The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1914-11-27

hoi 'ihlO W SSC tie cash WIFI WHICH 10
pay in full. He first asked until the
following Sunday, and then for three
days.
Colonel Smith sad: 81 wouldn't
give you a minute he testiedfi. Mr..
Bradley, Commonwealth ATTORNEY,
ton Of the witness, asking the price
ton of tbs witness, asking the price
OF the bank stock at the time of clos
ing, which witness said was $3.50 a
share.
Mr. Alexander enumerated his per-
sonal assets just prior to the closing
OF the bank to show that he was SOL
vent and stated that his individual
credit and that of the bank was both
good up to the closing of the bank.
Asked if he received the deposit made
by prosecuting witness, Doty, he said
he did but he did not believe then nor
did he believe now that the bank was
insolvent. He testified that the pass
book of May Wilson showing deposit
of $3.50 was written by him except the
figures, that he did not make the fig
ureS, that he did not make the figures
and that figures had been erased and
written over and the figures now in
the book were not made by him.
Dead" notes of Miss Lizzie Grimes,
Mrs. Virgins, ]. G. Redmon, w. I.
RedmOn and others were shown him
and he was asked WAC got the money
on these dead" notes. He said he
got them, that he had already Dor
rOwed the limit from the bank and
took this method of borrowing fur
Their, believing thath was perfectly
good and could pay them at any time.
He considered these dead" notes re
entered as assets OF the bank, as his
personal obligations and he only used
in this way notes Of such persons as
he considered his best friends.
He went into detail as TO how these
notes were taken and insisted that
each person who u:ecutli one of
them was told what use he would
make of them.
He stated that the notes of the
bank, which are held as collateral on
the Kriener loan of $37 800, were am
pie security on that note. They were
taken out of Mr.. Kriener's box to
show the bank examiner when he
came to examine the bank, but they
were held by Mr.. Kriener as security
for his loan to the hank.
Witness explained the borrowing of
the $37 500 of government bonds from
MI Kriener in this way:
He said that he had been-ill in a
Cincinnati hospital for some time and
when he returned he found that his
bank had rediscOunted with the Fifth
and Third National Bank of Cincin-
natl to the extent or $4,000 and that
the Cincinnati bank wrote him that
his loan was too large and asked him
TO cut it down, and that the Kreiner
bonds were borrowed and that amount
OF this Indebtedness OF the bank to
the Fifth and Third was taken up.
Witness stated that he got the ben
eft OF the notes to E. II. Owens, j.
a. Wilson, E. B. Sparks, Mrs. Rosa
Ashurst, Mrs. Rudisill and various
others, aggregating many thousands
of dollars. They were notes Of the
bank to these parties for money Dor
rowed from them.
Witness, replying TO question, stat
ed that he was formerly connected
With thee Id Northern Bank and when
it liquidated he formed a bank of his
own, and finally the old balances left
over from the Northern Bank were
transferred to his bank. Asked if he
had not taken these balances and
placed them to his own credit, he an
swered Eyes, l did that" When asked
whether, when the directors declared
the last dividend, he had told them of
the condition of the bank and that all
these dead notes were among the as
sets, he answered:
Il did not; they had the right to
examine the notes at any time"
Asked if he didn't know it was
wrong to borrow money in the banks
name for his individual use he said
mo. not so long as / was able to re-
pay it.
He stated that he directed the trans
fers made from the account of Joe
X. Redmon to other accounts, which
were overchecked, and that this was
done to reduce the volume of over
checks when excessive.
Asked why he had taken out live
note of the Hempbreak Company and
substituted dead Lot for it's, he said
that the examiner had stated that the
loans to the Hempbreak Company
substituted a dead note for it, he said
to deceive the examiner.
He stated that no person other than
himself had received any benefit from
any irregular transaction of the bank.
Alexander for more than an hour
was engaged in Identifying checks and
notes which passed through his bank
and which are involved in the banks
affairs. His voice was so weak that
he could scarcely be heard twenty
| feet away and his sAanner was nerv-
Gus and excited.
Dispositions by John M. Craner and
s. F. B. Morse, of New York City
| were read to the effect that they
were last spring about to make sale
of the O'Neill Hempbreak Machine
and patents to syndicate in Canada
and London, by which Mr.. Alexander
was to receive s125,000 in cash and
one-fourth interest in the new com
pany which was to own and handle
| the machine, and that the negotia
tons had been temporarily stopped by
s. @l<,rl