Carrizozo outlook. [volume] (Carrizozo, N.M.) 1910-1945, 1916-10-13

uv vernon Mcdonald could not help
knowing the condition OF tha hA1h
Lhaa-fioarfy year before the final
smash-becauBe he and Ernest went
TO Las Cruces In January, 1914, and
investigated. The bank was drenched
with worthless notes. The bank ex-
Iminer said so at the time. Yet
neither he nor the governor moved TO
close the institution. After tho gov
ernor had meaRdered down TO Las
Cruces that time and learned all over
again that the First state Bank wns
insolvent he went back TO Santa 70
and did nothing. Touched by this in
dicatIon that the state authorities
would not interfere with them, T. r.
II. Smith and his gangsters In ques-
tionable finance gobbled more and
more OF the banks assets-then the
Inevitable collapse.
All this is a matter OF public record.
II Is set out In detail In the report Of
the Joint legislative committee ap.
pointed 10 investigate the Las Cruces
hank failure and the affairs OF the
State College. This public record
proves that Governor Mcdonald knew,
all the time. II shows that the per.
sons who looted the bank and
grabbed the money OF the state and
the people OF the Mesllla valley were
Governor McDonall"s political re-
tainers.
The Amazing Banker Smith.
To go back bit into the story OF
this amazing fraud which McDonald's
administration allowed to be perpe.
trated:
4. Il. II. Smith went TO Las Cruces
and established the First State Bank.
lie was the president and chief stock.
holder. There was jugglery OF money
between Smiths bank and the First
State Bank Of Tucumcan. The Tu-
cumcari bank failed and Ia connection
Herewith 4. II. II. NTH was Indicted
by the grand jury al Tucumeari on a
charge OF embezzlement and con
splraCy to embezzle.
In that Tucumcan failure and the
Indictment, Governor McDonnld's Il
state banking department found out
what manner OF man was T. r. II,
Smith Not that the bank examiner
or the governor ~ llzed this informa-
tion to safeguard the funds OF the
State College and The people OF Las
Cruces, but they had II. II Is shown
In the public record.
They Knew the Smith Record.
According to the testimony of l.. b.
Wooters, assistant travelling auditor
and bank examiner he learned In Oc.
tober 1918, that Z. II. II. Smith had
lied when he wrote about the trans.
action between the Las Cruces bank
and the Tucumcarl bank. lie found
the proof OF Smiths deception IN the
letter files of the Tucumcnri bank
after the failure. Here Il is from the
public record, (pnge 30D.
Question Was that the first time
that you realized that Smith was try
Ing TO deceive the auditors Officer"
Answer Thy Wooters). We'll,
found those things out when | was
down there, | leaned that before
saw those letters"
.. whereabouts?
A. when | was exnIninlng the
First State Bank Of Las Cruces In oc
tober."
This was in October, 1913, II will
be remembered. Assistant Examiner
Wooters not only got the hunch then
that Smiths word was not TO be
trusted but he found that the capital
Of the Las Cruces bank had been i'm
paired to the extont OF S5 per cent
Thus the bank was virtually lnsolyent
The governor and his travelling audi
tor did nothing.
O "Ynn fnund out the balance waA
not cnrr.-es
.t,,..- a, ~, / a. Itrt -.