Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-17
Legislative Committee or Enquiry into cer-
tain proceedings OF the Phenix Bank.

+.
The Committee met at halfpast9 o'clock this morn
ing pursuant 10 adjournment. ION taking our usual
Seats the reporters found that their table had been
moved far as possible from the Committee and wit
ness in erder as we have reason TO suppose, to in
crease the difficulty Of hearing the evidence and TO
nterpose as many obstacesas possible the publica-
ton Of fair report. This is very small business,
and defeats its own object
Mr. Foste stated that ne here rested the case for the
Board Ct Trade for the present He had other testl-
similar in character TO those already proved but the
Beard of Trade deem 1t unnecessary to the ends oil
justice to offer any more al present.
John Deafed, Esq, sworn. Is President of the
Phenix Bank, and for Is years cashier.
Queston-State what have been the transactions
between the Phenix Bank and yourself and Mr.. C. b.
Grannss, relation 10 loans and discounts and par
ticuarly two promssory notes for $1,000. bearing
date Jan. I'd, 1897 reerred to by Nr, Granriss.
AnsweT-I will preface my inlnation with a few
financial agent of several states of the Union that
through my fundamentally about Is millions OF dol
lars have been brought from Europe, TO the great
benefit of the States for which acted, and for the
people Of this city. II is also well known that am
the agent for many distant corporations, and asso-
cations 10 collect their instruments and funds, 10
transmit the 10 them, or TO dispose of them as
might be instructed Private capitalists have placed
and do place in my hands, from time TO time, large
sums of money for investment or Otherwise. The
Phenix Bank has been, and continues to be, largely
benefited by these deposes growing out OF these my
agencies, and thereby enabled 10 extend greater aid
and facilities TO her dealers II from funds thus
at nv disposal that in December 1886, and EDWARDS,
Mr.. Granniss received occasional aid from me; say
to the extent Of S5074S and from the middle OF De-
cember, 1885, TO March, 1887. Ii was, as believe in
December, 1886, that Mr. Granniss called on me,
der great excitement and alarm for the safety of his
honor, and srenuousy urged that his firm should be
supported 1t was at this time that great alarm did
preval-the firm Of c. b. Granniss g. Co. did, about
the time mentioned above, owe 10 the Phenix
Bank about $4,000, in round figures. When say
owe that was about the amount Of paper discounted
for that irm no; yet at maturity. Al the same time
amount of paper, promissary notes or obligations
payable varoxs parts 1.-THE United States, equal in
amount to about 3l46, 600. Knowing the extent of
aid already afforded ~ the bank to TINS iirm could
not encourage Mr.. Granniss 10 expect more. His
anxiety and distress Of mind was great and induced
me to say TO him. lido not thus distress yourself-we
will see what can be done for you;" and it is very
probable told him not 10 be uneasy, or TO make
himself easy or words to that effect. do not doubt
but told him 10 call al the Bank the next day. as OF
necessity would advise with the President anu such
Directors as might be at the bank. Al no time was
any proposal made to me- or any officer OF the bank
for. Mr. Grannss did exhibit 10 me schedule OF his
paper, with memorandum thereon Of the amounts OF
money that his firm might require up TO The moniho
March following. That statement was exhibited by
me to Mr.. Carey, the President Of the Bank at that
time. Mr.. Granniss had interviews with the Pres
dent thereafter in relation 10 his necessities did say
or tell Mr. Granniss about the same time, that If
was authorized fIom my agencies 10 purchase and
remit such paper. Mr.. Granniss did bring 10 me,
about the 10Th December, 1886, Georgia paper, for
the proceeds Of which he received from me &7l96 FL
and further sum on the 22d December Of 1857 30
stated TO him that in all these transactions 1t would
be necessary to make me feel secure. think at that
time no slated to me that the Phenix Bank was in
possession Of most Of his business paper. then said
-. a n
in Maiden lane, which you value al $4,000, and on
which there is mortgage for $50 600 that be con-
veyed 10 me-" He also stated that they had large pro-
perty in real estate at Newark N Jersey, which was
morigaRed TO the amount Of 1850; this property
was valued at s75 0O0 "You can let some portion
of that be transferred me-" think he loo alluded
to bonds and mortgages held by him or his firm upon
Jersey property out OF some all of which he could
make me abundaniy secsre. He seemed well DIS
posed to do So aud said he would advise with his
brother From time 10 time alluded TO these secu.
rites when we saw each other, and rested entrely
content with his Intentions. In Jan. 1897, about the
l4th ofthst month, MT Grannss brought me southern
paper which was enabled TO take from him, the pro-
ceeds OF which amounted TO s5276 % at this time
must have urged Mr.. Granniss in relation 10 u Their
securities. Objections were made 10 giving me he
real estate; and believe il wss about this time that
the two notes alluded 10 were sent 10 me- They were
held by nae as collateral security for such loans ms
had made or might make. have nj subsequent pc
RODS loaned 10 Mr. Granniss bis firm the following
sums; l4ih Feb. 1887, 1856 s.; Ath February,
sll $40 06; 10th March, S9503 Ga; and on the22d
March, $4,000. OF the loans so made 10 G. b Gran.
Mss Co. there remains unpaid at this day, e36 1856
| So. The whole OF these monies were under my con-
troll ne q trustee including all the loans TO Grsnnss
& Co.. making $50 TAB 05. These arc The gross sums
Of the paper received for discount the fare Of the pa
per mean; the proceeds Of these loans amount 90
s4,246; the differences made up Of interest and ex-
4 change, e350l &c.
Ques,ion-Hsd the Bank IN any way directly or
indirectly any interest in, or connection " tn the
loans to which you have jus, referred
| Answer None whsiever.
| eston-Had any officer Of the bank, except
you sef any knowledge information in relation 10
such private loans, or Inc two promisory notes Of
| 5000 dollars csch1
| Answer should think not. make the distnc.
ton, that the officers the Preside mt and Cashier.
| The clerks Of the bank knew of my derosit rus
| tee, and paid my cheques out Of srch funds vh, .
| presented.
| Qaeston--wss not the arrangement between your
scf end Mr. Grspniss in rels,ien said hams strict
| " person arrangement in which you acted In the