Historical Newspapers of South Carolina

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TEN ITY 0 % Endorsed by th~ DOROTHY DIX, the Fam Father' is more than a play -: e the white race that must thri gratitude women who have o grievous wrong " NORFOLK VIRGINIA-P: Father', scored a success.' NORFOLK LANDMARK: a drama it is faultless." NORFOLK LEDGER-DI 'The Sinls of the Father' thril RALEIGH NEWS AND ( drama-Dixon's masterpiece RALEIGH EVENING N] Far superior to 'The Clansm REV. BENJAMIN FRAN Richmond, Va , said: "It is deserves the favor of an aopz Lower Flooi THE LAST TESTIXONY. In Carlisle Case-Suwming Up by the Lawyers-And the Judge's Charge. Greenville News, 19. After the taking of testimony for a little over a week, the case of the United States against Milton A. Car lisle, charged with the misapplica 'tion of the funds of the National Bank of Newberry, of which he was for about ten years president, will prob ably go into the hands of the jury to day before the adjournment for the noon recess. Tha examination of Mr. Sherrill Smith, bank accountant in the gov ernment service, was concluded late during the forenoon yesterday. The defense announced that they would put up no testimony, and Mr Cochran, the district attorney, made his state ment to the court. Gov-Elect Blease, for the defense, consumed the entire afternoon session, from 4 o'clock un til six, in his argument to the jury. It is understood that Mr. Cochrane and Mr. Dominick will argue this morning, and after the charge of Judge Brawley, the matter will be left in the hands of the jury. The case has attracted much attention throughout this section, and the find ing of the jury is awaited with con siderable interest. The trial of Mr. Carlisle was inter rupted to some extend yesterday by the regular session of the federal court. The grand jury for this court was sworn in both circuit and district courts, and .given the indictments, which they returned in the late after noon just prior to the adjournment. When the Carlisle case was called. Mr. Smith, who had been sworn Mon day during the morning session, and who had been cross-examined rather searchingly by both prosecution and defenseg was algain placed on the stand, and the cross-examination by Mr. Dominick, for the defense, was continued. Mr. Dominick asked Mr. Smith for a list of the checks which had been drawn by Mr. Carlisle nam ed in the indictment, beginning in the early part of January, 1908. This list was obtained, and the totals fig ured up, making $4,262.23, on the per sonal account. From the testimony which had been deduced the day be fore, Mr. Smith was made to state that the amount drawn during the pe riod in the indictment, over the PERA HO k; . ..... . .. . 77. ........-...... Press, the Pulpit and thi )us Critic of The New York Journal, said: ' -it is a sermon; a clarion call to maintain 11 the heart of every man who listens to il nly too often been patient and pitiful sul :LOT: 'Thomas Dixon's new pley, 'The "'The Sins of the Father' pleases large a PATCH: "Thomas Dixon's play proves led a great audience. Author is given anc )BSERVER: "'The Sins of the Father' tWS: "Dixon's latest play meets with: KLYN BRYAN, Pastor of the Emanuel Bi etremendous drama and points a good n eciative public." ,, $1.50 and $1. was only $446.73. In regard to the assets which Mr. Carlisle had in cluded in his offer of settlement with the bank, Mr. Smith stated that he had been over them, and considered the three hundred dollar~ check sign ed by J. A. Blackwelder, worthless. When asked if Mr. Carlisle had stated that it would be cashed, Mr. Smith replied that the letters .tated this amount to be in cash. The B. F. John son Publishing company stock of par value $1,000, was estimated by Mr. Smith at $500, and the insurance poll cies, he stated, he did not consider bankable assets. In regard to the checks drawn, Mr. Dominick asked if it were not a fact that during the period covered in the indictment, Mr. Carlisle deposited* within $446 of what he had drawn out, to which the witness answered yes. When asked, however, what was the total increase in the overdraft from December 31, 1907, to the time Mr. Carlisle retired from the bank, Mr. Smith stated that it was the total amount of the checks drawn during that time-$4,262, etc. On going over this, which from one point of view ap-peared contrary to the books, Mr. Smith stated that all the deposits made within this time would have lacked eleven hundred dollars of meeting the overdrafts up to the b'e gining of 1908. Thers was some Question about this method of com puting the matter, and when some question was asked in regard to the books, Mr. Smith stated that he con tended that the books were not cor rectly kept, and later stated that the books were kept under Mr. Carlisle's supervision. He stated that he had fcund that at times Mr. Carlisle had made out loans and discount slips and* handed them to the bookkeeper, there by making him believe that deposits had been made in his name. It had been stated that Mr. Car lisle had paid to the bank, during 1908, the year covered in this portion of the indic:ment, only about $446 less than he had drawn