Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-02-07
First State Bank and College
of agriculture Deliberately
Looted, Asserts Senator Holt

the bank paper TO the amount of
$1,000 A report was made and trans
mitted TO the governor Thereafter
the travelling auditor went TO Las
Cruces, the officers and directors, and
perhaps some OF the stockholders,
were called In, and at a conference
the president was given ninety days
to take out his paper and the paper
Of his family, and the stockholders
were given the same time to restore
the banks capital Instead of obey
ing these instructions II was shown
at the time of the failure that con
ditions had been allowed rapidly to
grow worse, and at that time the
Smith family had increased their pa
per from $20,0 to $S7 1900, and the
capital had been wasted four times
over.
Why?
why was not some effort made to
see that the conditions found to ex-
list at the time of the examination in
January. 1914 were corrected Why
didn't the travelling auditor see
that his orders were oDeyed2 Either
the travelling auditor didn't do his
duty in following up the matter, or,
II he followed il up and knew of the
conditions, he was doubly to blame.
Guilfoil Dictator.
After the appointment by the
present executive OF tine board of re-
gents Mr.. Gullfoil, of the travelling
auditors office became registrar. and
by virtue OF the support Of the secre-
tary-treasurer and other democratic
members Of the board, became the
absolute dictator of the college. The
president of The institution was
fiouted. | remember that that officer
once called at my office TO talk to
me about college appropriations and
after the bank failure last Decem-
Der. when he and other college Of
ncials felt that the paddock was off
their lips he told me that thirty min
utes after our Interview he had been
called to the Office of j. II. Paxton,
president of the board of regents
ana reprimanded for calling on me.
WetIaufer Reckless"
when Guilfoil left, smith dictated
the appointment of his successor,
Mr.. Wetlaufer. From the time he was
placed in charge he seized the reins
and drove with far more reckless
| hand than his predecessor He placed
new locks on all rooms in which col
lege records were kept and denied Tho
! president of the college access e
| them. These conditions continued
until the bank failure. Subsequent
events disclosed that Wetlaufer hat
become a defaulter to the tune o.
about $500 The knowledge came t
me, and there IS documentary evi
! ,denee to prove il, that Wetlaufer wa
engaged in purchasing supplies in al
improper manner. He purchased a
/ prices in excess of those named II
bids submitted by responsible houses
At one time he paid 500 in excess o
prices bid in the purchase of good
amounting to $3.50.
THE examination made as the re
suit Of the bank failure showed al
! excess of $4,000 in overdrafts. Tn
lbankers' committee appointed to in
vestigate conditions found that of thi
amount only 1915 could be calle'
good immediatel collectable. Thu
examination disclosed only $4,000
absolutely good in the paper of tn
bank other paper classed as slow
but good, brought the total up e
about $780, 600 1t was disclosed tina
after marshaling all the assets on
conservative basis that a total of SIG,
600 might be saved.
A Promissory Note.
This examination also disclosed al
interesting promissory note. II wat
signed bysome fifteen or twenty dem
ocrats of the Meslla valley and wa
dated prior to the first state election
Ut was further disclosed that there ap
peared as credits on this note $50
month of the interest paid by thu
bank on the state college funds
These credits were made by the au
thority of the secretary treasurer o
the college It is known that tn
democrats spent approximately $40,
600 in the campaign referred to.
"Guilfoi held the individual not
Of smith for $1,000 and on the day 0
the failure, when the. bank was strug
Cling for life and the other banks o
Las Cruces were seeking to aid it t.
remain open until o'clock in the az
ternoon, Smith discounted his owl
, note in Guilfoil's favor
ION the last day the bank was ope'
I Paxton and Llewelyn, one the per
sonal attorney Of smith and the othe
attorney for The bank-the preslden
and treasurer of the state colleg
, board. with Guifoil assured thos
! who came for their money that tn
/ bank was solvent, and warned tn
college people not to withdraw thei
7 funds, Mr. Mossman, the presen
! registrar, the successor of Wetlaufei
! the latter, now a fugitive from La
& Cruces, also was there and also ad
) vised depositors that their money wa
( safe.
a