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

THURSDAY, March Is. ls'

| Question-Have you, or have your firm. any other
person or firm within your knowledge, had any trans
actions other than those before stated with the Phenix
Bank any Of its officers within the last two years,
out OF the usual course Of fair and correct banking
business III yea, state the same
| Answer.-I cannot answer for others We have had
none except cases where we thought excessive rates
for collection were charged. will state an instance.
We had two notes. between ten and eleven hundred
dollars each payable thin 20 days OF each other we
collected through the Merchants Bank-it charged
us 12 per cent about IS exchange, on keesevie, in
this state The Phenix Bank collected the other and
charged 500. on the same place They came due in
June and July, 1886. The notes were both OF the
amount, and both payable al Keeseville. The Phenix
Bank has returned the exchange. when the
is returned, discounted IN similar transae-
tons with other banks, il has always been done The
\ Merchants Bank has always returned the exchange
have expostuated with Mr. Delahed, and appraised
him of the practice the Merchants Bank but he said
he had nothing to do with that
Cross examined by Mr.. Hall-Could you not in all
of collections by the fhenix Bank have received
its cheques for the amount on the place where il
collected less 12 per cent for collection you had
| applied?
Answer.-We applied for it, and don't know
Question.-When did you expos,ulate with the Cash
Ter about the non return of exchange when discounted
notes came back?
Answer.-l cannot the specific date but in the
of the year 1896 spoke him on the propriety
of doing as the Merchants Bank did.
Question-Why did you deal with the Bank, after
you knew their rule exchange dis
counted bills protested
Answer If we wanted greater discounts than one
bank would give we had go another and because
the Phenix Bank would collect when others would
Mr.. George - Shipnan.-Is stock and exchange
broker Lastyear was of the firm of Shpman, Corn
| ing Co.; now ShipmaR and Ayres.
Question.-Has your firm within the las, two years.
| had any transaction with the Phenix Bank, by which
they had discounted paper payable in this city, and
given you for the proceeds, paper under par in this
| market
| Answer-They have.
| Ques,ion.-Alout what gross amount Of such trans
action has your firm had with the Phenix Bank in the
/ last two years
| Answer.-From May 1886 to March 1887 TIE gross
amount about S30,000 payable in the city and
about $4,000 in Philadelphia and Boston.
Question-What was the greatest per ceHtage of dis
count upon any OF the paper you received for pre-.
| ceeds7
| Answer.-3 and l per cent.
4 Question-Whai was the average loss
| Answer.-F rom l.2 to 3 per cent.
Questionable you receive those cheques from the
Phenx Bank and did you directly or indirectly return
the them?
nix Bank, but did directly indirectly return them
| 10 them,
Queston-What disposition did you make of those
cheques?
Answer.-We sold them in the market generally
Queston-To whom?
Answer-We sold one for s9927. go, to the Bank Of
America; II was on Cincinnati, 18th May, 1886; an
other, Nov 10, 1886, to Goodhue G. Co. for $4,000 on
Nachez; another TO ~ Berthoud, same date. for
s664s.55, on Natchez; the next was March /. 1897.
10 Jas Donaldson K Co., for $3.50 c. on New Or
leans; one, same date, same place, to Brown, Bro
thsrs q Co., s6095.42; on March g. we sold another
to Faber & Mere for 1920, on New Orleans same
date TO Abm Ogden d. Co., Tor $500. These are the
only direct transactions with the bank. The last
two cheques were sold for exchange on London.
Quest0n-Havo you, or your firm, or any member
az vonr firm, purchased any cheque cheques drawn
nix Bank, or any officers OF mem olfs N fAr the Rbs
ton, or which have gone directly or indirectly int,
that corporations
Answer-Never TO my knowledge
0uesuoa-Have yeu or your firm purchased an,
such cheques and if so, for whom
Answer-Never purchased any cheques fthe Phe
Blk Bank, to my knowledge or recollection don,
mean TO say we have not, but don't recoect
ouestion-Have you sold any such cheques 70
other persons, and if so, to whom?
Answer-We have sold such CHEQUES
Quesron-Hnve such cheques that Won have o.
sold or any OF them, gone directly indirectly TO the
Phenx Bank, or TO any officer member of that cor
poratien, as you know or believe?
Answer-Do you mean to any director1 We ono,
sold eheque TO DIR. Parish, of the firm of A. B. Par
ish d Co, one Of which frm director of the Pie
nix Bank; but TO no others, know or believe. II
amounted 10 sl4 53l u.s. dated Dec. g. 1885, the dis.
We sold 1t for Granniss & Co.
QuestoH-To whom have yeu sold other such
| cheques?
Answcr-we sold one to a Mr.. Young of whom
Nov. 49, 1885, and was sold for Nelson Carlton 4
Co.
Question-Do you know Mr.. Young. who is nm of
fcer of the Phenx Bank? if So was he the person 10
whom you sold the cheque2
Ansmer-I don't ksow any officer of the Phen;r
Bank named Young.
Question-Wss the Mr.. Young 10 whom Won sold
the check, resident of New York;
Answer-l know nothing about IT,
Qaeston-To whom did you sell another eheoue I
Answer-To N. Berthoud for Gran Il Barton
Queshon-To whom did you sell othersf
ADswer-One TO Sands, Turner, Cox e. Co ; this
was Ter Grant q Barton also, amounting to $500
Qussion-Whch Of the partners of that firm bought
i'll
| Answsr-Mr. Sands.
/ Questlon-What other check have you sold
| Answtr-To the Bank OF America for el0 600.
drawn on Macon, on Jan. Gath, 1887; and TO Prime
Ward IL &c. for 81 000 on the 18th Nov 1886 il was
sold tor Granniss d. Co; another to Prime Ward &
King for SEINE person, same amount and date on
Goth Nov. These are all knew.
Quesiion-Have you sold a great number of such
cheques for other persons1
Answer-Yes. Wecanaoi tell by what Banks these
cheques were drawn, and could not have identIfied
those mcntioned had not attention been brought
TO the subject by the OF the evidence that has
been gwen by different persons during this nyesugs-
uon we do not enter such particulars on eur books
we know nothing Of the circumstances; we NAV
nave SOLD thousand on every quarter of the coun-
a yer ~ oyt,c