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

finance and discount committees, to
approve the loans, etc., were next
brought up. Mr.. Mower stated that
in a general way the Indebtedness Of
Mr.. Carlisle and the Cold Point Gran
ite company were brought to the no
tice of the board by this committee,
but no definite action taken in regard
to them, except general discussion
that they should be paid. Mr.. Dom
mick asked if the directors did not
pass these resolutions to relieve
themselves of civil liability in the mat
ters. Mr.. Mower admitted that the
board would be liable in some cases
Of this nature, but it was not firmly
established that these notes and over
drafts came in this class.
The minute book Of directors meet
ings was gotten, and a meeting of
1905 was read, where resolution had
been passed authorizing the commit
tee to go over the loans of the bank
and make a report. The minutes did
not show where any such report was
ever made, and Mr. Mower could not
recall any such report. Again in
1906, such an authorization was To-
Gated in the minutes, and meeting
was found in December of that year,
where the committee had made a ver-
bal report, but there was nothing to
show that it had been approved or
otherwise. In 1907, also, the minutes
showed where committees had been
appointed to count the cash and go
over the assets, but no meeting could
be found where reports from either
had been made. Mr.. Mower stated
that he had been on the discount COM
mittee in 1906, but his testimony did
not appear to show that this commit
tee at that time had taken any decisive
step in the matter Of the loans and
oyerdrafts of Mr.. Carlisle.
1t was also brought out that Mr..
Mower had secured a majority Of the
stock of the bank, during the fall Of
1905,and had an intention of changing
the administration, first, as he stat
ed, because he believed it to be to the
best interest of the bank, to change
this, and second, because he had been
informed of the intention of the presi-
dent to take himself and another men,
Der off the board of directors. He
told also of a compromise which had
been effected by which Mr.. Carlisle
was to be allowed to remain president
for another twelve months, but was to
resign at the end of that period, and
earlier, if Mr. Mower wished. Mr..
Mower stated that ne had been at the
directors meeting when the compro-
mise had been proposed by Mr.. Car
Isle for his personal Indebtedness,
and the note, which was to have been
renewed by Mr.. Aull and Mr.. Carlisle,
received some attention. 1t developed
that all the directors of the bank were
indebted to it to some extent during
a period of years.
Mr.. Cochrane asked if these loans
had not all been made through the
presidents hands, and it was brought
out that no other officer could borrow
without the knowledge of the
president. But that the president
could borrow with the knowledge of
only his subordinates.
Mr.. F. n. Martin, who was cashier
and director of the bank during 1906,
and connected with it as bookkeeper
before that time beginning this posi-
tion in 1904, next came to the stand.
He stated that he had had conversa-
tions with Mr.. Carlisle regarding
overdrafts, etc., and along the general
lines of the policy of the bank, etc.,
but did not remember the details Of
the conversation. AS bookkeeper, Mr..
Martin stated that he had known of
the overdrafts and notes of Mr.. Car
Isle and of the Cold Point Granite
company. When asked what steps he
had taken, during his year as cashier,
in regard to these overdrafts, he said
that he had only tried to keep them
III check" Notwithstanding this,
however, it was brought out that dur
ing his term of cashier the indebted
ness Of the Cold Point Granite COM
pany had increased from $500 to about
$4,000, and of Mr.. Carlisle from about
$50 to about s840. When asked if
there had been a business rupture
between himself and Mr.. Carlisle, he
stated that they had had a disagree
ment. Mr.. Cochran cross-examined
the witness to show that the money