Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-12-19

~ n. Gan you state who collected the loans Oh
those stocks held Az securityl
Vitness The indiv idnal who owned the stock
| ,agn' De received BY power OF Attorney though
Iva. III II was received by the Bank whist hy-
Phocaied, were would the entry be made?
| Wuness-On the second or third tellers book.
.hW!y GHston frsmined.-i was appointed Pre-
sideut December 1875, and held office till the latter
end OF last March. was President but few days at
terW h;te resigned the Office Of Cashier For the five
years preceding, the loans were generally made
by the Cashier. take il for granted there was a
book called Register of Loans and which should
suppose was the property Of the Bank, for know
OF no distinction in the books. Pve recollection
ofseeing any such book the witness described. |
might have seen u II 1t was kept, without knowing
any thing OF it. There was book called Register
OF Loans, but don't think it like the one de.
! scrbed by the witness.
| Loans were made BY the cashier, without consult
| ing myself or the Board Ny impression is, that
there was daily pert made, containing the aggre
| gate under the head Of loans and discounts Some
tImes may have been consulted, ans sometimes the
Board may have been consulted When 1 was there,
Mr. White must have consulted me- do not think
over took the trouble to ascertain for myself how
m"ch we had out on discounts, aud how much on hy-
p0thecatsd stocks
Here a small book of accounts, called a state
ment book, was shown TO the witness, and he re-
cognsed it as such book as used To be laid before
the Board Of Directors
Cross-exau,ined These accounts, on what is
called the statement book were spared TO lay be-
fore the Board. There was also distinct book
kept and laid before the Board The loans made by
Mr. White were secured by a promissory note, pay
able demand, and the stock held dditional sec
rity. Such is my impression, for did not the
notes,sf course ,inevery instance never knew Mr.
White 10 suppress informa alton which either
necessary or desirable by the Bank he certainly
never withheld any from me: In lsst and 80, the
Bank had large amount Of tho public deposites,
winch they were liable to be called for at ANY
one moment. ! should think there may have been
notices from the Secretary OF the Treasury, but
nave no information except what Mr.. White told
me; bat il would have been no excuse if they had
no nc, notice they would have been bound to pay.
The motive for counting these loans money was
70 make interest on the funds In deposte, aud yet
be prepared for any demand that mi Oh, III pom
the Bank. No loans were made ad verse to my
opinion by the cashier. l believe he may have
made many loans without consulting either elf
the directors 1t evident to times that the
cashier mad made loans his owa disc retion it
came out at the semi-wceky meeting Of the Board.
III director had desired it, statement of the
parate amount Of loans and discounts might, and
doubt not would, have been prepared fer him BY the
next day The three directors who formed the first
committee were Mcbride, Suaerin and Todd. The
| cashier really the acting mar in that Bank in
my time, and suppose is now. Tue Bank realized
very E, largely ~ those loans Loan believe;
ever make special loan.
| Hifnsss-Why, if l understand u special loan,
| they have. i remember one instance; a gentleman
had large amount Of notes at four months, which
he wanted us to discount 1t was he rule of the
| Bank not to discount over GO or 90 days, and he
proposed to deposits the notes, and draw against
| them.
District AHorney-Then he would stand over.
drawn!
Witnsss-No; because he would have credit bat
don. understand the detail; only paid the ordi-
nary atteAtion. never examined the first teller's
vouchers or the cashiers report Of hypothec Gated
| stocks. IL was after the committee report that I
was at first surprised by the magnitude OF the loans
| when compared with the discou-is. Mr.. White
was always at hand to give information at the meet
| ing Of the directors. Some members Of the board
were more favorable to the practice Of loaping
| ney, and some preferred making discounts. never
applied to Mr.. White personally for any explana.
ton in relation to loans, ar 10 If the securities
were available on any sudden emergency.
William B. Croo ey eranined-I was a director
OF the Bank forten or twelve years. ! know Of no
| such book, called a loan book, in the Bank. at
tended the meetings pretty reguLr. There
ing statement OF loans. Here the witness des-
| cribed the book as marble covered book, with
leather binding j did not discover any index to
| 1t; Il was an account Of loans to individuals on
| stocks; did not know that Mr.. w hite made the Sc
loans from time to time, without consulting the
| President There were no reports made to the
Board OF individual loans I've no recollection of
the beard making any loans, nor or Mr. Whites re.
| porting that he was making loans without consult
| ing the President.
acting man aud had the principal supervision Of the
| bIsiness
Winiam w. Todd, eramined-I was one of the
directors OF the bank. Have been so for the past
sixteen years, and kept pretty regular attendance
| Inever heard IL from Mr. White but do kno W that
he was in the habit OF making large loans without
| consulting the PRESIDENT
| Quesfisn--How did you knowitl
| Witness-Why, knew that loans were made and
not by the board, and knew that il we had surplus
funds IT was the legitimate business Of the officers
to loan them, so that they would be forthcoming at
| any day or week that they might be wanted. I did
suppose, until lately, that the President knew all
about IT, that being President he osght to have
| known all about il.
The witness was going on to say "a that in some
conversation he had with the President" when the
Court inierferrcd TO inquire if Mr.. White was pre-
xv.fn oa..s L.. IN.
| Attorney said II was not evidence.
| Termination resumsd-l was of the Examr-
ing Committee. but did not find any book contain
| ing the entries Of the leans Mr.. White furnished
US with list Of them paper. IL was on separate
sheets OF paper fastened at the top. When he gave
| NE this asked where the book Of loans was, as
wanted to see the original entrics-he said" there
toas none;" and IL IL is proper for me to give his
| reass ms will.
O'Conno-Certanly, sir, tell all he said.
| Uifnsss-Wby, he added in sort Of under tone
| er arc authorized TO make these loans, and for
that reason II is best MOTTO keep books He brought
a book in however, in which the loans crossed
| out, aud said II was no matter how the money was
paid that get it-It was cid book, and sup
posed Il was book kept for loans made from week
10 week and from day TO day. This at the com
| mencement Of the investigation. He also furnished
large number Of notes Of various individuals with
| the by petheeated stock attached, which we exam
med and found to be correct
| Cross sramined-The list Of loans furnished by
Mr.. White 10 at the Bank. think IL is in the hand
| writing of Colin G.. Newcomb. The notes were
| generally payable on demand. think the security
was mentioned some how on the note, but IL was
bound 20 the note rp, certain.
| had no idea ofNl1t amount Of these loans until
the report OF that committee. Our President then
| told US
Mr. O'Consor--" That won't do, sir"
| Wtfness-I meas that Gelstone had but little 70 do
with these things and he left IL all to white The
discounts were always made by the Board. There
often disco uats made after the adjoura m Mt
hutthey were reported the next day.
Carries Ns~comb tranirsd-I am cue of the
clerks sf this Bsnk-have been so 8 IL year. !