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(Special to The Heraid) 14. LORDSBURG N. M. Jan B. Read, state bank examiner James New Mexico, is severely condemned examiof of negligence in the defunet accused of the affairs of the failure nations Lordsburg State bank and of irregpregent evidence of alleged proper ro maritide and shortages to of proseculing officials in a report made the indaigo county grand Jilly public here The report which was made ju- to R. R. Ryan of the sixth Judge district court is sensational the in dicial of its statements regarding there some of the bank and alleges affairs an apparent shortage of $100,000 bring is it be impossible to party to and the that responsible may justice the bank owto the negligence of findink in not reporting his reinge examiner to the district attorney The port says, in part We have investigated the direct failure the Lordsburg State bank as of the court. having consumed with in ed by about one day of our time we this all matter In this connection have examined a number of witnesses bank have had the records of the and and brought before US and examined examiexplained We find from our and nation that this bank was closed B. in the hands of James state bank examiner placed Read. that of New the Mexico on July 30. 1921: said examiner retained charge of the bank without asking for the appoint- day of a receiver until the 8th ment December 1921 or in other words 130 of a period of approximately in for and for more than 60 days him days of the time provided for for him to apply to excess by law the receiver court for the appointment of a that during this period of time ex- no earnest attempt W 8 made by the aminer to collect the outstanding notes and bills receivable of the bank time furthermore find that at the took charge for a period of bank the We examiner and more of than this WILL year prior thereto its condition exa deplorable: that at the time tank the a took charge of the aminer large part of the notes held by the bank were past due: that this been condition of paper seems to have as chronic without however, so far our were able to ascertain from we investigation being seriously objected We furthe examiner's office find that the false entries to thermore bank by contain books and covering of that this number of large items a false entries and omission to the proper entries of the bank these on make the books appeared for prior a up- De to riod in excess of six months the closing of the bank: that appear- some false entries at teat the books of this ed of these upon examina- bank for period covered by two bank a of this bank his the same tions examiner For instance we find an of appearing upon the books had showing that this with the Security entry the on deposit bank tank Bank sum in & Trust company of El Paso a matter excess of $30,000. when as a defact. there was actually on of posit in said Security Bank & Trust less company a sum amounting to with than $400 that this same entry had been carried on of the a considerable minor bank the books for changes Lordsburg period bank State was of time prior to the time the books closed and appeared upon the xam the time the staf bank at iner made his examination on the believe 6th and 7th of July, 1921 and we enthere are a number of other tries that of like character that have ap- to peared upon the books trate time elthat the examiner failed to time: discover these discrepancies failed or else then If he did discover them he and it take any action thereon that to only by reason of the fact been checks was drawn on this bank had by other banks for a period to protested covering a week or 10 days prior charge I time the examiner took and I thereof the that the bank was closed taken over by him , Calls Examiner Negligent investigation of the books of this "Our bank and of the present the receiver state thereof satisfies 11.8 that : bank examiner's office has been made very negligent in the examination
