Gallup State Bank (Gallup, NM)

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Bank Receiver Sues to Collect on Note

SANTA FE, N. M., July 26.—Francis A. Chapman, receiver of the State National bank of Albuquerque, filed suit in federal court today against Joe Mangum, Kay Mangum, Thomas K. D. Maddison, receivers of the State Trust & Savings bank of Albuquerque, Frank B. Mapel, receiver of the Gallup State Bank of Gallup; Levi Hughes, receiver of the Livestock & Agricultural Loan company of New Mexico, and T. A. Pierce, trustee. Judgment is asked against the Mangums for $25,000 and $8,000 with interest. It is prayed that a chattel mortgage, dated October 10, 1922, be declared a valid first lien on all property desired in the complaint, to secure the judgment, that the property be sold and a receiver named. It is alleged that the Mangums, who live in San Juan county, executed a promissory note for $25,000 to the State National bank of Albuquerque, and another for $8,000, which had been made to the Mangums by Tom Rogers.

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WRONG IN PRINCIPLE

The appointment of president of a defunct bank as receiver of that bank, as was done in the case of the Gallup State bank, is wrong in principle and a law should be enacted to prevent it. It is inconceivable that an official of bank that has failed, whether by reason of or mismanagement, will do little, if anything, to disclose the cause of the failure. It would be strange, indeed, he did not do everything within his power to cover up any irregularities. is high time that depositors were given at least an even share of protection with officers and directors.

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PAGE RECEIVER OF HIS BANK

Gregory Page, of Gallup, has been appointed receiver of the Gallup State bank by Judge Reed Holloman of the district yourt. Page was president of the bank before it. closed.

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PAGE TAKES UP HIS DUTIES AS BANK RECEIVER

Threatening Message Is Received by Gallup Man; Package Is Found in Postoffice, Delivered to Him

Callup. N. M June You had see the boys and settle up or the boys will see settle up. was the threatening received Saturday by Gregory Page. president of the Gallup State bank. The note was curled on the inside of an empty 45 caliber pistol shell which in turn was in coffin. The package did not go through the regular postal channels but was found on the window of the postoffice with his upon It turned over to Mr. Page when found. Mr. Page. when questioned concerning the mysterious package. said that he had no clue as where might have come from. He that without doubt the package in with his position as president of the State bank. Mr. Page deposited bond of in the McKinley county district court cover his appointment receiver of the institution. He took up his duties without protest from Bank Examiner F. Kirby.

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SEEKS TO HAVE PAGE OUSTED AS BANK RECEIVER

Motion Filed by Attorney General's Office in McKinley County Court

A motion has been filed in the dis triet court in McKinley county asking the court to set aside the order appointing Gregory Page received of the Gallup State bank. according the Gallup Independent. Assistant Attorney General James Bujac said the matter had been in hands of Tom W. Neel of no East Las Vegas and he did not know whether the motion had been filed However, he said he had signed recently The reasons given in asking for the of Page are as follows, according to the Independent "That the attorney general, acting behalf of the state and the depositors, had petitioned for appoint ment of the state bank examiner receiver but that he was given no opportunity to be heard on the petition: that H. Denny, an attorney of Gallup, and attorney for Gregory Page, surreptitiously removed this petition from the files, went to and there had the court appoint Page as receiver, all without the knowledge of the petitioner, thereby perpetrating fraud upon the court. "That some years the failure of the bank, the said receiver was and Its managing officer and during that time he caused loss of $473,000; that after he knew or had reason to believe that the bank was insolvent he transferred, all told, two different times, 500 shares of his stock of the value of $50,000 to Bontems, the then cashier and that said transfer was without valu: able consideration and for the purpose of escaping personal liability on his stock in the event of the bank's failure: that time of the bank's failure he owned 50 shares of stock the value of $5,000 on which he should pay an that his interests are inimical and inconsistent with the interests of depositors: that since the insolvent condition of the bank was known for months before to the officers of the bank that they are liable to depositors for deposits received during that time, the amount which is "That the said Gregory Page, since he became receiver, has transferred large sums of money out of the court's jurisdiction, which he held as receiver, the First National bank of Los An geles; this bank had discounted $70.000 of notes of the Gallup State bank and had the endorsement of Gregory Page, W. H. Morris and Sharp Hanson on those notes; the payment of these notes out of the funds of the bank will reduce the dividends-re ceived by the depositors and will involve litigation with the Los Angeles bank: this be drain on the assets of the bank for which the endorsers of the notes are personally responsible.'

