National Border Bank (El Paso, TX)

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BANK RECEIVER FILES SUIT TO RECOVER $7,800 Suits to collect notes aggregating $7,800 were filed late yesterday in the United States district court by Sam D. Young, received of the National Border bank. One suit is against Joseph E. Spence for $1,800. The receiver asks judgment for foreclosure of collateral lien on three certificates for 10 shares of capital stock of the Ezell Investment company. Another suit is against C. A. Goetting and T. B. Henderson on note for $4,000 and another for $2,000 The petition sets forth that was ex. ecuted by Goetting and endorsed by Henderson, at which time the latter was a director of the National Border bank The receiver asks judgment and foreclosure of chattel mortgage on office equipment and machinery owned by Goetting

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Announcement has arrived of the birth of a daughter to Mr. and Mrs. Joseph Kite which took place in Los Angeles, where Mrs. Kite has been for several weeks, on Thursday. Mr. Kite is in Los Angeles with his family.

Border Bank Receiver Sues To Collect Note

Suit was filed in the United States district court Friday morning by Sam D. Young receiver of the National Border bank of El Paso against C. O. Coffin, et al.

It is an action on a note executed by C. O. Coffin on February 25, 1921, to the Security Bank & Trust company for $5500 payable two years after date.

It is alleged that $1773 has been paid on the note and the balance of $3727 is past due. The petition also alleges that a deed of trust was issued in the name of C. L. Ezzell as trustee to secure the payment of the note on lots 3, 4, 5 and 6 in block 56 and on lots 14 and 15 in block 57 of Kern place.

The petition asks for judgment and a foreclosure on the property in favor of the bank in order that the note may be paid.

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CITY AND COUNTY SUPPORT NEW BANK

Paso National Will Get Public Funds in Defunct Institution.

Organization papers of the new El Paso National bank will be completed and forwarded to the controller of currency In Washington following the arrival today of C. M. Harvey, president of the bank, from Miami, Okla., it was yesterday. At the same time city and county officials their intention of transferring approximately $560,000 in deposits in the defunct National Border bank to the El Paso National bank, which buying the National Border. Officials of the bank said Monday that the opening date of the bank depended upon completion of negotiations for an agreement relative city and county deposits, which must be paid dollar for dollar under the court order authorizing the sale of the bank. Funds Remain. "Although there has been no formal ordered entered by the commissioners' court, the proposition has been discussed informally with individual commissioners, and it is agreed that the county's money will be allowed to remain in the new bank for three years. understand the will make the agreement," said Judge McClintock. "By doing this will get 100 cents on the dollar. would only get about 35 per cent of our deposit. The judge said the county will receive per cent interest on its money. Mayor Jackson said the city would get 2½ per cent, "because we are leaving the new longer than the money in the other banks the city The other banks will pay per cent on city deposits one Bond. "Officials the have agreed give an acceptable personal bond to secure our deposit," the mayor added. The bonds will be filed with the cities and county after the arrival of Pres! dent Harvey. Official action on the will ther. The deposit of $283,000 in the National Border bank was amply cured by some the bank's best paper, which the city held its vault. The county had about in the bank, which was secured by personal Fifteen clerks will be employed by the new bank. The staff was being lined up yesterday.

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COUNTY SCHOOL HEADS CRITICIZED

Attempt To Cover Up Negligence For Fund Shortage is Charged.

Charges that county school authorities are trying cover up their negligence in their failure to discover fund shortages in the National Border bank mude yesterday by James A. Bordets president of the American Trust & Savings In statement Borders put the blame on school authorities for the present condition of affairs. His statement is the first open made against county authorischool superintendent. has consistently and continues to deny that any blame attaches her office failure to discover the shortages sooner. Border's statement follows: "The people should know that there may be an inducement for the many statements and all the dissussion that has taken place about the $58,000 item, in the fact that the school authorities negligently discover that shortage in the National Border bank and negligentfailed to file any claim against the receiver of that bank, and the statute has now run out on this claim against the "This has placed the school au thorities most embarrassing situation and they are now turning in every direction to extricate themselves and to cover up their negligence. Evidently they seem to feel that their remaining hope in that connection is to lasten liability upon the American Trust & Savings bank this $58,000 "Fortunately, there is record and other indisputable evidence to tablish that this money misaplong before the American Trust & Savings bank was named as depository and also to establish that this money was never in fact in the American bank. The state attditor has found that this money misappropriated years before, the defalcations starting six or seven years "Miss ago. Huggett has strenuously insisted that was no part her duty to make transfer of the school funds from one depository to other If this is true then why did she, within the last month, transfer the balance of the school funds in the American Trust & Savings bank. $20,038.95. to the State National bank, the new depository The pertinent question now is why the school authorities did not discover the shortage in the school fund in the National Border bank. which the state auditor has found started six seven years ago, and. particularly. why, after they discovered this shortage, they have not to this day taken any action whatsoever to recover these funds? The American Trust & Savings bank of the school funds from September 1923, the date fixed by the state auditor. Let the audit proceed. new question was Injected into the controversy yesterday. It in. volves the manipulations of Harry Henderson, who, purp rted statement, admits he got the missing 857,000. Miss Huggett says that warrants held by the National Border bank when It closed should have been cancelled with funds de posited by the schools in the bank But the warrants were not marked cancelled and the American Trust & Savings bank, after it became de pository. took school funds to the National Border bank receiver and paid off the Miss gett says she thinks this act trans ferred the shortage to the American Trust But Borders contends that Ms bank acted in good faith in paying off the warrants and if the had money in the National Border bank to pay the warrants and Henderson took out the money, instead of leaving the bank and can celling the the county must appeal to the old Border bank for the missing funds The point Involves a law which probably the courts will de eide as soon as an audit is com pleted to find out the exact amount of missing funds.