The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-01-15


All the goods were not paid for. Does
not know that his clerk, Mr.. Poisson,
knew of the mortgage.
The deed of assignment of Adrian IL
yollers, dated June 90, 1898, was adj
mitted as evidence, and the counsel for
plaintiff rested their case.
Col. John w. Atkinson was the first
witness called by the counsel for de
PENDANTS. He said that he had been
director of the Bank of New Hanover
for fifteen years, and remembered that
the bank took a mortgage from
Adrian d Vollers on February q, 1898.
I'm the fall Of 1890. the President of the
bank, Mr.. Bates. was taken sick and
went to Europe and the Vice-Presi-
dent. Mr.. Williams, was made Presi-
dent and an investigation revealed
that Adrian &, Vollers owed the bank
about 500, 900, and the directors went
TO work to secure the debt, and nego-
tiations were entered upon with the
firm. They promised to pay 100000
and give us collateral for 100000 more.
This they failed to do, but soon after
wards turned over to us bills receiva-
BILE. endorsed TO the bank, and thus
reduced their debt $4,000. We were
pushing IIl$IIis anu Oait fhi'' ''hA'
Adrian. and he said he couldn't under
stand why we were uneasy, that the
firm was worth 100000 above all ln-
debtedness: that his book keeper was
at that time making up balance
sheet of his business. Soon after tins
Mr.. Bates, the President of the bank,
and | went down and investigated this
balance sheet. The balance sheet
showed assets OF about 100000 over
all liabilities. We went over the items
and thought he had overestinated I
some items. and we cut 1T down TO
100000. This did not include any indl-
vdual property. We reported this TO
the bank. But we continued to press
them for what they owed us, but not
succeeding in gaining anything, we
asked for more securities. They offer
ed to give bill of sale for the whole
store | went to see them sofrequentiy
that they seemed to get worried with
me. and Mr.. Williams then went.
Finally one night in the directors
room. Mr.. Adrian offered to give
mortgage on the realty for $4,000, and
this proposition was reduced to writ
ing by Mr.. Bates and signed by Mr..
Vollers This proposition was not ac-
cepted in its entirety by the board OF
directors. / applied to Mr.. Martin,
Adrian & Vollers' attorney, to draw a
mortgage for the firm. The part OF
the proposition not agreed to ny the
directors was not TO have the mort
gage recorded. The firm was solvent
and regarded to be worth at least
100000 above all indebtedness. The
mortgage did not include some 5000
900 Of their property. They said their
liabilities outside of the bank were
very small. Their individual property
amounted in the aggregate to about
1000. Our intention in taking the
mortgage was simply TO secure the
debt. and not TO aid them in defraud-
ing ANYBODY. We gave no thought TO
any other creditors, and thought them
perfectly solvent. / afterwards sold
them $500 or 5000 worth of rice on
credit, and later got my money. No
body that know of was ever author
lied to conceal the mortgage to bolster
up the firm"
on cross-examination said Adrian
and yollers were not during the time
having interest '.The bank took no
Judgment. The capital stock of the
ed i'm the mortgage was 4 per cent. 1t
was made thus low as an inducement
10 give the mortgage. The mortgage
was recorded the morning the bank as
signed. / instructed the assignment
papers to be drawn on Sunday night,
and Monday morning the mortgage
was recorded. Never told anybody
we had the mortgage. The morning
before the bank failed / regarded the
bank as solid. and that after full in
vestioation. Mr.. Xollers was a direc
tor in the bank but did not attend
the meetings Mr.. Davis was the
banks attorney. also Mr.. Martin,
Adrian and NolIers' attorney, did
legal work for us occasionally. Never
told Adrian or yollers that the bank
did not accept the proposition not TO
record the mortgage. ! think there
was some understanding, though, that
it would not be recorded as long as
everything went along alright. be-
lieyed the firm to be solvent when the
mortgage was taken
Isaac Bates was the next witness
sworn. He said he was president OF
the Bank of New Hanover for many
years. and remembered the mortgage
given by Adrian and Nollers. Both
had real estate TO the value of some
$780, 900 outside of the real estate i'm
cluded in the mortgage. Knew they
had considerable personal property,
probably $4,000 or $4,000. That
Adrian and Vollers did pay inter-
est by discounting new notes. Corro
borates Col. Atkinson as to negotia-
tions in regard to getting security
from Adrian and Volers. Doesn't
know whether this proposition whenre
duced to writing was kept with the
Adrian and Vollers papers or not. Mr..
Adrian and Vollers were on bad
terms and he saw them both and told
them the bank was willing not to
record the mortgage if the interest on
the debt was paid and everything went
along satisfactorily, but the directors
would not absolutely withhold it from
being recorded. Two examinations Of
Adrian and Vollers' books were made.
Corroborated Col. Atkinson as to
scaling assets 40 per cent. No agree
fuent as IN hoIgtpriuo nm their credit