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c. M. ROUSE NAMED BANK RECEIVER TO SUCCEED PAGE

GALLUP, N. M., Nov. 20 (Spc clal)-Judge Reed Holloman Be urday appointed C. M. Rouse succeed the late Gregory Page receiver of the Gallup State bank Mr. Rouse will take charge once.

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BYRD PARTY SAFE; PLANE IS SMASHE

Holloman Refuses Data On Closed Banks

HANNETT ASKS BAR BOARD TO GIVE ACCESS TO BOOKS OF GALLUP RECEIVERSHIPS

Former Governor Alleges Information Is Necessary in Order to Prepare Answer and Bill of Particulars; Judge Declines to Let Auditors See Records Until After Date They Are Needed

Alleging that it is essential for him to have access to the records of the receivers of the McKinley County bank and the Gallup State bank in order to prepare the bill of particulars he has been directed to file with the state board of bar commissioners on or before July 15 in the Holloman controversy, and alleging further that Judge Reed Holloman has refused to give permission for such access, former Governor A. T. Hannett, through his attorney, Fred E. Wilson, mailed to the clerk of the commission Thursday night a petition asking that the commission either direct the bank receivers to produce the records or ask the supreme' court to issue an order for them to produce the records for examination by certified accountant to be

H. Hudspeth, of Carrizozo, chairman of the board of bar commissioners, told Attorney Wilson in a long distance telephone conversation Thursday night that he lieves the matter is one to be acted on by the bar commission as whole and that he will call meeting of the board of nine commissioners for that purpose. In his petition, former Governor Hannett sets forth that Inasmuch as the bar commission has directed him to file on or before July 15, together with his answers to charges made by the bar association committee and discipline. a bill of particulars setting forth in detail any specific charges tending to prove the truth of general charges made against Judge Holloman, will be necessary for him to have the books and accounts kept by the receivers examined by auditors. Mr. Hannett. in his writings in the Journal, as result of which he was cited to appear before the bar commission. criticized severely the conduct of the receiverships of the two Gallup banks, whose receivers were appointed by Holloman. Mr. Wilson. after consultation with Simms and Botts, Holloman's attorneys. telephoned Holloman Thursday noon asking him to make the receivers' records accessible to certified auditor to be paid by Hannett, but Holloman refused to do this until after Hannett has filed his answer and bill of particulars. The preparation of the petition followed this refusal. The general charges made in connection with the receiverships. upon which he is required to file bill of particulars setting forth the charges in detail, are that Holloman working the receivership business over time, that the re. ceivership of the McKinley county bank has been used as a part of Holloman's political machine. that Holloman authorized settlement in full of notes due depositors of the McKinley County bank on perfectly solvent debtors for mere fractions of what they owed, in return for political support, and that Holloman "engaged in politics and was active in political conventions, lobbying with the legislature. dabbling with receiverships, and threatened receiverships, for political purposes."

Loans Unsecured In his petition. Hannett sets Continued on Page Eight

AUTO KILLS CHILD ALAMOSA. Colo., June 30 (P)Floyd Eskridge, a 4-year-old son of Mr. and Mrs. J. T. Eskridge of La Jara, Colo., was instantly killed Wednesday night when an automobile driven by his mother turned turtle near there. The boy's neck was broken.

