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

'uoriug came TO then r.or. g;oyerpo
NcDonald's Administered 4. vbic,
new all about e. on m" other hand
'.r people SAN The governors rpr-e
= .n'atlNes the regents OF me Stot,
College putting the ,acrpd funds ,
" college into Smiths bank yr.,
" 'hoi the First state Bank had ~,
t~trfii"rc" ~ no STATE .r,r, ,,oa
They were even urged by state ON
Cluls-the registrar OF the State Col
lrg, FOR one to put their money into
tHe political bank.
How long Governor Mcdonald
would have abandoned the people o.
bona Ana county and the state Col
lege fund TO the eNploitutions OF the
laundering Smith nc one knows. had
be not been ioltcd into some sort OF
recognition OF a nasty situation at Las
Cruces by the activities OF the re,
,eiVer for the punCtured First state
Bank of TuCumCari
The Bank Wreekina at Tueumeari.
That receiver employed Reed Hol-
loman as attorney and the latter be.
sought an investigation Of those wierd
transactions between the First Sta,e
Bank OF T~uCuuCuri and the FIIst
State Bank Of Las Cruces Banker
smith had no stomach Tor letting an
investigator from TuCumCari 20
through the records OF his crooked In.
ttitutiOn. Finally the receiver for The
IuCumcari bank had to get their in.
N~CstlRator deputized as a special
travelling auditor and bank examiner
Howell Ernest, the state travelling
rudilOr and bank examiner, put stun.
Gling blocks in the way OF this. Gov.
ernur McDOnald's man. whose duty it
was to see that state banks were
properly run. actually refused to IA.
C,litate IN examination into the az.
tairs Of Smiths bank. Il was neces,
Sary for the District eourt Judge al
Tueumeari to make the request, by
telegraph, before he would Give the
Tueumeari investigator the authority
o. a special duty. And Ernest knew
about Smiths treaehery, too.
Finally. armed with the authority
he had secured with SO much diffI
Guilty, the special deputy made his ,N
animation OF the FIRST State Bank OF
Las Cruces In January. 1914 TIL.
Investigators name was ] " Me
Carty and what he found wrong WITH
T. r n Smiths bank amazed unl
alarmed the attorney tor "a, Tu,um
carl bank. who sought a J]udgurn.
against the Las Cruces concern Nc
Carty's report showed that Smith''
bank wa impaired $50 per cent
Governor Mcdonald had that repor
Of MeCarty's. Howell Ernest CAV,
him one and Attorney Holloman sen.
him one,
That was January. 1914. It will b,
remembered From October, 1913
when they learned that the FRS
state Bank was impaired So per cent
until January. 1914. Governor McDon
aid and his travelling auditor fore,
had not gone near Smiths bank no
had they done a single thing TO ron
pei Smith TO repair the damage to III,
banks capital. or stop issuance OF hi
boodlinR notes
County Treasurer Cox Seeks Advice
Under date OF October rs, 1913. W
w. Cox, treasurer and collector o
DOnA Ana county, wrote to Goyerno
Mcdonald us follows from page "a
Of the public record
lAs Grace. n NJ.
oct rs, 1919.
Hon W e. Mcdonald
Governor OF New Mexico.
santa re New Mexico.
Mr. r Il n smith. President OF
NE Fret state BANK Of La
cruces. y NJ. has been indicted
In connection with the TuCuutaTl,
y NJ. bank. when the hundred
thousand dollar road bond issue
Was received by me the vAEh On
hand exceeded the surety noudS
~ both the designated depoSltu-
rivs and since the FIRST state
tank had acted as agents for the
sale OF the road bonds / deposited
t25. 900 IN the First state Bank,
aud that Bank gave surety buId
to cover the amount deposited
which bond h. nov u, force. / nov
have In that Bank $4,000 OF roun-
~ funds rhe Bank examiner
was here and examined the Bank
IN question last week You nave
means o. knowing the condition
Of the bank viii you please ad'
wise whether OF not | should Win
draw the rest Of the deposit
win consider your reply COnfidrn-
ttal aud act on Your advice
Yours truly,
tRigue y W. " CON
Treasurer 4 Collector
ponA Ana County New healco
Governor Mcdonald rtpleu 10 M
Cox's anxious inquiry ON october :.
1913. saying q think the bank WI
come out an right" and ~ anythln
should occur to make II IN any Wa
unsafe, I Will inform you ~ soon as
obtain the necessary Information my
self, but as / say with the surety bon
you are all right anyway, m ' "oo'
not disturb the deposit at present
In the public record page 2S2l 90
tells about the governors promise =
tell him II the bank was unsafe I'M
IL from the record:
Question Did you let the none;
Ftay In the bank (First state Ban
81 Las Crueesl from then on?
Answer Thy Mr. Coz u let 70
money stay there until July, IN
lLrl OF June OF the first OF Juls. lsl4'