Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-03-05
Hearing at Las Cruces Ends
and Committee of InyeSti-
cation viii Continue Labors
in Santa Fe.
GOVERNOR AND TRAVELLING
AUDITOR CRITICIZED
Grand Jury Report Character
ICES Conduct of Officials asI
CdminaIIy Negligent of the
States Interest

SPECIAL niaPArcH 70 NoRssG JOURNAL
Las Cruces. y. NJ. March i-That
4 T. K, H. Smith, president, made use
OF the First state bank It's credit and
lts capital to further his own ma
( terlal interests and that he was a fl
/ naneier of decided ability I'm that
RESPECT were facts brought out in "A
/ concrete way before the final local
I hearing of the Blood investigation
/ committee held today The testi-
I mony also disclosed the exact condi-
/ ton of the bank, It's assets and It's
I liabilities, together with the fact that
said Mr. smiths paper In the bank
/ amounted go S92 000. ana that the
/ creditors of the bank stand To lose
about $4,000.
At about the time the committee
| finished It's work. the grand jury
made It's report. ana Immediately fol-
lowing President Smith Of the bank
was taken into custody on charges
connected with its management or
iullure the exact nature OF the
+ charges not being disclosed at the
time MI Smith WAS placed under re-
straint He is held in $4,000 bond
which it is expected no viii be- able
ITO furnish tonight Meanwhile. he is
, being allowed his liberty under the
care of guard.
Governor ana Travelling auditor
/ Governor Mcdonald and Travelling
/ Auditor Howell Earnest we're scored
I IN the grand jury report and the
/ charge placed against them that they
/ were crimnallv negligent In the mat
! ter of the First state bank The re-
I port absolutely cleared Francis H.
I Lester who had been accused OF hay
4 ing a shortage Of $4,000 in his ac-
counts as secretary treasurer of the
county road board
While the Blood committee has
/ taken All the testimony that will be
called for in Las Cruces and has ad-
iourned the sessions here It viii meet
again at Santa F'e TO conclude the cx- /
animation of witnesses
Testimony of JOcrns.
The greatest interest attached to /
the testimony given today by John |
JOerns, the committees accountant I
who had gone over the accounts and ,
books Of the bank previously He /
assured the committee that money
secured by notes in the bank had /
been paid over TO the democratic /
campaign iVllliAiIAA'f III 10 - w Alli B
prohibition league, to PM Wrig
ley, a newspaper man who was
brought in 60 assist the drys in the
prohibition fight, and to others.
The accountant reported the lia-
bilities of the bank at $3.50, ,953.5l
and the assets considered good al
$l05,94775. The witness said that
the notes of Officers, directors, their
families and associates held by the
bank total $ll2 2,G00, or fiftN-five per
cent Of the total Notes and over
drafts Of the Same persons amount
to nearly $4,000, or scventy-thrce
per cent of the total oyerdrafts. Along
the same lines, w w. Cos and
oscar Snow testified as to the fair
ness Of the estimates Of value placed
upon the assets of the bank
smith Established Personal Credit.
T. r. II. Smiths record as bank
cr and a financier, as brought to light
by the accountant, writes a new chap
ter into the history Of New Mexico
banking. Mr.. Joerns stated mat Mr'
Smiths personal account had bene-
fitted through u $4,000 credit estob-
lishcd at the Toyah bank in Balmor-
rhea. Texas and he introduced a
COPY of II carbon letter he discovered
'l - '"i'N - l,nt4t5 -
cIeuil was 'I'@'su uPVn VIZ, ON, NJ,
sonar hoio' IN auultIou' .he r''Hl !
state balk heId 9V@oVV OF th' SUM-
sort OF paper Alsuou ny M, sun
II is uhoillolany s'atea HeIe Nnat tne (,
president "i lhe panh up1"Vu 'nc ~
with "a personal, unsecured I
note for $500. y
Pertinent extfacts from the grand I
jury report which In reality expresses
a regret that u was HlPossl ~ - -, !
the jury To lhdIcl 'oNerhor M' l,oi Wv b
ANA travelling Audl'of EaIHoAN "'o Il
as follows i
during lhe carry aays ol l"o au3 4
SION by speclal rePoI we /
ed TO your h9hof 'le aPpoin ,t q
OF special audlioi .o IA lIe7'iS','S '',g i