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

.'ilff''' ~ Wv III a IIhlIl OIl.
10 know their worth and what their
holdings were In the community.
what they had, and they said II Vas
absolutely good"
The travelling auditor and state
bank examiner here declares that his
Vnly alternative was 10 accept IN.
WORD OF these men among them the
notorious 7. H. II. Smith, whose past
record he knew about, who had de
eelVcd his deputy and was indicted In
the Tucumcari failure.
lie should have closed the bank
lhen and there For what purpose
was his department created and he
placed IN Office IL not to shut down
thsolNent banks. Governor Mcdonald
wal there at Las Cruces with him
then. The governor evidently had
mo alternative" but 10 believe that
a bank he knew 10 be full Of bad pa.
per-was good.
= 'Did you inquire at that time
az to their holdings in that commun
lty?"
A Il wouldn't say positively
whether ! did or not"
Mr.. Ernest told now the paper OF
the First state Bank showed that G.
II. Harden Smith borrowed $4,000 on
q business worth $1,000. lie ad.
mitted that he did not think any OF
the smith paper was any good one
OF the Smiths exhibited a telegram
from Oklahoma, indicating that r X.
II. Smith might get $4,000 there pro
Vided a law suit turned out all right.
That vague backing was all the
Smiths had to support their avalanche
OF paper In the crumbling First state
Bank. But Governor Mcdonald and
Travelling Auditor Ernest badp them
try 10 straighten things out some
way and left for Santa rs. MIR Er.
nest, In his testimony, put 1t in this
wise.
AT the conclusion Of the meeting
with the bank people. at which Gov
ernor Mcdonald Was PRESENT. and
sizing them up, understanding they
were men Of means and good stand
ing in the community, and their hay
ing expressed themselves that they
would comply with the recommenda
tions made. felt perfectly satisfied
that they would do so"
Question, Put the bank in shape! -
Answer yes. sir"
Perfectly satisGied"-that is the
way the state bank examiner felt
about a bank whose capital was i'm.
paired to the extent Of $50 per cent,
whose strong boxes were filled not
with money but with the worthless
notes Of It's president and his part.
ners in exploitation.
The Silent Governor Of New Mexico,
Governor w. C. Mcdonald was per.
fectly satisfied" too. He went away
from Las Cruces without making any
provisions to save The funds that were
10 keep going the state College and
provide education for the sons and
daughters Of the farmers and
ranChers. He went without trying to
rescue the savings OF toilers, widows,
orphans anG the aged from the graft
ing ,alOns OF T r II. Smith.
The hank was doomed then. but n
Governor Mcdonald had thrown ont
an official lifeline when he was In
Las Cruces in January there might
have been some salvage to the poor,
the widows ana the orphans OF
the State College funds. One would
think that II nothing else could In
spire him TO DO TN" right thing, Il Ger
tain pride in his position a. chief eN
eCutiyc OF the state might have In
ducvd Governor Mcdonald to exert Il
little effort for the state College. lie
let the bank sink 10 the very bottom,
20 10 the deep-and break.
II will be- many a long day before
the people OF the M,silla valley can
forge Governor McDonald's 'criEi
nal negltEenCe"-to quote the report
Of the bona Ana county grand jury
in connection with the First state
Bank.
They cannot for,et that the COVER
nor, who was in possession OF all the
facts, kept silent and without raising
a single official barrier in their lie
Tense let Banker Smith make way
with their money The irony OF the
situation for some OF them is that
they were urged to put their money
in the First State Bank by MELON.
aids fellow Democrats, connected
with the State College. Some OF the
depositors caught in the crush were
mere bOys-students OF the state Col.
lege.
Mr.. PaSton's Dilemma.
j. II. Paxton, the former Demo
cratic county chairman in Dona Ana
county, former Democratic state
chairman and president OF the board
Of regents OF the State College, must
devise some new way to tan the lin
gering spark Of Democracy left in the
Mesilla valley after the First State
Bank rasCo The First state Bank
campaign treasure house OF the Nc,
Donald party machine in that locality
has O u up. carrying with il those
state College funds which SO con
yeniently paid OFF the party indebted
ness incurred by the note.wrIting
Democratic college regents
Yet Another Catastrophe.
Gone from Mcdonald, too, is the a!
leglauce OF Morgan U. Llewcllyn.
Simultaneous with his loss OF u Dor.
rowing place and q salary nj the First
state Bank, Mr.. Llewellyn lost his Job
as custodian aud one OF the bene
Iiciaries OF the Stale College funds
After the First State Bank Wen up,
as per the indications which Cover