Carrizozo outlook. [volume] (Carrizozo, N.M.) 1910-1945, 1916-10-20

~ NNN9NNSI A9
dividends from the defunet rueumeari
bank.
The people OF Quay county. there.
fore, are sufferers with the people OF
the Mcssila valley from executive ne.
glect and deroliction of duty. More
Victims Of political banking"
MeCarty's Report and Warning.
Special Deputy Travelling Auditor
and Bank Examiner McCarty sub.
mitted his report on the Las Cruces
bank TO Howell Ernest on January H.,
l9l4. lie reported excessive loans,
uncollectible and doubtful notes" In
one place the McCarty report stated.
Il would suggest to Mr.. +. x. H..
Smith, the president Of this bank, that
he eOnfine his loans TO the
~ In which he Is doing business;
that he not grant such large lines OF
credit to people to whom he Is In.
debted for some Of his larger de.
posits. SHOULD CRITICIZE So.
NERELY HIS LOANS TO HIMSELF,
FAMILY AND IMMEDIATE RELA.
TlVES AND SHOULD INSIST THAT
THEY BE TAKEN OUT OF THE
BANK OR REDUCED CONSIDER.
ABLY AT ANY RATE. | find thai
his mother, Mrs. L.. u. Smith, owes
$3.50; his brother, sG.02O.G go, and his
own notes amount to $1,000"
The Smith Family Robbersome."
McCarty found 40 per cent OF the
banks capital In %overdrafts. Here
was McCarty's recommendation.
considering the above | would
suggest calling u special session
OF the board OF directors and
levy an assessment of rs per
cent on the banks stock. | AM
SURE THERE ARE OTHER
LOSSES IN THE LOANS WHICH
WILL SHOW UP WHEN THESE
LOANS ARE EXAMINED IN CON.
NECTlON WITH THE BOARD OF
DIRECTORS"
The Social Jaunt to Las Cruces.
Goaded into some semblance of CON
Germ In the threatening situation al
Last Cruces by the lawyers letter and
the McCarty report, Governor MELON.
AID and his bank examiner, Howell Err.
nest, made n trip to Las Cruces the
latter part OF January, 1914. Mr.. Er.
nest tells Of that expedition tbegin.
ning on page $50 OF the public rec
ord
Question Now then. you did 20 to
Las Cruces in January, i9li?"
Answer Thy Mr.. Ernest) yes, sir;
January Goth"
q. What was your purpose In 60
ing there"
a. Il went there for the pur pose
a~scertaining. II possible, the condi-
lion OF the bank, the condition OF the
paper as shown by the combined re.
ports OF the two examinations, the OK.
nminations by Mr.. Wooters and Mr..
McCarty."
Mr.. Ernest and his assistant,
WOoters, had estimated that the con.
pared reports Of examinations into
ne Las Cruces bank by WooLers and
McCarty showed that the impairment
)t the capital stock had Increased TO
100 per cent In January, lglI.
Y. "The governor went with your"
a. Yes, sir. he was there"
z. Did the governor often go with
'ou In investigating banks?"
A. mo. sir"
Q. rs that the only time he ever
A. That is the only time I have
,een with the governor In connectlon
iva Nff FAAAhAAAE lAl'iAllkt
q. what about this bank nj TINT
me was OF such n nature as to 70.
luire the presence OF the governor
here?"
A. why, | don't know. lie was
DING down at that time, | under
Thus It may be that the lmputation
hat Governor Mcdonald was goaded
having a look AZ the Las Cruces
ank does him an injustice. perhnps
% merely happened TO be going that
and did not make a special trim
. bother himself with the status of "A
bank, the depository OF State
funds, and with coo innoo.,,
Seni
Mr.. Ernest's Thrilling Tai.
To resume Mr., Ernest's .hrlllIrg ror.
about how no and Governor
lcDonald went to Las Cruces TO in.
%estlgate and then went away again;
Question Did you know that had
ritten the governor and had sent
I'm a copy Of McCarty's roportY"
'ked Reed Holloman.
Answer No, | didn't know that YOU
nj sent hin a copy OF McCarty's re-
ort. He had seen the copy that Nc.
arty sent me, although he said he
nd received a letter from you. lilo
Nd me that"
The governor had TWO copies OF
.cCarty's report, telling about the
20 per cent impairment of the First
ate Bank, the qleSr notes and all
lat.
O. did he express his opinion AZ
Iat time as to what he thought rela.
vo to the condition OF the bank or
.at something ought to be dono?"
A.. Not particularly: no, sir"