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

L"l"'" p IH4ll H'UtNiltn nptrNNlnF
their trust as regents of the state Col.
l'ge by using the sacred college
funds as means TO pay a political debt
to II snldo banker.
And Governor Mcdonald Knew.
An inspiring spectacle. too tho gov.
ernor OF Now Mexico allowing such a
banker 10 continue his operations un.
vi ne had taken all the college money
and the savings Of near COO individual
citizens bcsidcs. Doubtless Governor
Mcdonald let the First state Bank 70
lis way on the chance that II might
surivive-and donate more money,
from tho Interest on state College
iunds' to another Democratic cam.
pnign fund.
Llewellyn kept feeding tho First
state Bank more state College money.
me state College money kept paying
orr the Democratic party notes. tho
Shii'h lrlbe continued 10 appropriate
II and Governor Mcdonald and his nd.
minisiration let them go their reok.
less way.
The general public-nbout COO I'm.
nocrnt dcposltors whose money went
up-hnd no idea that the First state
Bank was shaky. They had reason 10
expect that the man they elected o
ernor OF the state and the man he M.
pointed ms trG"eling auditor and hnnk
examiner would require the bank 10
keep within the law.
Had these people known that Gov.
ernor Mcdonald and Bank Examiner
Ernest wer" aware In October. 1914.
that T. n. ". smith was no good ana
that his bank was impaired 81 per
cont they would have been nstoundod
And still more ~astounded when the
Fovernor and his subordinate failed
utterly either 10 close the bank or
take stringent measures 10 prevent n
further %looting OF It.
When the facts came out. after tbe
failure. II was the more hearirerder.
ing for the sufferers to learn that Gov.
ornor Mcdonald and Bank Examiner
Ernest knew In january. 1914. that tha
impairment OF the hank had grown
10 100 per cent. and that even the,
,n.y mnde no effort 10 protect these
Innocent, u~nsuspeciing people
II was %unthinkablo that The qover.
nor Of their state ana that tho dnport.
eht or inc stale government created
Tor tho express purposc of protecting
lfl' peopl" FROM di' honest banks and
bankc"l should permit them 10 bo do.
colV"d n robbed as they were. Tho
OF the state and the bnnR
examiner sat back and let people OF
me Mesilla valley turn more of thoir
money over TO the dubious Smith.
Not tho merrsi hint OF tho bonlt
loolln g came TO them from Governor
~M'llonuld's administration which
rll about g. on the other hand
ncople saw the governors ronro.
Tho regents OF Tho state
Celcgg putting TIE socred funds M
inc ecN'a" into Suiith's bank. Tber
saw NAT the First Siptc BAN, had rbe
rnniid mo" OF a." stl'e umhnrjtiaa
rhey were even urged by state ofn.
eials-the registrar of tho state Col.
Iege for n TO put their money into
The political bank.
How lonS Governor Mcdonald
would have abandoned the people of
Ana county and the state Col.
ego tlnd 10 the eXploitntions OF the
laundering Smith no one knows. had
not been ioltod into some sort OF
recognition OF u nasty situation at Las
Eucos by the activities of the re-
'eivor for the punctured First State
Bank OF Tucumcati.
The Bank Wreeklng at Tueumcari.
Ihal receiver employed Reed Hol.
oman as attorney and the latter DO.
fought an Investigation OF those wierd
transactions between the First state
OF Tucumcari ana the First
state Bank OF Las Cruces. Banker
smith had no stomach for letting an
Investigator from Tucumcarl 20
Trough the records OF his crooked in.
lltution. Finally the receiver for the
bank had to get their in.
'estlgator deputized as a special ,
rnveling auditor and bank examiner.
Howell Ernest. tho state travelling
.udiior ana bank examiner, put stun
ing blocks IN the way OF this. Coz
rhor McDOnald's man. whose duty Il I
vas 10 see that state banks were
properly run, actually refused TO IA.
ilitate an examination into the az.
airs OF Smiths bank. Il was neees.
AIRY for the District court Judge al
ueumeari TO make the request. by I
elegraph, before he would give the d
ueumearl Investigator the authority 1
7 a special duty. Ard Ernest knew /
bout Smiths trenchery tao. b
Finally. armed w.t. the