Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-14
AsxnsAasave Committee Of Enquiry tnlo GER
taiA proceedings OF the Phcnix Bank.


SECOND DAY
TUESDAY, 18th March. 1888.
Ine Committee met pursuant TO adjournment al ~
o'clock in the same room yesterday. The Chair
man expressed his disappointment at the appearance In
this mornings Herald Of the proceedings OF yesterday
Mr.. George b. Deforest was sworn. lsaresident OF
member Of the firm Of Downer Co. Our firm has not
kept a regular account with the Phenix Bank
Quesiion-Has your firm had any discounts within
the last Is months of the Phenix Bank I
Answer.-We have.
counts receive drafts payable at distant places
Answer.-For some Of them we did.
Quesiion.-Sate the transactions most unfavorable to
your house with the Bank?
Answer have not had time to examine all since
received the subpoena. have examined one 1t was
on the End November, 1886. We applied at The Bank
Tor discount and obtained one, on paper payable in
Tennessee Louisiana, Alabama, and Kentucky, amount
ing TO Sl3s20.l4 the discount on which, for interest
was S2ss.s9; the exchange S70l.9l the average
exchange all these places per cent-toek
check on Natchez FOR the whole proceeds which was
sold at the time within day two for .
per discount. II purchased by Shipman &
Corning to whom paid IN addition Ia per cent bro
kerage.
Queston-When you applied to the bank for this dis
count was il made condition that you should take
cheque or draft for the proceeds a distant place?
Answer.-lt was.
Qnestion.-Wlth whom did you have the negotiation
for the discount?
Answer.-With Mr.. Delaheld, at the Phenix Bank
Questionable any of those notes come back pro
tested
Answer.-They did.
Quesiion-What proportion came back
Answer-Ss, 462 81.
Questionable you pay them up to the Bank?
Questionable you pay Them including expenses for
protest, postages &c?
Answer.-Yes, amounting to about $50
Questionable the Bank allow you the payment
of the notes, a return of any of the exchange?
AnsweI.-No.
Questionable you apply for it!
Answer-No.
Queston.-Why did you not apply?
Answer.-For a variety of reasons.
Queston-rIad your house other similar transactions
with the Phenx Bank name about the amount and
about the time
Answer.--Wc have had other trans actions from Nov
1886. TO May, 1887.
Question-About how many?
Answer--Can't tell nor the gross amount; but rising
$4,000 including the one first stated.
Question.-Was the exchange charged by the Phenix
Bank at the time the discount above mentioned the
fall and fair rate between New York and the places
where the no es discounted were payabes
Answer.-I considered the rate a fair rate.
Quesuon-State the regular and fair rates of ex
change between New York and different places the
South and Southwest during the fall of 1886, and the
winter and spring of 1887?
Answer.-l can only state Ae paid in Octo-
Der and November, for collection, in 1886. through
banks. On Ohio. Gath Oct. per cent Mississippi
same date, l2 per cent; on Alabama, 10th Oct l2
Virginia, 18th Oct per cent Tennessee, 10th Oct
Missouri, 18th Nov. 4 North Carolina, cath Nov l /;
Virginia, Gath Nov. i2 per Alabama same date
per cent
Crossexamined by Mr.. Hall-Who composed the
firm of Downer x Co
Answer-Silas p. Downer Charles D. Hail. and nv.
self; we have gentleman sterested with us None of
them members of the Board Of Trade, think, of
this city.
Question-state as nearly as you can, the converse
ton yeu had with the cashier of the Phenx Bank, on
the 2nd Now, 1885, when you applied for the discount
you alluded to in your direct examination.
Ans~er.-l can't answer that particular time I
can only state that when applied for discounts the
cashier OF the bank, applied for them
da,on to myself my firm stated TO the cashier
at the time Iappied for the discount.
Question-You have stated that the discount you APP
piled for granted condition that you would take
the proceeds in a draft distant place what was the
conversation you then had in which that condition was
expressed
Auswer.-1 could not state positively what the con.
Question-Please state the substance of YOUR appl.
cation the cashier on the 2nd Nov; and the sub.
stance of his reply
Answer.-I applied for the discount as an accommo.
dalton; and the answer was, that if 1 would take
chequc these distant places, could have discount
Imay have asked the time made the application for
a cheque on Natchez. New Orleans, or Georgia as
knew he was in the habit Of granting discounts for
cheques on those places.
Question How did you knew the Cashier was in
such habit you say that you did keep regular
account there
Answer had been so informed by my aequaint
ances.
Questionable the Cashier inform you ut the time of
your application, or give you understand that the
Bank had funds in the city Of New York. with which
10 discount your foreign paper1
Answer really cannot say with regard to this
particular occasion.
Questionable he ever SO inform you, a, any time
before
Answer think he did.
Gu ston-Was il before tina. time
Answer-I can't state; il might be them before or
afterwards.
Quesuon-When you made the application of the
I'd November, did you not know that the bank could
not discount your paper except by giving you funds
on ether places
Answer do not know what the bank could do
When applied for the discount, / did not expect 10
get the money in New York; expected, of course,
to take a checque.
Questionable you state to the Cashier the uses or
purposes to which you intended apply the checque
received m DISCOUNT
Answer did not
Questlon-Your firm have had dealings with other
banks2
Answer-We have kept accounts with other banks
since we have been in business.
Questions with what banks you kept accounts
from Sept, 1886 TO May, 1897
Nm IL. .xCA ~