Holbrook State Bank (Holbrook, AZ)

Article Text

depressed markets, was given as the reason for the closing of another Arizona bank today, the second to close its doors within the past four days The latest institution to suspend business is the Holbrook State bank, at Holbrook. A state bank examiner has left to take charge of its affairs. Last Saturday the State Bank of Glendale, at Glendale, Ariz., closed its doors.

Article Text

Bank in Arizona Forced to Close PHOENIX, Ariz, Dec. 14.-Inabil. ity of cotton growers and stock raisers to meet their obligations owing to depressed markets, was given as the reason for the closing of anther Arizona bank today, the second to close its doors within the past four days. The latest institution to suspend business is the Holbrook State bank at Holbrook. A state bank examiner has left to take charge of its affairs. Last Saturday the State Bank of Glendale at Glendale, Ariz., closed its doors.

Article Text

who is one of the big financiers, of the southwest, was behind the Holbrook State-but from the developments since the closing, he was evidently in front of it-at least ahead of the depositors, for it was his Albuquerque bank-the supposed power behind the throne of the Holbrook State-that struck it down and dispossessed it of all available collateral and refused to honor its paper further - and the struggling nephew skinned the Holbrook bank and sent his uncle the hide. Many of the late depositors cling to the belief that old Joshua, the sage of the financiers of the southwest-who has probably trimmed many a poor sucker lone handed-will not attempt to trim a whole town by getting out from under his nephew while the getting is good-so far the Raynolds outfit is concerned. The anxious depositors expected the bank examiner on Monday, but he did, not show up-Tuesday passed and the glutted bank was still in the custody of the captains of finance that put it on the rocks, and Wednesday morning the mourners assembled around the corpse of the Raynolds family's financial goat for the purpose of getting some information as to the affairs of the wrecked financial ship-and salvaging what had been discarded by Uncle Joshua's First National of Albuquerque. At this meeting when Raynolds was confronted by the last bank statement issued a few days previous, he admitted that the bank was, at this time, at its peak of prosperity and ten days later, through the protesting of its paper by the Albuquerque bank-it was at the base, with its toes turned up to the daisies-but not before Uncle Josh had his. The matter of a receiver for the bank was brought up and Raynolds strongly protested against anyone except his personal attorney holding that position-and almost in the same breath he told the depositors that this same attorney had advised closing the doors on Friday-but in spite of this legal advice he opened Saturday and received many hundreds on deposits, when, according to his own public statement, he knew the bank had gone fleuy-and that he was taking money that, under the law, was a crime. When this startling information was given there were many mutterings among the crowd of duped depositors of criminal proceedings-and the end is not yet for the man or men who juggled the affairs of this bank into almost a complete wreck.

Article Text

Holbrook Bank Closes Doors An Associated Press dispatch from Phoenix, Ariz., under date of last Tuesday: "Inability of cotton growers and stock raisers to meet their obligations, owing to the depressed condition of the markets. is given as the cause for the closing of another Arizona bank today, the second within the last four days. The latest of the state financial institutions to suspend is the Holbrook State bank of Holbrook. A state bank examiner has left here to take charge of its affairs. Last Saturday the State Bank at Glendale closed its doors." Lewis M. Reynolds, formerly of this city, and at one time an assistant cashier in the Fremont County N3tional bank, is president of the Holbrook State bank.

Article Text

PRESIDENT HOLBROOK BANK UNDER ARREST L

M. Raynolds, president of the Holbrook State bank, is under arrest on a criminal complaint charging him with feloniously opening the bank and receiving deposits after he knew the bank to be insolvent. His arrest followed closing of the bank's doors a week ago for liquidation. Raynolds, it is claimed, has issued a signed statement to the effect that all Liberty bonds and convertible paper, formerly held by the Holbrook bank, has been taken over by the First National bank of Albuquerque, N. M., leaving few assets to depositors in the Holbrook bank. Judge Sapp, L. E. Carron, L. B. Cadwell, J. M. Patterson and Charles Cooley have been appointed as a committee to probe into the true condition of the bank. A representative of the state bank examiner is now examining the books of the institution. When his report is available, depositors will ask Judge Crosby of the Apache county superior court to appoint a receiver. The bank's shortage is unofficially placed at more than $100,000, or more than five times as much as its capitalization.

Article Text

localBriefs RECOVERING RAPIDLY - Mrs

Charles J. Gaupp of the Blenheim apartments, who has been at the Sisters' hospital for three weeks, is recovering rapidly. She will leave soon for Douglas to spend the winter with her mother, Mrs. J. E. McGann. SUNFLOWER CLUB-The Sunflower club held a very enjoyable social Wednesday evening at the home of Dr. Mafa Blasse, 1334 East Willetta street. The club plans to hold a similar affair the second week in February. The regular meetings are held each Tuesday afternoon at 2:30 o'clock at the above address. LIBRARY CLOSED-The Phoenix public library will be closed until noon Monday for alterations in the heating system, SELLS PROPERTY-Dr. Redewill yesterday sold through James T. Murphy of the firm of Ruggles & Murphy, the property known as the Navajo Hotel at the corner of Sixth avenue Adams. The purchaser is C. W. Curand Adams. The purchaser is C.W. Curmonths ago for $32.000. RETURNS FROM NORTH-Peter Munch, state bank examiner, returned yesterday from Holbrook, where he made an investigation of the affairs of the Holbrook State bank, which on Dec. 13 voluntarify suspended business. Mr. Munch said that after making an examination he found the bank to be insolvent and petitioned Judge J. E. Crosby of the superior court of Navajo county to appoint a receiver. John R. Hulett, a well known business man and banker of Holbrook, was named as receiver.

