The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1909-08-05
DENIES GUILT
Cashier of Orr Mills an Alleged
Defaulter.
BOOKS ARE TANGLED

He Is Placed OnOer Arreso az 'A>
instance of the President Of the
M;lI-Uncashed Checks and Kat
Eaten Paper Money is Found In
the Vault.
Calhoun Harris, secretary and as
sistant cashier Of the Orr cot.on
mills. located at Anderson was ar
rested Tuesday morning in that city
on a warrant obtained by President
D. Hammett, charging breach OF
trust it being alleged that he mis-
appropriated $4,000 or more OF the
company's funds. Harris denies ever
having misappropriated one dollar Oh
the company's money and tnat every
thing viii, be found all right "heh
the expert accountants get through
with auditing the books.
The first intimation OF snort
age came on Tuesday of last week.
About two weeks ago two account
ants of the American Audit Company
went to Anderson to audit the DOCKS
of the mills, as is customary about
once a year. After working for a
few DAYS the experts found one or
two items which did not appear cor
rect On further examination 1t ap-
neared that Mr.. Harris was short IN
his account $4,000 and when his
attention was called to 1t he SAID
the showing was correct. but claim
cd that it was due to clerical er-
rors.
President Hammett and the dlrec-
tors questioned Mr.. Harris closely
and were disposed to believe hlm'
when he insisted that the shortage
was due to clerical errors. AS the
investigation proceeded, however,
many false entries were found and
many things appeared which did not
tend to clear Mr. Harris from sus-
nicion. It was found chat he not
only made false entries to make cor
rect balances but that he also had
been kiting checks from one bank
to another and that in many instanc-
es he had given the mill his own,
personal checks to account for cash
which the mill should have had on
hand. had entered these checks on
the books of the mill and then mad
never presented these checks to the
bank for payment.
In another instance, a batch OF
personal checks from a merchant IN
Anderson were found in the vault
of the mill Office which had never
been presented to the bank for pay
ment. These checks bore different
dates, several years old. They had
been entered on the books OF the
mill, showing that the merchant
had paid his account. The books
show that the mill on one occasion
loaned $4,000 to Harris. A few
weeks later it appeared that TINS
loan was repaid. A personal check
signed by Mr.. Harris was found in
the vault for the amount OF the
loan. the dates corresponding with
the books entries.
In addition to these checks there
were found in the vault many par
cells and packages of money, some
in old envelopes. some in old pastH-
board boxes and some in coin
sacks. Some of the money was IN
bills and had lain in the vault until
some of it had been eaten and part
ly demolished by rats All of these
items will aggregate about S6'ooo
to $4,000.
Mr.. Harris was for years treasur-
er of the First Presbyterian church.
In the vault were found a great
many envelopes which the members
of the congregation use on Sundays
in making their payments to the
church. These envelopes bear the
name of the contributor and the
amount contributed. There were
dozens of these envelopes that were
never opened, some Of them dating
as far back as five years. There
has been .tound one instance OF
where checks of the mill had been
used by Mr.. Harris in setting the
church account at the bank.
The experts Of the auditing COM
many say that the accounts were IN
worse shape than any they have ever
seen. They say that it will take
them several months to verify all
entries. At the same time 1t is
known that the shortage will in no
wise cripple the mill. as large sur
plus has been accumulated and the
stock Is worth more than par. Mr..
Harris has been secretary and as
sistant cashier OF the Orr mills since
their establishment. He received
a good salary but has not lived en-
travagantly and has not shown. any
signs of living beyond his means.
His books have been examined
repeatedly by different auditing COM
panies, including the one now check
ing the accounts. 1t appears, how
ever, that his accounts have been
...a,o. fo- eovara1 yporc and that no