Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-08-07
FergusSon's Personal Deposits
Small and Over Draft More
Than $4,000, Assistant
Cashier Says,
LARGE SUMS OF STATE
MONEY ARE DEPOSITED
No Officers Ever Had Placed
Funds in Institution Prior to
Inauguration Of Present
Chief Executive.
tsv MORNING. JoyRss. SPECIAL LEASED w,sul

! Austin, Tex, Aug. 6.-Deposits of
state funds In the Temple state bank
of which Governor James e. Fergu-
son formerly was president, and in
which he is large stakeholder today,
occupied the attention of the house of
representatives sitting as a committee
OF the whole. to investigate charges
| looking into the impeachment of the
chief executive.
Henry Blum, assistant cashier, told
how the secretary of state and the
banking commissioner deposited large
sums in the Temple institution, at one
| time several hundred thousand dol
lars of state funds being on deposit
there.
When asked about the payment on
August 23, 1916. of $500 from the
account of Mr. Ferguson, as governor,
Blum could remember nothing of it,
except that there had been an error
discovered in the balances.
The governor is charged by tie in
dictment with embezzling $500 on
August 22, 1916.
How Account Stood.
NJ NJ. Crane of Dallas, counsel of
the house committee, in questioning
the witness, was unable to elicit any
information as to how sum of this
amount came TO be taken from the
governors accent
When Blum had been turned over
to w. A. Hanger, counsel for Mr.. Fer
guson, Mr.. Hanger asked him if the
governor, in addition to the governors
account, did not also have Il special
account and private account. Blum
replied affirmatively.
''I'll ask you" said Mr.. Hanger,
to say what amount the governor
had on deposit in his special account
on August 23, 1916"
Forty dollars and thirty-two cents"
replied Blum without hesitation.
Mr.. Crane took back the witness
and asked what amount Mr.. Ferguson
had in his private account on August
90, 1916.
1t developed that he was over
drawn to the extent of $3O,641.32 on
that date.
state Deposits Large.
Blum read a long list of figures
showing the deposits of state funds
at the Temple bank. Usually the
daily balances started with small fig
ures and mounted up to big ones.
Then there would be a drop and then
/, ~. .
tary of states account showed a bal
ance above $4,000 and at another
$S5,000. On one day in May. 1917,
it climbed to $54,s41.70.
The banking commissioners bal
ance never was so high, although ii
State bank never carried state ac-
counts until Mr.. Ferguson became
governor, according to Blum No one,
to his knowledge had drawn interest
OF these accounts.
Blum said the average deposits in
the Temple bank totalled 100000
and that the loans would run between
100000 and 100000. He said it
was customary TO keep reserve
fund of from 90 to 30 per cent of the
deposits. Mr.. Crane sought to develop
that the loans may have reached
$500, 900 but the witness said he
not. He said he would bring
the banks records later.
Mostly Accounted For.
Cross examined by Mr.. Hanger, |
Blum said that the sums deposited by |
the secretary of state remained only
4 short time. All this money had |
been accounted for. he said, and there |
was now a balance OF $4,000 in the
bank. 1t developed that every cent
deposited by the banking commits
'ioner had been accounted for and the |
account closed. The governors ac- |
count still showed a balance of |
1,108,25, he said.
WAS the governor charged any
interest on his 100000 overdraft?"
was one interjection from Mr.. Crane
Turing the cross s-examination.
HE was--10 per cent the witness
'eplied.
Chester Terrell. personal attorney
or Speaker Fuller, requested Blum
% bring before the hearing the fig
..l,1