The Holbrook news., 1921-02-25

l Raynolds units)
 L. M. Reynolds signed note for s28,OOO, and the liquidation of his indebtedness to the parent concern came about through the application of notes of purchasers of stock of l.. M. RaynOlds, in other words Hol- brook people were given stock for notes and the notes were used to start the wheels of the new Hol- brook unit.
 The cats eat the rats and the cats were skinped and fed to the rats and in this way good working link was welded to the system.
 Twenty-seven shares of the First National stock in the name of Her bert and J. M Reynolds were pledged as security to the National Bank of Commerce of New York for a per- fectly good $14,5OO note which tenn pororily financed part of the stock loan of L. M. Reynolds.
 They started out on a note and notes were the cause of all the joys and all the sorrows of this bank which proves that a continual note diet is not good for any system. The records show that dividend checks drawn in favor of J. M. Ray holds were endorsed by L. M Ray holds and deposited in L. M Ray holds personal account.
 One note given in payment for stock, that had been thumbed- and hrashed around lodging examiners for more than a year finally landed n the Holbrook State andWas put in the cash items and ih desperation to put it out of sight and out of mind L. M. Reynolds appeals to the home office:
 '1t is about time for the bank examiner to pay us a visit and
 should he catch us with this item in eur cash we would he
 severely criticised, and it would
 reveal to him notes that we wish
 covered up.-
 The whole history of the Holbrook State unit of the system has been a horrible nightmare to the manipu- 'ators of the system-and is it any wonder that the parent institution seeks to disown the hooded that has ,een the cause of laying bare to an indignant public the chicannery and nanipulations of the system?
 The crash of the Holbrook unit and the uncovering by the investi- gators of the methods employed have been the means of linking up the First National of Albuquerque and the Holbrook State, and even now securities that rightfully belong in the assets of this bank are held in Albuquerque.
 The men set to ferreting out the relations of the two banks claim that the most fragrant results of the understanding between the First National and the Holbrook State as affecting notes re-discounted is clear ly set forth.
 $16,57O worth of notes were cred ited the account of the Holbrook State on the books of the First Nat ional of Albuquerque on July 1, 1920 and charged to the account of the Holbrook State July 2, 1920.
 These notes were sent by the Hol brook State on June 2S. 1920 and the copy of the letter of L. NJ. Ray holds to the First National contains clear statement to the First Nat ional of the whole transaction and the reason fer the transaction.
 The reason for the transaction was the approaching call of the superin- tendent of banks for a statement of the condition as of Jcne @, 1920.
 This amount of s1s,57O was charged | to the First National on June 29 by | the Holbrook 3ank, and the net re- suit of the transaction was ife in- crease of thei- balan'e with the First National of Albuquerque.
 The investigators say: ''The let ter of June 29 appears to be of the essence of the practice followed by the HOEbrOOk State and the essence of the understanding between the HOlbrOOk State and the First Nat iOnal of Albuquerque as affecting re- discounts"
 The records of the Holbrook State show that on February 2S, 1920 a note signed by Sims Ely was