EIGHT OF COUNTY'S
OUTSTANDING MEN
BEING GIVEN TRIAL
Charged With Conspiracy and
Misapplication of Transyl
vania County Funds
LARGE NUMBER OF
ATTORNEYS IN CASE 1
Judge H. Hoyle Sink and Hay
wood County Jury Hear
ing the Case
Trial of eight of Transylvania
county's most prominent and out
standing citizens on charges of con
spiracy to misapply and misapplica- i
tion of county funds, which started i;
Wednesday morning of last week, ;
was still in progress Wednesday
night of this week, the state still of- 1
fering evidence. More than one hun- ]
dred records, papers and instruments <
have been offered by the state as ex- 1
hibits in the trial, consisting of min- ]
ute books of the county commission- i
ers, and other county papers and rec
ords; bank books and bank state- 1
ments, cancelled checks and notes. i
The defendants are Thos. H. Ship- j
man, president of the Brevard Bank- <
ing company; Jos. S. Silversteen, s
vice president of the bank and chair- i
man of the board; J. H. Pickelsimer, i t
chairman of the board of county com-j<
missioners in that term beginning on c
the first Monday in December, 1928, |
ending December 1, 1930; and board i
members C. R. McNeely, A. M. White, . ?
S. R. Owen and W. L. Talley; and c
Raloh R. Fisher, county attorney in j J
that administration. *
These defendants are charged with
conspiring to issue and sell tax an-ic
ticipation note in the sum of one hun- i v
dred thousand dollars last Septem- i ?
ber. The charge against the defend- p
ants assert that this note was sold "
for the purpose of helping the Bre-?
vard Banking company, which, the :
state claims in the indictment, was !
insolvent at the time the note was I
issued, or about to become insolvent. '
Indictments were returned at the Ap-!?
ril term of court by the grand jury,:*
which body at the same time return- 1 P
ed another indictment against the,*
board of county commissioners charg-j?
ing them with failure to obtain su.f-j*
ficient security from the bank to 1 1
guarantee safety of the county's de- ;"
posits. j J'
The same grand jury returned an|^
indictment against Thos. H. Shipman, ! .
charging misapplication and em- , *?
bezzlement of 321,000 and this was to j I
have been heard at this term of court, j
but indications are now that the j 0
case will not be heard at this time, as j <?
the term ends Saturday night and it ii
is said the present case will not be >'
disposed of before Friday or Satur- 1 c
day. | f
The same grand jury returned a
true bill against Sheriff T. E. Pat- '
ton, charging the sheriff with obtain- >
ins money from the Brevard Bank ]
through use of forged bills of lading.:0
The solicitor took a nol pros in this ; s
case last week, when discovery was ; c
made that the grand jury for the j5
present court had been irregularly
drawn. The solicitor was convinced ?
he said, that the state could not pro- "
ceed against Patton on the indict- J
ment returned at the April term, and '
was obtaining a new bill for the pres
ent grand jury when it was discov- -
ered that members of that jury had c
been irregularly drawn, hence the nol '
pros.
Judge H. Hoyle Sink, one of thej'r
most highly respected judges in thje^
state, is holding' court, having been
designated for this work by Governor
O. Max Gardner, who ordered this
regular August civil term of court '
changed to a mixed term for the pur-' c
pose of hearing the bank cases. J
Solicitor J. Will Pless is appearing j ?
for the state, assisted by Felix Alley,!
of Waynesville, for private prosecu- 1
tion, and Pat Kimzey, attorney fori,
the liquidating agent of the Brevard .
bank, and Attorney Taylor, of Ral- j
eigh, chief counsel for the bank i
commissioner.
Shipman is represented by J. Bat ,
Smathers of Asheville, and Jake F.
Newell, of Charlotte. ,
Silversteen is represented by Newt .
Moody, of Murphy, and Wm. E.
Breese and T. C. Galloway, of the
Brevard bar.
Fisher and the commissioners are
represented by Lewis P. Hamlin, Bre
vard lawyer, as chief counsel, assist
ed by G. Lyle Jones, Asheville; Mc
Kinley Edwards, Bryson City; F. D.
