New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1916-09-08

4. That was a statement that I got up from looking
over the result of both reports, McCarty's report and mine.
Q. Then the conclusion you came to at that time was
that it was impaired about so per cent!
A. Yes. sir.
O Now that report was made to MI. Earnest?
got it up for him, yes, sir.
9. That report was turned over to the Governor?
<. Mr.. Earnest had it, I don't know whether the Gov
crnor.-I presume he saw it, don't know whether 1t was
ever turned over to him or not.
Q. Directly after that, then, Mr.. Earnest and the Gov
ernor called a meeting OF those bank people at Las Cruces?
-. Mr.. Earnest did, yes, sir.
Q. Mr. Earnest did, and it was held about January 5oth
last year;
Q. At thai time do Won know whether Mr.. Ernest
or had You reported to the Governor, either directly or indi-
rectly. what YOU had asccrtained regarding Nj. Smiths repn-
tation and former character?
\. Yes. I did it indirectly.
z {: T T@.' the GOVERNOR
c. And YOU had made Investigations and found ont
that Smith was not a desirable person in connection with the
bank?
\. Yes. sir.
{. And You bad examined his bank and found ont that
he wa>.-thid tie capital stock was impaired at least 80 per
\. Not a, a result of my examination. That was the
result 81 the assumption that McCartys examination and
mine. picking il ot the best could from the two reports.
Q We'll, did vu find any errors ri Hce exam
nation:
' ~ dI1t 20 INTO It that thoroughly. dlon | nave
anything IL work u 1t inst the report he submitted IL,
O Have y, in your investigation at La, Cruces ~inc,
then a~ccrtanc1 any error McCarty made IN that report:
\. didn't know whether vow would call it error r
not. | found stuff he didn't find, YES.
G. That is. he didn't find enough:
\. Yes. sir.
BY Mr. Blood: Who employed Nj. MoCarty:
By NJ. HoIrman: He was directed by the Court in
Tucumcari to make Investigations. The Travelling Auditor
4. f.,r,,arl. 1o,,,+,1af HIN, so he could eft into the hank
O Then from the best information yon could get II
that time, and your statements, there was about 10 per cent
impairment;
\ Yes. sir
{. You believed ut that time it was about thai nue..
from the best information you could get?
A. Yes. sir.
O. All RICH then. And that report Wa nady. Il euar>,
to vour superior. Mr. Earnest
A.. Yes, sir.
O And through him, ] presume, to inc Governor?
A. I presume so; yes, sir.
O. Now then. with that condition existing. with a MAJ
who was attempting, and had deceived the Travelling Audi
tors office. that Won had investigated and found ont was al
undesirable citizen in connection with the bank failure at III
cuncari and whose own bank the capital stock was impaireC
to the extent Of $50 per cent what, in your opinion now -h"nI'
have been done with that bank under all Of those conditions
S A.. Same as have had all the way along.
q. What?
4 Mr.. Smith should have been gotten rid n and TIN
' bank turned over to some good man.
e q. d YOU think it was proper under all Of those CIR
c cum,tanccs. knowing the President as you did, and knowing
s that the bank was IN the condition that il wa at that rn
to simply let it drift along and not inform the dcp"~itorS "
stockholders Of the bank?
\. The stockholders were Informed, should have bee
through their directors. Mr.. Earnest and the Governor wen
down there and gave them this information.
O. DO YOU recall among the assets Of tn
Las Cruces bank a certain note signed BY NJ
O. LIcvelIyn, I. II. Paxton, Hugh Clary an'
F. IT. r. Smith:
A. Yes. sir.