Article Text

Southwest News From All Over New Mexico and Arizona Western Newspaper Union News Service. annual output of honey in will amount to about carArizona The total 100 loads. The greater part of it will be handled in Benson. Good news to the mining industry in a wire to the effect Senate has passed a exwas that contained the doing the bill 1920 tending the time for mining assessments until July 1, 1921. A 12 per cent reduction on Pullman rates between Phoenix and Los Angeles has been granted by H. P. Clements, general passenger agent of the Pullman company. The annual meeting of the Farm Bureau was held at Roswell, N. M. The attendance was large, farmers and stockmen from every section of the country being present. Livestock conditions in Arizona are very gratifying, according to Dr. F. Snyder, inspector in charge of the federal bureau of animal industry, with headquarters at Albuquerque, N. M. A statewide drive for members in the American Legion will be started the first of the year according to an announcement by Tom G. Trammel, department adjutant and finance officer of New Mexico. More than $50,000 drainage work is be done immediately in the Peoria northwest of to an district according to announcement Phoenix, by River Ariz, F.C. Hershaw, secretary of the Salt Valley Water Users' Association. Reports from the mines at Chloride that the development goahead and that by state ing rapidly work the be is first of the all the claims will protin ore which will be best mined in that part ever dueing year of Arizona. the Three hundred men employed by the Arizona Commercial Mining Company, with properties at Copper Hill, on the outskirts of Globe, Ariz., were thrown out of work when the entire operations of the company were suspended for an indefinite period. What is said to be one of the most coal properties in by a promising ico is being developed Cebolleta New syndicate grant, Mexof El Pasoans on the about thirty-five miles northwest of Cubero, a station on the Santa Fé railroad, in Valencia county. was acquitted a jury in Court at a Ben the Johnson Superior Phoenix by of charge of murder arising out of the fatal shooting of Paul Legerski at the latter's ranch near Humboldt, September 24 last, when Johnson was constable of Humboldt precinct. At a recent meeting of the Roswell council it was voted to improve the fire fighting equipment of the city by a tower for the d to remodel the building hose and drying entire the of build- most the ing SO that it will be one of modern in the state of New Mexico. d Arizona copper companies are suffrom competition from their gleaned of France and used over own fering fields copper, from the battle- again, according to Henry Edwards, an Engd lish mining engineer in Prescott. Edwards said that large amounts of salvaged copper are being used in England and that the country has enough on hand to last for an indefinite period. L. M. Reynolds, president of the Holut state bank he has been rn brook, its doors Ariz., recently, obtained which arrested by closed de- in Phoenix on a warrant positors of the institution charging him k, with embezzlement. After the bank had suspended business, it is charged, 8: as Reynolds removed $40,000 worth of seht curities and turned them over to couned tty supervisors to protect county deposks its. rt The sixteen Villistas who have been nd beld at the penitentiary under an inat ve junction since they were pardoned ng shortly before Thanksgiving day, were rearrested by a deputy sheriff from go Luna county, N. M. ft ng The first shipment to be mode by the er; Calumet-New Mexico Mining and Milling Company at Pinos Altos, near Sil4c ver City, N. M., occurred when a carload of zinc concentrates was shipped er h10 the Western Metals Company of Okelahoma, for ch Reports on crop conditions Decemc: lis ber 1 by the Department of Agriculas ture, through the office of State Statisay er F. estimates that New rn, has this season The condition of is acres. tician Mexico R. planted Hare, this wheat 284,000 last fall's revised estimate of 258,000 % acres. Thec condition of this wheat is 90 per cent f normal, compared to .5 condition of AS per cent for last year's Cop at this time. If conditions remain favorable, New Mexico will pre luthe wheat crop ever OVThe acreage rye crop is at 5. adproduced. in duce New Mexico largest estimated of the It has only 000 acres, which is 80 per cent of the ca-

Article Text

A BUM LOAN LIQUIDATED The real and personal property of P. T. and Verna Coleman were sold at sheriff's sals at the court house last Saturday, for the liquidation of a note to the Holbrook State bank. The real estate and most of the personal property was bid in by Judge Sapp representing the receiver of the bank.

