El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-20
SHOW WARRANTS
IN SMITH CASE
Legal Battle is Fought IN
Bankers Trial Over
Item of $4150.
by GUTHRIE SMITH.

! Alamogordo. n NJ, April 20.-By me
] Introduction of school warrants anu
state is seeking to cOrrobOrate the yer
timony given by j. W. McCarty antt
/ John Birdwell, jr., to the effect Ind
] the sum of $4150 was distracted from
the account of W. F. JacOby, treasurer
1 of the Las Cruces school building tuhu,
! on July Is, 1914. in the case of Iurh,eI
r. H. Smith. former president OF Ine
dCfunct First State bank at Las cruces.
The case is on trial here now IN tne
district court, having been Drou5n I
here from Las Cruces, or the defence
motion for a change Of venue
The present trial is under an lndlcl-
Of $3.50 on July Is, 1914. The bona
Ana county grand jury last SEPTEMBER
returned total Of "a lndictInenl55
against Smith, growing out OF aHestu
resulted in the failure of the tlrSL
State bank, on December s, 1914 VI
/ the total of "a indictments, 10 charge
embezzlement. three perjury ana slS
receiving deposits in an lnsoiVeh'
bank.
DepOsitOrs Employ Counsel.
District attorney II. B. Hamilton IS
being assisted in the prosecution Dy
H. B. Holt of Las Cruces Holt was
retained by the depositOrs OF the de5
fuGct institution at the 18th hour, ana
came into the case after the jury hao
been completed and the examination
Of witnesses begun. 1t is said that
the depOsitors depended upon governor
Mcdonald to see that associate counsel
was employed for the state, and WalIed
until the last moment, in the Delle1
that he would secure assistance Tor
the district attorney.
Governor Mcdonald was a visitor IN
AlamOgOrdO Saturday night and sun
day morning, and it was presumed thar
his visit was in connection with Jhls
case, but the trial was commenced
counsel for the state. Then the Las
Cruces depOsitOrs acted.
Frenger shows school Warrants.
Numa Frenger, of Las Cruces, testi-
fled that he is the president Of the
beard of education of Las Cruces; that
prior to the time he became president
he was vice president He testified
that In the year 1914, up to the time
Of the failure Of the bank, on December
S. Turner r. II. Smith was president
OF the board of education. as well as
president Of the bank. He introduced
many of the warrants upon which dis
bursements of the school funds were
made, especially the school building
and admitted in evidence.
There was admitted also the con-
tract under which Medinger & Son
were building school houses for the
school board. and a part of this con-
tract was read to the jury. He declared
that on July IS. 1914. the board did
not authorize the debit OF $3.50 in the
building fund account, and did not
He did not know anything Of a credit
or A deposit for the school building
fund account on December s. 1914. he
said. The board did not authorize such
a credit. or make any such deposit. he
asserted W. +. JacOby, town treas
urer, was in charge Of the school funds
during the greater part Of the year
1914, witness said.
burnside Testifies.
The state this morning introduced
John Burnside, register of the United
States land office, at Las Cruces, who
testified that he is assignee OF the
Gerald Monahan account
Q. NJ. Order was recalled and iden-
titled the banks interest account and
four deposit slips, showing the BANK
had paid interest on the Monahan ac-
count The interest payments were
March %, 1913. sS0.25; May 10, S1s.S5;
March II, 1914 5000; August 81, S75.55.
Witness said, from all records avail
able, he believed the bank had paid in
terest to Monahan on the basis Of an
open, inactive account
MedinEer Denies Making Deposits.
Joe Medinger testified that on July
Is. 1914, he did not deposit $3.50. nor
$3.50, nor did he receive $4,000 from the
bank
He said he did. not deposit any
credit on that day. He declared that
on July IS or Is, he did not draw any
check for $3.50. The only check drawn
against the account on either OF these
days was for $3S.05, drawn by Joe
Medinger, jr.
He produced his bank pass book,
which was admitted in evidence. He
said the book was correct, showing all
deposits, and does not show deposit
of $3.50 on July 10.
His cancelled checks were admitted.
He said they covered the month Of
July. had been totaled on an adding
and were correct, and that in
the checks was none for $3.50 on July
Is or 1G. He declared that the school
board never had allowed any credits
to him except on warrants in regular
Deposit slip shown.
The deposit slip for $3.50 and debit |
slip for $3.50 were shown to the wit
ness. He said he never had seen them
before and never before had seen his !
account in the banks ledger.
The states exhibits now total IS. |
are now that the state will |
rest this afternoon 1t is believed the
defence will not require much time to |
presents its case.
Orders Evidence Considered Damaging.
@. NJ. Grider, a public accountant OF Fl |
Paso. gave testimony damaging az that I
given by J. W. McCarty and John Birdwell. !
il. He testified that he had examined the /
records books. papers, warrants, vouchers, !
shecBs etc, Of the First State bank. He /
said that he was retained by judge z. l. |
NJ edler. presiding Judge OF this district. and /
that he had assisted the grand Jury OF Dona |
Ana county. when the indictments were re- |
turned.
He has never been employed IN bank |
witness testified. but has had five years ex-
perience as an accountant. audited two |
banks in Houston, before removing to Fl |
7aso. and has done work as accountant |
FOR two OF the FL PasO banks.
Found No Warrant for S4l50.
He said he had examined and analysed |
he warrants under which the school board |
lad made payments for the building OF l
chool houses. and that he found no evil
ience Of any warrant or other authority by Il
he school board for the entry of S415O |
against the school building account. He
aid the deposit slip for the Medinger &C J
ALSO charged to the school building fund.
hat OF this amount OF t4150. the slip indi- I
'ated $1,000 in currency had been paid to I
1edingor and the balance Of S2150 passed |
o the credit Of his account.
There was charge slip, he said dated |
July Is but not entered on the account I'M l
IL July 10. debiting the Medinger account |
With $s1sS.05. made up Of the item Of $3.50 |
.redited the day before. and a check for
3S .05. which Joe Medinger, ir. had drawn
against the account. The last credit an
,lied on the school building fund witness
aid, was $3.50. on December s. but de-
Jared the school board had no record What
yer OF a deposit or other credit. on Deem
The charges against the school building
und as shown BY the bank record reached