out. Mr. Dominick asked Mr. Smith to estimate the value of the assets given over to the bank by Mr. Carlisle in his offer of settlement, and which had been kept by the bank among the assets. This being done, he asked the witness if it were not a fact, from this compu tation, that Mr. Carlisle had actually paid into the bank during this period, about eleven hundred dollars more than he bad drawn out. Mr. Cochrane ob.iected on the ground that there was USE,NWB OF ThnT Public NOTU rheSins of the the purity of be n ia , and fill with ferers under a Sin ofte ment there As meiaele a big success. ~vation." is a powerful retsuccess. Dire ctic ~ptist Church, oral use that 30O. Balcony, 754 no testimony to show that the poli cies, etc., had been paid over to ;he bank for the deposit account. The matter was not pushed. Mr. Dom inick, however, mentioned two of the notes which had been drawn by Mr. Carlisle, and asked if he had received any money from the bank upon them, to which the reply was in the nega tive. The indictment charged that the personal account of Mr. Carlisle had had the bank's funds misapplied to it to the extent of about eighteen or nineteen thousand. Mr. Dominick asked if this did not include all the indebtedness of Mr. Carlisle since his first connection with the bank, to which the response was in the affirm ative. The amount paid over to Mr. Car lisle, according to the testimony of J. J. Lane last week, for the exten sion of credit, was taken up. The average indebtedness of Mr. Lane was found to run from ten to twelve thou sand dollars a year, and the highest amount paid by him, $500, during any one year, was computed to be five par cent. of the ten thousand dollar loan. The further pushing of this point was dropped, the prosecution stating that the government ~would agree that the bank received the reg ular rate of discount on these loans. The average loans of the bank, since Mr. Carlisle had been president, were found to be from the report to the comptroller, in 1908, $373,000, and in 1907, $466,000. Mr. Dominick asked the witness if he had found that Mr. Lane and Mr. Purcell were the only ones who had made these "bonus" gifts to the presi dent of the Newberry National bank, Mr. Smith replied that they were not, but that they were the only 'ones men tioned in the indictment. This mat ter was not pushed any further than this point, Mr. Cochrane having warn ed his opponent before the answer to the question, that he would also fol low up this "hearsay evidence" if this answer was given. During his own cross examination, whe*n this matter was taken up with Mr. Smith by Mr. Cochrane, Mr. Dominick 'objected, and this was sustained by Judge Braw ley. Mr. Cochrane took up the cross-ex amination shortly after this, and ask ed about the value of the bank stock owned by Mr. Carlisle, it having been brought out during the day before that the book value showed them LD !AND NEWS XRY, FRID. ~ping Thu Like a V "TH I THE ,sDixon Auth ____to see this 2 pointed in their effoi fore requests that yc with the manager of mn of THE SOUl GEORGE H. BRE :. and 50c. See had been entered in the list of assets of Mr. Carlisle. Mr. Smith testified yesterday that at the time he went into these affairs, the bank had made loans, etc., which reduced the value of the stock to not more than par, according to the calculations.. After this conclusion of the cross examination, Mr. Cochrane announced that the government rested its case. A short time was asked and granted the defense for a consultation, and when they had finished this, they re turned to the court room, and stated that they would put up no witnesses. Mr. Cochrane then made a statement of his case to the court, it being un derstood that the defense was to have two arguments to the jury. Mr. Cochrane stated that in refer nce to the various counts in the in ditment, the petition of the prosecu tion would be that the circumstances attendant upon these transactions of the defendant would show such a want of good faith that the law would raise a presumption from the circum stances in the case that he intend~d~ to defraud. He intended to show that the only question the jury would have to pass upon, of all the allegations, rests upon the application of a prin ciple of the supreme court, and fo! lowed by the lower courts, that a. man is presumed to intend the natus. ai ?nd recessary consequence of his acts. Ccntinuing, Mr. Cochrane said that when it is shown that the facili ties of tae bank, in the way of mak ing loans, discounts, etc., were les sened, on account of these acts, the intent to defraud the bank is pre sumed. This presumption, however, is not a conslusive one, but may be re butted by testimony. Conviction, however, follows, if it is not rebutted, this throwing the burden in this par ticular case upon the defendant. Mr. Cochran also stated that it was not necessary that there should be malice toward the bank, but that the same results might follow from an attitude for the success of the bank. Even if the defendant temporarily violated the banking law, his inten tion to reimburse the bank is not an excuse. A number of cases, contain ing the decisions of the supreme court