Article Text

STATE SIFTINGS Wilcox-Central Copper Company takes over holdings of Mascot Copper Company. Chandler-Contract let for completion of high school. Tempe - Hassayampa Creamery Company to operate Pacific Creamery plant. Holbrook - Breckenridge-Holbrook Syndicate completing plans for active drilling. Linden-Local men developing asbestos property on Apache Indian reservation. Holbrook - Approximately 60.000 lbs. of wool shipped to Boston market. Tueson-Tumacacori Mission excavation work unearths ruins of first mission. Chandler-4 acre fruit crop on local ranch brings $66.00. Florence--Highway to Chandler to be repaired during summer. Hollrook-Prominent eastern oil men inspecting local field. hoenix-Agricultural department of government strongly recommends Salt River Valley for poultry and dairy industry. Bisbee-Signing work along Bankhead highway route to start at once. Warren to .get modern garage and services. Nogales-Fresh vegetables totaling 22.000.000 lbs. imported through port since January 1st. Globe to contract with Old Dominion Company for city. water supply. Payson-several old mines west of Single Standard being developed. Tucson-Auto stage company to operate line to Twin Buttes. Jerome completes plans to export 100 Mexicans to native land. Tucson-Airplane fire patrol for Chiricahuas mountain range established. St. Johns-California capitalists lease 200,000 acres of Long H. ranch for oil prospecting. Phoenix-Lo Angeles banks to back Arizona cotton crop for six months. Holbrook-Campaiign launched to re-open Holbrook State Bank. Ajo-Assessment work uncovers good silver-lead ore on Clark claims. Secret Pass-Nancy Lee Mining Co. to launch big development campaign. Oatman-United Eastern lets contract for one mile overhead tramway. Kingman-Catherine mine reports new strike averaging about $500 ton. Datman-United Mining Co. taps good vein of commercial ore. Yuma-150-ton mill to be installed at Tumcomine to work tailings. Parker-Rainbow Mining Company incorporates with capital stock of $1,000,000. Ajo-Dundee Arizona Copper Company makes successful expirimental run of new plant. Benson-Big plant of Apache powder Co. to be ready for operation September 1st. Oatman-Gold Peak Mining group to be developed by Highland Chief Gold Mining Co. Tombstone-Reported oil strike on Wolfgren ranch near the Whetstones attracting hundreds of oil men. STATE SIFTINGS Yuma-Many companies organizing to develop mineral deposits. Holbrook- Several new oil companies to enter local field. d Casa Grande-Hydro-electric power f project at Post being planned. Oatman Amalgamated mine closed t to install large compressor. Phoenix-Applications to lease 10.1. 004,800 acres land filed in May. n Benson-Worl started on Charlton dam to irrigate 47,000 acres. t Flagstaff-Work on boulevard to San Francisco Peaks progressing. Florence-Plans under way on d Florence-Superior highway. t Nogales-Drill for water in Wetstone Mountain strikes oil. Mayer-Old Cumberland gold mine to be re-opened. Kingman-C. D. C. mine shipping y $43,000 concentrates monthly. Warren-Ore strike reported on 600 e level of Shuttuck mine. Kingman-Big gold fissure cut on 1 Katherine extension. Mayer-Old Trinity mine on Turkey creek to operate. 200.000 telee calls during past phone Nogales placed month. local Chandler calls for bids on eight e blocks of pavement. t Tucson has bill in Congress for e $500,000 postoffice. in Kingman-Bonanza ore strike Katkerine mine causing stampede.

Article Text

ARIZONA WEEKLY INDUSTRIAL REVIEW

(July 11, 1921.) Wilcox-Central Copper com pany takes over holdings of Mascot Copper Company. Chandler - Contract let for completion of high school. Tempe-Hasayampa Creamer Company to operate Pacific Creamery plant. Holbrook-Breckenridge..Hol brook Syndicate completing plans for active drilling. Linden-Loca men developing asbestos property on Apache Indian reservation. Holbrook-Approximately 60,000 lbs. of wool shipped to Bos. ton market. TucsonTumacacori Mission excavation work unearths ruins of first mission. Chandler-4 acre fruit crop on local ranch brings $660 00. Florence-Highway to Chand ler to be repaired during summer. Holbrook-Prominent eastern oil men inspecting local field. Phoenix-Agriculturaldepartment of government strongly recommends Salt River valley for poultry and dairy industry. Bisbee-Signing work along Bankhead highway route to start at once. Warren to get modern garage and service. Nogales - Fresh vegetables totaling 22,000,000 lbs. imported through port since January 1st. Florence-Florence Casa Grande valley practically assured of Roosevelt power line. Globe to contract with Old Dominion Company for city water supply. Phoenix State cotton crop for season estimated at approximately 40,000 bales. Payson-Several old mines west of Single Standard being developed. Tucson--Auto stage company to operate line to Twin Buttes. Jerome completes plans to export 100 Mexicans to native land. Tucson-Airplane fire patrol for Chiricaguas mountain range established. St. Johns-California capitalists lease 200,000 acres of Long H. ranch for oil prospecting. Phoenix-Los Angeles banks to back Arizona cotton crop for six months. Oatman swept by fire, loss estimated at $250,000, plans to rebuild. Holbrook-.Campaign launched to re open Holbrook State Bank. Ajo-Assessment work uncovers good silver-lead ore on Clark claims. Secret Pass--Nancy Lee Min. ing Co. to launch big develop ment campaign. Oatman-Unite Eastern lets contract for one mile overhead tramway. Kingman-Catherine mine reports new strike averaging about $500 ton. Oatman-United Mining Co. taps good vein of commercial ore. Yuma-150.ton mill to be installed at Tumco mine to work tailings. Parker-Rainbow Mining Com pany incorporates with capital stock of $1,000,000. Ajo-Dundee Arizona Copper Company makes successful experimental run of new plant. Benson-Big plant of Apache Powder Co. to be ready for operation September 1st. Oatman-Gold Peak Mining group to be developed by Highland ChiefGold.Mining Co. Tombstone-Reported oil strike $ on Wolfgren ranch near the Whetstones attracting hundreds of oil men. Phoenix, July.-Fire insur1

