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

Answer-No.
Queshon-Did you make the demand for the re-
tur OF the exchange?
Answer-No
Queston-was any thing said about it? Why
did you net make the demandl
Answer-Because we did not think there was any
chance Of getting il back.
The witness signed his examination.
Mr.. Charles U. Carlton was the next witness. Is
a resident of New York, and dealer in French
silk goods; belongs to the firm of Nelson Carlton
u Co. The firm has bsen IN business here about
eight years and has kept account with the Phenx
Bank at least three years up to tins time, probably
longer.
Question-Has your firm within the last eighteen
months, had notes discounted at the Phenx Bank,
he proceeds you received for which drafts under
par in this city
Answer-We have. The first transaction was on
the 10Th Nov, 1886, TO the best of my knowledge
1t was our own note drawn in favor Of J. Delafed,
Esq Cashier payable In this city, at rs days. for
$4,000. The interest on this was $l79 80 100; for
this received Phenx Bank cheque on Bank at
NatcheZ, (Mss) ] think the Agricultural Bank.
The proceeds we received were ST. $50 $780, sold
the Pnenix cheque the same day at - per cent dis
sold il at The best rate could; it was sold through
Shpman, Corning d Co, brokers' who disposed of it
at less rate of discount than we ourselves could
get for it in the market.
Questionable the Phenix Bank make il a condi-
ton OF the discount of that note that you should take
cheque for the proceeds on Natchez
Answer-It did, The Bank offered us the choice
OF two or three other cheques southern and south
western places think they were on Louisville and
Vicksburgh. The condition was that should take
draft one Of these places | selected Nalchez as
being the best of the three.
Al this stage of the proceedings Colonel William L.
Stone one of the editors of the Commercial Adrer-
fser entered their room, and after looking round and
espyng the thick mass OF manuscript pages contain
ing faithful transcript of what had hitherto been
elected he began TO be very nervous and dgety and
moved close to the table occupied by the Commits
sloners, where lac employed himself in earwlgeing
those gentlemen. The result will be seen anon
The next transaction was on the 2Sth November,
1886; this was discount upon country paper, due
in February, 1897, payable in Florida, Alabama and
Mississippi amounting to Sl2 l46 The Bank charg
ed US interest," aud per cent additional exchange
amounting together TO SSl2 50-l00. | received
cheque on New Orleans it was Phenx Bank
cheque for the full proceeds, being $ll 1888 9ll90.
Quesuon-What was it under par?
Answers per cent.
Question-Did you sell il at that rate
Answer-I did. l sold it at the best rate could
Queston-When the Phenlx Bank charged you
per cent exchange in addition TO interest what was
the ordinary rate of exchange on Florida, Alabama,
and Mississippi, upon the best paper.
Answer think the charge OF per cent was the
fair rate of exchange on those places upon good pa
per; do not mean bank cheques wish TO he un-
derstood that 5Per cent fair rate fer that paper
at that time or on coed paper.
u
you should receive for the proceeds draft on New
Orleans
Answer-Yes.
Quession-Dd any of the notes discounted on the
last occasion come back protested?
Answer estimated that about ten twelfths of the
notes discounted for US by the bank came back pro-
tested; these were subsequently, paid up to the Phd
nix Bank The bank did not return as the exchange
Of per cent charged the discount any part of
il. did not ask for III it was not customary ne
afanc han N WI maid hack Il
never had it pad back under such circumstances.
should not have expected to have received 1t, had
asked it. Formerly the rates Of discount were very
small Southern places, about one or one and half
per cent and 1t small that we never thought
of asking il back. As far my experience gees be-
lleve such TO have been the practice with all the
banks. The notes formerly discounted in this city
payable 10 the South and West were generally PAID
and very few returned protested.
Cross-examned bv Mr.. Jay-Were the notes which
were discounted for you endorsed by your firm :
Answer-Yes made the arrangement relating
10 the discount of those notes with Mr.. Deaheld;-
made the arrangements personally with Mr.. Della
field, who was then cashier.
1.-THE Chairman here observed that he understood
there was a reporter for the public press taking
notes; he was not aware of this circumstance until
few minutes ago, and now he had TO observe that
was the wish OF the committee that ne garbed or
erpartc reports should be given and that no commu-
ncaiion should be made the public of the evidence,
until the Committee had gone through with the in
vestiga,ion, and made its report to the Legislature
He must observe that the present was open court
and the committee had no authority TO exclude re-
porters they had much right 10 be present as any
body bat for the reasons stated he hoped no report
would be made at present
Colonel W. L, Stone then addressed the committee
stating he not aware that any report was TO b.
made, that the proceedings would be published If
he had, he would have taken care that his own report
or should have been in attendance. and would have
published the proceedings every day up TO o'clock
he could only say that he would abide by the wish OF
the committee, and he hoped every body else would
also
The Reporter Of the Herald remarked that he at
tended give faithful account Of the evidence and
all that transplred relating the investigation; al
the observations made by the honorable chairman
with regard 10 the suppression OF the report. For
himself the reporter had discretion in the matter;
his duty was confined TO reporting and not to pub
fishing and to decide npon that not within his
province. He would relate 10 his principal what had
been mentioned on this point and il would be for the
proprietor and editor Of the paper the reporter repre-
scented decide upon the matter; the reporter could
make engagement, as he had no power TO carry II
into effect. He must however, state that he had APP
plied 10 Mr.. Sibley, and that gentleman had assured
him the court open one, and there could be no
cbjectins to reporting the proceedings.
ny The Reporter would remark that he was scat
ed for about an hour under the Cbsmmsns nose, and
commenced his notes under his immediate observa-
ton.
Mr. Sibey confirmed the statement efthe Repor or
in sofar ps IL related 10 HIM.