El Nuevo mexicano., 1916-06-08
Federal Court Makes
Marion Injunction
Permanent
100000 is
INVOLVED IN CASE

right, under the enabling act which
made New Mexico a state and out 0
the federal land donation, to rein
burse Luna and Grant counties TO
interest already paid on county rail
road bonds. is held by Judge w. H
Pope Of the y. s. district court here
in an opinion handed down today
making permanent the federal injunc
tion preventing State Treasurer o. n
Marion from paying the series G STATE
bonds issued by the Legislature t
cover interest already paid by tht
two counties, on the old bonds. o.
the series G bonds, $3.50, 700 were is
sued to Grant county and $4,000 t
the county Of Luna,
These we're isued by the defendant
to the respective counties pursuant
to the express direction Of the state
Legislature. The question of whether
the bonds are valid depends upon the
validity Of legislative act approved
June 10, 1912, and the matter in turn
depends for its validity upon the
question of whether it Is within the
terms of the enabling act, the court
ruled.
Judge Pope's opinion covers eight
typewriter pages. After citing OBJ
jections to the consideration OF the
case on its merits the court says
there seems to have been no lack OF
diligence in bringing this matter to
court"
To another objection that the case
could not be tried because of an ap-
peal taken by the attorney general OF
New Mexico to the district court OF
Santa Fe from the action Of the board
Of loan commissioners In approving
the claims of said counties, that this
court having held the action of this
board to be regular, Judge Pope de-
clares that the present case was
brought into the federal court under
Section 10 of the Enabling Act, a
provision which makes the United
States retain an interest in the sub
ject matter and provides a forum for
disposing Of any questions arising .as
to It.
Quoting that section of the Enabling
Act validating the debts of counties
and the section relating to %appropria-
lions Of public lands for the payment
OF certain bonds and accrued interest,
the court calls attention to the fact
that the constitution of the state Of
New Mexico accepted this donation
from congress. Then the first legislaT
ture under statehood and the consti-
tuition proceeded promptly by two
acts to the issuance Of Series G
bonds to take care of the bonds Of
Grant and Santa Fe counties.
Continuing the court says:
"A few days later by Act of June
10, 1912, being Chapter II, the same
legislature passed the act now in
question, which provides for an addi-
tional bond issue Of Series G bonds to
cover, not principal and interest out
standing against Grant county and
Luna county at the date of the Enab-
ling Act, but all interest which either
of these counties up to the date Of
the Enabling Act had paid from the
very inception of the bond issue vail
dated by the congressional act OF jan
uary 16, 1897. Thus, Chapter II pro
vides for bonds in reimbursement OF
payments made previous to the En-
abling Act by either of these coun
ties. These amounts extending, as
they do, through a period of some hf-
teen or twenty years, aggregate the
very considerable sums above men
toned, to-wit, $3.50, roo issued to Grant
county and $4,000 issued to Luna
county"
Then follows a discussion of the
meaning Of certain portions Of the
Enabling Act concerning the proper
use Of the million acres of land do
mated in security for Series c Of state
bonds.
'"The contention for the counties Isl
says the opinion, "that the language
is broad enough to include not only
Tho ~ .ncipal and interest due on JHns
20. 1910. but also broad .enougl 20
Justify the issuance of bonds in re-
endorsement of the interest paid by
Grant and Luna counties up to the
late Of the Enabling Act. This prac-
.ical question does not arise as to
Santa Fe county which had defaulted
IN its interest for many years prior to
he date of the Enabling Act"
The opinion then holds that the pur-
pose of congress evidently was to
start the counties of the new state
rec from debt but adds: There is
10 purpose disclosed to reimburse the
lounties for debts previously paid"
rhe two purposes are entirely dis
met. says the court.
Taking up the particular case of
Grant county, the court discusses the
.ccrued interest and defines it to be
accumulated interest," interest still
hue and unpaid. The court adds: "The
interest of Grant county on
'une 20, 1910, was not interest which
hat county had retired by payment
hereof, but interest still due. and for
which the county was still obligated"
On page Z the court mentions the
dditional bond issue authorized by
he legislature some twelve days after
he act which provided for the hand.
ng Of the land donation. 'AThis last
says the opinion. "howeyer
avors rather of legislative after
bought, and cannot be sustained up
n which is deemed to be the intent
+ congress in defining the use to be
lade of .his magnificent donation OF
Ind. Section 10 of the Enabling Act
rovides that any use of these pro-
eeds other than as provided by that
ct, however honestly attempted, shall
e deemed "a breach of trust and
hAl call for the preventive action Of
his court"
THE INJUNCTION !,
The temporary injunction made per