El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-21

lahoma. witness said that some
months ago he visited Oklahoma and
made an inspection Of the Smith prop
critics. He said he found the total Of
torneys' fees, to be about SzS,OOO.
Taxes now amount to about $1,000, and
some Of the properties are in litigation
as to title.
He expressed the opinion that the
properties are now encumbered for as
much as they viii bring at a forced
sale. He said Smith owns a half IN
terest i'm the Commercial block, and
the property is mOrtgaged TO the Pa
cific Mutual Insurance company Tor
$50 besides the note to GuilfO1l Tor
$500. which gives this property as
Witness expressed the opinion that
under present conditions, the property
would not sell for more than $4,000.
Hc said that W r. Bradford has a
mortgage for $500 on Smiths residence
and there are some liens against the
place. The residence would be a sood
sale at $4,000. he said, though its cost
to build was much greater, He said II
would be difficult to sell the school
section now for more than smith,
Clary and Llewellyn paid for it when
they bought from the state
May Pay rs Percent.
Witness said he estimated that in
the final settlement, the bank would
pay to the depOsttors about leE- lie
said he had taken into his calculations
the stockholders liability, or at least
so much of it as he regarded collect
able. Counsel objected to the question
as to whether he had taken n ac-
count the states claim Of $4,000 when
he made his estimate of $50. The
court sustained the objection, and Wit
ness was not allowed to answer the
question.
Witness said that listed in the assets
was a claim against the First state
bank Of Tucumcari for SlO,O2Z.S6, but
said that the Tucumcari bank pre-
scented a claim Of $4,000 against the
First State of Las Cruces, and backed
up the claim with an order OF Judg-
ment from the district court.
A certified cop of sthis court Judg-
ment was offered and admitted IN eVl-
dence. He went through the list OF
notes estimated as bad, and the over
drafts. Only a little money has peen
received in payment thus Tar. he sald,
but satisfactory settlements are pelnS
Effected in a number Of instances.
CIapp on stand Again.
Lafayette Clapp, the receiver, con-
tinued his testimony TINS morning
He was asked now Morgan o. Llewellyn
had made settlement Of his obligations
at the bank. He explained that
Llewellyn, as treasurer of the Agri-
cultural college, gave a surety bond
and required a depository bond or the
bank. which vas signed by Smith, Ha-
sues the sureties.
After the bank failure Llewellyn
made a demand for the college funds.
and then brought suits against the
on the depository bond, the
witness said.
Llewellyn secured judgment. the wit
ness said, but an offset was allowed
whereby the bank was allowed credit
for the amount Of LleWellyn's personal
obligations, some $1,000 or $4,000.
covering his notes and overdraft.
Asked by Renehan If the effect of
Llewellyn's settlement was not to ena-
Bile Llewellyn to cancel his personal in
d~ebtednesss through an adjustment OF
funds, Of which he was the trustee, !
the witness said that was hardly a fair
way to state the matter, since Lew
ellyn is sull responsible under his bond
the amount of the college deposit.
ank's Claims Satisfied.
The witness said the banks claim
against Llewellyn. however, had been
through an offset against col
funds. Witness said there has
been a payment Of $1,000 on Mark B. :
Thompson's indebtedness, which totaled
$4,000. and that Thompson has filed
claim for attorneys fees in settlement
Of the balance.
Witness said. on cross examination. !
he understooda the bank paid
a retainer of $40 a month,
could not say where he got the in /
formation or impression. /
Paxton Files Attorneys Claim.
The witness said J. H. Paxton also /