The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1910-06-16
BORROWSTOO MUCH MONEY
FORMER PRESIDENT OF BANK
OF CHAPLIN UNDER ARREST.
J. A. Blackwelder is Said to Have Got
Upwards of $4,OOO-Pot of
Gold Recalled.

Lexington, June 6.-J. A. Black
welder, former president of aud
prime mover in the organization OF
the Bank Of Chaplin, located in this
: county, was arrested at his home in
Newberry to-day by Deputy Sheriff
Miller upon warrant sworn out be-
fore Magistrate Thos. L. Harman on
Saturday by State Bank Examiner
Giles L. Wilson, of Spartanburg
charging Mr.. Blackwelder with vio-
lation of the State banking laws.
The case is without parallel in
the history of the state, it being the
first of the kind ever brought to light,
and, therefore, few facts and the
law governing the case will be of gen
eral interest to the public.
The Affidavit.
The affidavit of Mr.. Wilson sets cut
in part that ~. A. Blackwelder at
Chaplin, said county and State, did
on September Is, 1908, and other
days prior thereto, violate the bank
ing laws of this State, Vol. /, code Of
1902, section 1777, against the peace
and dignity of this State and against
the statutes in such cases made and
provided, and that deponent, and j..
S. Wessinger and ]. F. Honeycutt
are material witnesses to prove the
same"
Section 1777, civil code, under
which the warrant was issued says:
''No director or other officer of any
such bank shall borrow therefrom,
except on good security to be offered
in writing by two-thirds of the whole
board of directors of such bank, and
no director or other officer of any
such bank shall become an endorser
or security upon any loan or credit
made or existing to any other direc'
tor or officer of such bank; provided.
that the total liabilities to any such
bank of any director, or, of any firm
OF which such director is member
or any company or corporation of
which such director is an officer
shall at no time exceed one-tenth
part of the amount of the capital
stock of any such bank actually paid
in"
Borrowed From Bank.
The Bank of Chaplin was chartered
a few years ago with a capital of
$4,000. J. A. Blackwelder was its
first president and remained at
its head until little over year ago,
when he was succeeded by J. S: Wes-
singer, a leading merchant of the
town. While it is not set out in the
warrant, it is stated that Mr.. Black
welder borrowed from the bank the
sum of $1,000 on one occasion fo.
himself, and on another occasion, it
is said that he borrowed $4,000 for
another enterprise in Newberry in
which he and his wife own practi-
cally al: OF the stock. In addition
to these amounts, it is said that his
account at the bank is overdrawn 10
the amount of several hundred dol
liars the entire sum being something
like $4,000. Mr.. Wilson stated while
here that he had been very lenient
with the accused and had accepted
promises for long time, but each
time Mr.. Blackwelder failed to make
good the amounts due the bank. He
stated that the case will be prosecut-
ed to the full limit of the law, and
that no compromise will now be ac
cepted.
Fine and Imprisonment.
= The crime is punishable, under
section 21S, criminal code, by fine
or Imprisonment, at the discretion
of the trial judge.
1t will be recalled that Mr.. Black
welder came before the public 4
couple of years ago by his alleged
connection with the supposed find
ing of a pot of gold under house
on Huger street in the city of Co.
lumbia. 1t was rumored that he re-
ceived in the neighborhood of s1,So1
on this occasion.
While the bank of Chaplin may
lose something like $4,000, its SOL
vency will not be impaired by the
loss, as it has had a most successful
business and has ample funds to re-
place the amount, without in the
least affecting the banks resonsi-
bility.
Mr.. Blackwelder was not brought
to Lexington, but was allowed TO
give bond in Newberry in the sum Of
$1,000 for his appearance at the
coming term of court of general ses-
eionc for thic oounty