of this act, such meeting may by a like vote prescribe the number of directors and elect any or all of the number prescribed, and, if the number prescribed is more than five, assign those elected to a class.

Sec. 25. The capital of such new corporation shall consist of the accumulated payments and the credited dividends on its stock and shall be divided into shares of the par value of one hundred dollars ($100.00). Such shares shall be issued upon such terms of payment and expense and surplus provisions as such new corporation may have provided at the the time of the issue thereof, and such new corporation may enforce the payments of any installments, dues or other payments on the stock, by sale, forfeiture or otherwise, as may be provided by its by-laws.

Sec. 26. Such new corporation may grant loans on the shares of stock of the dissolved association outstanding at the time of the reincorporation to the same extent and in the same manner as if such reincorporation had not been made. Sec. 27. The directors of such new corporation may semiannually or annually or at such other time as they may elect, declare a dividend of so much of the net profits of the corporation as they shall judge expedient, but each such corporation shall, before the declaration of a dividend, carry one-tenth part of its net profits for the preceding dividend period to its surplus fund until the same shall amount to twenty per centum of its paid in capital stock. The dividend so declared may be paid to the stockholder or credited to the account of his stock as the terms of its issue may provide. If losses have at any time been sustained by any such new corporation equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any such new corporation, while it continues its operations, to an amount greater than the net profits then on hand, deducting therefrom its losses and bad debts. All debts of of any such corporation, on which interest is past due and unpaid for a period of six months, unless the same are well secured and in process of collection, shall be considered bad debts within the meaning of this section, but this section shall not be construed to define bad debts as those only upon which interest is past due for a period of six months.

Sec. 28. The provisions of the general incorporation act, entitled "An Act to create a general incorporation act, permitting persons to associate themselves together as bodies corporate, for mining, manufacturing, and other industrial pursuits," approved December 27th, 1867, and all acts in amendment thereof, so far as the same shall apply to incorporations incorporated under this act, shall be held to be

applicable thereto, and all acts and parts of acts in conflict herewith are hereby repealed; and this act shall take effect and be in force from and after its passage.

CHAPTER 53.

AN ACT CREATING TWO ARMORY BOARDS OF CONTROL AND PROVIDING FOR THE CONSTRUCTION OF ARMORIES IN THE CITIES OF LAS VEGAS AND ALBUQUERQUE, AND AUTHORIZING AN ISSUE OF BONDS THEREFOR. C. B. No. 114; Ap

Sec. 6.
Sec. 7.
Sec. 8.

Boards of control. Organization. Adoption of rules. Meetings.
Treasurer to give bond.

Sec. 9.

Bonds to be issued to erect armories. Form. Rate of interest. Sale. Disbursement of proceeds of sale.

Levy for payment of interest and principal of the bonds. Proviso. Sec. 10. Lands for armories to be donated.

Be it enacted by the Legislative Assembly of the Territory of New Mexico:

Section 1. For the purpose of providing suitable buildings for the use of the national guard organization located at the cities of Las Vegas and Albuquerque, there are hereby created two armory boards of control, to be appointed by the governor of the territory as hereinafter provided.

Sec. 2. It shall be the duty of said boards of control to contract for and to superintend the erection of said armory buildings, and thereafter administer the affairs pertaining to such buildings for their respective cities.

Sec. 3. The adjutant general of the territory and four commissioned officers of the national guard, stationed at Las Vegas, shall constitute the board having supervision of the armory located at Las Vegas; and the adjutant general of the territory and four commissioned officers of the national guard, stationed at Albuquerque, shall constitute the board having supervision of the armory located at Albuquerque.

Sec. 4. Within thirty days after the passage of this act, the four commissioned officers of each board as herein provided for, shall be appointed to serve as follows: One to serve one year, one to serve two years, one to serve three

years, one to serve four years; and thereafter one appointment shall be made annually for the term of four years.

Sec. 5. Each board of control, and its successors in office, shall constitute a body corporate under the name of armory board of control, with name of city where located as a prefix, and shall have all the privileges of a body corporate.

Sec. 6. Each board of control shall meet in its respective city and organize not later than the second Tuesday in May, 1903. The officers of each board shall be a president, who shall be the ranking officer of the national guard in his respective city, and a secretary and a treasurer, who shall be elected by the board from its members. The board shall adopt such rules and regulations as may be necessary to accomplish the objects for which it is organized. Each board shall meet quarterly and special meetings may be held as provided for in the rules. Three members shall constitute a quorum for the transaction of business. The members and officers of said boards, as such, shall serve without compensation.

Sec. 7. The treasurer of each board of control shall, before entering upon the duties of his office, execute a good and sufficient bond to the Territory of New Mexico in the sum of two thousand dollars ($2,000.00), conditioned upon the faithful discharge of his duties, which said bond shall be approved by the governor of the territory, and shall be filed with the secretary of the territory.

