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

letter verbatim. About q year ago
President r. X. II. Smith organized
the German-American Bank Of Gains.
vile and turned up short about 49,.
900. So far as ! could find out the
grand jury or that place failed to do
anything, ETC., and l was advised yes
terday that he had located In Las
Cruces, New Mexico. You will likely
find some Eel Paso parties are backing
him and he uses the name Of R. P.
Head and his brothers to soak the
bank with paper. ] hope the above
may be of service 10 you.
Respectfully,
r. D.,
Examiner"
Governor Mcdonald and his ap-
pointee, Ernest, certainly cannot COM
plain that they had no intimatioh, be-
fore the Las Cruces disaster, OF the
kind of banker that Smith was. Fate
literally poured tips about him into
their hands.
When the Bank Began to Fail.
At that time Wooters, the deputy
travelling auditor and bank examiner,
judged that the capital stock OF the
Las Cruces bank was impaired S5 per
cent. Knowing that, and having the
information they had about Smith, 1t
seems incredible that Governor Nc
Donald and his travelling auditor did
not then and there close the institu-
ton, thereby putting a stop to the
plunderings of the Smith gang and
saving the 600 depositOrs and the
State Agricultural College from furth-
er loss.
Governor Mcdonald knew the rot
ten condition of the First state Bank,
as witness this from Wooter's testi.
mony tpage 300 of the public record:
Question Nov then, you examined
his (Smith's) bank in October, 1913,
didn't you?"
Answer Il did; yes, sir
@. AT that time you found that
the capital stock was impaired at
least over 50 per cent?"
A. THAT was my estimate on 1t;
yes, sir"
@. land YOU so REPORTED TO
THE GOVERNOR"
\. YES. SIR"
For the governor of a state and the
executive head of a state bank audi
ting department to do nothins-abso'
lutCly n~othing-to stop this betrayal
of the state and its people at Las
Cruces seems nothing short of crimi-
nal And the governor and his travel
ing auditor did absolutely nothing TO
stop it. Banker Smith had contrib
uted 10 the Mcdonald party's cam
paien fund. He vas not molested.
What became Of the money deposited
in Smiths bank by citizens and the
State College apparently did not
worry His EXccllency.
Meantime, unhindered, Banker
Smith proceeded to boost the impair
ment of the First State Bank to $50
per cent. Those were The good old
days for Smith and Governor Melon
AIDS Democratic henchmen in Las
Cruces. All the money the bank
could get its fangs on went to Seth
and the inside gang of Democrats
to do with as they pleased.
The Lucky Mr.. Llewellyn.
Morgan O. Llewellyn, Governor Nc
Donald's appointee as secretary-treas-
urer OF the STATE tolleee OF ASrlcul-
ture and Mechanic Arts, was one Of
the leading beneficiaries OF Banker
prodigality with the states
and Other peoples money. Lleweilyn
borrowed Sl3,o"o lie hahk WIN
security. Alfo ne f"' S5o a month
Il haHk@ attorney. tnhlPltol
borrowing opportunity and in" $50 re-
NfYp ,riVilpppG HWqT1rI hiEl
Tor pu'Ime inc STATE Cei'egf iurdS
Nh"f' saith rouil get q "hark at
thVt1.
Mr. ll'""il}n began IT. No''fih9
Stato college, oney III IT," FIRST state
Bank IN 1uiy, l9i2. co ,trdly 10 me
Ire "oi'"E" goi no interest ne
interest h-oh'y went 10 pay L'""'l-
lyn's salary as attorney Tor the banK
ard to FINANCE GOVERNOR NC
DONALDS FRIENDS OF TIE DEM
OCkATlC MACHINE in DONA ANA
record (page ~:
Question. Mr.. LieWellyn, ! mana
you a note signed by you, II. X. II.
Smith, j. H.. Paxton, and h Is the
other party, Hugh Clary?'
Answer Hugh Clary."
j. IL. Paxton had been chairman OF
the Democratic committee for Dona
Ana county in 1911 and did yeoman
for McDonald's election. Gov
ernor Mcdonald appointed him to the
board of regents of the state College
in 1912. lie was made chairman of
the board. In 1914 he became chair
z, n >, of fLn nanlnsr1tin Gfuto commit.
tee.
Question will you please give The
history of that note?"
Answer Thy Llewellyn) Mr.. Smith
president of the bank, came TO me n