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

stance. the documentary evidence OF
which I have. he paid more than one
hundred dollars In excess of the biz
u two responsible houses Tor a bnl
aE~grCeatiBg about $3.50.
Following the failure OF the bank
examination Of lie accounts and lts
bills receivable disclosed that ut the
time OF the failure there was In ex.
cess OF $4,000 In ovedrafts alone, a
careful analysis OF which by a quail
ihed bankers committee disclosed that
OF that sum only 1915 could be class
ed as Immediately coliectiole. our Of
over $500. 600 worth Of paper In the
Institution. Mr.. President. a like care
fui analysis by that committee dis-
closed approximately only $4,000
which that committee classed az alb
silutely good. Adding thereto other
paper ciassed as slow but good
brought the %aggresate up to about
$4,000. The examination further
disclosed that after figuring all Of the
assets pom a conservative basis there
might be realized, possibly. as much
a. $4,000, with aggregate liabilities
Of $4,000.
Among the bills receivable was a
very interesting promlssoTv tote sign
ed by some fifteen CT twenty members
OF the Democratic party In the Mesilla
valley SOME lime prior TO the nrst
state election In November. 1911,
which note had credits whereby II had
been substantially reduced. which
credits, ! am informed. were placed
thereon under an agreement with the
secretary ana treasurer OF the board
OF regents To the effect that $50 per
month should he allowed az interest
upon the college deposit and applied
10 pay on this note.
This witness will testify that Mr..
Guilfoil. at the time Of the failure Of
ten First State bank, or Just prior
thereto. was the holder individually OF
the individual note OF T. II. n. smith
for the sum OF $500 n that the
last day that the bank was open Tor
business, when Il was positively strug-
Cling with the assistance of two local
banks TO get enough cash to keep
open until . o'clock In the afternoon,
Mr.. Guilfoil went TO Mr.. Smith, pres
ident of the bank, who discounted his
own note. I do rot assert that az a
matter OF my wi knowledge. I have
said that the information was given
TO me by one Of the reliable citizens
OF Las Cruces who IL prepared to tes-
tify TO Il.
An examination Of the records OF
the bank showed an item. as disclosed
uy the examination made In January ,
1914, the Toyah County bank OF Bal
morrhea, Texas. OF $4,000. am
Informed evidence can be produced to
prove that that was fictitious and that
the proceeds OF Ina, $4,000 item were
credited To the personal account of
r. n. u. smith.
The directors assert that never,
their incumbenoy Of Office. was
there a directors meeting held. ex-
upon the occasion to which !
referred when the travelling
auditor, or some representative. went
down there and called them to-
In an informal meeting. ,
The vice president of the lnstltu-
tion had on deposit az the time the
failed, approximately $500 OF
own money. but he SAYS he didn't
hat the bank was In a failing
condition. Perhaps that might be
considered evidence OF the fact that
didn't. but he was drawing $3.50
a month as vice president and he was
receiving eight per cent per annum,
monthly. upon that deposit.
The records show the treasurer OF
he town Of las Cruces had on de-
post In the bank about $500; that
apparently on the last day the bank
vas open for business. Mr. smith pa,
INTO this bank. tmind you, when they
didn't have at u time during the
day over $50 cash In the institution,
his personal note for So, 100. The
show that the proceeds Of the
were applied. approximately
Si,iOO. To the credit Of the OF
W. h. Jacoby, treasurer Of the town
Las Cruces. and the remainder to
he of a private individual;
those " for days prior
hereto showed o%verdrafts; Mr.. Mon
,han. the private individual referred
10, absent and not drawing any
.hecks. and the significant fact " SHAT
he credits applied 10 each n OF
hose accounts equalled the amount
II the overdrafi as shown by each
the aggregate of those two cred
II was the total OF this note given by
Smith
on The last day that the bank was
pen FOR business MT. Llewellyn and
ir. Paxton, regents OF the a~gri"ultnr-
n college. attorneys for the bank, the
after being the personal attorney
employed by Mr.. Smith: h n pres
dent Of the Ooaru OF regents, ,ne
us secretary and treasurer,
we're present, together with Ar. Guil-
oil, assuring those who had heard
hat the bank was shaky and who
anne there In haste to withdraw their
money, hat the bank was entirely
warning professors aad IN
and employees OF the college
lot TO withdraw their money from the
Mr.. Mossman, the pres
nj registrar Of the college, and
,rother-in-law OF MT. Guilfoil, was
ilso Ia Las cruces on the last day
his bank was open.
Mr. Mossman succeeded Mr.. Wet
uafer. who Is now a fugitive from
las cruces. on the last day that tue
was open two reliable citizens
u Las Cruces made inquiry Of him
Is TO whether or not, by virtue Of his
llici~ position. he WAS sufficiently
with the anaiTs Of that
lauk to inform them whether or not