New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1916-09-08

A. That is the only time l have been with the Governor
in connection with any banking meeting.
O. What about this bank at that time was Of such a nature
as to require the presence of the Governor there?
A. Why, | don't know. He was gong down about that
time | understand. :.
O. Did you know that had written the Governor and
had sent him a copy Of McCarty's report?
A. No, ! didn't know that you had sent him a copy OF
McCarty's report. He had seen the copy that McCarry sent
me. although he said that he had received a letter from you
He told me that.
Q. Did he tell you anything regarding what was contained
in that letter as to the condition Of the bank at Las r1ces!
A. Not specifically in any way. lie simply SAID he had re-
ceived 4 letter from you relative to the Las Cruces bank.
O. Did he express his opinion at that time as to what he
thought relative to the condition of the bank OF that some
thing should be done?
A. Not particularly no, sir.
c. At any rate, YOU and he went there On January goth;
A Yes. sir.
9. What did you do?
A. got down there in the morning, went to the hotel and
got my breakfast, and went over to the bank. presume
got over to the bank about half past nine or a quarter Of ten.
I.-using this combined memorandum statement, might call
it, as a basis. first wanted to verify the amount Of the Smith
paper and other paper whether there had been any change
one way or the other between Wooter's and McCarty,s state
ment and the time was there, and worNed there excepting
the lunch hour until about t~lrcc1hirty or Jour o'clock in the
afternoon, and went all over the notes and nnd ont what
wanted to about three thirty or four otl'tt. wien had 4
meeting Of the Board Of Directors.
c. Your estimate at that trnlc was thn- thf capital Stock
was impaired 80 per cent?
A. Nv estimate at that timc.-thcre was no estimate made
at that time As lar as was concerned.
Q. Nou were working ON an estimate. though:
A. This combined statement which you are now finding,
this is it right lcrc,-S based on the face II the report made
by Mr.. Wootcrs and Mr.. McCarty, assuming that everything
that WAS said in those reports as to the value ii the paper wa,
correct mp to that time.
0. Assuming that it showed an impairment OF 10 per
cent?
A. On that presumption yes, sir.
{. When was this statement made OFT;
J,c+ cIuo,t1, bcfore went After Me- artVe report
was made to me and before went down to Las Cruces.
{. lust about the same time practically the same time
YOU went down there?
A. Yes. sir.
Q. Then at that time you were going OF the assumption
it was 50 per cent impaired
A. On The face Of the reports, yes, sir.
Q. Now YOU did suspect at that time that the. Smith
paper wasn't good and told them 50?
A.. That was all I did, YES, sir told then,-1 told them
frankly didn't think the Smith paper was good.
Q. You had information that YOU bad received from
A. Yes, sir.
other states that the paper OF none OF the Smiths was good?
O. Governor Mcdonald knew generally the conditions OF
that bank and of Smith that were known 70 You, did he not
A.. IIe knew as much as did.
Q. You kept him perfectly informed all the time
A. Yes. sir, all the correspondence and everything was
submitted to the Governor.
q. You closed this bank simply because # was in an IN
solvent condition and not because Of any deceit that YOU knew
that had been practiccd upon the Auditors ott'ce or the past
character and regulations of any member Of the bank were
not taken into consideration by YOU, simply because it was
insolvent?
A. Yes, sir.
Q. That was the sole reason?
A. Yrs, and other reports on that bank showed the impair
nent OF the capital stock was considerable and that an assess
ment had been called.
@. How much was the capital stock?
A Thirty thousand.
@. DO Won know what was the amount Of deposit
A. No. don't recall.
G. Large amount?
A. If I am not mistaken I would say about $8oooO.
@ Paid out about fifty per cent?
A. That is to the best Of my knowledge
@ Then the capital stock was impaired about 125 per
cent?
A. No. it was worse than that; 90 and 20; about 227: OF
course the entire capital was wiYcd ont in addition to the los
to the dcpositors.
O. Il he loss was 10000 what would The per cent be?
A. You see the loss to the depositors was, say 10000
not onlr that loss but there was a further loss OF the cntif(
capital stock. which would necessarily have To be all lost before
there would be any loss to the dcpostors
Q. About 225 per cent?
A. Approximately.
MR.. WOOTER'S TESTIMONY
A...L T-o.1:.. N,,J;+Or T p \MpCfprS testified al th