New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-04-04
and coupons it is stated may be Of.
fered and possibly admitted by the

and coupons it is stated may be of.
fered and possibly admitted by the
court.
Kelly among others was the pur.
chaser of number of state bonds
issued by authority of Congress in
an act approved June TO- 1910 to re-
tire the tangled indebtedness OF
Santa Fe and Grant counties. The
income from a million acres was set
aside for this purpose. A detailed
study made some time ago by the
taxpayers association, showed that
there had apparently been an over
payment on the part of the state Of
$sl ,9S0,36 due to the presentation for
payment of coupon. second time
and in one case three times il is
alleged. and to the issuance of new
bonds for certain ones supposed to
have been lost. and so on. Officers
of the association at that time pub.
lished the statement that Of the total
amount, Mr.. Kelly secured $4J,654lJ.
Paid BY State Board
The state legislature in 1912 Great.
ed a state loan commission consist
ing OF the auditor. treasurer, and
attorney general. New bonds known
as series c were authorized. to take
care Of the old Indebtedness OF the
two counties. The tax associa ION in
calling public attention to cond tions
stated the evident principal that
blame does not necessarily attach to
~. ,x,a,1,tore 1S c,-t, k~,-I
assuming that individuals who may
have received double paymcn: real
iz'd the fact at the time, for such .
hoard might we'll believe coupons
presented for payment were regular
and valid.
Governor Investigates
However, at the end of the Nc.
Donald administration. on the second
t:v Of Governor Lindsey's tern, there
were presented for his signature three
hcrds of the state series c covering
el;ims presented by Kelly and ap-
proved by the hoard. Governor
l. dsey refuse to sign them and r
{ Reid then lis legal adviser made
. partial inv ;tipaticr which resrit.
ed not only ir WITHHOLDING the bonds
bu, the repaymcit # s52943H 20 y
.:ate. The 'a> tom,n'ssio, /, al
thcrity for he statement thal Nj
kci"s ardit rai,ct the presrr '"ti..:.
tat Kelly at iha. ''ne reserved 81
?dGitional S2J,25 IS on doubl, ray
ntrts.
A. E. James
T,,rae farr,art,, aS Man
Mexico taxpayers association. arriv-
ed in Santa Fe from Washington. D
c. this week as a witness for the
state. He is now associate statist-
clan of the revenue service of the
interior department. The members
OF the former board Of loan COM
missioners are o. N. Marion, then
treasurer; w. G. Sargent, then audi
tor; and former attorney general
Frank w Clancy, Frank Maroon, a
nephew of o. N. Marion was clerk
in the office of treasurer.
History of Bond Issues
Santa Fe county in 1886 and 1887
and Grant county in 1888 issued bonds
in aid of railroad construction. Al
though held valid in the state courts
these bonds were held invalid by the
U. S. Supreme Court and Santa Fe
county refused to pay either princi-
pal or interest on the two issues of
$l50.OO each which it had made. In
1897 Congress validated the bonds of
1888 and of Grant county and bond
issues of Santa Fe county OF 1891
and 1892, which refunded the original
county railroad debt In time it be.
came apperant that the counties
never could pay out without oppres-
sive taxation.A
Under these circumstances Con-
gress granted the state in the en-
abling 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 the land should go to
the common school permanent fund,
the act applying to debts valid on
June 20, 1910.
The state taxpayers association
made list of ten persons who It
claimed profited in small amounts
and large, through mistakes and pos
sbly otherwise, by reason of appar-
ent double payments OF the bonds.
The only trial that has been insti-
tuted is the one against w. G. Kelly
which comes up Monday. All the
double payments alleged in the pre-
sent complaint, are declared to have
been msde in the year 1916.
w. N Upton, a handwriting ex-
pert, will be one of the witnesses
called by the state in the prosecution
OF w. G. Kelly for allegedly receiv-
ing a funding bond of 5000 from the
state board OF loan commits sioncrs
in 1916 in exchange for an old ter
ritorial bond which latter the state
charges he knew to be fraudulent
Other witnesses include Frank w.
Clancy, former attorney general;
former state treasurer 0. N. Maroon;
former state auditor. w. c. Sargent;
Alfred NJ. Bergere. who was acting
district clerk, Ralph F. Twi' chell
lose D. Sena. Vicente Alarid. A. M.
Edwards. ]. G. Mayo. Ienacio Alarid;
and r. w. Lynn and G. {. Mardorf,
local bankers will be called as wit
nesscs by the state. Frank Lavau
an attorney owing TO his departure
for California was not served with a
subpoena in time to secure him as
a witness.
The trial began witt, statement
by ]. H. Crist formerly district at
torney and now special counsel for
the state in a number of cases against
Kelly of which the present is the