Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-13

chairman; Mr.. Sibley of Monroe; Mr.. Wardweil Oh
Jefferson met at 10 o'clock in the City Hotel.
On entering the rosm, we recognized Mr. Sioiey'
and inquired of that gentleman whether ths was an
open court, and whether there would be any opecnon
to the proceedings being reported. lie stated lha'
an open court and there could be no obJecon or
opposition to report of what transpred beng gwen
to the community. He then asked whether the wrl-
of this attended for the public press when the
latter replied in the affirmative. At this time and up
to one O clock, no other reporter was present.
The Chairman expressed his anxiety 10 expedite the
matter as Much possible consistent with the inter-
ests of all parties. There important business be-
fore the Legislature and the Commissioners were
anxious to return to their legislative duties
Mr. Deafied, of the Phenix Bank, and Mr. Jay as
Counsel, attended fer that institution.
Mr. Foote, assisted by committee OF the Board OF
Trade, attended for the petitioners.
The memorial of the petitioners against the bank
was agreed to be entered upon the minutes as read.
Mr. jaw stated that the bank had been refused COM
munlcation of the affidavlts.
The first witness called and sworn was Mr. A'eT's
s. Baker Is resident and citizen of New York and
merchant in the clothing business and of the firm OF
Baker, Johnston e. Co. Has been in business tor
OF years past
Questien-Has your firm within the last IL or Is
months had any notes discounted at the Phenx Bank,
Tor the proceeds of which, you received bills IN COM
mercal paper which under par at the time IN TINS
clty2 If yea, state the times and NUMBER OF sucn
discounts the paper you received the proceeds and
the amount at which it was under par a, the time it
was rec elved.
Ans wer.-We have had notes discounted at the
Phenlx Bank for which we received notes ana com
merca paper which at the time under par IN the
city of New York. We never received bank bills.
cannot answer specifically as to the dates and num-
Der; it would require particular investigation; but
believe have in nay mnd pretty much all that ever
took place. Since was summoned here have
looked into my books. The first notice was on the
3lst October, 1886. The witness read from paper
9" Sold the Phenix Bank sundry notes payable in
Georgia Alabama, and Mississippi amounting IN all
TO SIS ISL $780," We were charged the discount
on these by the Bank, $500 27-leO which was the IN
terest, being per cent on the whoe-but cannot
say positively it might be per cent-the Exchange
was 1894 20 .l00-about 3-s. For the proceeds Of
that paper we took a cheque on New Orleans for
SIS, 000 account of the paper We had credit for
the paper, and charged with the amount of the
cheque. The plan for doing il was by cur drawing
cheoue on the Bank for SIS 900 and takinga draft
New Orleans in exchange for the same amount.
To make the matter more specific, Mr.. Foote ask
ed
Was the exchange Of 3-sper cen, the market
price at that tinle7
Answer think 4 3s per cent was less than the
market price at that time We usually had exchange
from the bank rather less than the market price, in
these transactions generally. call market price the
lowest it could be done for; not what this or that
baHk charged but what we could get it done for.
Question-Hsw much was 3.6 per cent less than
the market price? How much was the exchange on
Georgia and Alabama less than the market price3
About z l-2 per cent less. We generally calcula-
ted what the exchange would cost to get the draf,
and then what the loss would be selling IT. that IS,
what the loss the draft would be- if the whole ex-
pense enabled 10 dispose Of our exchange at the
on the paper you received?
Answers per cent-that is il was per cent un-
der par in New York.
QHestion-Was il a condition Of the banks nego-
caton that the proceeds should be received in drafts
on New Orleans
Answer-I can't answer. The negotiation was
made by my partner VIM. W. Johnson, who is now
in Alabama.
Quesnon-Did you not lose on that paper three per
cent?
Answer-Yes.
Questionable not Mr.. Johnson consult with his
partners whether they had not better enter into the
Answer-I should thiak he did-in all such neeo.
tations we always consulted one another; but don't
remember this particular instance. l never knew Of
an instance in which Mr.. johnson did not con-
suit met
INSTRUMENTATION the next transaction of the
bank.
Answer-It was en- Dec. 81, 1886. Sold the Ph1-
nix Bank two notes payable in Mississippi amount
ing 10 s597I60. The discount charged for interest
was S7033; that was at the rate Of per cent at 60
days, and per cent when il over that time il
was the regular discount. The exchange we were
charged was per cent amounting to Sl79.l3. re-
ceIved on account a chesue on Savannah (Geo) for
$4,000 from the bank for the two notes.
Qucstion-What was that checque worth less than
par al that timel
Answers Ia per cent.
Question-By whom was this checque and the for
m.r one on New Orleans, signed 2
Answer-By Mr.. Delafeld / think. did not see
the checque; but | suppose so.
Mr.. Jay stated Of course the cheques were issued
by the Authority Of the bank.
Queston-What was the rate Of exchange Of Mis-
sssippi at that time, on good business Parer7
Answer-A fair rate Of exchange on Mississippi,
as il was going in the street, on COED business pa
per- was 10 per cent | name this price, from
what il could be done at in the market. At this
time, another bank would say the rate Of exchange
was per cent, but they were not taking at any
price.
QuestoH-What was the next transaction
Answer remember 10 have had three other trans
actions with the bank. but come not prepared to give
the Transactions One was on the 10th January,
le37-another on the 18th Of the same month. and
another SINCE bat have not the date. They were
all pretty much on the same terms.
Queston-About how much in gross did oil these
Eve Transactions anountto7
Arswer- About aAb 600 | did not negotiate any