El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-20


witness II he used the term approximately
$4,000 with the intention OF leaving the i'm
preston that this shrinkage in currency
might account for the $1,000, which the
state sought to prove might have been paid
to Medinger Counsel declared the exact
amount Of the Ehrinkage was 1889. and
asked II witness was trying to stretch this
amount to approximately $1,000" to cover
the amount OF $4,000 involved in the Med
niger account Witness said this might have
been true; that while the exact amount OF
shrinkage was only $3.50. other differences
might have existed TO make up the differ
ence to increase the total to $1,000
Counsel for defence then questioned the
witness at some length as to the definition
and general meaning or significance OF the
term casn items witness was asheu II
the substantial decrease in cash items on
July Is. as compared with July Il, did not
indicate an improvement in the condition OF
the bank. Witness said that was not nee
essarily an indication Of improvement in
condition Witness said that some variation
in the amount OF currency on hand. from
might be readily explained, but where the
difference was large some explanation OF
the difference should be made
Considered II Significant.
Asked by Holt Of counsel for the state. Il
he considered the Medinger cash item OF
$1,000 significant, when considered with the
shrinkage Of approximately SZ0e0 In the
currency on hand. on the same date, wit
ness replied that he did consider the matter
Witness said that the item OF ss52s.lo,
credited 20 the account Of Gerald Aonahan.
and the item Of $3.50 credited TO
the account Of v. F. Jacoby treasurer
OF the school building fund, on De
cember g. 1914 the day the bank failed
we're offset by a note q S66ts-4o when
was signed b. Turner r. H. smith
Birdweu Recalled
John BirdweIl, it.. former bookkeeper Of
the bank. was recalled again, to identiry a
statement Of the account of Gerald Mona
He testified he believed the account
showed a credit balance Of SlSO5-2I- He
declared he vas told by Smith TO leave
out the debit OF S25OO when the account was
made up. for that item would have made the
account show an overdraft- He said he had
heard a business conversation between
MOnahan and Smith, but that he never had
heard Monahan tell Smith that he might
charge his account with any amount that
Smith might need He said smith DID not
tell Monahan that he had charged his &C
count with $500.
Miss LongbOttom Identifies Letters.
Miss Onis LongDottom OF Mesilla Park,
testified that she was employed as a stem
up to December 8, when the failure occurred
After the failure, she was employed Tor
about a week by Dr. c. W Gerber. special
deputy bank examiner. who had charge OF
the defunct bank until the receiver Qata-
yette Clapp) was appointed and qualiIied
on February .. 1915. She Identified letters
which were exchanged between MOnahan
and Smith. In the month Of March 1914
These letters were admitted in evidence
The letters from Monahan related the
loss OF certificates Of time deposits. totaling
$500, and asked Smith for reference let
ter to aid in securing the issuance Of dupli- |
cate certificates The reply from Smith as
sured that he would be glad to do all in |
his power to assist
smith Signed Indemnity Bond
The subsequent letters showed that Smith |
instead Of merely writing a letter, signed 1
an indemnity bond for twice the amount OF /
the certificates. This enabled MOnahan TO i
collect the $500 on the certificates. and no /
sent Smith eastern exchange for this ]
amount, instructing him 20 place the same /
TO the credit Of his account He expressed /
his appreciation OF the favor. offered 10 paw /
any expense that might have been incurred /
in making the bond, ana offered TO pay |
Smith for his services
smith declined any pay and MonahaD Il
then wrote that he had decided not TO buy /
any land irrigable under irrigation, be-
cause the land was too high. but said he
would be glad to have Smith buy good paper !
for him. II he had any such paper avail-
able that could be bought right and thas
Smith could recommend.