Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-05-03

| saw that McDermott was very much die
| tressed. He told me that he was short IN
his accounts; that be had no friends upon
whom he could depend, and unless my
| brother u. ID. Miiburn) and myself helped
| him out, he would be in a bad AK -Ha
toned that DR.. Porter had threatened him
-siih the f4snitesttaIy. | told him that L
would see Dr.. Porter the next day, which l
did. 1t was in the bank, and McDermott
| happened to be present at the time. DR..
| Porter wouldn't listen to anything, and said
| if he had to pay for the shortage he would
| put McDermott in the psnitentiary, if he
| could. l loaned McDermott the money,
| 5000. Some time sfterwsrd Mr. J ordan re-
ported to me that Med rmott was snort
S21G0 or $1,000, and that he (Jordan)
| wanted DR.. Porter and myself TO make
| it good. That AMOUNT was paid by
| my brother. 1 know nothing about the
business of the association, except that
It's funds were deposited in the Fourth Ma
| tiopal Bank, and after that concern was dis
| solved, in the German National Bank, of
| which l am president. The deposits were
made by the secretary, McDermott, TO the
credit of the association, and all checks
| against them were aligned by DR.. Porter, as
| treasurer. The only d. posit m sde in February
| 1880, was one of S285. McDermott told me
| he hsd found out he was short from the re-
4
books He partially secured me in the loan
! made him by giving me a second mortgage
on his house and lot on Pontotoc street. He
| has not paid me the principal of the loan,
but paid me the interest
Cross-examined by Mr.. Carroll:
| did you not receive the amount of q rote
for $3.50 757'
"The Carver Gin Company gave me credit
| for it,"
"Did you not then get an equivalent for
Eyes. I got an equivalent
"In law and in fact have you not been
paid?"
| Il have been paid; 1 don't know whether it
was with McDsrmott's money or that of the
Carver Gin Company. l did not set this
prosecution on foot. Don't know whether
my brother paid the amount Of McDermutt's
secoud defalcstion or not; only heard him
say he did. If the note of McDsrmott's that
l hold is not paid I'll have to take it back
was given credit for it. l Endorsed the rote
in order 10 get the money from the bank.
and took it cut when paid the money back"
| JOHN w GRAHAM
/ went over the books of the association
once with w. w. Currie and later with Nc
Dermott and Jordan. On the first investiga.
and credited on the books 5000 which he b d
not accounted for. We found this result
after posting up from the books of original
entry, the roll book. stub OF check book and
the receipt book. We had nothing else to
go by, ss the journal was not posted. Our
data was full and complete.
In the course of the cross eI animation
witness pointed out in the roll book num-
Der of entries Of money paid in dues made
L - IN .. Il l. Al
ceipts Of the subscribers showed were only
ten per cent. of the amounts paid-for in
stance, fifty cents for SIS, and so on. We cor
rscled these entries, he con iuued, to the ex-
| tent OF sS73-that ia, we credited the sub
| soribers with this amount instead of $37 and
come csnis, rs they had been made in the
| roll book. McDermstt employed Carrie and
| myself to make the examination. He told
me that he thought he owed the association
| some money on account of Wingste's
loose handling Of the cash, but
was surprised 10 learn that the shortage
amounted to 5000. When we made our re-
port Wingste was employed in the German
National Bank. Don't know that McDer-
mott ever spoke TO him about the matter.
The second examination OF the books showed
that McDermott was short S206S from money
collected by him aud not paid in. The cause
of this might have been inaccurate book
keeping l don't consider McDermott a
good book-keeper. This investigation chow
ed that loan of S7S7, made to Mrs. G. S. E.
Koen, had been paid in and not entered on
the journal, as ii should have been. The
ledger rhowsd an entry 10 red ink on the
credit side 10 the effect that the loan had
been paid, but did not state the amount.
The entry was in McDermott'a handwriting.
R.D JORDAN.
Twas attorney for the association up to the
time OF ths first shortage, and then took the
business management and handling of the
cash. McDermott wanted TO quit, but per-
suaded him TO remain and assIst me with his
experience in the business. In July, 1880,
he made a statement OF the affairs Of the
association, which was received by that body.
Ny recollection is that it was made after the
deficit Of 1920 we discovered. In July,
1881, Mr.. John Graham made statement of
the business OF the year past which did not
tally with the one made by Currie and him
self IN 1880, and Graham explained the diff
ference by sayiRg that the statement present.
ed for 1850 was not the one CurIie and him
sslf had made. The discrepancy was in the
amount of stock. The directors thsreupsn
appointed a committee of three to employ an
accountant to examine the books from July
!, 1877, 10 July ], 1881. The 500 or $500
journal as it should have done. Ths fact of
the payment WAS entered 10 the ledger, but
the amount was not given.
Cross-sxamined BY Col. Gan,t-I never
knew Of an important entry like that being
70 sde in such a way. MeDermott afttrwsrd
produced a statement of the settlement he
had made with Mrs. Koen. THE statement
was read P. B. Jones was employed to
make the investigation, and go. up a new set
Of beoks. They did net tally with the state
meut made by Graham. I told McDermolt
about it, and be seemed very much worried;
said he thought everything was settled; that
he wanted to pay every cent he owed The as
ISOLATION. | told him that Mrs. Koen's loan
hsd bsen repaid, and there was nothing 10
show for il. He said he would examine his
books and papers to see wha; had become of
the money. 1t was after this that he pro-
| auced the statement of the settlement. Ny
attention was frat called TO the matter by
the accountant, P. E. JonsF. Mr.. Keen
afterwzrd made affidavit before Justice Gal
! loway that The loan had been repaid, and
demanded that the association return to bin
| SIS that had been oyerpaid according to
Jones's figures. The directors declined to
pay the amount, as they had no evidence of
the payment of the loan, bat instructed me