Deming graphic. (Deming, N.M.) 1903-1948, 1915-04-09
LUNA COUNTY FINDS
FORTUNE OF $4,000


The saving to Luna county Of ,
sum sggregating $4,000 was mad,
through the efforts Of the law firm Of
Vaught 4 Watson, acting for tn,
board of commissioners for Luns
county. The effects Of the decision
by Judge Neblett Tuesday at Silve,
City are TO reduce Luna county's in.
dsbtedness to Grant county by $l3,.
857. go and to reduce the semi annual
interest payment $415.72 which was
being paid to Grant county ON nc.
count OF railroad aid bonds" issued
before Luna county was created. In
addition the boards Of county COM
missioners Of the two counties agreed
at Silver City following the decision
mentioned above that Luna county
should receive $4,000 as its share
OF the bonds issued by the state to
reimburse them for interest paid on
the railroad aid bonds.
The matter came up when the
board of county commissioners re.
fused to pay interest on the indebt.
edness to Grant county and follow
ing suit to compel this payment.
County commissioners e. l.. Hub
bard, John Humid and J. ". Phillips,
are being congratulated along with
John e. Watson and J. s. Vaught,
their attorneys, who won the victor,
after the legal contest had been given
up as u forlorn hope.
Following is u resume of the case .
The legislature created Luna coun-
ty in 1901, it being formed in part
from territory taken from Grant
county. The act provided that Luna
county shiuld not be released from
its just share of the indebtedness of
Grant county outstanding at the
time Of the separation.
In 1905 the legislature enacted
that the old Grant county indebted
ness should be apportioned between
Grant and Luna counties In the pro-
portion that the assessed valuation
of the precincts taken away from
Grant county bore to the total rs.
sessed valuation of Grant county be-
fore the separation, and it was found
that, of a total indebtedness of $2l2,-
469.ll, Luna county should pay "a
3llG9%, or $5l, ,654.83.
In 1905 the legislature enacted that
the county of Luna might liquidate
its share of this indebtedness by an
issue of bonds, and provided that un-
til il did so, Luna county should pay
interest semi-annually to Grant coun.
ty at 64s on the s51 ,654.S3 assum-
ed. The bonds were never issued.
and Luna county paid this interest
until July l, 1912.
Included in the 1912 .469.1l total
Indebtedness Of Grant county, so ap.
was an issue of $57, 900 of
railroad aid bonds" The validity
of these bonds was questioned. and
congress, in 1897, passed law vail
dating them, and they thereby be.
came binding obligation Of Grant
county.
When the enabling act was passed,
congress included therein u grant of
one million acres of land to the state,
in return for which the new state was
required to assume the payment of
the railroad aid bonds which congress
had validated. The constitution
adopted included a provision that
these bonds should be so assumed.
In 1912, the legislature made pro.
vision for the refunding Of the rail.
road aid bonds by the issue Of bonds
of the state, and further provided
that state bonds should be issued to
Grant and Luna counties to reim-
burse those counties for the sums
they had, respectively, paid in inter
est on the bonds. The bonds were
issued in 1883. and originally bore
interest at the rate of 10, and
total Of $l05,700 had been paid in
interest on them.
Grant county took the position
that the act Of congress and the
constitutional provision were in her
behalf merely and did not inure to
the benefit Of Luna county, and that
the Indebtedness of Luna county was
not affected thereby. The Luna
county commissioners, believing that
this position was untenable. and that
Luna county was entitled to her pro-