The Winslow mail., 1921-12-30
MORE COURT ACTION BEGUN IN
H0LBR00k BANK MATTER


al states that suit has been com
menced against the First National
Bank of Albuquerque by Robert E,
Putney and Jesse Hulett, receivers
for the Holbrook State Bank which
failed something over year ago.
demanding judgement for S54,OS714
The action is based upon fourteen
transactions, involving a series of
notes reported to have been accept
ed without recourse by the First Ma
tlonal Bank of Albuquerque and
then returned to the Holbrook bank
at time when it was insolvent
It is alleged that many of the notes
we're given for the purchase of stock
in the bank and were unsecured
but were sold to the First National
Bank in payment of note of l.. M.
Reynolds, cousin of J. NJ Reynolds
and were later returned They now
appear among the assets of the de-
funct bank but are asserted to be
worthless.
The petition claims that the First
National Bank of Albuquerque en-
deavored to purchase the Holbrook
State Bank in 1916 and that the pur-
chase @was, made by j. M. Raynolds.
president of the First National Bank
Guy l.. Rogers, vice-president and
l.. M. Raynolds, a cousin of J. M,
Reynolds and bookkeeper in the
First National Bank.
The particular cause of action is
worded as follows:
THAT on to-wit the 26th day of
February, 9117, said l.. NJ Reynolds,
acting by and with the knowledge
and consent of, and upon the advice
of defendant, in order to make a
payment to defendant upon said
$l8 100000 note to the defendant, os-
sensibly sold 10 shares of said cap
ital stock of said Holbrook State
bank transferred from certificate
as aforesaid and issued as certif-
cate as aforesaid, which had there
to fore been held by said L. NJ Ray
nolds as aforesaid, to one w. III.
Chamberlain, and caused to be TAX
en- from him the unsecured note of
said Chamberlain for the entire
amount of the alleged purchase
price of said stock, to-wit, $1,52S. SO
which said note said l.. NJ Reynolds
and said defendant we'll knew was
not to be paid and was uncollecta-
ble; but said note was wrongfully
taken in the name of said Holbrook
state Bank as payee, with the
knowledge and consent of defendant
herein, notwithstanding said Hol-
brook State bank had no interest
therein and had no interest in the
alleged sale from said L. NJ Ray
.nolds to said Chamberlain; but the
plaintiffs charge that said note was
% taken in the name of the Hol-
brook State bank as payee in order
to secure said banks endorsement
thereon; that said l.. M. Reynolds
and defendant, wrongfully on the
day following the ostensble sale of
said stock to said Chamberlain as
aforesaid, caused said Holbrook
bank to advance on said Chamber
lain note the full face value there
on to defendant so as to pay to de-
fendant the said sum of S1,52S.5O to
be credited on said note of J.. NJ
Reynolds to defendant. that it was
agreed and understood by L. Nj. Ray
nOlds and said w. H. Chamberlain
that shid Holbrook State bank was
never to collect said note from said
W. H. Chamberlain in said sum of
$1,52S.50, or any other amount, or
any interest thereon. That said note
was ostensibly sold to defendant, but
was by defendant charged back to
the Holbrook State bank Oh Decem-
Der %, 1919. and that plaintiffs have
said note of said chamberlain i'm
their possession ad an alleged asset
of said Holbrook State bank, but
said note is worthless and uncollect-
able, and that, be reason of defend
ants said wrongful acts as in this
paragraph alleged. plaintiffs have
been damaged in the sum of $1,25S.50
together with interest thereon from
February 26, 1917. to date. at the
rate of per cent per annum"
Right along with this suit it is re-
ported that the grand jury of this
county have brought an indictment
in the matter of their investigation
of the affairs of the Holhrook State
bank and that as a result the Ray
nolds and Mr.. Rogers have bean ar
rested at albuquerque on request
of Sheriff Newman of this county.