Sec. 8. For the purpose of providing funds for the erection of said armory buildings in the cities of Las Vegas and Albuquerque, an issue of coupon bonds of the Territory of New Mexico is hereby authorized, to the amount of fifteen thousand dollars ($15,000.00), to be known as "Armory Building Bonds of the Territory of New Mexico." Such bonds shall be in the usual form of coupon bonds, payable to bearer, and in the denomination of one thousand dollars ($1,000.00) each; shall be dated April first, 1904; shall bear interest at the rate of four per centum per annum, payable semi-annually, on the first days of April and October; principal and interest shall be payable at the National Bank of Commerce, in the City of New York; such bonds shall be payable in thirty years from their date, with the right of the territory to pay them at any time after twenty years from their date. Such bonds shall be signed by the governor and treasurer and countersigned by the auditor of public accounts of the Territory of New Mexico, and the coupons may have the lithographed or engraved fac simile signature of the territorial treasurer; and the secretary of the territory shall affix the great seal of the territory to the bonds, and the bonds shall

duly be registered in the territorial bond registers in the offices of the auditor and treasurer by those officers. The bonds shall be duly advertised, and sold by the territorial treasurer to the highest and best bidder, for not less than their par value and the proceeds of such sale shall be turned in to the territorial treasurer. The necessary expenses of the printing, advertising and selling the bonds shall be paid out of the proceeds of the sale of the bonds. The proceeds of the sale of the bonds shall be disbursed as follows: One-half upon the order of the Las Vegas armory board of control, and onehalf upon the order of the Albuquerque armory board of control, for the construction of the armory buildings herein provided for.

Sec. 9. To provide for the semi-annual interest of the bonds authorized in section 8, the auditor shall levy annually, at the time of levying other territorial taxes, beginning with the year 1904, such a tax on all taxable property in the Territory of New Mexico, as may be necessary to produce the amount of such interest; and for the payment of the interest accruing October first, 1904, the sum of three hundred dollars ($300.00) is hereby appropriated, payable out of funds appropriated for armory rent for 1904. To provide for the payment of the bonds, the auditor shall levy annually, beginning with the year 1924, such tax, on all the taxable property in the Territory of New Mexico, as will be sufficient to pay all the bonds at or before their maturity, such levy to be made at the same time and in the same manner as other territorial tax levies are made, and duly certified to the proper authorities charged with the levy of taxes in the several counties of the Territory of New Mexico, whose duty it shall be to see that said levies are duly made, assessed and collected: Provided, that upon default in the payment of the interest coupons of the bonds herein authorized, that the said defaulted coupons shall be received in payment of any taxes due the territory, upon presentation to the tax collector of any county in the territory.

Sec. 10. No action for the preparation or sale of the bonds provided for in section 8 shall be taken until deeds for sites, not less than fifty feet by one hundred and forty-two feet in each city and located satisfactorily to the boards of control of their respective cities, the title to which has been approved by the attorney general, shall have been delivered to the secretary of the territory, and which said sites shall be furnished free of expense to the territory of New Mexico, nor until this act has been duly approved or authorized by the congress of the United States of America.

Sec. 11. This act shall be in force and effect from and after

its passage, and all acts or parts of acts in conflict with the provisions of this act are hereby repealed.

CHAPTER 54.

AN ACT TO ESTABLISH THE OFFICE OF TRAVELING AUDITOR AND BANK EXAMINER FOR THE BENEFIT OF THE TERRITORY AND THE SEVERAL COUNTIES AND FOR OTHER PURPOSES.

C. B. No. 88; Approved March 12, 1903.

CONTENTS.

Sec. 1. Office of traveling auditor and bank examiner created. Appointment. Term of office. To give bond. Salary.

Sec. 2.

Duties of traveling auditor.

Sec. 6.

Sec. 7.

Sec. 8.

Sec. 9.

Traveling auditor to examine banks and other moneyed corporations.
Duties of officers of banks and other institutions.

Failure of bank and other officers to conform with section 7. Penalty.
Reports of banks, loan and trust companies and other moneyed corporations
to be made to traveling auditor.

Sec. 10. Traveling auditor shall have power to issue subpoenas and administer oaths. Refusal to comply with requirements. Penalty.

Sec 11.

Report of traveling auditor to be made to governor.

Sec. 12. Delinquent taxes. Duty of auditor in balancing and closing accounts. County commissioners may compromise delinquent taxes Proviso.

Be it enacted by the Legislative Assembly of the Territory of New Mexico:

Section 1. The office of traveling auditor and bank examiner is hereby created and established, and the governor is hereby authorized and directed to appoint some suitable person, who shall be a skilled accountant, to that position, who shall serve for two years and until his successor is appointed. He shall be a territorial officer, and within thirty days after his appointment shall qualify by taking the oath of office prescribed by law for other territorial officers, and by giving bond to the Territory of New Mexico, with sufficient sureties, to be approved by the governor, in the sum of ten thousand dollars ($10,000.00), for the faithful discharge of the duties of his office. Such traveling auditor and bank examiner shall maintain his office at the territorial capitol in that of the auditor of public accounts. He shall receive a salary of two thousand dollars ($2000.00) per annum, payable monthly; and twelve hundred dollars ($1200.00) per annum additional for traveling and contingent expenses of his office; to be paid out of the salary fund, in the same manner as other