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

After some hesitation, Mr.. Carlisle
finally agreed to these terms, and Mr..
Mower was not notified. The direc-
tors met, and Mr.. Carlisle was elected
president, and soon after Mr.. Martin
was made cashier Mr.. Johnstone
stated also, that he advised Mr.. Car
Isle not to send the message accept
ing these terms to Mr.. Mower, If he
did not intend to stick to them, and
that after some hesitation Mr.. Car
Isle had stated that he would abide
by the terms.
Mr.. Johnstone was asked what had
been said by Mr. Carlisle in regard
to his Indebtedness. The latter had
stated, during the discussion at the
conference before the meeting OF the
directors, that they may put me OUT
but if they do I will not pay a dol
lar of my Indebtedness, and they can
not make me pay it, for I have moth
ing they can touch" Mr.. Johnson
stated that he had advised Mr.. Car
Isle not to take any position Of this
kind, and the latter had after some
time, stated that he would pay all his
Indebtedness, stating that he had his
salary to pay some of it, and that he
could work and pay the rest in some
way.
After the recess for dinner, Mr..
tombstone again took the stand, and
continued his testimony. He was ask
ed by Mr.. Cochrane about the reduc-
ton of Mr.. Carlisle's Indebtedness
after the return from the visit to the
comptroller, which he stated to have
been reduced, in the manner men
toned above, to the amount OF about
ten or twelve thousand dollars. When
asked if the agreement with Mr.. Now
er in regard to retiring at the end
of IL months, was carried out by Mr.
Carlisle, Mr.. tombstone replied that
he regretted to say it was not.
He was asked if he had any con-
versation with Mr.. Carlisle during the
years 1907 and 1908, in regard to
his Indebtedness. Mr.. Johnstone stat
ed that he had, and also with refer
ence to the Indebtedness of the Cold
Point Granite company, and the over
drafts of both. He could not speak
with defniteness, he stated, but he
had brought the matter to Mr.. Car
isles attention a number Of tim2s,
urging that the situation would not
meet the approval of the comptroller
and that the bank was liable to get
into more trouble, if he were notified
of it.
When asked if he, in 1907, APPROX
ed of Mr.. Carlisle's overdrafts, he
stated that he had no recollection OF
doing anything Of the kind. He stated
that he was appointed on the discount
committee during this year with Mr..
S. B. Aull and Mr.. ]. H. Hunter, but
did not recollect being invited to a
single meeting. He stated, also, that
he did not approve the notes OF Mr..
Carlisle to cover his overdrafts, and
claimed to be the author of the reso-
luton adopted by the board, prohibit
ing the making of these notes without
the approval of the committee.
Two papers, discount slip, and
note of the Cold Point Granite COM
pany, during December, 1907, were
put in evidence, and Mr.. Johnson was
asked if he had approved this note.
He replied that he unquestionably did
not, and that it had been put on the
books without his knowledge. A num-
ber of notes of Mr.. Carlisle were put
in evidence, and Mr.. Johnstone stat
ed that he had no recollection of ever
approving them.
When asked about the condition OF
tie Cold Point Granite company dur
ing 1907 and 1908, he stated that he
lad made an investigation into its
affairs, and estimated that it's as
sets were about $4,000, and its liza
bilities about $4,000 to $4,000. When
asked if he had ever found any evi-
dence that the company had ever been
solvent, he characterized it as a crock
and an opportunity.
Mr.. Cochrane asked Mr.. Johnstone
to explain about the mortgage which
had been obtained on the company,
and the agreement between the banks
in regard to it. Mr.. Johnstone stated
that the Peoples National Bank OF
Prosprity, the National Bank of New
berry, the Exchange Bank OF New
berry, the South Carolina Loan and
ho1 oil