Article Text

Chiricaraus mountain range established

St. Johns: California capitalists lease 200,00 acres of Lang H ranch for oil prospecting. Phoenix: Los Angeles banks to back Arizona cotton crop for six months. Holbrook: Campaign launched to reopen Holbrook State bank. Ajo: Assessment work uncovers good silver-lead on Clark claims. Nogales: Hardwood lumber industry attracting attention, many carloads to eastern markets planned. Secret Pass: Nancy Lee Mining company to launch big development campaign. Oatman: United Eastern lets contract for one mile overhead tramway. Kingman: Catherine mine reports new strike averaging about $500 per ton. Oatman: United Mining company taps good vein of commercial ore. Yuma: 150-ton mill to be installed at Tumco mine to work tailings. Parker: Rainbow Mining 1 company incorporates with capital stock of $1,000,000. Ajo: Dundee Arrizona Copper company makes successful experimental run of new plant. Benson: Big plant of Apache Powder company to be ready for operation September 1. Oatman: Gold Peak Mining company to be developed by Highland Chief Gold Mining company. Tombstone: Reported oil strike on Wolfgren ranch near the Whetstones attracting hundreds of oil men. Ajo: Col. Greenway advocates construction of railroad to Gulf. Kingman: High grade ore opened in Sutro mine in Katherine district. Tucson: Arizona University installing an observatory. Seligman: Stanford Cattle company ships 1000 head to eastern buyers.

Article Text

A LITTLE ABOUT HOLBROOK

I want to discuss the statements of the First National Bank, in their Sunday advertisement, regarding the Holbrook State Bank. Mr. Raynolds invites the fullest publicity in that matter. I had felt that it might be best to avoid lurid details, but as Mr. Raynolds desires publicity, we will supply it just as soon as we receive the necessary documents. These documents will reveal how little truth there is in Mr. Raynolds' statement. Before discussing this, I wish to reiterate my confidence in the stability and strength of the First National. It is Albuquerque's greatest business institution. Whenever the management changes, or its officers learn not to ride rough-shod and arrogantly over those who displease them, I am for its prosperity and growth. But they must learn that the old days when they were czars and dictators and enjoyers of immunities and special privileges, is over. The days of the financial-political oligarchy are definitely numbered in New Mexico. Destroying other people who cross them. must cease to be an enjoyable pastime If its officers must be "all mussed up" by publicity, in order to humanize them and make them sympathetic instead of ruthless. we will supply the publicity. We advise that all plans to "drive Magee out of New Mexico" be abandoned. We advise a revision of the determination that "the fight on Magee has just begun." We advise an abandonment of the feeling that "Magee may get by this time, but we will get him." It is not the assault upon me which matters. It is the assault upon the freedom of the press and the determination that money shall dominate the people to their harm. It is the fact that my case is typical of others in the past, and is typical of cases which will occur in the future, unless this thing is stopped. It will not be stopped until it becomes unprofitable and unpopular. So we must go on until its officers decide that their present course is unprofitable and unpopular. I hope that will happen very soon. Mr. Raynolds says that the failure of the Holbrook State Bank was due to two bad loans of large size. One was a cattle loan; the other a loan to an abstractor making a survey of Grant county. As soon as the district court in Arizona makes the order I have asked for, to compel the receiver and public accountant to allow me to inspect the record, I will supply details. These gentlemen refuse to allow this inspection and I must and will get the order from the court. With reference to the cattle loan, Mr. Raynolds says: "There is a possibility of working out the remainder still due, if promises are carried out." This paper is utterly worthless. as Mr. Raynolds well knows. The "If promises are carried out" refers to a visionary hope which Mr. Raynolds professes to have, that a rich relative of the debtor, who has not the slightest legal responsibility, will voluntarily come forward and pay the debt. There is no other hope of a dollar. With reference to the Grant county matter. Mr. Raynolds elaborates on the merits of the abstract) made and then says, "If in the near future the political differences involved can be laid aside and the work brought to the attention of the public in its true aspects and at its true value, it is reasonable to believe that a just settlement will be made; in which event the Holbrook bank will be paid in full and its depositors in turn, will receive 100 cents on the dollar." "If," "if," "If!" Mr. Raynolds failed to tell the public that suit for this money was brought against Grant county. The supreme court of the state recently decided that Grant county does not legally owe a dollar of it, and all legal remedies are exhausted. A voluntary payment of a debt Grant county disputes and which the courts say it does not owe, is Mr. Raynolds' hope to pay the depositors. He should have said that the gang, under the guidance of John Sully, of Grant county, are trying to use their political power to force payment in the interests of Raynolds. But Raynolds doesn't belong to the gang-he admits that he doesn't. This was a Raynolds bank. Why does not Mr. Raynolds protect the depositors and then later collect from the rich relative and the Grant county macnine? Because he is confident both claims are lost. Mr. Raynolds fails to tell you that notes assigned to the First National by the Holbrook bank. "without recourse," proved valueless and were charged off against the account of the Holbrook bank and were returned to that bank or were exchanged for good notes, leaving the depositors to get their money out of the/bad notes, if they can. He fails to tell you how his bank helped the Holbrook bank to deceive the bank examiner by having bad paper sent here and credit taken for it. until the examiner had come and gone and then charged it off against the Noibrook bank's account and returned it. Anywhere but in a state where a political gang dominates officials. "something would pop" when such transactions were unearthed. Mr. Raynolds is, merely a hereditary figure-head in the bank. In the light of the facts, he ought to resign as president in compliance with the demands of public sentiment. CARL C. MAGEE.

