Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1914-01-16
Marion, in Unmistakable Com
munication, Declines to In.
vest School Funds in State
Highway Bonds.
MEANS CLEAR LOSS OF
REVENUE TO SCHOOLS
Funds Now Drawing 5 Percent
Interest in Secured Banks;
Asks If They Are to Be Or
dered Withdrawn.

state Treasurer owen ~ Marion
last night replied 10 the Communica-
ton OF the state loan commission.
consisting OF the governor secretary
Of state and attorney general. in
which, following lts meeting Monday
IN Santa Re. d declined To approve
Investment Of the sI3g. 900 Of accrued
permanent school funds. Ia properly
secured bank deposits, or or an alter
unlSc proposition by the state treas
urcr. IN gilt edged high interest bear
lng bonds of the state, and certain
counties and school districts
The state treasurcr's letter places
the issue very clearly before the state
loan commission and the people. so
clearly lea fact that 10 needs no cX-
PLANTATION. The text Of the letter fol-
lows;
Albuquerque. y NJ, January 10, 1914.
lion VIM e.. Mcdonald Governor
of New McXico.
Hon Antonio Luccro. Secretary 81
state.
lion Frank W Clancy Attorney
General
NHfNNNfiffIa Niil lNi Afh'iFA va
your letter OF the 18TH at January rec
plying to my communication of the
same day proposing "a you as "a com
mission, for your approval. certain se-
curitles In which the permanent
school fund was proposed by mo TO be
Invested
Replying thereto desire 20 state
that my reason la proposing an in
vcstment of this fund In the way of
deposits Ia banks, ana again submit
ting this proposition 90 you, Nas be-
cause of the TACT that u WIS my un-
derstandlnr that you ala not definite
Iy dimpprove such an investment
Your resolution adopted at the meet
ing on the first ct July. 1913, wns 9"
the effect that an Of the bids re
ceiycd from the various banks for de-
posts of the permanent school tund
be- rejected for the purpose ~ Invest
ing said funds In the state highway
bonds" and thereafter, the supreme
court having decided that you did not
have the power Co direct the invest
ment at these funds but merely am adj
visory power or power % veto, I wgs
of the opinion that you had not def
ments by way ~ deposit in the banks.
and Tor this reason ] submitted ~"
bank securities.
You state in your letter We viii
be- prepared Co receive any further
proposition which YOU % have 10
present as Co the Investment 81 this
fund az half past nine o'clock tomor-
row morning" ! desire 60 direct your
attention tn the fact that Il b. I'm"
possible within limited space of tlme
20 gather together securities of the
known worth of the bonds which
presented 90 YOU Tor your approval.
a was. and ~. my desire to present
Co you for your approval only the
highest class OF securities paying the
highest rate 10 the school fund. u
had hoped that ! presented Ia YOU
such "a class st securities nH would
meet your approval unhesitntingly.
However. In view ot wnnt one NOM
ber OF your board told me on Mon
day. the ufth day of January, 1914
az the state capitol, viz. that IL was
the purpose Of your board 20 disap-
prove every class Of security which
would be- presented by the state troua-
|
the rate Of interest OF income they
would earn for the current school
fund until the state treasurer by this
course OF elimination, would be COM
PEELED GO submit go the board the state
highway bonds. ] am constrained now
tn inform you that us the latter bonds
beag only 4 per cent interest, and only
Ia was bid for them when offered
some time ago In the open market,
and AZ otncr, better ana more secure
Investments expressly authorized ami
approved bv the constitution and
bearing "a higher rate Of interest are
Available some OF which nave all
ready been proposed hy me for your
approval. la my Judgment aH trus-
tee uf these funds the state highway
bonds are au improper investment for
them and ] must respectfully decline
90 approve those bonds or submit
them to you for that purpose.
/ ! have reached t,iis conclusion be-
cause Z believe % was the purpose OF
the federal statute grantlng the
school funds 10 make me trustee 0f
them. charged with the sacred duty
both 90 the federal government and
70 our NNNNhlH NN HNNlNN tNNN ANfN
were Invested In such securities chez
Ing safel as would produce tho great
est revenue FOR educational purposes
and that your seeming determination
Is under form Of approval 81 one
source only, 10 divert those funds
from their proper use "a that source.
which / believe would he "a breach of
my duty as trustee and vlolative 81
nay oath of office.
viii accordingly sock other in
yestments ~ these funds within the
limits OF those approved by the CON
stitution and from time 90 time as tho
same are available VIII submit them
90 You for your approval.
Those monies are now, for the most
part deposited Ia hanks earning over
five per cent interest and their pay
ment guaranteed vs. Surety Co bonds
J do not understand that your action
lin dinapprovinE deposits In banks a.