New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1916-10-06

9hey were wen urged by state Off.
etah-the registrar Of the State Col.
leGe for onetto put their money into
tR political bank.
How long Governor Mcdonald
would have abandoned the people OF
IONA Ana county and the State Col
leg0 fund to the explorations of the
plundering Smith no one knows, had
he not been tolted into some sort OF
recognition Of a nasty situation at Las
Cruces by the activities of the re-
ceiver for the punctured First State
Bank of Tucumcari.
The Bank Wrecking at Tucumear..
That receiver employed Reed Hol.
loman as attorney and the latter be-
sought al investigation OF those wierd
transactions between the First State
Bank of Tucumcari and the First
State Sank of Las Cruces. Banker
Smith had no stomach for letting an
investigator from Tucumcari go
through the records of his crooked in
stitution. Finally the receiver for the
Tucumcari bank had to get their in
NSS~ic~NCl uSBuLiLSu 40 d SpNNldi
travelling auditor and bank examiner.
Howell Ernest, the state travelling
auditor and bank examiner, put STUN
bling blocks in the way of this. Gov
ernor McDonald's man, whose duty it
WAS to see that state banks were
properly run, actually refused to ia.
cHitate an examination into the af-
fairs of Smiths bank. It was neces-
sary for the District court Judge at
Tucumcari to make the request, by
telegraph, before he would give the
Tacumcari investigator the authority
OF a special duty. And Ernest knew
about Smiths treachery, too.
Finally, armed with the authority
he had secured with SO much diff
Guilty. the special deputy made his en-
animation of the First State Bank Of
Las Cruces in January, 1914. This
Investigators name was J. W. Nc
Carly and what he found wrong with
r. r. II. Smiths bank amazed and
alarmed the attorney for the Tucum-
carl bank. who sought a judgment
against the Las Cruces concern. Nc
Carty's report showed that Smiths
bank was impaired $50 per cent.
Governor Mcdonald had that report
Of McCarty's. Howell Ernest gave
him one and Attorney Holioman sent
him one.
That was January, 1914, it will be
remembered. From October, 1913.
when they learned hat the First
State Bank was impaired SIS per cent,
until January, 1914, Governor Melon
aid and his travelling auditor force
had not gone near Smiths bank nor
had they done a single thing to com
pei Smith to repair the damage to the
banks capital, or stop issuance of his
boodling notes.
County Treasurer Cox Seeks Advice.
Under date of October IS, 1918. W..
w. Cox. treasurer and collector OF
bona Ana county, wrote to Governor
Mcdonald as follows Qrom page 276
of the public record:
Las Cruces, N. M.
Oct. IS, 1913.
Hon. w. c. Mcdonald.
Governor of New Mexico,
santa Fe. New Mexico.
Mr.. r. R. H. Smith, President of
the First state Bank of Las
Cruces, N. NJ. has been indicted
N connection with the Tucumcari,
'"s Idiih. "hpi tit iuJIultu
thousand dollar road bond issue
was received by me the cash on
hand exceeded the surety bonds
OF both the designated deposito-
ries, and since the First State
bank had acted as aEents for the
sale of the road bonds ! deposited
$25 coo in the First State Bank.
and that Bank gave surety bond
II cover the amount deposited
which bond is now in force. / now
have in that Bank $4,000 of coun-
ty funds. The Bank Examiner
was here and examined the Bank
In question last week. You have
means Of knowing the condition
af the bank; will you please adj
Wise whether Or not I should with
draw the rest of the deposit. I
will consider your reply confiden-
thai and act on your advice.
Yours truly.
(Signed) w. w. CON,
Treasurer e. Collector,
Dona Ana County. New Mexico.
Governor Mcdonald replied to Mr..
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