Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-03-13
What's New in New Mexico

FIRST STATE hank of LAS Cruces by the
travelling auditor and his report of
It's condition 10 the governor. w W.
Cox, treasurer of Dona Ana county,
appealed To the governut for informa-
ton regarding the condition OF
said bank as he had on deposit there
in large amount of money belonging
To said county The governor at that
time advised him TO permit the de-
post to remain IN said bank and
promised to keep him informed as 10
the condition of said bank, but that
the governor never thereafter either
directly or indirectly conveyed to the
said w. w. Cox any information re-
garding the condition Of said bank.
That subsequent thereto the bonding
company that had furnished the de-
posltury bond for said W, w. Cox as
treasurer ascertained the condition of
said bank ana required said treasurer
to remove the said deposit
We Investigated To ascertain wheth-
er any political influence had been
exercised by any former board of re-
gents ana failed to find any evidence
OF such conduct Or. Hare and Pro-
fossor Hageerty lifelong democrats
who have been connected with the
y
titled that no influence had ever to
their knowledge been eXerted by any
hoard of regents Ia influence them
politically and that they never knew
or heard OF any attempt being So
made directly or indirectly 90 mflu-
ence any person in any way in con
nection with said school
Organized for smiths Gain.
The condition of the First State
bank Of Las Cruces is dCploahle It
had evidently been organized for the
personal gain of r. r. II Smith and
by him had been exploited with Inn
punity One-third of It's assets had
been appropriated by him through
loans ana cmhezzlement Had the
bank closed in January, 1874 when
the governor and travelling auditor
had fun knowledge of It's true. CON
dition ana the character Of its pres
ident some small loss to the dcpositors
would have resulted But by the
course pursued by the governor and
travelling auditor i'm paying no fur
Their attention to it said r. r. II.
Smith was permitted 10 indulge fur
Their I'm his system of exploitation and
his appropriation of its assets in
creased from 100000 in January.
1914, to more than $4,000 when the
hank was closed on December s. 1914.
Had said bank been closed I'm January.
1914, or had il been compelled to he
placed in "a sound condition. the de
positors would have been protected
ana the state college funds would now
bee intact Py abandoning all super
vision of the bank they thereby con
signed the college funds TO the tender
mercies of known embozzler and
bank wrcCker and jeopardized the
lifetime earnings of many persons.
IncNcusable Negligence.
Why officers whose duty it Is 10 en-
force the law should 50 conduct the
affairs of their office is inexplicable
1t has been suggested that the only
duty to be performed by the gov
ernor i'm connection with these mat
ters is to appoint "a board of regents
and "A travelling auditor. However, the
governor is the officer whose duty it
is TO enforce the law and in some in
stances he has been very Jealous in
that regard. But in this instance
where so many persons ana interests
We're so vitality affected, he chose to
! be careless to say the least The con-
duct of the travelling auditor in this
the position he occupies His own
testimony discloses that prior to his
appointment as travelling auditor he
had no experience whatever with any
banking affairs and had no experience
! as an accountant The evidence shows
that his qualifications have not in
creased by reason of any experience
since his appointment.
Action of AlldPCdoC.
I'm closing we respectfully report
that at the first meeting Of this com
mittee senator Alldredge withdrew
from said committee and rendered his
resignation as a member thereof but
that said resignation was not accept
ed by said committee However. he
did not attend any further sessions Of
said committee and took no part in
this investigation We further report
that Representative w. l., Rutherford
did not appear at any meeting of this
committee and took no part whatever
in its Investigations
Respectfully submitted,
T. O. BLOOD.
Il. G. CHAMPION,