Hamrick, Rutherfordton ; R. B. Over- :
ton, Canton, D. L. English and A. F.
Mitchell, Brevard.
The jury hearing the case is from
Haywood county, the solicitor havihg
asked for a jury from another coun
ty. George Maxwell is jury officer,
and they are living at the Walter- j
mire hotel. Sheriff Patton and Dep
uty Tom Wood are officers of the
court.. A. Emerson Eve and Mrs.
Lassie Kelly Cunningham are court
reporters.
MANY CAMP BOYS MAKING
CANOE TRIPS TO ASHEVILLE
I
Every other day during the past
week has seen a large group of camp
boys from near Brevard, canoeing
down the French Broad to Asheville.
From 50 to 100 boys make the trip
at a time, and return to Brevard on
transportation furnished by Siniard
Transfer company.
STATE HAS PRESENTED VAST AMOUNT OF
EVIDENCE IN TRIAL OF FORMER COUNTY
OFFICIALS AND BANKERS DURING HEARING
First State Witness Took Stand on Thursday Morning of Last
Week ? More Than Hundred Paper Evidences Admitted ?
County Records and Bank Records Used In Trial ? W. W. i
Wcodley, Jr., State's Principal Witness ? State Expected To
Complete Its Testimony Today ? Defense Profited by Much
State Evidence Brought Out on Cross Examination.
Solicitor J. Will Pless, Jr., an
nounced Wednesday night that the
state probably would rest Thursday
morning in the trial of two former
bankers, the former board of county
commissioners and the former county
attorney, charged with conspiracy
and misapplication of county funds.
Numerous witnesses have been used
oy the state, and many records and
ttooks of the Brevard bank and the
;ounty of Transylvania have been in
troduced by the state in ,its effort to
prove the charges against the eight
nen.
The case was begun on Wednesday
liorning of last week, the first day be
ns taken up with selection of jury
"rpm a special venire of 125 men
wrought from Haywood county. The
;tate began its evidence Thursday
norning ? one week ago ? and may
include its evidence this Thurs
lay. It is not known whether the
lefense will offer any evidence.
Wednesday's evidence by state wit
lesses was declared by many to be of
treat value to the defense, this evi
lence being brought out by G. Lyle
ones on cross examination of state
witnesses.
The Brevard News is giving the
vidence in the case, fronj the first
witness to time court adjourned Wed
lesday evening, in substance and as
iest it could be taken. For conven
2nce, this evidence is in sequence, be
:inning with the first witness.
Opening Session. i
Miss Launa Clayton, clerk to the J
iquidating agent and former employe
f the Brevard Bank'.ng company, was
irst witness called to the stand. Pur- :
iose of her testimony was to certify
hat certain books and records were [
ooks and records of the Brevard
Sanking company. Counsel for Je- 1
ense, in the interest of time, an- ;
cunced that all such books and re- ;
ords as were there and purporting to
e books and records of the batik j
rould be admitted as such. Miss j
Hayton did not then testify.
Icgixtrr of Vceds Galloway on Stand
Jess. A. Galloway, present register
f deds, was then called to the stand
nd identified certain books as be
ng minute books and records of the
egister of deed's office which he re
eived from Ira D. Galloway who was j
egister of deeds for four years end
rig December first, 1830, when Jess I
i. Galloway took office. Mr. Jess ,
Jalloway then in identifying one book l
n which the minutes of the meetings
fthe county commissioners were kept
aid that he "had watched that book
losely" ever since he took office. He
wore to the signatures of Ira D. Gal
oway, J. H. Pickelsimer, C. R. Me
rely and Ralph R. Fisher, appearing
ipon several documents, among them
leing the formal statement said to
lave been written by the chief fi
lance officer of the county, C. R. Mc- 1
>Ieely, in setting forth to the county!
ommissioners the necessity of bor- |
owing $100,000 in anticipation oi
axes, and the resolutions and actions
lecessary in ordering the sale of the
tote. J. Will Pless, Jr., conducted the
lirect examination.
