Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-19
Freceedfngs OF tire Legislative Csnnntttee
for the Investig attsn OF cersain eharSss
against ths Pheaix Bank.

SATURDAY, March II, 1888.

SATURDAY, March III 1888
On our outside will be found the proceedings Of the
committee up to two o'clock the following compri-
ses the remainder Of the testimony up TO the hour OF
the final adjournment Saturday clock:
q. Has it been usual for banks in this city to
charge profit out OF collections A. As tar as the Mer
chants Bank IS concerned II has not The Mer-
chants Bank has returned exchange not directly but
indirectly by discountng other notes.
Samuel Dung examned.-ls clerk IN the Phe-
nix Bank there has been no other man OF the name
of Young IN the Bank never purchased any check
or checks of the Phenix Bank no other clerk in the
bank TO my knowledge ever purchased any such
check.
Mr.. James b. Otis-Has been a Director of the
Phenix Bank or years. G. Did yousver discount
should receive the proceeds in draft OF the Phcnix
Bank on other banks IN distant places A. Never
knew any such transaction. z. Did the bank ever
purchase It's own drafts. A. Never,
Mr.. BenI Curtis cxamlned.-Has been director OF
the bank for years.
The same questions that were put to Ons were put
TO Curtis and answered in the same way.
u. Has not the bank discounted paper IN the
expectation that proceeds would be received in check
on distant places. A. When persons have 50 offered
paper and madssuch application themselves undoubt-
eddy II has been done. u. by Slbey. Has not the
Pnenx Bank made discounts and paid the proceeds
IN checks on distant places when the bank could not
or would not otherwise have made those discounts.
q. by Hall. When such discounts were made and paid
was II because the bank had ne funds here. A. The
bank has often granted discounts in that way when
II was not CONVENIENT to do otherwise.
Simeon Draper examined. Is one of the Commit
tee of Board of Trade who conduct this investigation.
He was asked to explain the conversation Of Mr..
Ray. A. MIR. Ray was correct so far as he went.
Other conversation, however, followed, which could
IN my oplni.n have left no other impression on his
mnd or that of the other gentleman, Mr. Curtis, than
that which 1t was my intention to convey, viz that
the oppressive course which had been pursued by the
Phenix Bank, which was generally understood 10
mean Mr. j. Delafeld, cashier in commencing suits
against houses, who like the bank, had been obliged
to suspend their payments. 1t created feeling of
Indignation throughout our mercantile community,
and has led ~ much conversation, and ultimately to
an impartial and unpreJudced investigation through
the Board OF Trade, and subsequently, TO one by
highly respectable committee of the Legislature of the
state of New York.
Cross-examined. Did not say all thi. TO Mr.. Ray
z. Have you any wager now depending that the
phenx Bank will lose It's charter in consequence of
this investigation? A. None to my knowledge,
except it be bet of beaver hat with the counsel
for the other sde-who have tainted me about the
result for two or three days past. have no record
OF any sach bet-certalnly have none beyond $3.50.
l might take small bet on that subject new, how
ever. q. Are your firm endorsers of paper dis
counted at the Phenx Bank, which was not paid
at futarty, and has been renewed. A. do net
know of such case Our firm endorsed much
accommodation paper which has been renewed, but
the parties for whom we endorsed have always made
their own arrangements with the Banks. The
Phenix Bank nor no other bank has called on US
TO pay an endorsement which has not been paid.
Mr.. Z. b. Grannss recalled.
The private check book Of Mr.. Delafeld was called
for and produced.
Mr.. Foete said TO witness look at those checks
now produced, bearing date 18th Dee. 1886 to 22d
March, 1887 TO be the same in number purperting 10
be signed by J. Delaield trustee. Did you ever see
those checks before this examination commenced
A. have no recollection of ever having seen them;
II IS possible once saw one of them; strikes me
did take a check once from Mr. D. but can saw that
recollect disunctly nothing of these checks; this
business is usually done by our book keeper. z. Who
generally goes 10 the bank and transacis the ordina
ry banking business Of ysur housed A. Our book
keeper, Mr. -. Z. In the transactions you have
had with Mr.. Delafeld in relation to obtaining dis
cosnis through him or from him, did he ever men
ton or alude to the Southern Life and Trust Com
pany? A. Never, 10 ray knowledge. q. Did you
not suppose and believe that all the discounts yeu
obtained from or through Mr.. Deafied were made by
the Phenx Bank at the time you obtained themi
A. All with the exception OF one or two, which un-
derstoed were made by Mr.. D. with private funds. /
think took check from Mr.. ID. 10 the amount of
$4,000 or $4,000 with this understanding from him,
that 1t came from private funds q. Has your house
two branches A. Ii has; one In New York the
firm of &. b. Granniss a. CO.; the other in Newark,
n. j, under the firm of Granniss Brothers.
@ Who drew and who endorsed the two notes of
$1,000 each spoken of in your direct examination
A. All the partners in one house partners in the
other. The partners are IN both firms, G. b. Gran
Miss, John w. Granniss, Henry r. Granniss. q.
How were those two notes drawnl Who were the
drawers, who the PAYERS, and who the endorsers1
A. Drawn by G. b. Granniss d Co. to the order Of
GrannIss & Brothers, and by them endorsed. q.
Did DIR. Delafeld when he asked for notes towards
the bonus, and when you gave him these two notes
know that the same men composed both firms
A. | certainly supposed he did; wehad conversations
respecting the two branches of house before. q.
Were either of those notes endorsed by any one but
the members of your house when you gave them to
Deafeld. A. They were not. q. Has your house
after presenting your own paper TO the Phenx Bank
for discount after having presented paper Of third
persons endorsed by your house. been asked, or
per collateral security for such other paper have
you ever heard Of such transaction A. Never SIR.
q. What entries were made in your books respecting
those two notes delivered 10 DIR Deahed A. With
but reference in the margin OF note book whence
such notes dated And in that respect those two
notes differ entirely from any other notes ever drawn
by house. The reason of this was their peculiar
character and our desire TO have a memorandum ~
than in that place, and our desire not to have them
90 through our books. q. Are both yosr brothers-
members OF vesr firm-now in this city. A. No. H.
f. Granniss is IN Alabama. He has been absent since
November or December. q. Did you tell your bro
theirs the arrangement you made with DIR. ID. TO car
ry You through your difficulties and give him bonus
OF $50 600 A. did.
Cross -examised-Q. Are on not a member OF q
firm whs did business as Grann.ss Son & Brothers
A. Yes We had interest IN such firn NJ Richmond
q. Did you never dcpcsc the paper Of that house as