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

10 settle with Koen on The best terms
possible. This / did, BY paving
him so. When McDermott told me of the
first deficit, he said Mr.. 7. II. Miiburn had
agreed to loan him the money to paw il
bsck, and that ne wanted ne TO draw up
papers to secure the loan. At his request
drew up deed OF trust covering MeDer-
motifs real estate, and direct bill OF sale Of
his furniture and household effects 10 Mil
burns favor. All the money McDermott
collected after / took charge of the business
of the association he reported to me, and II
was properly entered on the books. After he
had pledged all OF his property, negotiated
for him a loan Of 5000, ana lent him $500 Of
my own N oney to start him IN business. Wss
witness before the grand jury whsn they
were considering an indictment sgsinst him
for ENHANCEMENT ef the associations funds,
but did not tell what havs told here, BE-
cause they did not question me so fully.
JOHN D. MLBURN
corroborated hIs broIher's statement shout
the conversation that passed when hcDer-
mott came out 10 his (the brother's) house to
borrow money to psy back the 5000 short
age. He also testified TO the loaning of the
money BY his brother on 3 mole given BIZ
McDermott, secured by mortgage and deed Of
trust. He couldn't take up the note at matu-
rity, added Mr., Milbgrn, and so made new
note which my brother Endorsed and put 10
bank. The original note wac not given up.
The second note was renewed also, and was
finally taken up last fall By the Carver Gin
and Machiae Company, and charged TO
McDsrmott on the books Of the company.
Ii was agreed that my brother should be
held respoasible for it until the company
paid It. Ii is still unpaid, and is in the
hands OF the company. WEen the second
defalcation of about $4,000 came out, McDer-
mott wanted ne 10 make Ii good, but told
him l coudn'. do it on account of the large
amount Of money required In the compAny's
business. From July 10 September my
brother and DIR. Porter wers pressing me 10
settle the GefalcatloD, and l finally told
them | would do 60 before the end of the
year. At last L authorized McDsrmott to go
TO Mr.. Jordan and give him draft on me
st sixty or ninety days. l paid the draft on
presentation, and never got my money back.
At that time l asked McDermott hsM he
came TO get $4,000 behind. His answer was
that he had lost S400 by an employe, and
had spent p large sum during the yellow
fever OF 1879, while be and family we're alb
sent from the city. Before this second defal-
cation L had entered into limited partner.
ship wi'h hia for the sale and erection oil
| oil mill machinery, the machinery 10 be fur.
nished by the Carver Gin and Machine Com
pany. We were to divide equally the profits
| OF The business. We made c0ntrscts for ths
erection of machinery at several places il
Georgia, and did finish a contract At Chester
| s. G.
| Cross examined by Mr.. CARROLL wanted
Mr.. McDermott associated with me for sew
eral reasons. In the frat place, expected
10 secure an old debt OF $1,000. Then l bs
lieved him to be good mechanic and a fail
business man, and thought he could helE
himself and help me, besides paying up tina
debt. Since the second defalcalion my opin
ion OF him has changed. / no longer reg srf
him as an honest man. / swore out ID,
warrant or which he was arrested becsuse
did not consider him 1T man 10 be on th'
community. had previously heard that
warrant was out for him for larceny in Soutl
Csroliaa, and sent for a copy of it. Thi
warrant L swore out before I'got the copy o
the other. l filed complaint agsinst hin
in the Court OF Common Pleas OF Cheste
county, 8. e, to secure $4,000 which tn
firm of Milburn & Med .rnott owes the Car
yer Gin and Machine Company.
Under the questions put by Mr.. Carroll
the wiIEess then went inGo a long explanation
Of the affairs OF AilbHrn 81 McD.rnoli
Before it was concluded the case was coutiu
usd over 10 IL O'Clock tomorrow morning.