Jones Directs Cross Examination
Register of Deeds Galloway was
hen turned over to the counsel Tor
lefense on cross examination, which
vas conducted by G. Lyle Jones. Mr.
Galloway had stated on direct exam
nation that some of the pages in the
ninutes book kept by Ira Galloway
tvere blank, that is, pages blank be
:ween successive meetings. Mr. Jones
isked the witness if there were not
blank pages in his own book of min
ute records; witness admitted there
were, but explained that he had left
a number of blank pages between the
records kept by the former register of
deeds and where he started making
entries, and had marked these pages
out with red ink. He couldn't remem
ber just how many pages were left
blank, as the records kept by Ira Gal
loway, former register and clerk to
the board, in the back of the book,
and started keeping his new work in
the front of the book. The books
showed that pages 303 to 319 were
blank, and on the first page after that
was entered the record of the action
of the present board of county com
missioners in extending a $75,000
county note on December 12, 1931.
On re-direct examination Mr. Gal
loway identified S-Ledger, pages 11,
26 and 37, swearing to the signature
of J. H. Pickelsimer appearing on
these pages.
On re-cross examination Mr. Jones
asked Galloway when the board tc
which he is clerk went into office.
"December first, 1930," witness an
swered.
"Your board kept its county fi
nances in the Brevard bank, didn't
it?"
"Yes." Witness continued answer
ing the questions, saying he didn't
know whether or not the count;
could get its money out, and said h<
made his last deposit in the Erevan
Bank on December 15, 1930, day th
bank closed its doors.
j Woodley on Stand
I W. W. Woodley, Jr., liquidating
jagent for the Brevard Banking com
pany, was the next witness, taking the
stand Thursday morning for the first
.time, Mr. Pless leading direct ex
[amination, brought from witness
facts concerning the witness. Came to I
I Brevard on January 13, 1931, having1
been appointed as liquidating agent
by John Mitchell, then chief state
bank examiner. Came from Elizabeth
City, his home, where has was con- 1
liected with the Savings Bank and I
Trust company. Has had charge of I
all records of Brevard Bank since tak
ing charge in January; has made!
tabulations as to the funds of Tran- i
jsylvania county in the bank from i
(July 1, 1930 to December 15, 1930,'
these tabulations having been made
| up from bank ledger sheets. Asked as
I to total amount of county's deposits
in the bank on July, 1930, objection
j was made and sustained. Ledger
I sheets of bank records were then in-.'
troduced and marked as exhibits,
numbered, of the state's evidence, as
follows :
Ledger sheet of the countv health I
and poor fund, April 4, to" Dec. 1, '
1930.
Ledger sheet of the county debt 1
service fund, May 31 to Dec. 1, *1930. '
! Ledger sheet county general fund,1'
April to December 1, 1930.
And many other ledger sheets of
various funds showing amounts on de- 11
posit at given dates between April !
and December 15. Sheets from ledger ^
of certificates of deposit, and page !'
132 of certificate of deposit ledger '
was offered for purpose of showing J
amounts of outstanding county funds 1
on November 28. >
The certificate of deposit ledger was j!
also used to show the county school'
sinking fund account on Oct. 1, ;
1930, which was 831,756,31. I1
Reading from tabulations, the wit-:!
ness gave the total county deposits j
in the Brevard bank at given dates j
from July first to December, 1930. as 1
follows : j
July 1, ?632,940.42; August 1. j
$624,473.90; Sept. 1, $627,296.13;'
Sept. 17, $602,249.81; Oct. 1, S512,
337.38; Nov. 1, $518,178.62; .Nov. 24, j
$567,283.28; Nov. 28, $472,887.14:,
Nov. 29, $579,187.86; Dec. 15, $561,-:
145,80. , .
