Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1892-10-04

The United States Graha Jury Makes
Some Startling Disclosures In Ref
erence TO the Rotten management
Of the Banks.

New Mexico, ana presiding Judge OF the thru /
judicial district court thereof.
Your grand Jurors impaneled and sworn TO
inquire into violations Of the laws ~ the
Cnitsd States within this judicial district, beg
leave to report that We have performed the
duty assigned Ne.
Our session has been long and arduous owing
10 the Full investigation Wo have given the ma
tional bank easos originating In Grant county.
With the exception Of tho matters growing out
Of those cases there have been but few VIOLA
tisns Of the laws Of tho United States brought
10 our knowledge which warranted a present
mont by indictment. The greater part Of these
have been violations " what is knorn as tho
almonds Act, and the decrease In tho number
Of oasos Of this character indicates that the
vigorous enforcement OF this law has had =
beneficial effect upon the morals u this dis
triot.
Tho groatar portion Of our time has been 90
cupied with the investigation Of the bank
cases. and during this Investigation facts Of 20
startling and extraordinary n character have
been disclosed that We deem Il our duty 10
the public TO inform them through this report
Of the true condition Of tho affairs Of these
banks, and TO place tho blame whore il prop
erly belongs.
From the evidence elected before ne e APP
pears that there we're two national banks in
Grant county under substantially the same
management, one at Demine with capital
stock OF $4,000. and another At Silver City
with a capital stock OF $4,000.
Mr.. Charles II. Dane Nas president Of both
theae banks. and appears 70 have been the OK
elusive manager Of the affairs Of both OF them.
II is true that both banks had boards Of dircc-
tors, but il appears that the extent OF their in
the banks was 70 certify and approve as correct
all that was done by Mr.. Dane. By reason Of
tho criminal negligence Of these boards Of
directors, the president of the banks was en-
abied 10 abstract and apply 10 his own use the
funds Of the banks amounting TO nearly the
entire capital stock Of both banks. The dir0o-
tors Of these banks are technically guilty Of the
same offences for which Mr.. Dane has been
presented by ne, but the government has not
seen proper for reds6ns Of its own to prosecute
them. Had their cases been submitted to ul
We should certainly have presented them, az
we'll as the cashiers Of both banks, who both
had a guilty knowledge OF Me-. Danes doings,
although IL does not appear that either Of them
proftsd by the same,
If any Of the directors Of the Deming banl
had made the slightest examination into ia
Affairs he could not have failed 20 discover thai
Mr.. Dane was using the resources OF the banh
for his own private purposes.
For example: Mr.. Dane borrowed from Oh.
bank on his own unsecured notes, eio,o00 Id
then borrowed from the hank 5000 on an I'M.
secured note signed By The Oak Grove and 81
ezra Verde Cattle company, per q. II. DAM
Treasurer, and Si709 on q note signed HOrsI
Shoe Land and Cattle company, c. H. Daue
President, and $1,000 on a note signed The
Vermiio Company, G. II. Dane. President. and
800 on a note signed Deming Pipe Line Com
pany, and $500 ON q note signed The VermiiS
: Company, by C. H. Dane, President.
> On the above notes Mr.. Dane obtained from
the bank $500. He alan obtained on tw'
notes signed by J. G. Murnock, a clerk, $1,000
and IN a note-signed Ralph W. Mead S2.l520s
: and on a note siRued Indian Springs Cattl,
Co.ap.ny, FraLk H.. Siebold, secretary. S10,0 200
NJ Giabold was cashier Of the Deming banl
and not only put the last mentioned note in tn
bank to enable Mr.. Dane 10 take Oat this tel
thousand dollars. but also INT in another not
signed By Pearl H.. sisbold, his wife. for $500
! None of this fifteen thousand dollars went Z
! Gr. Siebold OF his wife, but they allowed thei
; names to be used by Mr.. Dane to take th
money and are technically parties to its embel
Elemont.
. The eame may be said Of two notes for 500
signed by Murat Masterson, and ono for $500
9 and one note for $500, signed by W. Berg, an
d one note for 5000. signed by James Koch
Frank Siebold, attorney; and one note 70
= $500, signed By Louis. Altman; aud one not
o for $1,000, signed By Christ Teller; and one not
for S9.107.7O. signed ~ 81. &. Dane. aud tw
{ notes for 5000 each, signed BY H.. L. G. Dam
- wife Of c, II. Dane.
. There was also an oVerdrafr b. Mr.. Dane 4
about $4,000. in all aggregatiDg $4,000, whic
. was takon from the funds of the Deming ban
by Mr.. Dane and applied 10 HE own use.
q All OF this could at any time have been di
o covered by the directors had they given AT
= attention TO the affairs of the bank; the direc
O tors would certainly have known that the pc
sons whose names we're signed 70 those unsI
cured notes we're utterly irresponsible and the
o could not have failed to have understood tn
s the names we're simply used az a cloak undI
which Mr.. Dane was appropriatins the funds
the bank. In order to cover up the eonditiC
of the banks affairs. false reports we're made
the Comptroller Of the currency and publishs
10 in the newspapers. Those reports were 3
tested aa correct wednd attached TO them
y certifying their correctness the names of ce
tam directors Of the bank. Mr. J. T. MoarOrt
n John Corbett, Henry Chase and Mr Folsom, an
" although It appears that none Of these gentl
Q men prohted In any way by the doings Of N
= Dane, yet va have no doubt that they, inatai
, of examining into these reports and ascertain
= ing whether or not thsy MORO correct. took q
word Of Mr.. Dane Ne 10 the correctness, and
certified 10 them. These reports Wera false
every instance, and We believe these director
y to have been guilty oe gulpable negligence az
~ meritingt the most V>fero oensnra.
Y As TO the affaiss Of the Silver City hawk, '
4 ind that they we're similar to those Of the Der
ing bRnk
N As an illustration Of the manner in which d
n funds Of the Silver City bank we're Appropl
" ated by n Dane, lite bItSident, We report IN
o 8 900 was loaned on an unsecured note align
By W. Berg. This Il appears was simply
accommodation note. aud the money was TAX
D. and used By G. II. Dane the came may be 81
Of 0 note for 5000, also unsecured, signed
n. E. Dare. no being q brother Of G. H. Dai
he Also q note for $500 signed b. MuFat MAST
u son, also q note for $500 signed By p.
D. Saith; alao q note for 5000 signed By Nat
Dy @. Smith. IL appears that P. X. Smith q
20 @. H. Dane we're mutually interested az partne
Also q note for $1,000 aligned by Mary L. Dal
ae the wife Of O.. II. Dane; also a note for esl
ne signed By the VermiiO Company. O. H. Dal
ne president; also a notO for 5000 siGnsd BY C.
Danei also q note for 5000 signed BY tho Ind
nt Springs Cattle Company. Frank II. aiebo
10 secretary, aggrogatinG about $4,000.
ny An Of this money, II appears, was Approl
ated by Mr.. Dtne,
Il also appears that the directors OF the Sill
OF City bank paid no attention 10 the analr Of
ne bank, their only acts being 10 attest as corr
- the false reports made by Mr.. Dane az Preside
ne OF the bank.
ief Taking the Affairs Of these two banks, Il
pears that Mr.. Dane as actual manager OF b.
OF Of them, has appropriated the entire cap