Article Text

RIGHT OF STATE TO RECOVER DEPOSITS IN BANKS AHEAD OF INDIVIDUALS IS UP TO COURT PHOENIX, Oct. 28.-For the first company paid $10,000 and the state holds $25,000 worth of Central Fitime the question of the state being ance corporation bonds another Cen a preferred creditor will be tried out tral Finance company bond of $$50,000 when the state makes application to and $25,000 in 6 per cent Central Fithe superior court of Cochise county nance corporation farm mortgage bonds, and also holds $75,736 in bankin the matter of the Central Bank of able paper and additional security of Willcox, which some time ago was 87,000 shares of Copper-Henderson Oil placed in the hands of a receiver. company stock, which has a par value Raymond Earhart, state treasurer, of $1. Part of the security is alleged has asked that the prior right of the to be worthless. state to that of the individual be recFirst National Bank of Tombstone ognized by the bank, and the bank -American Surety company bond of has not conceded the claim. it is said. $10,000. while the state's deposit was The treasurer then requested the $9,000. attorney general to take the matter into court, where the question of Jaw Leaves For Tombstone will be tried out. The state under the old common law claims the state suPHOENIX, Oct. 28. - George R. preme, and following the announceHill, assistant attorney general, left ment that the bank was to make a tonight for Tombstone, where he payment of 10 cents on the dollar the plans to file an application in the sustate asked that its deposit. be made perior court of Cochise county askgood. ing that the state be given preferred When the bank failed it was given credit in the settlement about to be out that the state's deposit amounted made by the Central Bank of Willeox. to $52,500. Of this amount $30,000 has been paid, having been secured hv bonds of the National Surety coman The remaining $22,500 was COV ered by a Central Finance company Personal bond secured by notes. The attorney general's office stated yesterdav that Fire Chief Wilson has returned it had no way of determining the security at this time. from Tucson, where he has been as a witness in the water case. The value of security given for state funds in other banks that have losed was not given out yesterday. W. G. Gilmore, Douglas attorney, The state funds, with securities in was in the city vesterday on a busihanks which have not yet been reopen ness trip. ed as reported by Treasurer Earhart esterday, were as follows: Robert McKay, road contractor, was Bank of Arizona at Snowflake-no in the city yesterday from his presfunds. the $2$.000 on deposit hav ent headquarters in Tucson. He was ing been secured by the Maryland a former resident of this county. Cesualty company, which paid the claim. Holbrook State Bank-$3,000 in William Cowan, cattleman, was in ibertv bonds. $10,000 Southern Surethe city yesterday from his ranch in ty company bond on $9,000 deposit. the vicinity of Government Draw. Surety company paid $5,000 on account of $9.000 and it is now being Gene Yoakum was in the city yesdetermined whether the Liberty bonds terday from Courtland on a business r the surety company pay the remain mission. 3 000. Clanda State Bank-American Mrs. E. H. Rolfe left yesterday for Surety bond for $10,000, which acFt. Worth, Texas, to spend a month id in full. on a visit to her father, Mr. W. G. Central Bank of Wickenburg-Had Farris. dennait of state funds amounting to $95,000. The First National Surety Mr. and Mrs. B. H. McLood of War-

Article Text

Action Based on 14 Transactions Involving a Series of Notes, Many of Them Made to Pay for Stock.

Suit for $54,087.14 was started against the First National Bank of Albuquerque yesterday by Robert E. Putney and Jesse Hulett, receivers for the Holbrook State bank which failed a matter of a year ago. The suit was filed by Capt. W. C. Reid, senior member of the firm of Reid, Hervey and Iden, attorneys.

