The herald and news. [volume] (Newberry S.C.) 1903-1937, 1910-10-18

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received about $4,000 back past due
interest on the notes Of the company
in it's possession. By this means it
got back into it's current files, these
past due notes, and also got a mort
gage by which it was secured for the
$500 remaining, which had been put
into the corporation.
Mr.. Johnstone was also asked in re-
gard to the letter from Blease &
Dominick, attorney for Mr.. Carlisle.
demanding the return of the insur-
ance policies, which had been offered
among other security for settlement
of the personal Indebtedness, or re-
ceipt in full for the settlement if this
indebtedness. He stated that he was
absent from the city when this matter
was brought up in the directors meet
ing, and accepted, but when he look
ed into it he estimated that Settle
ment at about thirty-three to thirty
five cents on the dollar, the toal in
debtedness being about $4,000. In
regard to the notes, which were to
have been renewed under the terms
of this compromise Mr.. Johnstone
stated that the bank was placed in
the position that it had a note about
six months past due. According to
the rules, it would have been charged
off, and would thus have diminished
the surplus. For this reason, it was
to the banks interest to have the note
renewed, and brought up to date, as
had been promised by Mr.. Carlisle,
but which had not been done. He
stated that the bank was ready to car
ry out its settlement, when the papers
were renewed in due form. Mr.. John.
son stated also, in regard to the poll
cies, which had been retained by the
bank, that the government examiner,
had told them not to part with these
papers, as the government wanted
them as evidence.
Mr. Dominick stated that the de-
fense had no questions to ask the wit
hess, and Mr.. F. P. MCGOWAN. Of
Laurens, was next pl .ced on the
stand. Among the counts in the in
dlctment was one alleging that Mr..
Carlisle had certified a check when
the party had no money on deposit to
meet it. A check was placed in evil
dence, certified by Mr.. Carlisle, which
was identified by Mr.. MCGOWAN. This
check was payable to F. P. MCGOWAN,
5000, and was dated January 2, 1909
It was signed by j. A. Blackwelder.
Mr.. MCGOWAN stated that he had pre-
sented the check TO the bank for pay
ment, which had been refused, and
had then entered suit, making Mr..
Carlisle, Mr.. Blackwelder, and the
bank parties to the suit. The check,
it appeared, had finally been paid by
Mr.. Carlisle.
In the cross-examination by Mr..
Dominick, it developed that the trans
action had taken place on the 31st of
December, 1908, but that the check
had been post-dated. When asked
why this was, it was learned that Mr..
Carlisle had stated, while certifying
the check that Mr.. Blackwelder would
have sufficient funds in the bank to
meet it on the second of January,
since the semi-annual dividend would
be declared on that day, Mr.. Black
Welder being a stockholder.
Mr.. ]. B. Hunter, an attorney at
Newberry, Mr.. Buford, the sheriff of
Newberry county; Mr.. J. D. Bell, tel
Ter of the National Bank of Columbia;
Mr.. W. W. Wheeler, president OF the
Peoples National Bank of Prosperity,
and Mr.. NJ. L. Spearman, cashier of
the Exchange bank of Newberry, were
all placed on the stand yesterday af-
ternoon by the prosecution to show
the alleged insolvency of the defend
ant, and of the Cold Point Granite
company. Numerous judgments, OBJ
tanned from time to time against them,
were placed in evidence, and the diff
ferent bankers made statements from
memorandums from their books,
showing notes which had been renew
ed from time to time by both Mr. Car
Isle individually, and as president of
the Granite company, and which were
for the most part, either charg-
ed to profit and loss, or collected by
Judgment. Real estate dealings Of
Mr.. Carlisle we're gone into rather
deeply, and several sales of property
were shown the proceeds from which