Effort was made by Solicitor Pless I ?
to ascertain the condition of the j 1
Brevard Banking company, as the !
witnes ssaw it by asking what efforts
had been made to collect the notes !'
due the bank. Witness told of writing,'
three and four letters to each note >
maker, -and calling in person upon I
many of them, and of writing to all
those whose notes are held by. the 1
Chase National Bank, when defense
objected to reference to notes held by 1
Chase National Bank, whereupon the
solicitor asked witness in what ca
pacity he had been summoned to ap- !
pear as a witness, replied as "trustee i
for the Chase National Bank," and >
subpoena was offered. Objection sus- 1
tained.
In practically every introduction of
various records and exhibits the de
fense objected and exceptions taken.
Witness declared he had seen J. H.
Pickelsimer write his signature and
knew the same. Then the hundred
thousand dollar note was introduced, [
being in Mr. Woodley's possession, I
made up of ten ten-thousand dollar !
notes, signed, witness said, by J. H. [
Pickelsimer, C. R. McNeely, 'ira D.
Galloway and Raiph R. Fisher. Solici
tor then made effort to introduce page
from ledger book certificates of de
posits to show account of W. L.
Couch, Treasurer, as of Nov. 24, 1930,
whereupon G. Ly'e Jones for the
commissioners and Fisher raised ob
jection and asserted that he wanted
the evidence confined to the charges
in the bill of indictment, that is, as to
conspiracy and to misapply the funds
of the county, and that stuff being
wrung in about the condition of the
bank, or this fund, or that fund, had
nothing to do with the case. The so
licitor, after stating that it requir
ed the recording and assembling of
many cumulative acts to prove the act
of conspiracy, took another course and
left the original question, stating that
he would come back to that later.
Bagwell on Stand
M^B. Bagwell was called to the
stand while Woodley was looking up
some county records, and stated that
he was a member of the grand jury at
the April term when the indictment
against the county officials and the
bank officials was returned. Bagwell
said that he met McNeely on the
streets soon after indictment had been
returned and McNeely asked him why
they found the true bill. Bagwell told
him that it was all they could do ac
cording to the law and evidence. Mc
Neely told him, Bagwell said, that the
commissioners borrowed the money to
save the bank.
a -c .i ?,,Cros? Examination
i 4. ,re(' Hamrick drove mercilessly in
to the witness on cross examination.
( Continued on po^e four)
FORMER BREVARD
GIRL DIED MONDAY
i
News was received in Brevard
Monday evening of the death that
day of Mrs. Fred C. Cooper, former
ly Miss O'Dell Nicholson, of Brevard.
Death came to the young woman in
the hospital at Dalton, Ga., after an
operation Monday afternoon. The
deceased was 28 years of age and had
been married a little over one year.
Mrs. Cooper spent the summer here
and in Asheville, where she attended
summer ?chool, and had returned to
her home at Cohutta, Ga., where she
and her husband were engaged in
teaching school.
Funeral services were held Wed
nesday and burial made in the ceme
tery at Cohutta, many relatives and
friends in Brevard attending the
rites.
O'Dell Nicholson, known to hun- 1
dreds of people of this county where
she was born and had lived all her
life until her marriage, was one of
the most highly respected and best
loved young women of the commun
ity. She was a daughter of Milan
Nicholson, who survives, and leaves
two sisters and a brother. One sis
ter married Roy E. Cooper, of Co
hutta, and lives there. The other
sister, Miss Mary Nicholson, lives
with her father in Brevard. The
brother, J. M. Nicholson, also lives in
Brevard.
LARGE CROWD HEARS
NEWELL'S ADDRESS
Many people heard the Hon. Jake
F. Newell, Charlotte lawyer and lead
ing layman, deliver an inspiring and ,
most instructive address at the Meth- 1 ;
?(list church last Sunday evening.
Mr. Newell is here as a member of;
the defense counsel for Thos. H. Ship- ]
man, and when his friends learned,,
that he was to be in Brevard over ]
Sunday they urgently requested him :j
to deliver his famous address on |
'Palestine, and Its Evidences of the j
Bible." The Charlotte man spent j
many months in Palestine two years ?
igo, and his address is builded upon
evidences there of things so accurate- (
y described in the Bible.