The action is based upon a series of fourteen transactions, involving a series of notes reported to have been accepted without recourse by the First National bank of Albuquerque and then returned to the Holbrook bank at a time when it was insolvent. Many of the notes were made out for the purchase of stock in the bank and were unsecured, yet were sold to the First National bank here in payment of a note of L. M. Reynolds, a cousin of J. M. Raynolds, and were later returned. They now appear among the alleged assets of the bank but are asserted to be worthless.

The petition claims that the First National bank here sought the purchase of the Holbrook State bank on or about May 26, 1916, and that the purchase was made by J. M. Raynolds, president of the First National bank here, Guy L. Rogers, vice president of the bank, and L. M. Reynolds, a cousin of J. M. Raynolds and a bookkeeper in the First National. It relates the transfers of stock which have been made.

Section 10 of the first cause of action, which is not greatly different except as to name from many of the other causes is as follows:

"That on to-wit the 26th day of February, 1917, said L. M. Reynolds, acting by and with the knowledge and consent of, and upon the advice of defendant, in order to make a payment to defendant upon his said $28,000 note to the defendant, ostensibly sold 10 shares of said capital stock of said Holbrook State bank transferred from certificate 4 as aforesaid and issued as certificate 8 as aforesaid, which had theretofore been held by said L. M. Raynolds as aforesaid, to one W. H. Chamberlain, and caused to be taken from him the unsecured note of said Chamberlain for the entire amount of the alleged purchase price of said stock, to-wit, $1,528.50, which said note said L. M. Raynolds and said defendant well knew was not to be paid and was uncollectable; but said note was wrongfully taken in the name of said Holbrook State bank as payee, with the knowledge and consent of defendant herein, notwithstanding said Holbrook State bank had no interest therein and had no interest in the alleged sale from said L. M. Raynolds to said Chamberlain; but plaintiffs charge that said note was so taken in the name of said Holbrook State bank as payee in order to secure said bank's endorsement thereon; that said L. M. Raynolds and defendant, wrongfully, on the day following the ostensible sale, of said stock to said Chamberlain as aforesaid, caused said Holbrook bank to advance on said Chamberlain note the full face value thereon to defendant so as to pay to defendant the said sum of $1,528.50 to be credited, and which was thereafter credited on said note of L. M. Reynolds to defendant that it was agreed and understood by L. M. Raynolds and said W. H. Chamblain that said Holbrook State bank was never

Article Text

A SUSPENSION OF HOSTILITIES.

Systematic propaganda is being circulated by the First National crowd that the row between them and the Journal is hurting Albuquerque. The Journal knows that it is unwholesome. Will some kind friend please tell me what we can do about it? Were we wrong when we criticized the deposit of public monies in the banks without interest? If we were, please tell us so.

Were we wrong when we opened our columns to a contribution from a critic of the Tijeras paving contract? We were following, merely, our policy of giving people a chance to be heard. It is a policy which we will follow as long as the present management controls the Journal. Yet these things led J. M. Raynolds, president of the First National and a member of the city commission to say last spring, that our editor was "a menace and would be run out of the state."

Were we wrong when we privately told A. B. McMillan that it would be unconscionable for him to collect a ten per cent attorney fee amounting to $4,000, from R. E. Putney, merely because a $40.000 note was "in the hands of an attorney for collection" by merely being sent upstairs to Mr. McMillen? The note had been "called" because Putney objected to losing $6,000 at Holbrook. We saved Mr. Putney $4,000 by the fear of publicity, but we later brought down a series of rabid suits on our own head, for our trouble.

Were we wrong when we fought to live through those days in July when every conceivable kind of a law suit was filed to drive us out of business? Were we wrong for defending ourselves against libel suits which were brought by Mr. McMillen and Mr. Raynolds to harass and destroy us? Were we wrong for refusing to be silent under a threat by these men of contempt of court proceedings, when acquiescence would have resulted in the permanent curtailment of freedom of speech in New Mexico?

When this stage of affairs was reached we were approached by an informal committee from the Chamber of Commerce which tendered its good offices to bring about peace. We accepted the offered services, agreeing to do anything consistent with our dignity and the public welfare. This effort failed through no fault of ours.

We had suits for libel pending. One of the causes of action was based upon an allegation that J. M. Raynolds had dealt unfairly in the affairs of the defunct Holbrook State Bank. Mr. Raynolds refused to dismiss this suit. Were we wrong when we sat by in silence and permitted, without criticism, the calling of a grand jury at Holbrook to delve into the actual conditions existing in that defunct bank? Would you have acted differently, gentle reader?

The Journal knew of the first of the five indictments against Mr. Raynolds and Mr. Rogers for several days but said nothing. We opened no attack on them and intended not to do so. We planned to carry nothing more than a modest news story, whenever the matter became public property.

One week ago last Friday night, the editor of the Journal reached the conclusion that the welfare of the bank and its depositors, made it wise that these gentlemen have notice of their indictment in advance of their arrest. He requested Mr. D. A. Macpherson, business manager of the Journal, and a friend of Raynolds and Rogers, to carry the word to them confidentially. The assault upon Mr. Putney and Mr. Magee the next day in the Herald was what Mr. Magee received for his pains.

