The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-08-14

most astounding character continue to be made They
will have salusry effect the public mind in relation
to Banking as too often pursued in this community. snt
therefore less to be regretted At the opening ohe
court Friday last Dr. George Bates recalled tor
crOss-examnstion by Mr. Dexter, and he said" Shortly
after the March examination 1912, borrowed s2oo Of
the treasury When the bank failed my persona
Liabilities, principal and endorser, were SSooOo roi
the treasury notes gave my memorandum check, when
remained until the blow up OF the bank did know that
wyman Was in the habit of loaning on demand paper
without waiting for the action ofthe board AT the exa
mnation before the magistrates in Charestown saia
considered that Mr. Wyma the bank and the Dank
was MIR. Wyman. His opinion paramount with the
directors, SO absolute was our confidence in him. con-
up in the bank. The bank TO him. thought as a
mother or wife, child. In June, 1882 returned from
Ohio: wymsn was absent. On that account some s .,
MIR. Browne. ! did so. | saw in the drawer note Of
Stanley, Read Co. for $4,000 Mr.. Browne said in re-
ply TO CUES ion by that loan not made by the
consent OF the directors have doubt that the note
was taken upin few days. II was demand.
Enocs Baldwin president Of the Shoe and ~ nan
2oth June, lsa2, OF $4,000 wymsn said he had been
drawn on heavily, and the appropriation bills had not
said he expected treasury in short time
AS | knew the appropriation bills had not been go,
the treasury notes, allowed the loan to remain without
any uneasiness After the failure informed ne had
placed in the vaults OF the Ph9nix Bank 100000 OF their
bills, as Especial depose account for the $4,000
had loaned him. Upon inquiry found he had made
this special deposte Our $4,000 he deposited in the
Hamilton Bank to the credit Of the Psenix. have
certificate OF the Hamilton Bank to this effect Mr.. Wy
man connected with the navy yard and was ordna
rily in the receipt OF treasury notes.
Mr.. Huntington here put in demand notes OF s. X
CO. dated 30h April ls42 end Dist OF May tor $4,000
the other for 500 which he said he should argue to
the jury made the day account OF their
prec Sc similarity in many particulars.
Then two other notes. May 4h, ls4O, for $4,000 and
April s40, for $1,000 with endorsements OF Interest
paid at different times up to ls4l.
Also two others July 3st, ls4i for $4,000 and Aug
slst ls4l, for s5oOo-perfect twins in clerical execu
ton.
James Foster formerly discount clerk in the American
Exchange Bank N " produced the books of that bank
from which il appeared that Mr. Wyman, as president OF
the Phpnix had drawn checks in avor OF Stanley, Reed
the amount Of 500 000 through the years 1889
40, and al They discounted the American En-
change Bank for John Stephens, hop merchant, New
Isaac Fiske former president of the Phenx Bank
frequent In his inquiries Wyman. Upto within sixty
days OF the failure Wyman represented the bank to be
perfectly sound stock above par and that there
overdue paper His confidence in Wyman continued up
to the last day witness his share the
sternaon meetings which followed the explosion Wit
ness asked yman question about the cause oithe diff
Guilty and Wyman replied 81 should rather not answer
that ques ion until have had chance to consult
SELL Witness then answered, "We then, if you choose
to put yourself in that position will not ask any further
questions. do not wish to lead you to commit yourself"
Witness, who was solicitor of the bank, said he never
knew OF any authority given Wyman to borrow money
Tor The bank On Monday morning after we decided not
arrived at the bank he stopped in the entry up sairs
stepped out to see il he was coming in He wss stand
str;nn h;s hraa., aa ~. 80. ara and ,,h taars
asked him why he did not come in. He said "lcannot
and 7 alone am m blame. tbourht when saw him 81
6rst he was in q A..
In reply to question by Mr. Dexter Mr.. Fiske stated
Cantain Iosenb smith and other creditors for Losses
tanned by the failure of the bank.
which il appeared that during the wears 40 s0 III and
a. treasury notes were entered in different wuys-some
times thew were named M others thew were
merely represented under The sign "Scn He profsseJ
be able to trace them by entries of sums paid and re-
ceved for interest and in this way he traced large
amounts into the hands of Stanley Reed & Co. This
was inference which he stated he meant to argue TO
the jury.
Such other testimony was given bv the Directors and
others in explan of the of this precious
concern and to sustain the case against the prisoners
and the Developments are of the description re-
spectng banking operations and The mode of conductnp
Bank business The Reporter for the Boston Post gives
the most amusing sketches and to him indebted
Hunnewel the President of the Phenix Bank was for
long time under examination and he told "plan
nished tale" until he came to the account of his
transactions with Wyman when he suddenly appeared
to become sort of mi recordo witness. He testified
as follows =
was indebted Sl5000 including demand note for
$4,000 to the bank when it breke. The demand note
daedi june lSl2 In this part of the examination In
stead Of answering the questions propounded to him. Mr.
Hunnewell manifested adisposon to excuipate himself
from mputstions which ha imagined to be implied in the
questions asked His recollection became very ndstinct
and Mr.. Wyman, for the first time during the trial. mani
tested anxiety. He perceived that Mr.. Hunnewe did
not remember several incidental matters in reference to
his notes, which have strong bearing the point
of intercourse between Wymsn and him. touching
tain accommodations and the exchange of note for
another by Mr. Hunnewell, without consulting the other
directors about the operation He finally testified that he
had received accommodation of $4,000 his demand
pote from Brown without having passed upon by tbs
Board He had been accommodated this way frequently
but he always reported il to the Board at the first oppor
unity except in the OF the 5000 dollars which he
did not communicate to the directors till time after
wards.
1t appears too if the report of his evidence is correct
that Mr. Hunnewell not too conscientious take ad
vantage OF his knowledge of the situation Of the bank
and save few dollars. He SAYS =
On Saturday after il was known there was trouble
obtained $500 on my check-a part was in Pbenx bills
aud part in other bills At the time had deposte in
the bank II was after bank hours WANTED other bills
than those of the Pbnnix Bank wanted bills which
would not disappoin the person whom had authorized
10 draw ON me on demand
II will be recoected that in one Of the preliminary OK
aminaons, before Wyman was bound over for trial he