The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1918-07-04

Early in 1917, in fact on the second
day of tho admins tration OF Governor
Lindsey, there were presented fOr his
signature thrc" bonds OF the state,
series &C." covering 'taline prosrn 81
10 the board OF loan commissioners 10y
". g. Kelly OF Kansas city AMI "p.
proved by thcm Governor Lindsey
refused to sign the bonds and asked
Mr. X. &. Reid to examine tn" alleged
evidences OF the railroad indebted.
ness Tor the rcIunding uf which these
bonds were issued Mr. Reid adyis' ii
against the issue of the bonds and
upon IA partial "Xaminati ion OF the rec.
Ords found that there had been ptll
Illegally to Mr Kelly on duplicated
claims the sum OF s23.1GG.3G.
Following this partial audit by Mr.
Reid. Mr. Kelly paid back $3.2Si3S,
but failed to pay back $2U,2Sl.yS al.
though asked to do so and although
he acknowledged the duplicate pay
mcnt
The Governor and MIR. Reid then
asked this Association to make a con.
pletc audit OF the issue of stat' bonds
OF series "C". These bonds S"r" Is.
sued to refund all the old bpuIs oi
Santa Fe County issued in aid Gi rail.
roads The history OF these bonds is
interesting especially as hcarn.; upon
! the folly of heavy bond issues hoped
Or expected to improve" new and
progressive community.
Santa Fe county in 1850 and 1887
and Grant County in 1888 issued
| bonds in aid OF railroad construction
| Although hsld valid in the state
| courts thrs" bonds wer" held invalid
| by the /. s Supreme Court and San
| Ia Fc County refused to pay either
| principal or interest on tn" two is
sues OF sl5O.OOO each which II had
made. In 1897 Congress validated the
bonds Of 1883 OF Grant county and
| bond issues OF Santa Re county or
| 1891 and 1892 which refunded the
| original county railroad debt.
Santa Re county continued TO de.
fault in its interest not only on the
railroad bonds but Oh all others and
|
Interest accumulated on the defaultcd
| interest and II became apparent that
the county never could hope to pay
out without oppressive taxation.
Under these CirCum stances con.
gress granted the state in the cna'
bling act one million acres OF land
upon condition that the state assume
and pay the railroad debt OF Grant
and Santa Fe counties and provided
that any balance remaining from the
proceeds OF these lands after paying
| these debts should 20 TO the common
school permanent fund and Congress
also stipulated that only debts "valId
and subsisting" on June 20, 1910,
should be paid by the state and re
served the right tG see that the trust
was properly administered,
The state Legislature in 1912 Great,
ed u state loan commission consisting
ot the auditor, treasurer and attorney
general, charged with the duty TO as
certain the railroad debt OF Grant and
Santa Re counties and to refund this
debt and the accrued and unpaid in
terest with new bonds known as
bonds OF Series &. these and the in
terest thereon to be paid from the pro
ceeds OF the million acres Of land
granted to the state.
To make complete audit II was
necessary TO trace the original issue
OF railroad bonds. to follow the suits
upon interest coupons from these
bonds which followed the default OF
the county. TO trace the bonds and
judgments on the coupons through the
refunding process in 1891 and 1892
and 10 trace the payment OF interest,
court Judgments thereon and finally
the issue OF series &c" bonds for cou.
pons, judgments and bonds by the
board OF loan commissioners
In the beginning II was found that
in various ways interest coupons and
even many court papers had disap.
peared from the court files of Santa
Fe county. Why or how this happened
cannot now be- told as the information
will be or service in several criminal
actions now pending. II was necessary
to supply this missing information.
Without a correct list OF the interest
coupons upon which numerous judg.
Inents were based II was obviously I'M.
possible to tell whether coupons later
submitted for refunding represented a
lawful claim against the state Ex.
cept In one case now being investing
ed the information Was finally 80,
cured. Although the District Court
records were missing the Supreme
Court records were not where cases
had been appealed, Copies of cou,
pons and OF complaints were found in
the hands OF the plaintiffs or their at.
torneyS.
when this information had been as.
semblcd the records OF the board OF
loan commissioners, consisting of the
state auditor the treasurer and the
attorney general were examined GOV.
ering the Dpriod from statehood IN Da.