El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-17
SMITH TRIAL IS
OPENED At ALAMO
Las Cruces Banker, Charged
With Embezzlement, Is
Given Change of Venue.

( AIamogordo, y. NJ, April 17-Turner
H. smith, former president of the
/ dof,,rct First state bank of Las Cruces
was put on trial here in the district
! ,.,,,,-t this morning, under an Indictment
( which alleges embezzlement in the sum
Of S4f5O Judge Colin Neblett of Sill
/ YER city, is presidins, for the reason
/ that nudge L. l.. Medler OF this district.
4 was a patron Of the defunct institution
/ and therefore, disqualified. H. B.
Hamilton, district attorney, is conduct
inc the prosecution without assistance
r. L. Young, of Las Cruces. tentatively
] retained. has decided for some reason
I fence is being conducted by Renehan &
( Wright Of Santa Fe, and Hudspeth and
/ Dale. OF lei PssO. Gov. W. c. Mcdonald
} was a visitor in AlamOgordo Saturday
! night and Sunday morning It was
( said that his visit was in connection
, with this case. Gov. Mcdonald has been
I much interested in the case since the
/ failure of tire bank, and many Of the
opposite political faith have sought to
! make capital Of his position to take
] stems to prevent the failure The legis-
| lative investigation Which was con-
Quoted by the last session of the New
| Mexico legislature, looked into the DO
! Htical aspects Of the case, as well the
: business and legal side.
! Case Delayed.
] When the case was called this morn
! ing counsel for defence said they did
/ nor learn until late hour last night
! which case would be tried first and
asked for a short time to examine the
records which are now here in charge
! Of receiver Clapp.
The court granted the request. allow
4 ing until 1880 this afternoon. Defend
ant smith was arraigned for the read
| ing Of the indictment and pleaded, Not
state Claims First Money.
The First State bank of Las Cruces
closed its doors on December S, 1914
! The total of its individual and time de-
pOsits at that time was approximately
| S212. 900. Lafayette Clapp. of Las Cru
ces. was appointed receiver. At a hear
1 ing recently in Santa Fe on the Hager
| bankruptcy case, the receiver said the
depositOrs might receive as high as
! Is percent on their deposits. This was
! on the assumption that the state of New
Mexico would take rank with all other
| depositors.
The a. & NJ college of Mesilla Park.
| had $4,000 of state funds on deposit in
/ the bank a the time Of its failure. At
/ tOrney general Clancy holds that in the
| settlement the state of New Mexico is
| to have preference and its claim must
! be paid in fun before a dollar is paid
1 to any of the other depositors On such
I a basis of settlement as Mr.. Clancy con
| tends for. the depositors will not receive
] anything like is percent on their de-
{ pOsits.
Many Poor Notes.
The notes held by the bank at the
( time Of the failure reached a total Of
! $229,O OF this amount il is esti-
mated that the sum Of $4,000 is bad.
/ The Overdrafts at the time of failure
/ aggregated $50, 600 with only $4,000 Of
| this amount estimated to be good.
| President Smith and members of his
1 family had notes in the bank for total
| Of $4,000. while their Overdrafts to-
I oh al "
to Smith tOtaled $4,000, which brought
! the total Of the Smith obligations up
to $4,000. it is contended.
At the spring term OF court, following
the failure, which occrred December s,
1914 the grand jury returned some ten
/ indictments. charging embezzlements.
| Counsel for the defence demurred to
the indictments, and the court sustained
J the demurrers. Last September the
| matter was presented TO the grand jury
! again, and "a indictments against Smith
| were returned. Of this number. Is al
| lege embezzlement three perjury and
] six charge receiving deposits in an in
solvent bank Under the defence's mo-
| ton for a change of venue. the cases
/ were set for trial at Socorro and the
/ venue later was changed to Otero It
/ Judge had no right to send the case
! without the district, unless the defendant
! first should snow prejudice to exist IN
l every county within the district.
Many Witnesses.
| The states witnesses in the case are
! as follows: Lafayette Clapp, Las Cru
( ces, receiver Of the defunct bank; ". y,
/ Hager, Las Cruces, former vice prest-
dent of the defunct bank; L. B. WoOters,
] assistant state bank examiner; j. W.
! McCarty, cashier of the First National
l bank at Tucumcari, and receiver of the
! First State Bank at Tucumcari; c. c.
! Lee, Las Cruces deputy treasurer, Dona
| Ana county. J. o. riiller, Las Cruces,
! cashier of the First National bank;
/ Charles Madrid, Las Cruces, cle-k OF the
| school board; c. NJ. Order, FL Paso. an
! accountant; W. L. JacOby, Las Cruces,
| former treasurer of the school board
/ John Birdwel Las Cruces, former book
! keeper of the defunct bank: NINA
! Frenger. Las Cruces, member OF the
| school board; Joe Madinger, contractor,
! Las Cruces; william Essen, Las Cruces,
! formerly with the Las Cruces Timing
| and Plumbing company; II. S Gilbert.
| contractor who built Smiths home In
| Las Cruces; John Burnside. register of
/ the United States land office at Las
J Cruces. W. W. Cox Las Cruces, treas
! urer of Dona Ana county; W. r. Brad
! ford, Las Cruces. of the Bradford Lum-
/ Der company. Miss Onis LonGbOttOm,
/ former stenographer In the defunct
/ bank; Fred Hess, Las Cruces, receiver
I of the East Hinton company; Joe Mad
/ niger, IT., Las Cruces, contractor; c. o.
/ Bennett, Las Cruces, clerk of DOna
! Ana county: J. b. Wickard, city clerk
! of Las Cruces. John Joerns Of Ration,
! former state bank examiner, will serve
! as an expert assistant to district at
| torney Hamilton, and will not testify.
| Joerns has been at work preparing the
| evidence to submit to the jury, for more
| than two weeks, here and at Las Cruces.
RosweH Negro Women