The Columbus courier. [volume] (Columbus, Luna County, N.M.) 1911-1920, 1916-10-20

money at that time2"
A 81 was authorized to do So b,
the surety company
I Authorized or directed 10 d,
A Yes, they gave me thirty day,
official notice to withdraw all fund,
In the First State Bank. public
funds"
The surety company. which had
bonded the bona Ana county trens.
urer, did no wan TO take any further
chances with Banker 7. r. n. smith
Governor Mcdonald never sent his
promised warning to Cox and II II
had not been for the surety company
Dona Ana county's $4,000 worth o.
road funds also would have been lost
In the smash.up.
II seems a pity that MIR. Cox's
surety company was not governor OF
New NJ NiCo instead Of Mcdonald.
The people OF the Mesilla valley and
the state Agricultural College would
have been better OFF.
More of Mr.. Cox's testimony
@ 81 will ask you. after receiving
the letter from Governor Mcdonald.
which has been read in evidence. II
you ever received any statement or
suggestion or word from him or the
travelling auditors department. either.
regarding the conditions OF that
bank?"
A. No. sir"
No word from Governor Mcdonald.
f'he governor did nothing
The attorney for the drfunct bank
at TuCumCari wrote q long letter 10
Governor Mcdonald on January IS.
1914. stating the p]rrcarious condi.
tion ~ m. Las Cruces bank as shown
by McNarly's examination, and en-.
Clo inc % cop, OF The McCarty report.
" 30 OF the public REQ,
ord). The attorney 10 the
governor how r. r. II. Smith had
manipulated that questionable $4,000
transaction with thu TuCumCaTi bank
how Smith mas under Indictment On
charges OF e"mbeZzlcment and cuuspu.
aCy to embeZzle: how the loans OF the
Las Cruces bank were excessive and
things did not look right. The Tucum'
carl bank wanted a Judgment agains,
the Las Cruces bank and the lawyer
desired 10 know something official
about the banks condition.
How Tueumeart Also Suffered.
Su,c the failure OF he Las Cruces
balm. ,uu rcCciN 81 tor the IuCumCurI
BANK has recovered judgment against
the Fllst State BANK OF l.As Cruces
II II has been affirmed BY me Su
preme court. II ~ doubtful II On,
penny can be realized Oh THIS yudg
uIenl nov Had Governor Mcdonald
and his travelling auditor, Ernest
stopped the footing Of the Las Cruces
pAnN, the Judgment could have beer
collected and the people Of Quay eoun
~ would have received the money al
dividends from the detunet Tueumear
bank.
The people OF Quay county, there
fore, are sufferers with the people VI
thv MvssllH valley from executive ne
slevI anu d"vrencliun Of duty. Mog'
victims OF political banking
MeCarty'S Report and Warning.
SPECIAL DEPUTY Travelling Audi,ol
and Bank Examiner MCla!N SUB
mitted his report On the Las Cruces
bank tO IluN al Ernest ON January L.
1914. lie reported excessive loans
uncOllectible ana doubtful notes II
one place tue MCla.t! report s'a'vd,
Il would suggest TO A4r. I. IL ii
Smith, the president OF tnts OanA ina
be cunline his loans to the VuntnIuu
ity In which he is dong business
that he not grant such large lines .
credit to people TO whom he Is IN
dtbted for some OF his larger de
pusits. SHOULD CRITICIZE SE
VERELN HIS LOANS TO HIMSELF
FAMILY AND IMMEDIATE kELA
TlNES AND SHOULD INSIST THAT
THEY BE TAKEN OUT OF TIN
BANK OR RLDUCED CONSIDER
ABLY AT ANY RATE. lind tina
his mother, Mrs. h. b. Smith, owe
34I5O; his brother. JG,U2U.GO, and hl
own notes amOunt to 5000
The Smith Family RobberSome."
MCCarty found 10 per cent Of ih'
banks capital in overdratts. He''
Was McCarty s recommendation
Considering the above woul,
suggest calling a special session
OF the board Ut directors AM
levy an assessment OF 10 pc
cent on the banks stock. / An
SIRE THERE ARE OTHE
LOSSES IN the LOANS WHICH
WILL SHOW UP WHEN THESE
LOANS ARE EXAMINED IN CON
NECTION WITH THE BOARD Oh
DIRECTORS"
The Social JEunt TO las Cruces.
Goaded into some semblaEce OF con
Germ in the threatening %situstion a
Last Cruces by the lawyers letter an'
the McCarty report, Governor MELON
aid and his bank examiner, Howell Er
nest. made a trip TO Las Cruces th'
latter part Of January, 1914. MI ny
nest tells OF that expedition tbegin
ming on page $50 OF the public rec
ord
QUESTION Now then, you did 20 Il
g.u.as lea January. Igl49'