The Journal did not reopen this controversy. It does not seek a newspaper row now. It desires that Messrs. Raynolds, Rogers and Cox go to Arizona and fight the matter out in the courts. In that event we will carry only legitimate news as it develops. If they attempt to use political "pull" to stay safely here while Arizona wants them, we will comment upon their conduct as occasion arises.

The First National crowd knows nothing but the "big stick." After their indictment they promptly called another note on which Mr. Putney was an endorser, in order to "get" Putney. They employed the Evening Herald to "get" Magee. The policy calls for a bitter campaign of publicity. It has only begun. The "machine" in New Mexico is to be set in motion. Private emissaries are interviewing everybody who might be induced to cause trouble. They are proceeding to prove all that we have asserted about their being "after us."

We realize the seriousness of this fight. Yet we refuse to surrender. Annihilation is preferable to cowardice. But we are far from believing that the public can be misled into withdrawing its support from the Journal. If the people will stick, a breaking up of the politics-financial ice in New Mexico is about to occur. Strong-arm methods will go into the discard and justice and equality of opportunity in New Mexico, will be restored.

The public should not allow the propaganda about "the people being tired of the fight" to weaken their decision to win now. Germany tried these tactics by putting agents in France and, at one time, nearly won the war by making "tired of the fight" the prevailing sentiment in France.

The Journal is ready to stop when its own safety and the public welfare will permit. The man who spreads the propaganda of the people being tired, is no friend to free government in New Mexico. Liberty came because our forefathers never got too tired to fight regardless of sacrifices or hardships.

Article Text

NOTICE OF PAYMENT OF DIVIDEND Office of Receiver of Holbrook State Bank. Notice is hereby given that by order of the Judge of the Superior Court, that I will, on the 18th day of March, 1922, pay a dividend of eight percent (8) upon all deposits]as represented by the books of said Bank, as shown at this time, and on all claims against Bank, as approved and allowed by the said Court. J. S. HULET, Co-Receiver. Holbrook, Ariz., March 2, 1922.

Article Text

NOTICE OF PAYMENT OF DIVIDEND Office of Receiver of Holbrook State Bank. Notice is hereby given that by order of the Judge of the Superior Court, that I will, on the 18th day of March, 1922, pay a dividend of eight percent (8) upon all deposits as represented by the books of said Bank, as shown at this time, and on all claims against Bank, as approved and allowed by the said Court. J. S. HULET, Co-Receiver. Holbrook, Ariz., March 2, 1922.

Article Text

Answer Is Filed in $54,000 Suit Against First National Bank

That the plaintiffs do not show that they have any right to bring suit, and that they do not state a cause of action, are the allegations made in an answer filed yesterday in the suit of Jesse Hullett and R. E. Putney, receivers of the Holbrook State Bank, of Holbrook, Ariz., versus the First National Bank of Albuquerque.

The answer is long, going into detail in its reply to each of the causes of action set forth in the original complaint. In general, it states that the defendants do not have any knowledge of the various allegations set forth in the original complaint, but that on information they believe that the allegations are false and therefore deny them.

The original complaint was filed on December 24, 1921. It alleged that the First National Bank of Albuquerque was the virtual owner of the Holbrook State bank at the time of the failure of the latter bank. This, the answer denies, alleging that the First National bank here did not control the Arizona bank at the time of its failure. The suit asks judgement for $54,000 against the local bank.

Article Text

NOTICE OF PAYMENT OF DIVIDEND Office of Receiver of Holbrook State Bank. Notice is hereby given that by order of the Judge of the Superior Court, that I will, on the 18th day of March, 1922, pay a dividend of eight percent (8) upon all deposits as represented by the books of said Bank, as shown at this time, and on all claims against Bank, as approved and allowed by the said Court. J. S. HULET, Co-Receiver. Holbrook, Ariz., March 2, 1922.

Article Text

Hearing of First National Bank Case to be Held in Albuquerque 12th

The case of the Holbrook State Bank vs the First National Bank of Albuquerque will come up in that city Sept. 12. The case is over some notes that were taken "without recourse" by the latter bank from the now defunct institution. It is claimed by the plaintiff that these notes were exchanged for others of greater security by the First National people with the bank that failed. The plaintiffs are endeavoring to make the Albuquerque bank responsible for something like $56,000.

J. S. Hulet, receiver for the defunct bank, and Sims Ely, former bookkeeper for the failed bank will go to Albuquerque as witnesses. It is likely that others will also attend the trial as witnesses.-Holbrook Tribune.

