New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1917-05-18
BOND BUSINESS
IS LOOKING BAD
FOR THE STATE
BUSY TIME AHEAD FOE Law.
YERS II TAXPAYERS GET
THEIR MONEY BACK ON
oVERPAID BONDS AND
IMPLICATIONS

OOE LAVA AVN0
The taxpayers of the state of New
Mexico have probably lost from
one hundred thousand to two hun.
dred thousand dollars through over,
payments of the Indebtedness of the
territory OF New Mexico, and pro.
bable Implications, if the investiga.
tions Of the legal adviser to the
governor, Mr.. R. c. Reid, continue
to develop irregularities in the state
bond issues, as Mr.. Reid believes
that three large items will agRre-
gate something like one hundred
and twenty thousand dollars, with
other items of duplicated interest
to be investigated.
The largest irregularities appear
to be In series B and series c 81 the
bonds issues under the state consti-
tution. II appears that one Of The
accounts paid by the state had been
collected by one party, the atsouni
then being about nineteen thousand
dollars. and other parties, Il ID sup.
posed, presented the same account
with interest compounded. bringing
the amount to above twenty three
thousand dollars. II this Is he esse
as it probably Is. the state overpaid
the sum of twenty three thousand
dollars. and it is understood that the
bond buyers handling the issue have
offered to refund the money to the
State without question, upon the
showing already made. The bonds
were handled by Kelly & Kelly. OF
Kansas City.
Another block Of honds aggrcgat-
ing about $60O0O0 seem to be ir-
regular, and M. Reid believes re-
covery can be made by proper suit.
and it may be that this issue also
involves compounded interest.
Bonds to the amount of little
more than $38UOO0 were issued
to redeem an indebtedness of San
Ia Fe county, and one which had no
connection with the railroad issue.
This indebtedness should have been
redeemed with bonds of Series B,
or straight county bonds, and just
how it was worked into the series
c has not been determined. 1t is
that the state officials
are of the opinion that a proper
investigation might develop some
thing startling in connection with
this payment. it being hinted that
the same account was also paid by
the county, but there is absolutely
no official confirmation of any such
suspicion, for that is all it can
amount to at this time.
In addition to these irregularities
Mr.. Reid feels certain that interest
has been compounded in an illegal
manner and that the taxpayers of
the state are now paying interest on
compounded interest, and that it
can be recovered for the state.
From the governor down the Of
ficials in touch with this investiga-
tion are too busy with other mat
ters to talk on this subject, but
enough has been learned to make it
certain that as soon as the federal
draft and few matters of import
ance in the work of preparedness
can be disposed of that full inves-
tigation will be had and the probe
put to the bottom. 1t has been
published that the bonds for which
A refund has been offered were du-
plicates of others, which is not
exactly right. 1t appears that in
Santa Fe county, and in some of the
other counties, careless methods of
registry were used, and each issue
Of the same kind of bonds would
begin with number one, which ac-
counts for the same numbers ap-
,earing on bonds of the same kind
ssued at different times, and some
IF the bonds were signed in purple
nix, but these things are the really
incidents which general
y go deepest into the public mind.
However, there is something wrong,
md Attorney Reid has uncovered
! mess promising interesting de-
for the taxpayers of the
'tate. So far as known the irregu-
arities involve no counties other
han Santa Fe. II is rumored on the
streets that the Legal Adviser to the
Governor is so fully convinced that
here is something wrong in the
Santa Fe county financing of terri
orial days that the district attorney
hould get busy and put on foot an
Investigation which will 60 to the
,ottom of the entire refunding ma
,ipulations.
All these bonds were handled
through a state board, appointed
or the purpose, but it has not yet
,een determined just how far the du-
les of that board went as to in
vestigating the validity of the ac-
cunts being refunded with bonds.
I has been officially suggested that
he board handling the bond issue
hould employ an accountant, who,
n connection with state account
lnts, could assist in working out
he muddle.
Public opinion seems divided as
o whether or not any criminal in
ent can be shown in any of the
so far uncovered, but IL
5 probably a sure thing that some
me is responsible for considerable
and it may become ne
essary to make the official bonds
# responsible officials answer to
he taxpayers of the state.
The investigation has really not
,one far enough, as yet, to make il
'ossible to place any blame that
nay attach to any of the transac-
ions, and while il is thought proba-
lie that there is blame somewhere
own the line, it would now be i'm
'ossible to attempt to place the
lame without running the risk. Of ae-