The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-01-02
u. 5. Circuit Court.

Before Judge Kent.
Dec. 3l.-Ihe People VS.. Phoenix Bank.-We
quesed say the reports of evidence given of this in
some OF the papers do not at all meet the real we
give them in the following charge of Judge Kent to the
ry; We simply give the most important ideas conden-
The Court and Jury have nothing do with consequent
oes Asst variances they are immateriaI charge you
and the counsel for the bank may except So with
gard the misdescriptions the drafts cI them
all immaeria for the of this trial. Now with
gard to tho mertshere is but single question: and
that relates the discount Of the note for dated
Nov 49, 1885, Evidence relating to the other charges has
been excluded by the Court to leave them without
legal proof This has been done by imperative
are salutary and must be upheld by the Court and the
true question whether there corrupt to
there taking gilmore than per cent in fact without
corrupt agreement The bank discounted the note and
gave draft in hatcher for the amount This draft
sold by Nelson Carlton Co. in the market at discount
amounting in all to Sll3ls and thus N. C. Co. actually
pad more than per cent not perhaps to the Bank for
there is evidence Of connection between the buyers of
the drafts and the bank How does the bank meet this1
n., .sy tho. sh.rs All outstanding agreemeu. bu.
by these institutions to collect for each other with
out charge md perform various services upon the
terms This agreement in July 1885, the usury char
ged was more than year afterwards and hence could
have been device to take advantage of the pressure Of
the times The books Of the Phoenix Bank show that
Agricultural Bank in Now 1885, heavily indebted to
the Phenix in sums varying from $l25 to and the
Cashier shows the Phenx Bank had other
respondent which reducing these balance time
time But there specific proof to the assets Of
the A. B. held BY the Phenx although there is proof that
the Phoenix Bank the 10th of Nov 1885, in possession
OF assets which gave warrant that their debt would be
paidi Had they ground to believe that the $4,000 loan
ed n c. & Co. would be paid by the Agricultural Bank
in New York, for ifso then the argument for the bank
applies that this of $l2 0e0 werth par them
Now do you believe that the Phenx Bank had assets
the 18th OF November 1885, belonging the Agricultural
Bank Of Mississippi, which would have satisfied the
1000 loaned NJ c. and COY For in my view il the Pho
nix Bank had funds worth par them there would be
usury in lending them although below par in the market
unless such funds imposed upon the borrower
condition OF the loan for there is difference between
seeking such funds voluntarily by the borrower and for
cling them upon him by the lender. 70. Peters-U. s.
Bank Waggoner] The owner Of deprecated proper
y is not bound to part with at loss and the question
is whether the lender imposes hard and
condition upon the loan Now 1.-THE Bank had the funds
in Missssppiif these funds worth par to them and
they did not impose the draft N c. and Co.. as con-
dton of the loan then there no usury unless this
was derce to evade the statute the Jury must look
the real facts of the YET this charter not lightly
to be taken away and sricter rules be
than would be in ordinary defence loan of money
Now this device get than per cent on the
was quite willing to take II would be severe indeed
this were not device to take away this charter
Nelson c. and Co. lost Ala dollars this oan from which
the Bank derived bene-or there is no proof that the
Bank colluded with the purchasers of the draft But
the Bank imposed upon the borrower this draft condi
tton OF the loan, then it would be usuous even athough
the Bank was not benefited by it. AT this point the
Judge read his notes Of Mr. Cartoons evidence. Carlton
says that he told Mr. Delaed what use he intend
ed to make of the draft and il it Cartoons own spon
taneous act, then there usury But, il there wa
| burthensome condition, then the transaction wa
usury.
| The verdict Of the Jury was for the Bank