The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-02-09

AoNetuof was absent 0hd tnat ne hes
itated to issue a commission 20 Mr.
Mccarthy "a deputy travelling auditoI
and bank examiner for the purposl
~ making this examination. When
after further conversation over IN,
phone. he consulted the attorney gen.
eral lie later issued on wire the com
mission mentioned. have a copy oI
the report made ny that examiner
That report disclosed substantially a.
Ia stated here In terms, that al thai
time he capital and surplus OF the
First state bnnk-thc capltat ibelng
thirty thousand and the surplus three
thouaand-was then impaired p%ractic.
tcally - per cent. Al that time tae
president OF that institution and mem
bers OF his family we're Indebted 10
the bank very closely ia the sum OF
$50. 600; the stockhoiders-the stock
holders, mind you-of this institution,
this little bank having only $50 600
capital, az that time had over $4,000
Of that capital borrowed individually:
at that time Mr.. Lleweiiyn. secretary
aud treasurer Of the board Of regents.
had paper In tho bank a~ggregating
s. .OG0. the report suggesting that the
president OF the institution be re-
quired within a short time to take
from the bank this paper which he
and members OF his family had In it
and that the bank be- given a short time
within which "a restore the impaired
capital advising that a meeting Of
the stockholders and directors and Of
hcers be called for the purpose Of
levying such assessment would re-
store the impaired capital stock.
That report was transmitted direct.
~ TO the governor OF New Mexico,
who appoints the travelling auditor
and ls the head OF hat department.
| understand that soon thereafter the
travelling auditor went TO Las Cruces
In person or through a representative
and that the officers aud directors az
that institution were called in. and
stockholders perhaps. some Of them,
as well, and that as a result Of the
conference the president OF the insii-
tuition was given ninety DAYS within
which ia take from the bank the
Smith family paper, and the bank
given six months within which TO re-
store the impaired capital stock ana
from that time until after the failure
Of the bank on the 9TH day of Decem-
Der. 1914 according 90 the most re-
llhpie Information az my command,
iurlher examination was had under
the direction Of the travelling auditor
The reason for that failure is un-
explained, hut Il Is one of those things
which should he explained. especially
lasl Instead OF obeying the travedng
auditor hmHNnAA 90 an .HaHH IuHWm
made by the president Of tha' insti-
and its directors to restore the
capital. its condition had rapidly and
steadily grown worse. the eSamina-
ton disclosing on the day Of the fail
ure. that the Smith family. instead OF
100000 OF paper. then had In the
bank approximately $4,000 Of paper. |
disclosing. instead Of the impaired
having been restored. that 10
had been wasted four times over. dis
h a out OF $780, 900 In round
figures OF Individual deposits subject
To cheek, $4,000 In round figures
had been borrowed from the institu-
ton by the president OF the 1ank snd
immediate members OF his family and
immediate political associates.
why was not some effort made to see
To II that these conditions found 10
exist In January of last year were !
corrected Why did not the travelling
luditor, IN the discharge OF MS seem
ingly plain duty, follow up and see 10
II mat his orders were obeyed? Tue
act mat these conditions Mere cree
tttG the time OF the eNami-
nation nnd the time Of ne failure dis
closes one OF " things: either that
travelling auditor did not folio"
mat he vas derelir; - his duty, or
II he did follow up and know
.hese conditions that he was douoiy
10 Diane why was not some Effort
maze by the chlet ecuti and by
ne travelling auditor having knowl-
ease OF the fact mat TINS large
AMOUNT OF college idoney q other
p0Iiic money were IN THIS bans, TO
'%tolect them knowing that the pres
.ueht OF the oank was under lndicl-
nent Ia knowing that he
ind ms FAMILY were literally quitting
ne institution, knowing That the SUR
'ty company had asked to be relieved
rom liabihly on me oond' knowing
hat the institution, the bank, was in
,nsoi.o"' So"
NY ""s NV a'"'''"h "'"N