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


Dec 3l.-The People VS.. Phoenix Bank.--We re-
quested the reports of evidence given of this in
give them in the following charge Of Judge Kent to the
ny; we simply give the most important ideas conden
The Court Jury have nothing with consequent
oes. Aso variances, they immaerialI charge you
So and the council for the bank may except SO with
gard to the subscriptions ofthe drafts SC deem them
all immaeria for thepurposes of this trial. Now with
gard to the merits-there is but single question: and
that relates TO the discount of the for dated
Nov 49, 1885, Evidence relating other charges
been excluded by the Court leave them without
legal proof This has been done by imperative sense
Of duty in relation to the laws Of evidence These rules
are saluary and must be upheld by the Court and the
true question is whether there corrupt agreement to
take more than per cent the loan of $l200O
there taking of more than per cent fact without
corrupt agreement The bank discounted the note, and
sold by Nelson, Carlton CO. in the market at discount
amounting in all to $ll31s and thus N. c. Co. actually
pad more than per cent not perhaps to the Bank for
there no evidence of connexor between the buyers of
the drafts and the bank How does the bank meet ths7
tween the bank at Natchez and the phoex Rank Where
oy these institutions to collect 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
the times The books the Phoenix Bank show that the
Agricultural Bank in Now 1885, heavily indebted to
the Ph@nx in sums varying from $l25 OOO and the
Cashier the Phenx Bank had other
respondent which were reducing these balances from time
to time But there specific proof the assets OF
the b. held by the Phenx although there proof that
1
the Phoenix Bank the 10Th Of Now 1885,
OF assets which gave warrant that their debt would
Padf Had they ground to believe that the $4,000 loan
ed ~ C.& Co would be paid by the Agricultural Bank
in New York. for ifso then the argument for the bank
applies that this sum of Sl2 600 worth par them
Now do you believe that the Phenix Bank had
the 18th of November 1885, belonging the Agriculture
Bank Of Mississippi which would have satisfied the
600 loaned NJ c. and Co.! For in my view, il the PhG
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 of deprecated proper
is whether the lender imposes hard
condition upon the loan Now ifthe Bank had the funds
in Mississppi- these funds worth par them and
they did not impose the draft NJ c. and Co.. as con
dition of the loan, then there no usury unless this
was derce to evade the statute for the Jury must look
the real facts of the Yet this charter lightly
to be taken away and srcter rules to be
than would be in an ordinary defence loan of money
Now, was this device to get than per cent on the
loan for the benefit of the borrower Of funds which he
was quite willing to take 1t would be severe indeed
this were not device to take away this charter
Nelson c. and Co. lost 4l3 dollars this loan from which
the Bank derived bene-for there is no proof that the
Bank colluded with the purchasers of the draft. But
the Bank imposed upon the borrower this draft as coud
ton OF the ioan then would be usurous even although
the Bank not benefited by it. AT this point Tho
Judge read his notes of Mr. Cartoons evidenced Carlton
says that he told Mr.. Delaed what use he intend
ed to make Of the draft and If it Cartons own spon
taneous act, then there usury. But il there wal
| burthensome condition, then the transaction wal
| usury.
| The verdict efthe Jury was for the Bank