El Nuevo mexicano., 1917-03-22

rAI Mtnl TLhN ID
N A De At lao
GEORGE A. DAVIDSON OF RIOS.
WELL AND ASSOCIATES sue
cEssFUL BIDDERS FOR OVER
10000 ACRES IN RED RIVER
DISTRICT.
The first sale of state land under
the new Thirty Year. or Deferred
Payment Plan" enacted by the re.
cent legislature, took place at Taos
last week, when State Land Commits
'sioner Robert p. Ervien sold at pub
lie auction 20,716 acres of land in the
Red River district, in the northern
part of Taos county. George A. Dav-
idson Of Roswell, a well-known land
and colonization developer and who
was the Democratic candidate for
land commissioner in the late cleo
ton, was the successful bidder. Rep
r~esenting himself and eastern associ-
ates, Mr.. Davidson was in active COM
petition with representatives of Cali
fornia land buyers, the opposing bid
ders forcing up the price at five and
ten cent advances from the minimum
sale price of SO to $4.60 an acre, at
which it finally was sold to Mr.. Dav.
idson.
While this sale in itself is of great
interest to New Mexico, since 1t
means the development and probable
irrigation of a large tract Of fine land
in the little developed district at the
headwaters of the Rio Grande, its
chief immediate interest is in the fact
that it is the first sale made under
the new law.
The conditions of the thirty year"
or deferred payment plan" are as
follows:
The successful bidder in the public
auctions by which all state lands are
sold pays in cash, Immediately the
sale is completed, one-twentieth, or 5
per cent, of the purchase price. Un-
der the old law the initial payment
was ten per cent of the purchase
price.
The balance Of the purchase price,
ninety-ive per cent, is payable at any
time within thirty years from date
of sale, the deferred payment bearing
interest at 40 per annum, payable
annually in advance. Under the old
law the buyer of state land, after pay
ing the initial ten per cent, paid for
the balance in thirty annual install
ments, the deferred payments bear
ing 40 per annum.
Under the new law the purchaser
may pay at any time all or any part
of the unpaid balance, the only re-
striction being that payments may
not be of less amount than one-thirti-
eth of the original deferred balance
due on the land, and can be credited
only on the annual interest-paying
date. .
Section three of the act provides
that all lands sold under the ley law
or for which outstanding contracts
are changed to conform. shall be as
sessed for taxation at their full value,
as other property Of similar class and
character is taxed, and failure to pay
such taxes works a forfeiture of the
contract. In other words, the land
goes onto the tax rolls of the u
ty wherein it is located Immediately
the sale is made, the buyer assuming
the taxes, whereas, under the old law
the buyer paid taxes only on his i'm
provements and upon the equity de-
veloped by his annual payments.
The aggregate in increases of the as
sessment rolls to the state and the
several counties is expected to be
large.
The law provides that contracts to
purchase state lands under the old
annual payment plan may be changed
to conform to the new plan, upon
payment Of nominal fees to cover cost
Of clerical work involved. 1t is ex-
pected that the bulk of outstanding
contracts will be SO changed, since
the terms of the new law are regard
ed as more in favor of the buyer.
Lands selected for the benefit Of the
Santa Fe and Grant county railroad
bond funds are excepted from the
provisions of the new law, remaining
under the old form Of contract.
In addition to the taxation feature,
the money realized from state land
sales, in effect, is invested automatic
ally at 40 interest, with the land it.
self as security. This, together with
the new law prohibiting the expendi-
ture of any permanent funds Of any
institution, derived from state lands,
effectively checks any further dissi.
patton OF these permanent funds. I'm
der the terms of House Bill No. 294,
which has been approved by the gov
ernor, all funds derived from sales OF
state lands, except those from the
Santa Fe and Grant county railroad
bond fund lands, must be invested by
the state treasurer in interest-bearing
securities Of the state, county, munich,
pality or school districts of New Mex
leo, within thirty days after their re-
ceipt by the treasurer, such securities
to be approved by the state board Of
finance. This means that use of these
permanent funds for buildings, i'm
provements, or in any other manner
by the state institutions is effectively
checked, the institutions to enjoy the
use of only the income from the in
vested funds.
Another law urged by the land com
Is that permitting the state