Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-14
Legislative Committee Of Enquiry into eer-
tain proceedings OF the Phenix Bank.
TUESDAY, 18th March, ls

TUESDAY 18th March, 1888.
THE commencement Of this days investigation will
be found in another part of our paper, having oeen
published in Yesterdays Evening Herald We take
up the subject from the time that edition went to press
Mr. Edward S. Gould, was sworn. Is merchant OF
this city; am member of the frm Of Nance, LIQUID
Co. Our FIRM has had discounts with the Phenix
Bask, within the last ls months We received IN some
instances the proceeds of those discounts IN cheques
payable in distant places We had some paper DIS
counted payable in this city, for which we received
from the Phenx Bank cheques payable In distant Places
and this in three instances. These last discounts were
made on or about the 18th January, 1887 the next
about the oath March, the about the 2oth March
The first discount for Sll37 81; we received tor
il cheque on Columbia, U.s. Cd for Sloooo, IN part;
the interest at per cent from the notes S24s ~ making
the proceeds Sl0,7s9 IA; the balance went to
credit in the ordinary way, the books OF the bank
That eheqae on Columbia, sold 10 Prime, Ward
King for per cent and l brokerage. employed
broker ascertain the best at which it could be sold,
and he told me above. The brokers through whom
negotiated, were Tracy and Gould. sold il the same
day took 1t. The next the gath March, the amount
discounted was $566093 nteresto at per cent $40.
90-nett 456ls.3 received in part payment cheque
Baltimore for $4,000 from the Phenix Bank and the
balance to account before That cheque on Balti.
more was at the time, per cent brokerage
usual, quarter OF one per cent On the same day
received it, sold that, through the medium.
The discount the 2sth March was $lo.75S69. All
these discounts were on paper payable in New.York;
interest off $l73.2l-S1O $50. 46 received in part
payment cheque vieksburg' for $4,000 the
balance to account as before. This per cent
der par and one quarter of one per cent brokerage.
sold 1t the same day for this 1t the best could
do, you may be
AT this stage Of the the proceedings, vthe room was
nsuferaby crowded; and the chairman wished
know whether the gentlemen wished remove 10 the
saloon For his part he preferred the apartment
ana was sorry 10 see so much curiosity exhibited The
Committee, however, wished the removal, and amid
cries of the other room doxrnment made to
the large Assembly Room.
The last cheaue sold through the same brokers;
bar don't knew TO whom.
Questien.-Were these three last discounts on paper
payable in New-York made condition that you
should take for the proceeds part thereof cheques
Answer.-I think / can say they were all made on
that condition. l refused discount any other
terms.
Queston.-Stae the conversation as fully as ysu can
now recollect it which occurred between you and the
Cashier of the Bank relative the and conditions
OF those discounts, and each of them.
The witness asked whether this question
rial. The Chairman said it was proper.
Answer-On the first occasion l applied to the cash.
Ter in person. know if he would discount paper for
us, on that the following day. He asked me to shew
him the paper we had to offer gave him paper to tae
amount, suppose, of $50 600; from which he selected
about $4,000 and he told efer those the board
In the usual way which accordingly did. Next day
sent 10 the bank to inquire il the discounted
the answer brought back that the cashier desired
to see me. went accordingly; he told me that the
notes were not discounted, and he inquired if could
not make of foreign cheque without too much dis
to myself or my firm. asked on what pa-
ces he could draw; his reply was, that he could not
tell me-that must apply TO him for the cheque. Ny
answer was that did not know what places he
could draw could apply for the cheque ! IT. sat
I'd qucson-on what places he could draw 4 "a he |
aaned over number of places-I CANNOT recolect |
vhich-they were southern and western Columbia (
). c., told him that would inquire what
ate could dispose of the cheques those places and
The discount were NOT too severe i would take
,ne OF them / made the inquiry and reported to hun
hat could sell the Columbia cheque about per |
rent which the lowest Of those he had mentioned
and would take that thea took the cheque in the
way it is usually given. THIS, think. the first
We have an action in Chancery with the Phenix Bank,
and the bill is signed aud attesed by there dis.
in dates between that bill and my present
l OF the conversation, but the
precise date In the subsequent transactions the
Shorter. because now understood
how these things were done In each instance applied
personally to the cashier for discount and in each
he told that could not have an ordinary discount
me Gaming New York funds and presume that in each
instance he offered me the cheque before / am
sure did not apply for it in the FIRST instance.
Questionable the cashier, any, and which of
these occasions, discount the identical paper that
had been offered the board IN the usual way and re
fused
Answer-That the fact in the first instance the
anuary discount
Cross-examined by Mr.. Hall.
Question-On the first application for discount
now many netes did you hand the cashier 7
Answer really don't know; gave him great
number. could tell by reference. There were ten
The majority were not paid at maturity of the first
discount there were only two paid. Ii is yer Y
possible they were all protested except the drawn
BY Browning & Co. They have been since paid by
the drawers but not by US. cannot tell which ex-
cept by reference.
Question-If were TO read them over, could yoa
tell met
Answer-I am afraid not.
Queson-Have you not stated that they were all
protested except the one drawn by Browning & Co.
Answer-I cannot tell without referring to the
ooks.
Queston-Were not the proceeds of the discounts
of all the ten notes all passed to your credit in your
bank book 2
Answer-They were, presume, as a matter of
course.
Queston-When the cheque on Columbia was re.
ceved was Il not deblted 10 you in the usual way
Answer should imagine nett know nothing
about that.
Question-How did you pay for that chequef
Answer gave ours on the Phenix Bank for the
cheque on Columbia the latter was on bank al that
placel
Observation-Disclosures what officer ofthe Phenix Bank
lid you apply for that cheque
Answer-I think took 1t from the Cashier, h.
,avng told me 10 call for II.
Question-Do you recollect by what officer the
cheque on Columbia was signed
Answer do not
Questionable yos state to the Cashier or any Off
Ger Of the bank at the time you received the chccque