The Holbrook news., 1921-03-04

iSSlOA AS lAC oIOAy IlldI SuIIOunus he Fancher loan of $53,OOO and how t grew from $5,OOO loaned to a SO icitor for printing on July F, 1918, O. more than three times the amount If the capital stock of the bank. The First National also entertained he Fanchers, and footnote on a etter signed by J. M. Reynolds to ,ouie dated Feb. 4, 1919, says:
 "Fancher called today I told
 him we would not handle him
 longer if he gave us good bonds
 and a 50 per cent bonus"
 The investigators who raked. over he systems remains, conclude their eport with:
 "We call your attention to the
 file of correspondence submitted
 with this report on bills pay
 able" for the reason that the
 correspondence shows a cOntin-
 uOus effort on the part of L. M.
 Reynolds to borrow money frOm
 various sources in various ways,
 much of which effOrt was unsuc-
 cessful. : It also shows very clear
 ly that many of the notes still
 unpaid Dec. II, 1920 were used
 as collateral at the First Nat
 iOnal at Albuquerque. We have
 come to the conclusion that
 there are several ,undeVelOped
 sources of funds coming into the
 possession of L. M. RaynOlds and
 that there are several undeVelOp-
 ed causes for payments reflected
 in the withdrawal side of the
 personal account of L. M. Ray c
 nOlds."
 Judging from the mass of evidence hat is ready for the superior court nd the federal court it is not a uestion of the system condescend- ng to do business in Arizona-as hey have threatened to withdraw ut question of the entire system eing forced into liquidation and re- irement from the banking circles f the southwest.
 Banks are. among the most useful gencies of civilization when props rly and honorahly conducted.
 Into them the surplus money of
 community is collected as waters nto a reservoir, to flow out into all he channels of commerce and re- leve the business needs of a com nunity in every direction. It, is to D. the interest of the. people whom such institutions serve that they shall be made as safe and efficient as possible. =
 In order that this state of eff iciency may be attained and pre- served the fullest scope consonant with safety must be granted to the skill and energy of trained men in he management of such funds.
 By the exercise of this efficiency banks must be preserved from fail Ire, and the footing of same by dis lonest bankers.
 The great public confidence re- posed in our state and federal laws Or the guidance of financial insti- .utions must not be destroyed.
 To this end the citizens of Hol- brook and Northern Arizona must zee to it that the culprits who have for >months and years to leece individuals, the county and he state are not only driven from he ground but held to answer for heirs criminal peculations-
 The conniving clique in AlbuS uerque are going to have hard ime to square their account with he state and federal courts-and he First National will have an wful time convincing court that he system is deserving of charter nder the laws regulating the con- uct of National banks when the lent but convincing testimony of e part they played in wrecking the olbrook State is put on record.
 John R. Hulet, the receiver, re- rned from Albuquerque Wednes- ay night, where he was in consult tion with the home office and from is conversation he gave the impress ion that the First National would come through-but it 7ould not probably be before May.
 This constant stalling and avoid