The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-08-14
Facts Concerning the Failure
of the Holbrook State Bank


In course of his attacks upon the
First National Bank of Albuquerque
and its officers, Mr.. Carl G. Magee,
through the Morning journal, has
given a great deal of publicity to the
failure of the Holbrook State bank,
all of which has been distorted or a
publication OF half-truths and ac-
c~6mpanying false insinuations. In
view of this publicity we deem il adj
visable TO give the public the facts
as regards the failure Of the Holbrook
bank.
The Holbrook State bank was
forced 10 close due TO its inability to
collect two large loans one To a cat
tie outfit the other to an abstractor
whc held a contract with Grant
county, New Mexico, for a complete
survey and abstract Of all property
in that county.
The loan TO the cattle concern
was made before L.l NJ. Reynolds
bought the Holbrook bank and at
that time was well secured by over
1000 head Of cattle After passing
through the severe winter of 1918
1919, upon sale to liquidate the debt,
only about $50 head were left out of
the 1000 or more, and due to ac-
cumulated expenses the loan was re
duced only a few thousand dollars
less than the original advance.
There is a possibility Of working u
the remainder still due, if promises
are carried out.
The other loan was made TO equip
Grant county with a survey and alb
stract. A survey of this kind seldom
fails 10 bring n great amount Of un-
assessed property onto the tax rolls.
In B~ernalillO county the assessor has
made the statement that the survey
was paid for the first year it was
used, out of additional taxes col
lectcd. although the survey cost al
most three times as much as the or
iginal contract price.
At the time the loan in question
was made there was no reason to an
ticipatc any difficulty in payment
for the work. The abstractor had
been successful in several contracts
of the same kind, was well supplied
with money and Grant county, being
the richest IN the state. could in one
year levy sufficient additional taxes
to cover the entire cost. Further
more the value of such a survey was
apparent in IA county where the
property consisted of mines, mining
claims, agricultural and grazing
lands, the extent of which had never
been accurately known.
Through previous experience in
such cases the abstractor was willing
TO contract that the entire cost of
the survey would not exceed the adj
ditional amount of taxes that could
be collected in a single year, by
reason Of the information furnished
by his work basing his estimate on
collection of back taxes unasseSsed
or assessed TO unknown owners.
Unfortunately local political difficult
ties occurred In Grant county which
rnuFod All settlement for the work "a
be deferred. The county failed 10 pay
for the work and no settlement has been
20 ssihlc up to date, although the taN-
payers and public generally Feel that
something should be done TO settle the
account. and although the local assessor
g. AZ present using the work.
a business organization, n shown
whereby an Investment OF a given sum
Of money n could gain from ten TO on,
hundred per cent In receipts would no
hesitate to spend the money ~ 1t hat
it IN hand. and Il Is impossible 20 thini
that Grnnt county would not profit a
least 40 per cent ON the entire sun
asked Tor in this case.
IL in the near future tho politlca
differences Involved cen be laid nHid
and this work brought to the attention
Of tho public In its true aspects and a
les true value, II Is reasonable to beliey
that n lust settlement will be made: O.
which event the Hoibrook bank will b
paid In fun ana It's deposltors ia tur