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

winch you had with the Phenix Bank q - '"o'
IL. nD SnsLnsn read the resolution Of the Assem-
Ply uhder winch u was appointed which Restricted
the enquiry to the Phenix Bank only and thersfoys
considered the question improper 1t could no, Cd
the Phenx Bank that they had done wrong in csm m.
paIy as 70 the Intention It must be proved by fact
and no custom could justify wrong.
Mr. Hall then proposed this question il not
been the practice Of the banks of New York to dis
s S,a paper giving in payment cheques on other
Ths Chairman objected 10 this only on the ground
OF immaterlality II it was permitted TO be put 1t
might be followed by Objectionable questions that
'fe me- q upon the ground already prohibited.
MT ran wanted to prove that the cheques given
We're at par; and if he could do So and that the
cnecques gwen were received he thought he could
disprove the usury.
MI Slbley stated that the Committee came to en-
quIe mo me complaints against the Phenix Bank,
anu ho W invite charges against other banks and if
the present enquiry went INTO tho extent proposed it
went lnts what the Legislature had forbid He was
for excluding the question, wishing TO examine in
to the affairs OF other institutions
The Chairman said any evidence would he CONNIE
tent that would shew that these cheques given out bv
the banks, were at par The question would not estab
lish this fact. The committee overruled it,
Quesion-To whom did you pay per cent on ma
per, in Ohio in November, 1896?
Answer.-To the Manhattan Bank and to the same
bank, on tAe -, - on Mississippi. These col.
lectons were all made for by the Manhattan Bank
and took the list | have given from our bank book
Quesion-Were none of these for collection
discounted at the Manhattan Bank?
Answer-I think not.
The witness signed his examination.
Mr. Edward > Gould, Is a merchant of
this city am member of the firm Of Manice Gould
Co. Our FIRM has had discounts with the Phenix
Bank within the last Is months. We received in some
instances the proceeds of those discounts in CHEQUES
payable IN distant places We had some paper dis.
counted payable in this city. for which we received
the Phenx Bank cheques payable in distant places
and this in three instances. These last discounts were
made on or about the 18th January 1887 the next
about the gath March, the about the 2sh March
The first discount for Sl137 80 we received for
It a cheque on Columbia, Is. CO.. for $40 e00 in part
the interest at per from the notes. S24s making
the nett proceeds slo7s9 ID the balance went to our
credit IN the ordinary way the books of the bank
That sheqae on Columbia, was sold 10 Prime Ward &
King, for per cent and IA brokerage l employed
broker to ascertain the best which could be Sold
and he told me above The brokers through whom
negotiated, Tracy and Gould sold i, the same
day took 1t. The next, the cath March, the amount
discounted was $1,000 SO interesto at per cent $40
9oanet S56ls.3 received in part payment cheque
on Baltimore for $4,000 from the Phenx Bank and the
balance to account before That cheoue on Balti-
more was, at the time, l per cent brokerage as
usual, quarter of one per cent. On the. same day
received It, sold it at that through the same medium
The discount on the 2sth March was SlO.75e69 All
these discounts were paper payable in New-York;
interest of Sl73.a1-S1O,5s6.46 I received in part
payment a cheque Vcksburg' for $4,000 the
balance before. This was per cent un-
der par, and quarter of one per cent brokerage
sold 1t the same day for this it the best could
do. you may be sure.
At this stage of the the proceedings the room wa.
insufferably crowded; and the chairman wished TO
know whether the gentlemen wished TO remove 10 the
saloon For his part he preferred the apartment
and was sorry 10 see much curiosity exhibited The
Committee, however, wished the removal, and amid
cries of "ihe other adIosrnment was made 10
the large Assembly Room.
The last cheque was sold through the same brokers;
bat don't knew TO whom.
Queston-Were these three last discounts on psner
payable in New-York made condition that YOU
should take for the proceeds part thereof cheques
Answer.-I think can say they were all made on
that condition. l refused discount or any other
terms.
Question-State the conversation as fully as Won can
recollect IT. which occurred between ysu and the
Cashier OF the Bank relative the and conditions
oil those discounts, and each Of them.
The witness asked whether this question was NATE
rial. The Chairman said it proper
Answer-On the first occasion / applied TO the CASH
Ter in person to know il he would discount paper for
u.s. on tina, or the following day. He asked me TO shew
him the paper had offer. gave him psper 10 The
amount suppose Of $4,000; from which he selected
about $4,000 an he told offer those 10 the board
in the usual way, which accordingly did Mex, day
sent 70 the bank to inquire the notes discounted
the answer was brought back that the cashier desired
to see me- went accordingly; he told me that the
notes not discounted and he inquired If could
not make use OF foreign cheque without much dis.
advantage to myself or my srm. asked on what pla
ces he could draw; his reply was that he could not
tell me-that must apply to him for the cheque NV
answer was, that as did know what places he
could draw, could apply for the cheque repeat
ed my queston-on what places he could draw and he
named over number of plsces-I canrot recollect
whch--they were southern and western; Columbia
s. c., one. told him that would inquire At what
rate could dispose Of the cheques those places and
If the discount not too severe, would take soma
one Of them. made the inquiry, and reported to him
that i could sell the Columbia cheque at about 3 per
cent, which the lowest Of those he had mentioned
and would take that theH took the cheaue in the
way it is usually given This, think, was the first
We have action in Chancery with the Phenx Bank
and the bill 10 signed aud sttested by there dis
crepancy in dates between that bill aud my present
statement; Of the conversation, but not tho
precise date In the subsequent two transactions the
conversations were shorter. because new understood
how these things were done In each instance applied
personally the cashier for discount aud in each case
he told me that could not have ordinary discount
meaning New York funds and presume that in each
instance. he offered me the cheque rs before am
sure did not apply for il in the krst instance
Question-Did the cashier, on any, and which of
these occasions discount the identical paper thar
had been offered at the board the usual way and re.
fused
Answer-That was the fact in the first instance the
January discount
Crosscxamined by Mr. Hail.
Ques,ion--On the first application for discount
how many notes did you hand the CASHIER
Answcp-I really don't know gave him a great
number / could tell NV reference There fan