Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-03-03
Morgan 0, LIeweIIyn Knew
Nothing Of Insolvency Until
Night Preceding Close of
Doors, He Says,
SENSATION COMES WHEN
ALLDREDGE STEPS DOWN
Democratic Senator Objects
to Manner in Which Minor
ity Is Treated and Tenders
Resignation

ESPECIAL nlsPArcH 10 MORNING iouRHAli
Las cruces, n. NJ, March stand
ing out above other remarkable state
ments and developments i'm the in
Vesugation being conducted by the
Blood committee of the affairs of
the First state bank. the assertion Of
Morgan O. Llewellyn. crstwhile treas
urer of the Agricultural college. chat
he did not know the bank was in bad
condition until the night before It
failed was easily The sensation of the
first days probe. Mr. LleWellVn was
the first witness called and the most
interesting. incidentally. he was on
the defensive during most of his eX-
animation, and many times attempt
ed to make some point in the rec
Ords of the PROCEEDINGS such as to
press the assertion that the state
FUNDS in the First state bank were
overdrawn more than $4,000.
Explains Democratic Note.
There was little OF real interest in
Mr.. LlewCllyns testimony outside his
statement of knowledge or lack of
knowledge of the condition of the
bank. Some political history was in
troduced into the records of the pro-
ceedings when Llewellyn was exam
ined regarding the note held by the
bank to cover the democratic cam
paign expenses incurred in the last
state election. According TO the Wit
ness. he signed the note in question
with Mr. Paxton chairman of the
board of regents and Hugh Clary, a
director of the bank. These gentle
men, testified MT. Llewellyn, placed
their names ON the notes at the re-
quest OF President nmith of the bank,
who also signed it as an accommoda-
tion to permit the bank TO charge IT
off its campaign contribution for
1911 In small BITS, under guise OF IN
terest on college deposits instead of
in "a lump.
When asked why he had not at
tempted to obtain from the bank I'M
terest on the college funds, Mr.. LEV
ellyn stated that the reason for not
doing so was because the bank fire.
quently carried an ovcrdraft for the
college without charging interest
Dispute Over OVordraft.
r. Il. Larkin, a regent of the col
lege. was the second witness. His tes-
timonv disclosed only matters Of
routine interest. and he was dismiss
ed to give place to c. NJ. Gridcr, an
expert accountant of El Paso. who
had examined the books of the de-
funct bank The accountant testified
that at no time was there an over
draft on the college funds, considered
as a whole, at the bank during the
Llewellyn regime Later this point
was somewhat in dispute, as Level
lyn made the point later that the
funds had been overdrawn, but never
more than $4,000.
A bank director, Mark Thompson,
was the fourth witness. His testimony
had t0 do with the meeting Of the
bank directors i'm January, 1914,
which was attended by Governor Nc
Donald after he had been told by
the travelling auditor that the bank
should either be closed or forced TO
amend its way Of doing business.
TOO Much smith Paper,
At the time of the January meet
ing said Mr. Thompson the opinion
was expressed that there was TOO
much Smith paper in the bank in
other words, that the president of the
institution was borrowing too heav-
ly Of the banks funds.
acquisitions Held Up.
That acquisitions for college sup
plies were held up for the purpose 81
keeping as much college money i'm the
bank as possible aud to cut down {
he amounts outgoing from the bank, I
was the testimony of NJ S. Bowen /
of buildings ana .
grounds. AS to otto Wetlaufcr, form
arly register of the college According /
o this witness, Wetlaufer was tod I
hat his job had been secured for 4
lim by the bank, and that he was /
lnder orders 10 retain as much money !
n the bank as possible.
Prof A. c. Cooley and f. =. Lester /
l. former regent. substantiated the
testimony regarding the holding up I
If requisitions Later Lester was (
loosely questioned by Attorney Hollo-
nan for the committee, Senator
,rampton and ChaHman Blood as 10
'ollege policies without anything ol
pecial interest being disclosed.
The democratic members of the
INVESTIGATING committee were at work
after the days hearing .
rad closed on the matter OF tesl-
nonv tending to show that requisi- /
ions had been held up. Apparently
Worried over the point that the ma
oritv members had seemed to score,
hey called in the college accounts to
how that expenditures for the
months in which the holding mp OF
was alleged were as
arge or larger than those Of other
months.
Alldrcdgc Walks out.
Before the committee got down to
he taking of testimony, there we're
ONE fireworks which, when they
ubsided, left the majority members
n absolute control Of the investiBa-
ion in physical as well as a tech
Iical sense. IN fact. the democratic
member from Quay county, Senator
.Ildredge. walked out OF the COM
1ittee meeting - a member, ana re-
used to participate in it's work.
It all came about when Attorney
. c. Davidson Of Tucumcari, was re-
used by the majority members Of the
the right to examine and