Many summer visitors, people from
:he county and members of other',
:hurches attended the services and
iea*d Mr. Newell. t
BIBLE CONFERENCE I
STARTS AUGUST 16
The Annual Bible Conference for |
the Western District will be held
August 16 to 30 at the Grove Street
jospel church in Hendersonville, ac
cording to the announcement made by
Rev. R. V. Miller, pastor of the
Srove Street church. !
The sessions will be held every day
from 10 to 12 A. M. and at 8 P. M.
The first week, Dr. Harry A. I <
Thompson will speak on the Book of | s
Daniel each morning at 11 o'clock. ;
Rev. F. E. Robinson of Hamburg, N. i
Y., will have charge of the speaking :
at 10 A., M. and 8 P. M. throughout .
the entire first week.
Rev. H. A. Ironside, pastor of the j
Moody church in. Cfiicago will deliver:
messages twice a day, beginning
Sunday, August 23 and continuing'
through the second week. Mr. Iron
side was a speaker in the Bible con
ference held in Brevard two weeks,
ago, and people here express desire to
attend these services so they may be
permitted again to hear the splendid
addresses Rev. Ironside presents.
It is hoped that a representative
group from Brevard will attend these
services.
Music will be conducted by J. S.
Sargent and others.
CHAMBER OF COMMERCE
TO MEET THIS THURSDAY
Regular meeting of the Chamber
of Commerce will be held in the Com
merce rooms Thursday night at 8
o'clock. All members are urged to be
present as matters of importance are
to be brought up.
DR. THOMPSON TO PREACH
AT PRESBYTERIAN CHURCH]
Dr. Toliver Thompson, of Union
Seminary, Richmond, Va., and out
standing minister of the Southern
Presbyterian church, will speak at
the Brevard-Davidson River church
Sunday morning at 11 o'clock.
KIWANIS CLUB TO HEAR
DR. HUGH R. MURCHISON
Dr. Hugh R. Murchison, Professor
of Religious Education at University
of South Carolina, will be the speak
er at the Brevard Kiwanis club this
Thursday at noon. Dr. Murchison,
father of Mrs. R. L. ' Alexander, is
one of Brevard's greatest boosters in
South Carolina and his coming to
Brevard each summer is always look
ed forward to with great pleasure by
his many friends here.
SCOUT LEADERS RETURN
Misses Bertie Ballard, Willie Aik
en and Mrs. Ina Rustin, of Penrose,
returned Monday from Camp Juliette
Lowe, where they have been taking
training in, scout leadership.
FLOWER SHOW TO BE
EVENT OF THE WEEK
Final plans have been perfected for I
Brevard's annual flower show, spon
sored by the Woman's Bureau, which 1
event will be staged next Wednesday,]
August 19, at the Chamber of Com
merce rooms on Main street. The dis- j
play will open at 3 o'clock in the af- 1
ternoon and will continue through the '
evening until 10 o'clock. A silver of
fering will be taken at the door.
Many varieties of home grown '
flowers, potted plants and wild flow- '
ers are expected to be on display, ex- j
hibiting in an elaborate manner the j
success of Brevard and Transylvania |
county's flower growers. Valuable!
prizes of bulbs, plants and shrubbery j
have been donated by out of town j
firms and by many of Brevards' suc
cessful flower raisers.
It is requested by the committee in
charge that all exhibits be marked I
wits its proper name and also with
the name of the owner, to avoid any
confusion in listing. A musical pro- 1
gram will be featured during the af- 1
ternoon and evening event. !
Prizes will be offered to the follow
ing classes of cut flowers
DISTINCTIVE VARIETY? (1)
The most artistic arrangement of two j
or more kinds; (b) Tht greatest1
number of different varieties in one <
exhibit.
DAHLIAS? (a) Best collection; (b> >
Single specimen, (c) Assortment j
sir r. 11 dahlias.
GLADIOLUS? (a) Collection; (b)
Single specimen; (c) Greatest num-j
ber of kinds.
