Semi-weekly herald., 1907-12-30
NOT THE SLIGHTEST
REGARD FOR TRUTH.
(From FRIDAYS Daily

The Herald is not going to con
done any wrong doing on the part of
Charles E. Mcconnell. The facts are
bad enough-for the depositors, but
when it comes to downright lying for
the purpose of stirring up the people
and keeping up feeling that is not
good for any community. it is time
a halt was called, and this leads us
to the article published in the Morn
ing Democrat-a paper that guaran-
teed every creditor against loss, and
in turn has been doing all in its power
for months past to bring on the pres
ent condition in Durango-in which
the grossest misrepresentation is
made.
A member of the advistory commit
tee of the Smelter City State bank
informed The Herald this morning that
there was no covering up of the First
National bank deal whatever and that
the transaction was straight in every
particular and that not a dollar OF
were hypothecated. He said that the
First National loaned Mr.. Mcconnell
$4,000 on personal security furnished
by Mr.. Mcconnell and his brother in
California. While this money was used
for the benefit of the Smelter City
State bank not dollar was raised
through Smelter securities. The $1O,-
900 was left in the First National
bank to the credit of the Smelter City
State bank to be used for checks and
exchange purposes, the First National
acting as sort Of clearing house for
the Smelter. of this $4,000 q little
the Smelter bank closed. This money
was borrowed the day after the Colo
rado State bank closed and Mr.. Nc
Conlel thought with it he could tide
over. Therefore, instead of drawing
the $4,000 and sticking it in his sock. 4
as the Democrat alleged, the money
remained in the First National bank
and the depositors by the transaction
are just that much ahead as the as
sets of the bank are not held against
this 10000. This statement was veri-j
fed by the First National bank off-t
cial this afternoon. 1t is also in line
with the statement made to Herald
reporter the day the bank closed
that with his brother he advanced the =
bank $4,000 in hopes of tiding 1t ovsv.
Just why the Democrat wilfully in"
cites the people and prints such lying
articles is hard to understand except
on the general policy of misrepresen-
tation--a policy followed year in and
year out by the Day management.
AS stated in the beginning OF this
article, The Herald Is not going to
condone any wrong doing on the part
of Mr.. Mcconnell, but he will have
enough to explain and help untangle
without manufacturing stories out OF
whole cloth. Although the receiver
has not made his official report, suft-
cient is known to show very bad judg-
ment on the part of Mr. Mcconnell in
continuing the bank SO many years on
losing basis. This is explained by
Mr.. Mcconnell on the ground that he
lived in hopes of making sufficient ont
of his mining interests to settle the
banks losses in full.
Those who lost large ssns of money
in the bank have right n feel bitter
as thousand dollar bills dopot grow
on every tree, but there is notbing to
be gained by newspapers incitin, tcred.
itors who do not know the facts.
1t is said the receivers report will
show that Mr.. Mcconnell borrowed
$4,000 of the First National bank or
Denver, giving as security s25,0OO
Smelter bank collateral. This money
was left in Denver to be drawn against
and there remains about So. 500 of the
above amount. BY paying the Denver
bank the collateral will be released
and with securities in the bank at the
time of closing the total amount that
can be realized will be in the neigh.
borhood of $4,000 to $4,000. This
Will pay 10 to Is per cent. II credi.
tors receive anything in addition to
this it will have to come through Mr..
Mcconnell personally. 1t remains,
therefore, to be seen what he will be
able to do.