kelly and Kelly. Instituted
nt the request of state Treasurer a. y.
Marion. was filed here yesterday with
G. 9. Catron of Catrun and Catron as
The petitioner. An injunction is asked
To restrain the state treasurer from
selling the bonds under the bids set
forth and requires the treasurer -
snow cause whS the INDUCTION should
not be made permanent.
The compieint sets forth that plain
hH is a resident and taxpayer and
reeiies the procedures incident 10 the
ISSUANCE Of the bonds. and their adj
vertising for sale and that certain
bids were filed copies OF which are At
'ached TO the complaint. There are
~ bids 0y the First National bank of
Albuquerque per Arthur scligman. and
one by Kelly ana Kelly"
The complaint continues: That the
last OF the aforesaid bids (FNhibt 10
by Kelly and Kelly although con-
~taiaing no conditions or provisions
other than the approval of the bonds
by attorneys. was. nevertheless, as.
plaintiff has been credibly Informed
and believes. supplemented 10y an ora.
agreement between the bidder. Kely
and Kelly, ana q. y. Marion, treasurer
~ the state OF New Mexico and the
defendant herein. which oral agree
inent was, In substance. a. follows
That he, the said -. y. Marion. ~
event the aforesaid bid be accepted.
upon receipt of the moun hid tor
said bonds. would deposit. in his name
as state treasurer. in banks In New
Mexico 20 be agreed upon and selected
by the said O.. y. Marion and the SAID
Kelly and Kelly from a list Of hanks
10 De furnished the said o. y. Marrol
10y the a Kelly and Kelly. out ~
the said amount, after having been ~
placed in the state road fund. susn
sums Of money AS are not immediately
needed by the state highway commits
sion; such sums Ia ee deposited On
time deposits bearing such rate 7
Interest as the said Kelly and Kelly
may. by contract with the aforesaid
bank. obtain. said time deposits 20
run FOR such periods as might Ne
agreed upon by the state highway
commission Of The state OF New Mex
leo, ~ so as not To interfere with Us
needs for funds for carving ON IT,
road work. that out OF the interest do
rived from the aforesaid time deposits
the said Kelly and Kelly are To re-
ceive such sums as may be- agreed
upon by the said Kelly and Kelly ana
ia. aid a ~ NN.u.a. - go. a..
state Of New Mexico. in event ,nc
Time deposits are Of sufficient amount
and OF sufficient duration. would re-
ceive such Interest as there might ne
over n above the amount To he re-
oeived by the said Kelly and Kelly.
-. That the aforesaid bonds can
not possibly be o In the open mar
ket at par and accrued interest.
10. That the aforesaid bids are
an conditional bids and directly violate
the following portions Of Section 4 Of
Chapter as Of The Laws Of 1919. 'The
treasurer shall not accept any bid
which is less than par value of the
bonds, plus The interest which has &C.
crued thereon between the date OF
sale on the last preceding interest
maturing date Also. Immediately.
after such sale Of bonds the treasurer
shall pay into The state treasury and
cause To be placed In the state ROAD
fund the total amount received Tor
SAID bonds. except such amount AZ
may have been paid as accrued inter-
est thereon
The 1tth article OF the complaint
declares that Chapter IS OF the Laws
90 1912 Is unconstitutional In that o.
b. not "A law authorizing q state dent
which provide Tor an annual tax levy
sufficient to pay the interest and pro-
vide a sinking fuRd 90 pay the prin-
cipal Of such debt within hny years
from the time uf The contracting there
OF etc.
llid hy Kelly and Kelly.
The bid of Kelly and Kelly AZ
shown In Exhibit i6 of the complaint
is as follows:
MAY %, l9tt. Hon. o. y. Maroon,
State Treasurer. Dear Sir; Herewith
attached you win md cashiers check
for s2.5O0 In compliance with the al
vertisement relative 10 bids and pro-
posal on state highway bonds. W
herewith bid par and accrued interest
for the entire ISSUE Of $500. 600 I per
cent state highway bonds of the state
Of New Mexico. subject To- the approv'
al OF our attorneys. Cost OF bonds
and adyertisinE TO be paid by ms
"Yonrs respectfully.
"~(signed) KELLY AND KELLY"