The herald and news. [volume] (Newberry S.C.) 1903-1937, 1910-10-14

mlttee in regard to these oVerdrafts
was investigated farther, but among
the principal important points brought
out were that the committee had de-
manded the payment of certain over
drafts of Mr.. Carlisle by the first of
December, 1908, the date Of this or
der being fixed at about a month
prior to this time. From the loose
leaves from the bank books, brought
to the court, a list Of the checks
drawn by Mr.. Carlisle after he had
been asked to make good the over
drafts was read Letters were also
offered in evidence, from Mr.. Mat
thews, after he bad been made presi-
dent, from Mr.. Carlisle, authorizing
transfer of bank stock.
In reply to questions Of Mr. Coch-
rane, Mr.. Matthews stated that the
capital of the bank was s150,000, and
that its surplus, at the time in ques-
ton, was about $4,000. This in
cluded the bad debts" besides the
Indebtedness of Mr.. Carlisle, amount
ed to about $4,000, and that includ-
ing all these debts, the surplus was
impaired TO such an extent that it
would not have brought par.
Mr.. Dominick, of the firm of Blease
& Dominick, representing Mr.. Carlisle,
asked Mr.. Matthews to name the de-
posts made by Mr.. Carlisle during
the last two months in 1908, and to
compute the amount Of the checks
drawn by him. The evidence obtained
in this way appeared to show that
Mr.. Carlisle had reduced his over
drafts to considerable extent, after
he had been notified by the committee
to make good the overdraft by the first
Of December. The deposits made, it
was brought out, were the salary of
the defendant.
In answer to questions of Mr.
Dominick, Mr.. Matthews stated that
he had been connected with the bank
since 1906, that in 1907 he was elect
ed director, and in 1909 president;
that it was on the Goth of March that
he had been appointed on the dis
count committee. 1t was brought
out that the duty of the directors was
to keep a supervision of the affairs
of the bank, and Mr. Dominick at
tempted to have Mr.. Matthews show
the number of directors meetings that
had been held since the establish
ment Of the bank, but on account of
the time which would be consumed,
this was passed over until a later
time, though the attorney stated that
it was very material to the case.
Mr. Matthews stated that he did
not know anything at all about in
debtedness Of Mr.. Carlisle until he
became director, and then did not
learn the details until 1908. An ex-
animation of the books was made by
Mr.. Matthews to show the overdrafts,
Indebtedness, etc., of Mr.. Carlisle On
his personal account, during 1907.
These figures were given, and it was
stated that on the Oath of December
the AMOUNT Of these overdrafts was
S3,31S.S5, and Mr.. Matthews stated
that he did not know of any security.
At that time, stated Mr. Matthews, in
answer to questions tending to find
out why the directors did not take
some steps to investigate the mat
ter, he did not know of the over
drafts of Mr.. Carlisle, being under
the information that director had
no right to look over the books of
the bank, but that he knew that Mr..
Carlisle had overdrawn.
A reference to the books was made
to get the amount due the bank, in
the way Of notes, during 1907, and
the list of these was read, most Of
them being signed only by Mr.. Car
isle These totalled s14,717.15, and
together with the overdraft, made a
rough total Indebtedness of about
$4,000 during 1907.
yet during 1907, while you we're
a director, having charge Of looking
into this matter, this was allowed to
20 on" asked Mr.. Domin1ck, and Mr..
Matthews answered yes" When ask
ed what was done in regard to these
accounts, by the board Of directors
through the tine that he Was Oh the
board, from 1907 20 1910, Mr.. Mat
thewB htated that nothing vas done
in 1907, and nothing In 1908, except
What appeared on she minute book, re-