Article Text

NOTICE OF SALE OF REAL PROPERTY In the Superior Court of the State of Arizona, in and for the County of Navajo. In The Matter of the Receiver ship of Holbrook State Bank, Jesse S. Hulet, Receiver. Notice is hereby given that in pursuance of an order by the Superior Court of the State 01 Arizona, in and for the county of Navajo, made on the 8th day of November, 1922, in the mat ter of the receivership of said Holbrook State Bank, the under signed receiver of the Holbreck State Bank will sell at private sale in one parcel to the highest bidder upon the terms and con. ditions hereinafter mentionea and subject to confirmation by said Superior Court on or before the 9th day of December. 1922, at 10 o' 'clock A. M. of said day all the right, title, interest and estate of the said Holbrook tate Bank or of the Receiver for the said Holbrook State Bank at the time it become insolvent, on and before the 13th of D. cember. 1920, in and to the real property hereinafter described, and all the title, right and interest that the said bank or receiver for said bank has by operation of law or otherwise acquired other than or in addition to that o the said bank at the time said bank became insolvent, of in and to that certain lot, piect 01 parcel of land situate, lying and being in the town of Holbrook, Navajo County, Arizona, and more particularly described as follows, tc-wit: Lot Ten (10) and Eleven (11) in Block Nineteen (19) Zucks Addition to the Town of Hol. brook, Navajo County, Arizona. Terms and description of sale: Cash, lawful money of the Unit ed States; forty (40) per cent of the purchase money to be paid at time of sale or submit ted with bid; balance to be paid when sale is confirmed; all bids or offers must be in writting and may be leftat the office of Sidney Sapp, attorney for the receiver, at the New Wetzler Building in the town of Holbrook, Navajo County. Arizona. JESSE S. HULET, Receiver. fN10ID1

Article Text

IN THE SUPERIOR COURT of the State of Arizona, In and For the County of Navajo. Holbrook State Bank, a corporation, Jesse S. Hulet, Receiver, Plaintiff, vs. L. A. Decker, Mae Decker and Z. B. Decker, Defendent. NOTICE OF SHERIFF'S SALE ON FORECLOSURE OF MORTGAGE. Under and by virtue of a judgment and decree of foreclosure of attachment lien issued out of the Superior Court of the county of Navajo, State of Arizona, on the 8th day of november, 1922, in the above entitled action wherein the Holbrook State Bank by and through its receiver, Jesse S. Hulet, obtained a judgment and decree against L. A. Decker and May Decker, and Z. B. Decker, defendents, on the said 8th day of November, 1922, and said decree was on the 8th day of November, 1922, recorded in the Judgment Book of said Superior Court, I am commanded to sell all that certain lot, piece and parcel of land situated in the county of Navajo, State of Arizona, and described, towit: Lot 23 T. 12 N., 21 E. (Shumway) 50 acres. Lot 3 and 4 in Block 13 fraction of section T. 14 N., R. 19 E. (Snowflake) 80 Acres. Fraction of section 5 T. 12 N., R. 21 E. 320 acres. Fractional Part of section 5 T. 12 N., R. 19 E. 350 acres. Lot 8 in J. N. Smith survey section 35 T. 13 N., R. 21 E. 15 acres. Section 7. T. 12 N., R. 19 E. 629 acres 50 rods. Notice is here by given that on the 9th day of December, at 10 o'clock A. M. of that day in front of the court house in Holbrook, Navajo County, Arizona, I will in obedience to said order of sale and decree of foreclosure of lien sell the above described property or so much thereof as may be necessary to satisfy plaintiff's judgment with interest thereon and costs and attorneys fees to the highest and best bidder for cash lawful money of the United States. Dated this 8th day of November, 1922. R. L. NEWMAN Sheriff of Navajo County. 11-17-22-12-8-22

Article Text

NOTICE OF SALE OF REAL PROPERTY In the Superior Court of the State of Arizona, in and for the County of Navaj In The Matter of the Receivership of - Holbrook State Bank, Jesse S Halet, Receiver. Notice is hereby given that in pursuance of an order by the Superior Court of the State of Arizona, in and for the county of Navajo, made on the 8th day of November, 1922, in the matter of the receivership of said Holbrook State.Bink, the undersigned receiver of the Holbrook State Bank will sell at private sale in one parcel to the highest bidder upon the terms and conditions hereinafter mentioned and subject to confirmation by said Superior Court on or before the 9th day of December. 1922, at 10 o'clock A. M. of said day all the right, title, interest and estate of the said Holbrook tate Bank or of the Receiver for the said Holbrook State Bank at the time it become insolvent, on and before the 13th of December, 1920, in and to the real property ercinafter described, and all he title; right and interest that the said bank or receiver for aid bank has by operation of law or otherwise acquired other t180 or in addition. to that of ite said bank at the time said bank became insolvent, of in and to that certain lot, piect or parcel of land situate, lying and reing in the town of Hoibrook, Navajo County, Arizona, and more particu'arl; described as follows, to-wit: Lot Ten (10) and Eleven (11) in Block Nineteen (19) Zucks Addition to the Town of Hol brook, Navajo County, Arizona. Terms and description of sale: Cash, lawful monev of the United States: forty (40) per cent of the purchase money to be paid at time of sa'e or submit ted with bid: balance to be paid when sale is confirmed; all bids or offers must be in writing and may be leftat the office of Sidney Sapp, attorney for the receiver, at the New Wetzler Building in the town of Holbrook, Navajo County. Arizona. JESSE S. HULET, Receiver. NIO D1