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

circumstances, would be shown to be
about $4,000. The government
would also show, according to Mr.
Cochrane, that the directors had pass
ed resolutions and taken other steps
to prevent this misapplication of the
funds. Also, that the Cold Point
Granite company, was an insolVent
corporation from its incipiency, and
that no money had actually beeen paid
out by the incorporators. That Mr..
Carlisle during 1908, was an officer
and stockholder Of the Cold Point
Granite company, and its president,
secretary and treasurer, and that as
an officer, he had made overdrafts on
the deposits in the National Bank of
Newberry, and knew, or should have
known that by his action Of permit
ting overdrafts from time to time, the
association would be cheated, and
that the board of directors did not au-
thorize this, but tried to check it. The
government would show that the total
amour of the overdrafts on the ac-
count of this company, was about sl5,-
900, and that this amount was lost to
the association.
The government would also show,
said Mr. Cochrane, that Mr.. Carlisle
as president of the Cold Point Gran
ite company, drew three separate
drafts in favor of the Cold Point
Granite company, and obtained the
actual cash. These drafts were re-
fused payment, and when the persons
upon whom drawn did not pay the
money, the amount was not turned
over to the bank. The government
would also show, stated Mr.. Cochrane,
that one J. J. Lane was indebted to
the bank at the time Mr.. Carlisle was
president, and was willing to pay to
Mr.. Carlisle s4OO for the extension Of
this Indebtedness, this money was not
paid to the bank.
Mr.. B. C. Matthews, present presi-
dent of the Newberry National bank,
was the first witness placed upon the
stand, after the attorney had finish
ed his statement of the case. He re-
NAMED there only short time, the
only matters brought up at this time
being the Identification of the records
which had been brought up from New
berry, for the case Mr.. J. H. Hunter
was also placed on the stand, TO testi-
fy that he had been secretary of the
directors for time, and that the
minutes as kept by him were correct
to the best Of his knowledge. The
same evidence was obtained from Mr..
F. n Martin, at one time secretary for
the directors meeting.
While Mr.. Hunter was on the stand,
however, a number of extracts from
the minutes were read, showing the
action of the directors to prevent Mr..
Carlisle from making these alleged
loans and discounts in violation Of
the banking laws. The minutes con-
tanned resolutions, adopted to prevent
any officer from making loans, ex-
ceeding certain minimums, without
the consent and approval Of certain
committees, the finance committee, at
one time, and the discount committee
at another, the wording, figures, etc.,
of the resolution being amended from
time to time, but appearing to all
intents to preventing an officer from
making loans without the knowledge
and approval of certain number Of
the directors These excerpts from
the minutes began with September,
1901, and continued through April 6,
1908.
Mr.. Matthews was then again put
on the stand. After a number of
checks, notes, etc., bearing on the
case. had been identified, intended to
be put in evidence later, stated that
he had been put on the discount COM
mittee, mentioned above, during 1908,
by the president. He was given the
minute book of this committee, which
at that time had the task Of approving
the loans, etc., Of the president, as
mentioned, and was asked by the dis
trict attorney if there was any au-
thor1zation for overdrafts on the per
sonal account Of Mr.. Carlisle. Mr..
Matthews stated that he had recently
looked through the book and could
ind none. There was none, Ii vas
also brought out, for those On the
account Of the Cold Point Granite
company, and no authorization OF the