Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-19
Legislative Committee Of Enquiry into GER
tain proceedings OF the Phenix Bank.

Legislative Committee Of Enquiry into cer-
tain proceedings of the Phenix Bank.
SIXTH DAY.
SATURDAY, March IT. 1888.
In desultory conversation before the commence
Of the proceedings Messrs Wardwell and Sibley
stated il to be their intention hear any speeches
summing up. Their duty confined TO giving a
report of what had been elected and long speeches from
counsel could assist them in that object.
The Chairman said he should make effort TO close
The proceedings this day.
Mr. Foote announced that he should not take up
more than half an hour in any additional evidence he
might have to adduce.
Mr. Robert Ray was sworp.-Is one Of the Directors
OF the Phenix Bank has acted President of the Phe
nix Bank for about four months during the time Mr..
Carey the President, IN Europe. The Cashier
authorised by the Board Of Directors 10 make
promise and agreement TO carry G. b. Granniss Co.
any other firm through their difficulties 1896 and
1887 upon any terms conditions whatever
certainly The Board Of Directors would never,
should think, have made upon any such general
sonract for my own part 1 never would never
heard Of any such proposition until stated by Mr.
Grannss, his examination here. have had CONVEX
sation with Mr. Granniss in relation the affairs OF his
house. Mr.. Delafeld. the cashier, confined to his
house, for about fortnight in the nth of March 1897
and during that time Mr. GranRiss. of the firm Of
G. Il. Granniss CO., called for the renewal Of
note, discount, am no, positive which-and
stated him, that thought the bank had done for that
house muck II could do, consistently with the
cla~s oits other customers. think the favor he ask
ed granted. In 1886 and 1897 the bank discounted
much for the hoese of Granniss * Co. it could
with prudence and the with all its customers in
my opinion al that time. II was never, my know
ledge made the condition Of discount board that
that the persn oerngthe paper should receive the pro
seeds by checks Of the Phenx Bank banks in other
states The Phenix Bank my knowledge or in
formation purchased up Tor their checks issued
by them is the duty should think Of the Cashier, TO
institute suits upon dishonored paper that the nteres,
f The bank required be collected II has been stated
me by member Of the Board of Trade appointed to
conduct this investigation, that would never have been
commenced but for the bringing Of such suits. While
Mr.. Delafeld under examination yesterday, res
pecting those OF $4,000 each Mr. Draper Of
The Board OF Trade stated that if Mr.. Dela6eld
had not commenced some heavy suits he would have
been here.
Mr.. Draper wished here TO explain and said that he
conversing casually with Mr.. Ray, and that from
what said, very different inference intended
10 be drawn, and that Mr.. Ray must have known So
J. ID. Biers examined-ls an exchange broker on his
account.
Question. Have you not various times within the
last eighteen months taken received bills Of exchange
drafts checks Of the banks in this city banks in
other states at par
Answer. Yes; and paying for them in paper al 90
days with interest j took Mechanics Bank check
ID. Sept. 1897 for $4,000, and Merchants Bank
check for 10000 the 9th Of Sept. / took City
Bank check on the llth. for $4,000 took Nation
nj Bank check the 18th for the amount took
shout s25o 900 Of he State Bank, paying in paper
about 80 days. The eth OF July took State Bank
check for $4,000 in paper al rs days and they allowed
the Ia per cent
Question. When you say that you paid for these
drafts in paper do you rhai the Banks discounted
yosr paper
Answer applied to those Banks for discounts
which they did, and the proceeds were passed TO nay
credit less the discounts, drawn ont in the usual way
would give my check, and the Bank would give me
theirs. Ir few years past have had similar trans
actions with the Phenix Bank and all the Banks to
the amoup, Of millions Of dollars
Cross xamined-Qu Question. Have YOU taken cheeks
for city paper discounted 10y the banks for you dis
TAFT banks, TO large amounts when ysu were obliged to
sell those cheeks in the market under par from TO
per and " you have, what motives induced you TO
make such disadvantageous operations
Answer have taken such checks and TO large
amounts, but do recollect Of having suffered any
such loss The banks who gave these large amount.
were IN the habit Of collecting suck paper at par The
checks have taken, have collected myself at par
perhaps at profit In the transactions made il
the usual way, there would be loss, but by investing
in foreign funds or bills Of exchange or stock we gen
orally made preht
Question, by Mr.. sibley Was the City paper dis
coupted for yos by the Banks your Notes or basi
ness paper endorsed by you or your FIRM
Answer. Both
Moses H. Grinnell examined. Is one Of the az IN
Directors Of the Phenix Bask been so 10 years CUES
tos--Was the Cashier Of the Phenix Bank ever ~
thorised by your Board make any promise agree
nest TO carry G. u. Granniss Co through their diff
cutes in 1885, 81 upon any terms or conditions ~ha
ever
Mr. Foote on behalf OF the Committee or the Boar
ef Trade stated that the Comnniee have evidenc
information and do believe that the Board OF
rsctcrs Of the Phenix Bank, had any knowledge or
participation the alleged arrangement with the firm
G. b. Grsnniss Co, respecting the bonus ol sac Oo'
and the carrying that house through its difficulties
nor Of any similar arrangement with any ether perso
or firm.
q. Has the Phenis Bank ever made IL a condto
foe diseountng psper that the person offering shoul
receive the proceeds in q check on a distant bank
A. Never 20 my knowledge. q Has the Phenx Ban
ever purchased ie own ehecksf A. Never 70 IN
q he'll NJ
parchased the checks Of the Phens Bank A. Id
not
Crsss examined Has no, the Board of the Pheni
Bank discounted paper the understanding or expects