Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-15

BY Mr. Hall-Did you endorse the paper?
Answer-Yes, and got another enderser, Nance,
Gould q Co. de not know the rate OF exchange
between this and New Orleans on the 10th Novem-
Der, 1896.
Question, by Mr.. Foote--Do you know, or have
you any and what TO believe that the cashier
OF the Phenx Bank aware that these transactions
were illegal2
The Committee overrued the question.
Mr.. Deafield denied that they were illegal
The witness signed his deposition.
Mr.. ID. A. Cushman was sworn-ls amerchant OF
the house of ID. A. Cushman & Co.
Queston-Pease state the circumstances connect
ed with the collection by the Phenix Bank Of two
notes belonging to your house, payable IN ilnoisf
Answer-Sometime in the month OF January last,
called up TO the Phenix Bank, not keeping any ac-
count there myself, and asked Mr.. Delaheid II ne
would SOLICIT some paper on remote points: Alter
some conversation, he said he would do So If would
pay for it. l told him expected to pay for 1t; but
did not wish to anticipate the funds. asked MN on
what terms he would collect; he said when the pa
per was paid, he would give our house his cheque on
the bank when the notes were collected, Tor IL per
cent We could not agree upon the rate OF exchange
when the note became due. l subsequently called
with several notes they became DUE and deposited
them among them were several payable on the BANK
of Alton (Ill); one of them was made payable IN
this manner =" Six months after date, we, the SUBJ
scrbers of Alton, state of Illinois, promise to
pay to the order of Mess ID. a. Cushman q Co,
S4l029, at the Branch of the State Bank OF ILLINOIS
at Alton, with the difference of exchange at maturity
between Alton and New York. For value received.
Hungerford, Livingston g. Co. Dated August Sin,
1884, On the Sd March, inst, called at the Phenlx
Bank, and learned that Hungerford o. Livlngson's
note had been paid with the exchange at per cent,
amounting to Sl4 81 exchange. Also that another
note for 1882 81, drawn in the ordinary way, paya.
BILE at the same place, had also been paid. l asked
the cashier Of the Phsnx Bank, Mr.. Ogden, what he
should charge me for exchange on the uote that had
been paid without exchange, and give me the money.
H. sotl D. fnEa onhnn
and allow him half per cent / then told him pre-.
sumed could draw for the note they had received
the exchange on, at par. He said no that he must
charge, If they gave US the money, ten per cent
exchange QaughtcD on that also. remonstra-
ted with him against that, as they had recelv
ed the exchange from the drawers and said to
him that had just collected al the Merchants Bank,
q note drawn in a similar way on Augusta, Georgia,
amounting to about $500, which they had passed to
my credit at par Immediately hearing of its pay
ment | further told them that he Merchants Bank
Cashier told me that he had received II in par funds,
and was therefore entitled to theH here. Mr. Og-
den replied that he could help what others did
went round the counter to MIR. Delafed,
now the President, and stated the transaction to him,
thinking that he would not sustain the Cashier. THIS
was only few days ago. stated it to him, as have
now mentioned it; he sustained the course taken by
Mr.. Ogden, the Cashier; and rather than have any
further difficulty about it, took their draft on the
Bank in Illinois for the amount of the two notes. and
the per cent exchange which had been paid in there
on Hungerford & Livingston's note. They charged
me half per cent. for that cheque and the other
Question-At what rate did you dispose in this city
of the Phenix Bank drafts on Altonl
Answer-That draft l sent to my cores pendent
at Alton TO remit me funds on New York for it, which
have not yet received. Subsequently l sent TO the
Phenlx Bank to ascertain if further funds had been
paid in at Alton. This was last week. ascertain
d that other notes to the amount of $500 or $500
mad been paid at Alton without exchange The Bank
gave US cheque at l.2 per cent and we sold it to
Nevns and Townsend for per cent below par. We
asked the Bank first to cashit but they would not
Questen-Has the Phenix Bank collected for you
a note payable at Tallahassee, Florida, and If so,
when, and what rate of exchange did they charge
yeu2
Answer-I had note payable at the Bank of Tai.
lahassee; it was lodged in the Phenix Bank for col
lection. II payable with difference Of exchange
between New York and that place. 1t amounted to
about $500. l received notice from the Phenix
Bank that il was protested. day two afterwards
received letter from the drawer of the note that
he had paid it, with, believe, Z per cent exchange
/ mentioned this fact 70 Mr.. Delafeld and said, that
when he satisfied the note was paid, wanted TO
know on what terms he would let me have the mon
ey He turned to little card of exchange, and said,
" | think it's IL IL per cent" 1 mentioned that
per cent had been paid He said that what they said
about exchange at Tallahassee was Of no consc-
quence 10 him.
BY Mr. Hall-In what respect has the Bank viola
ted its agreement with you1
Answer-In the notes which were payable with the
on the face Of them. / spoke of ordinary
notes. No objection was made by the Bank to re-
ceive Them and considered no more would be char
ced. Nothing was said about this.
Quesuon-Had you not the option TO take the
cheque Of the bank and draw cut the funds your
self7
Answer-Certainly. The same day l received the
letter from correspondent at Tallahassee, re-
celved letter from the Cashier at that place. stating
that they were drawing on New York at seven per
cent.
Mr.. Henry H. Casey was sworn-Is merchant of
New York.
Questien-State TO the Committee any facts or cir
cumstances within your knowledge showing that the
Phenix Bank have taken charged excessive ratesfor
collecting paper payable at distant places.
Answer-Our transactions with the Phenlx Bank
have been very limited. In December, 1887, We de-
posted note at the Phenx Bank for collection, pay
able at Chicago, Illinois, TO be collected for the benefit
of Pearson & Go. The Phenx Bank keptan account,
as supposed, at Chicago, and sent the nots the
Phenx Bank; Mr.. Pearsens clerk took IL and twas
entered on our collection book.
Question-Was the note afterwards collected
Answer-It was. The note was for e42S, payable
with current rate of exchange between Chicago and
New York. The nett amount passed to our creolt by
the Phenlx Bank an proceeds, was e4o5 81 gave
Mr.. Pearson a cheqse about the LIST February.
Questlon-What was paid at Chicago for the ex.
changef
Answer-I believe per cent. The Phenix Bank
charged per cent, and received the benefit Of psr
cent on the exchange paid at Chicago but can
moi swear pQaItlvplv N the exact amount of ppr