ZENIAS ? (a) Basket, bowl or j ^
yase or large zenias; (b) Basket, bow! |
or vase of small zenias.
MARIGOLDS, SNAPDRAGONS, , !
ASTERS, ROSES, DELPHINIUM. ;
VERBENAS, PHLOX, PETUNIAS, '
PINKS, STOCKS, ANEMONAE. ;;
Following classes of Potted Plants: ,
Mo:-t beautiful potted plant of any ! ,
dnd; most beautiful blooming plant; ;
most beautiful foliage plant; most (
jeautiful fern; the most unusual (
plant; large leaf begonia; small leaf 1 (
jegonia. j
Sweepstakes prize will go to the j
person exhibiting in the greatest
lumber of classes. Exhibits are invit- ; _
;d of other flowers or plants not men- J
:ioned in the above list.
Following classes of Wild Flowers: '
(a) Greatest number; (b) Best ar
rangement.
Exhibits will not be admitted later (
:han noon Wednesday. - 'i
REV. PAUL HARTSELL j
NAMED MODERATOR :
j i
. <
Rev. Paul Hartsell was elected;,
noderalor of the Transylvania Bap- 1
.ist association at the afternoon ses- ^
iion which began Wednesday jft I
31ady Branch church; with Rev. I. X. (
Kuykendall as host. Sessions were .
leld Wednesday and wiil continue '
:hroughout Thursday. An unusually |(
arge crowd was in attendance, the j |
-?hurch being filled to capacity, and 1
splendid interest is manifest in af
fairs of the associ^tional work. Mrs. '
Gallamore was elected clerk.
Among the out-of-town speakers ,
were the following:
Rev. McMillan, from Mills Home, j
Thomasville Orphanage; Perry Mor
gan, representing promotion program '
for the co-operative program; Dr.
Jackson, Hendersonville, representing:
Fruitland Institute, and Mr. Page, of '
The Biblical Recorder.
Many matters of interest to the
church work will be taken up at the
Thursday sessions.
NEGRO QUARTETS TO BE
HEARD HERE MONDAY j
The local chapter of the Eastern
Star will present at the high school :
auditorium next Monday evening, :
Aug. 17, at 8:30 the Dixie Quar
tet from Forest City and the Brevard I
Silver Lee Quartet and the Brevard {
colored String Orchestra in a pro- 1
gram of spirituals and popular ,
music.
These colored quartets are very j
popular throughout the Western part .
of the state because of their nu?:ier- \
ous entertainments in these towns. |
The Hamburg is a regular feature
over station WWNC and has a wide
radio audience. A quartet of negro
women is also expected to give some
numbers.
The balcony of the auditorium will |
be open to negroes.
Admission will be ten and 25 cents. I
While the programme is practically
completed, anyone desiring a special
number may communicate with Isac
Bailey.
BAZAAR AND SILVER TEA
St. Philips Guild will hold a bazaar,
silver tea and ice cream supper on
the court house lawn Saturday, be
ginning at 5 o'clock A program will
be given at 8 o'clock in the evening,
including tap and costume dancing,
?sleight of hand performance, and
other interesting features.
MASONS MEET FRIDAY NIGHT
Regular communication of Dunn's
Rock Masonic Lodge will be held this
Friday evening. Visiting brethern
cordially invited to attend.
KIZER'S EVIDENCE
SHOWS CONDITION \
OF COUNTY FINANCE
G. Lyle Jones, Defense Coun
sel, Brings Out Information
Favorable to Defense
USE CHART PREPARED BY
STATE IN EXAMINATION
J. Mac Allison on Stand ? De
fense Pleased With Last
Day's Testimony
Evidence produced Wednesday in
the trial of the former commissioners,
county attorney and bankers charged
with conspiracy and misapplication,
was pronounced by many to be full
explanation of the condition of the
county last September when a tax an
ticipation note for ?100,000 was sold.
Mr. Kizer, who took the stand Tues
day noon as a state witness, read
from county records and explained
figures on the chart prepared by the
state, showing, under cross examina
tion Wednesday, condition of the var
ious funds.
