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NEWBERRY BANK RECEIVER TELLS OF INDEBTEDNESS
L. M. Dakin Gives Details In Federal Court Trial Of Former Officials
OWED BANK $226,000
GREENWOOD, Nov. 11. The government failed to complete its testimony in the trial of Budd C Matthews former president, and Thomas K. Johnstone, former vice president of the defunct National Bank of Newberry, today and several more witnesses will be called at the morning tomorrow after which the ense will have its inning. Court was in recess this afternoon in vance of Armistice Day. L. M. Dakin, who was receiver of the Newberry bank from March December 1930. as successor to W. P. Andrews, testified in detail today as to indebtedness represented by individual notes and indorsed paper of bank officials, their relatives and other employes of the bank at the time it closed July 1929 Reading from memorandum he said the total sum was $226,220 22. with $25,911.11 unpaid interest Notes in numerous instances, he said, were renewed without interest payment. Of the total amount Matthews' was shown to be $14,653.78 with interest and Johnstone's $12,477.15 with $5,258 40 interest. Included in the list also were the following: Alan John- stone, Sr., agent, $12,769.94 and $1,461.48 interest Clara M. McCrary, $836.50 no interest paid; J. M. 722.03; Clara B, Matthews, $575, interest $390 72; W. W. Cromer, cashier, $15,038 interest $270.55; Mary Cromer, $489.50, interest $270.55; Buford Cromer, $1,100, interest $88; Frank G. Davis, assistant cashier, interest $2,264.12; Jeanette Davis, $450; H. H. Abrams, with whom Matthews and Johnstone are said to have been associated in business, $16,221.72, interest $2,-
OFFICIALS INSOLVENT Dakin also testified that Johnstone and Cromer were insolvent prior to and at the time the bank closed and that Matthews went into bankruptcy shortly after its closing showing no assets except legal exemptions. He stated that Cromer turned over all his property consisting of farm which was sold for $1,800 He added that he had taken out judgment against Matthews for including $12,800 holders liability and judgment against Johnstone for $22,904.86 including 700 stockholders On cross examination said most all of the paper had been in the bank for several years and torney James Price suggested that during that time thousands of dollars had been paid on the paper in interest while the total given now would represent interest of only about 18 months. was also pointed out that obligations of many others had not been paid. The witness also said Mathews had been required indorse paper amounting to $35,000 and had not been found that he "had taken single dollar or speculated in stocks. and his indebtedness had not increased for several years. And today he is bankrupt and pauper. stated the attorney "Yes bankrupt, was Dakin's reply. Cross examined by Alan Johnstone for T. K. Johnstone, the witness said Johnstone had not opposed judgment proceedings and that J. M. Johnstone's indebtedness was largely indorsed paper. He also stated the Johnstone family had discharged their complete holdings without regard to the individual owning the property and that Johnstone had paid his stock assessments. Other witnesses today were George M. Thayer, certified public accountant of Columbia and P. S. Rogge. man, of Chase National Bank, New York. formerly in charge of loans and discounts in Park National Bank Thayer testified as to certain interest alleged due Newberry county and $187,000 in bonds in hands of bank Roggeman identified certain between the Park National and the Newberry bank.