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GREGORY PAGE TOOK $5,200 FROM GALLUP STATE BANK ON THE DAY IT CLOSED, VICE PRESIDENT ADMITS

J, W. Bontems Describes Purchase of Stock; Says President Exercised No Control Over Shares

(By Special Leased Wire) SANTA FE. Aug. Bontems. vice president of the Gallup State bank. was led through labyrinth of financial deals by John Simms of counsel for Judge Reed Holloman at the Friday afternoon of the Hannett hearing before the state bar commission in an effort to explain the of transactions previous to the fullure of the bank, that have been brought out in the hearing in proof of charges that Judge Holloman manipulated receiverships for political purposes. Mr. Bontems told of the organition of three different companies -the Atargie, the Ramah and the Rocky finance cattle and sheep men who had heavy lines of paper in the bank. After this came the by which of paper was sold to the First National bank Los Angeles without which was later repurchased by the receiver. The notes were guaranteed by Directors Page, Morris and Hanson. Exceeded Legal Limit Mr. Bontems said that at one time David Garcia had much as $60,000 paper in the bank, when the legal limit was $20,000. Other excess loans were admitted. Mr. Bontems told of his purchase of 500 shares of stock of the bank, 250 on August 15, 1924, and 250 shares on Oct. 15. 1924. He said he gave notes and pledged life insurance and there was no side agreement with Mr. Page except that Mr. Page was to pay any assesements made on the stock. He Mr. Page later paid 150 per cent on the stock. amounting to $82,500. The money came from the sale of the Gallup Mercantile company to the Charles company and other property.

The deposits of the bank were dwindling all the time. Mr. Bontems said and dropped from $875.000 to about $375,000 at the time was closed. In all. he said the stockholders paid of 350 per cent to keep the bank go. Mr. Page had never voted the stock he sold Mr. Bontems or exerclaed ownership of it, Mr. Bontem's said. Asked why there was delay in the naming of receiver after the bank closed. he said the examiner said after long distance call that he had talked with Governor Hannett and he did not think one would be made immediately. The counse) for Judge Holloman

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WOULD NAME PAGE AS RECEIVER FOR GALLUP BANK AGAIN, TELLS BAR COMMISSION

Says It Was Not His Custom to Appointed by Him to Give Accounting; proved Use of Depositors' Money for purchase of $70,000 Loans Sold Without course to Bank and Indorsed by Page Other Bank Stockholders

(By Special Leased Wire) SANTA FE, Aug. Reed on stand Friday night at the close of the Gallup State phase of the hearing of former Governor the State Bar commissioners for his charges in relation to receiverships in Judge Holloman's court, said he appoint Gregory Page receiver he had to do again, in spite of all the charges that have been made the hearing. The judge said he did not consider the transfer of 606 shares of stock by Mr. Page to W. Bontems, alleged have been made to escape liability, questionable. made the same remark about the repurchase by the ceiver of $70,000 loans sold without recourse, and charges. The judge said he had never seen a general report either of the two bank receivers in Gallup and was his custom to require such reports in

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Gallup State Bank Closing Is Heard In Hannett Case

Santa Aug. documentary evidence was again troduced into the hearing of former governor Arthur T. Hannett, before the state board of bar commissioners, for his attacks through the Albuquerque Journal on the official integrity of district judge Reed Holloman, when the taking of testimony relative to Holloman's alleged manipulation to his own funds of the receivership of the Gallup State bank was begun Friday Governor Hannett's allegations with relation the alleged misconduct of the That appointed the late Gregory Page, president of the bank, receiver his bank. Holloman refused allow petition by the attorney general appointment. That Page transferred 500 shares his stock in the institution to W. Bontems, vice president, in order avoid personal liability as when the bank That on the day the bank closed, Page withdrew more than 85,000 his personal account That on March 19. 1925. month before the the bank, the bank sold to the First National bank. Los Angeles, $70,000 notes, pay ment which was guaranteed by Mr. Page and his associates and that Page later. as receiver, paid the notes from receivership funds order to protect himself and assopersonal liability counsel said they pected to show that Page, in transferring the stock agreed pay the if the bank certain period and did pay 150 per cent on the transferred stock. Gould, Albuquerque. special auditor employed by Hannett make an accounting of the records. was placed on the stand by Hannett Charles Faby partner to W Barker, the missing witness in the case, notified the commission that would with Barker Long Beach and felt sure he would return.

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GALLUP STATE BANK RECEIVER PAYS NEW 5 PER CENT DIVIDEND

GALLUP N M. Rouse of the Gallup Thursday announced per of the of about This dividend been paid since and final be