were cited by Mr. Cochrane during the statement of his case, botb as to the above, and other points brought out by him. Several of these cases were similai in circumstances to the one now be fore this court. One in particular was A~Y OCTO ough the Kbhiriwiru SIN: FATE BY or of "TheCI .t of the enormous < ~reat play many the; ts to secure seats. u place jour order: the theatre in your FHERN AMUSE 'NNAN, MANAGEJ ts on Sale Mon< Hoyt, who was president of the Na tional Bank .of Indianapolis, and who had loaned money to the Indianapolis Cabinet company, an insolvent cor poration. From this Mr. Cochrane stated that when there was no rea sonable belief that the money would be repaid, the loaning of the funds was an unlawful act. Mr. Cochrane quoted from the case of the United States against Stein man, in regard to the overdraft ques tion, to show that there were two kinds of legitimate overdrafts, in both of which there should be abundance of credit. It is possible that this case against Mr. Carlisle will set a new precedent in court decisions. Mr. Cochrane stated that he had not been able to find a case similar to the counts which charge the payment of the "bonuses" for the ertension of credits, but reasoning from the theory, he stated that the funds should have been deposited with the bank, as Mr. Car lisle was acting solely for the bank, and the parties making these gifts, had received nothing for them except the extension of credit from <the bank. It being understood that the presi dent was acting for the bank, this in stitution might possibly be prosecut ed for usury on this account. This statement of the case was made to the court.. and not to the jury, and Judge Brawley will prob ably rule upon them in his charge to the jury before the case is turned over to them. Mr. Blease not wishing to begin his argument before the dinner recess, court adjourned, reconvening at four o'clock, at which time the attorney for the defense made his argument before the jury. Beginning, he read from the national banking laws, to show among other things, that the oath taken by the directors in taking this position made them promise not to knowingly violate or permit to be violated any of the provisons of the act, governing national banks, and other portions of the law were to the effect that should any of the of ficers or directors of the bank know ingly violate or permit any officers, servants or agents of the Association to violate the provisIons of the act, the rights, privileges and franchises of the association would be forfeited. Mr. Blease alleged in his argument that there had been a conspiracy on the part of the directors of the New berry National Bank to put Mr. Car Tuesday, OctoNr 25, 1910. BER 28 South 'S IER" ausman ::rowds surging stregoers have The manage- - for tickets im city. MENT CO.. lay, Oct. 24. shield themselves. Following up this tine, he dwelt upon the statements sworn to by the directors and em ;'loyes of the bank, who had been up cn the stand, to the effect that the directors had known of these trans actions all the time, but had not stop ped them, but had continued to elect Mr. Carlisle president of the bank year after year. Mr Blease also went to considerable length in regard to whether the in tent of Mr. Carlisle was criminal or not, in his various overdrafts, etc. He was rather severe upon the board of directors of th bank,. and spoke of the institution as a "bank of the di rectors, by the directors, and for the directors," mentioning the loans to the directors' of about $70,000 as brought out in the testimony, upon a. capital of $150,000. He took up the testimony of a number of these directors, and man tioned the agreement signed by Mr. Matthews, the present president of the bank, with other directors, in re gard to retaining Mr. Carlisle in the presidency. The arrangement with Mr. Mower, to retain Mr. Carlisle in the presidency, and the failure to, put him out at the end of the year was gone into, to show that the stock holders wished Carlisle as president instead of Mower, who had the ma jority of the stock. In regard to the "bonuses" paid, -Mr. Blease went into, the testimony of Mr. J. J. Lane at s some length exhibiting the note books the latter had ha,d in his testimony, and which he claimed to have kept from the year 1900, and also to have torn leaves out of this memorandum, to take out some old accounts. Mr. Blease endeavored to show that no0 leaves had ever been torn out of the books, and intimated - that Mr. Lane had proved himself a "colossal liar." The meeting when the agreement. with Mr. Mower regarding the reten tion of the presidency by Mr. Carlisle for another year, was also discussed Mr. Belase made it clear that one of the witnesses had stated that Mr. Carlisle had said that if they put him out, he would not pay his indebted ness, and another had said that he could not pay this indebtedness, and endeavored to show that the latter witness was more accurate.1 The aff'airs of the Cold Point Gran ite company were also gone into, and' the fact that the banks had formed a union to govern it, and were making nioney out of it, he endeavored to use to show that the other creditors had