Kizer was back on stand Wednes
day morning, and told of transfer of
?->i,855 from the certificate of deposit
of $278,000 ? the refunding bond is
sue ? on Oct. 1, and stated that a
note of $/ 5,000 was paid by check is
sued^ Sept. 30. Mr. Kizer was read
ing from county records in giving his
evidence. Showed where Roland Ow
en. clerk of the court up to last De
cember, was paid by check dated
Nov. 29, in the sum o f S204.1G, order
accompanying check showing it to be
for recording copy and indexing rax
sales certificates upon which final
judgment had been taken as of that
iate. Another check was introduced,
ivhich witness said was check issued
to Roland Owen, clerk of the court.
3ated Nov. 26, in like amount as other
:heck, and, witness said, bore same
:ode number, although explanation
)n voucher was different.
Jones Takes Witness
G. Lyle Jones, counsel for defense,
:ook witness for cross examination,
ind first brought .from witness, lhat
jhe two $1 5,000 notes which were due
Sept. 15 and Dec. 15, last year, were
ax anticipation notes issued by a
preceding board, and came down' to
:he board now on trial in the form of
>ne note for ?150,000. This note was
ater divided into two ?75,000 notes,
)ne of which was paid bv the defend
ant board on Sept. 15." Mr. Kizer
stated on Sept. 1, 1930. the county
tad on deposit the total sum of $6 27,
J96.13. Then explained various funds
)f the county, as follows: Debt ser
vice fund is set aside to pay bonded
iebt and interest; general fund is for
iperating expenses of the county.
Then Mr. Kizer showed amounts in
hese various county funds on Sept. 1,
1930, and the amount each fund owed
)n debt service fund, as follows:
Health and poor fund, $765,27. and
Jwed debt service fund S5.000. '
School fund had $72,230.71, and
3 wed debt service fund $75,000.
Road fund had $13,410.23, and
owed debt service fund $23,000.
The above amounts being due on
the $150,000 note.
Mr. Kizer then explained thai the
$278,000 certificate of deposit was
proceeds from a refunding bond issue
sold under a special act, and could
not be used for any other purpose ex
cept that for which it was sold.
Mr, Jones then brought from Mr.
Kizer the information that the $57,
855 transferred from the $278,000
fund to the checking fund of the
debt service fund was for replace
ment of vouchers ftiat had been paid
from the debt service fund that were
obligations coming under the pur
poses of the $278,000 issue. Next
brought out that school sinking fund
of $31,756.16 could not be used for
operating expenses.
Mr. Jones then asked Mr. Kizer to
subtract from total county deposits
the sum of $278,000 ? in the certifi
cate of deposit account, and state the
difference. This was shown by Mr.
Kizer to leave $349,296.13. Then Mr.
Kizer subtracted the $150,000 tax an
ticipation notes handed down from
preceding board to the board now on
trial, and this was shown to be $299,
296.13. Then the school sinking fund
of $31,756.16 was taken from the
last remainder, and that left $167,
539.97. Then the interest obligation
for the fiscal year of $87,691.18, and
$11,000 in bond payments other than
that included in the $278,000, and a
railroad refunding bond of $25,000,
and $45,000 allocation of the $150,000
note, all added together, witness
showed, amounted to $168,691.18.
Then Mr. Jones asked witness to sub
tract $136,183.58, amount shown in
the debt service balance, from rthe
$167,539.97, balance shown by mak
ing previous subt-?<-tions. This was
shovjm to leave a balance of $31,356,
39.
Mr. Jones used the chart prepared
by the state, containing state's own
figures, in having Mr. Kizer, state's
witaess, bring out these balances
which were pronounced most satisfac-?
tory and pleasing to the defense,
which, defense, claims, shows clearly
the necessity for issuing the tax an
ticipation note.
Afternoon Session
J. Mac Allison, bank director, took
stand and testified that he was
present with Shipman and Silver
steen in McNeely's office during lat
(Continued on page eight) "