Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-16
Legislative Committee Of Enquiry into corr
tain proceedings Of the Phenix Bank
FOURTH DAY.

1 FovRTH DAY.
THURSDAY 18th March. 1888
The Court met at 10 o'clock, pursuant to adjourn
ment.
| As soon as the Chairman seated Mr. Edward
s. Gould submitted to him a letter explanatory OF
portion Of his evidence, which he apprehended had
i been misunderstood.
The Chairman asked Mr. Foots if he had now got
nearly through with his case. Mr. Foote referred him
to the Corresponding Secretary OF the Board of
| Trade. (Mr. Denny who replied that they had some
facts to adduce, which they expected to bring to
| light to-day.
Mr. JAY expected to take two days in going through
the for the Bank.
Mr.. Samuel F. Phelps was sworn.-Is merchant
of this city.
Ques,ion-Has the Phenix Bank collected any
notes or drafts for your firm payable at Columbus,
Ohio.
Answer-Yes, one for sls7 90 deposited about 26th
May 1887. 1t was due 9th June, and passed 10 our
credit on the 2ls June.
Questioa-Wnat commission did they charge for
collection
Answer-About per cent 1t was passed to our
credit less 6 per cent.
Mr. W. r. Cutter was sworB-Is merchant of
this city, of the firm of Cutter, Bulkely, Hart & Co.
Our firm has had notes payable at Columbus, Ohio
collected by the Phenx Bank. They collected one of
Sl523.57. Ii was deposited for collection about
month or two before the 9th June last when il be-
came due, and was paid over that day 1t was passed
TO our credit. ] think on the oath June.
Questlon-What were yoa charged for collection?
Answer sent TO the bank to knowif it was pass
ed to credit found il was and that 10 per cent
was charged for collection. declined receiving the
money on these terms.
Question-Had you any other note or notes paya-
BILE at Columbus Ohio collected a, or about that time
through other channels I?
Answer-We had one.
Questiea-When was il payable?
Answer-In the latter part eff May, 1887.
Qaestion-When did you receive the proceeds
Answer-On The lst Jane, 1887 and was charged
ran~,n tmI
Question-Was that collected at the Phenix Bank
Answer-No at the Leather Manufacturers.
Question-Sate the conversation you had with the
Cashier of the Phenix Bank relative to the charge of
10 per cent. for collecting your note
Answer went personally, and saw the Cashier
l enquired the rate of exchange on Columbus, Ohio,
on the oath June. He told me 10 per cent re-
minded him of the engagement he made with rs,
when we commenced accounts with him, that he
would charge only the expense they at in
making the collection, and asked if it could cost ten
per cert. on Columbus, Ohio. He told me that the
note would be higher. As we had that day enqured
of the Leather Manufacturers Bank what were their
charges nd ascertaned them 10 be per cent, told
Mr.. Deafield that fact, and reminded him further
more that one of our neghbors had only been charged
per cent. for collection the same place by the
Phenix Bank. requested him. if he could not make
the charge lighter 10 give as draft on Columbus,
Ohio. He asked if the note had been passed to our
credit; told him il had He then directed the assis-
tant cashier TO give draft on Columbus, Ohio,
which he did for the full amount OF the note charg-
ing nothing for what they had done. Thus endedthe
conversation.
Queston-Did you dispose of that draft
Answer-We disposed eft at abou, l-2 and per
cent. within two or three days afterwards
Cross examined by Mr.. Hall-IG on the oath of
June, the Leather Manufacturers Bank would collect
on Columbus at per cent, why did you not deposit
the Phenix Bank cheque in the Leather Manufacturers
Bank for collection
Answer-We did give them the cheque after MAX
tpu ctfnh Thau tnnH op4 - a,xtaA
the signature of the cashier of that bank but in
two days from that time it returned 10 us by
that hank. | presume the reason was that had
mentioned their rates of charge 10 the Phenix Bank
and the Board of Trade. i sod the cheque On that
dav before stated
Several witnesses were lied, but did not appear.
The Chairman thought IT unnecessary TO multiply
evidence on the same point.
Mr.. Foote said that he produced a variety of wit
nesses to show the generality of practice pursued by
the Bank He did not wish TO adduce cumulative
evidence unnecessarily, or facts OF the same charac-
ter.
Mr.. wardwell asked il the Board Of Trade had any
new charges.
Mr.. Simeon Draper said they had, tut they should
reserve them at present.
Mr.. Amos Keeler-Is merchant formerly of the
house Of Keller MNeill e. Co. now dissolved.
Question-Has your firm within the last eighteen
months had paper payable in this city discount
ed al the Phenx Bank. for which you received pro-
ceeds in cheques or drafts under par in this mar
ket?
Answer believe not any city paper
Qaeston-Had you any paper payable out OF the
State
Acknowledgment out Of the city.
Quesrion-Abont what amount
Answer-s30, 600, at FIVE different times and ar
rangements.
Qnestion-wbat was the greatest amount of loss
on drafts received7
Answer-Five per cent
Quesiion-What was the greatest amount charged
or exchange on the discount besides Interest,"
Answer-The interest and exchange are blended
together except in one transaction. On 9Th Janu-
arv, 1897, we had discounted at the Phenx Bank
Sill 66s 26. In this they separated the interest
from the exchange The interest was sl36 OF the
exchange 1864 81 " was principsly Alabama paper
and some Ohio The average OF exchange was two
and half per ceHt.
Queston-About what were the rates the other
transactons7 Was the exchange on the other trans
actsns the regular ratcs7
Answer believe IL was.
Question-What in general was your loss on the
paper receiv for the proceeds Of the discounts
Answer-Fron % 4 TO per cent. On the whole
$40 900 lost The cheques received $40 Is
that is to say we sold them in the market, less than
this fare.
Question-Have Won had n note discounted or col
ected by the Phenix Bank, payable at Hudson in
this State
Answer-Not any nete il collected a Hudson
Bank desosite in May, 1887, for $500. The bank
charged l-2 per cent.