Deming graphic. (Deming, N.M.) 1903-1948, 1916-10-13

=. H. Il. smith went d La Uruoc1
on6 established TIE UIvo( 0(a(o uook.
He was TIE prealdont ond ehtoe seoc1'
holder. Thego Wos juGr1osy e uoaov
botwsen omilh's hank ed the p1ro(
State Bank q Tucunood Tho ~
cumoari bank failed a. b eoQneetle6
thegevith Z. b. H. smith Ne Indicted
By tAe grand Jury ct Tucumoari = Z
charge Of embarrassment and Con-
splracy to embeaBlo.
In that Tucumcari failure end The
Indictment. 0overAor McDooald'o
state banking department found cut
what manner Of mnn vas z. h. H.
Smith. Not that ~ hoqk sxnminer
or the governor u(lIlo61 thh inforua-
tion 10 safeguard the fun1s Of the
state College and Tie peoDle Ct Las
Cruces. but they Me- Il II b ohown
IN the public record.
They kWsw ths omIoA Neoosd.
Accordine 70 ne tesosuony q Z. y
Wootsrs. nnoistant travo)lnG au611Or
and bank sxaminet, h. loasno6 - o.
tober. 1913. that I. \. II. omlkh had
He'd when he wrote about ths tgons-
action between the Las Cruces bonk
and the Tucumcsri hank. He found
the proof Of smiths deception n the
letter files Of The TucumoarI bank
after the fallure. Here L Z fSom the
public record. (page SOL:
auss,ten "Was that The fret time
that you realized that Smith MAS w.
ing to deceive the auditors of(icof'
ANswor (by Wooterl). ~W6l1. j
found those thingn out when ! Wss
down there. ! learned that bs6oss !
saw those letters"
@. "Whereaboutsf"
A. When YVES sxominine the
First state nank Of Las Cruces = DC.
tobor."
This was In october, lsla. Il viii
be remembered. Assistant nxamincr
Wooters not only got tie hunoA then
that Smith's word was not TO- b
trusted, hut be found that Tie capital
u the Las Cruces hank had been I'm
paired TO the extent of . ~. eoat..
Thus the bank was virtually insolveAt.
The governor and his travelling audi
tor did n0thing
Q. You found out the balance was
not correctf"
A. Yes. sir; he reported the wreag
balances
Q. We'll. II was IN connection With
this Transaction then, was the first
time you learned Smith was trying 70
deceive the travelling auditors of{ice.
OF did YOU know Il bs6osoF Z =
A. That Is the first concrete svi.
dence had OF Il"
@. That was snoughfs s f;
A. Yes. SIR"
Enough evidence that smith had de-
ceived state officials. And this was
the man they allowed to continue at
shady practices until he had sopped
up all the money In the Flrst state
Rank.
Q. Now then. Immediately after,
or In short time after that. you b.
gan making certain investiGattons re-
sarding Mr.. Smiths former career. did
you mott?
A. yes, sir"
Q, VIVA. was the result a that In
vestisation?''
A. well. I received various Isttsrs
In regard TO him. I was inqulrlne into
TONS"
Q. General moral standing. stcf"
A. Everything"
@ And from the letters you re-
ceived. what did you determine q 10
his financial standing?"
A. Well In my opinion | didn't
have very high regard for his finan-
cial condition after ! had received
those letters."
q And what opinion did you have
OF him az TO his former banking con.
neciIons after receiving those let.
ters?"
A. Il figured II wasn't desirable"
An ''undersirable" bankorl Un1or-
tunately people OF Las Cruoss-the
people Of the state---didnt ind dat
out until December. 1914, vhen they
paid at harsh terms for the howl
edged. But the state bank exauiner
Knew II In October. 1919. . I'D
Governor Me0oNo)d.
II e stated b. Howell nrnost, Gov.
amor kcDonnld's tnyo1lnn an61for
and banker Examines. u d onhlic
record. that hi a1G1Gonnf ooo1nctsd
hose inveotlGotiono whioh throw m
desirable aI6cllu1to - ~ Gamer q
Banker smith q ia ugnoot's. ~
sestton. II b o1oo o(n1o1 b nDnG6f
" informed - ~ o1cro ~ oondit1on
Of the La Cruces Tux :
IN Addition = o1l - 1(1eg in11ma'
lion which a1y1Do1 ~ floIDoool6 a.