Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-05-29
The saae amounl upoa he paynsa. q The

9 | parties named were strangers 10 me, d
not undertake TO make other written co
tracts with them, nor did | make any wi
sax. $1,000
@ IA. Did you not make These mem
randa at the time, and do they not e,
press the terms of the contract
A. These memoranda, as far "a the
purport to do, so express the terms of th
contract, but as they were only made TO e.
press my own memory, and are not signe
by any one, / made them for no olhs
purpose than above related. They WEI
made some days subsequent TO the borrow
ing of the money, from memory and froI
data that l retained. | never considere
them as in The nsture OF a contract but q
mere memoranda Of a business transaction
1 @. Is. Ifthese checks we're delivered a
collateral security for the payment Of tn
note, as you have stated, where was tn.
authority of allowing Sax to use them ?
/ A. As TO how far / had authority {,
allow Sax TO use these checks or as tC
Row far he might use them, il qneslioI
for the court 10 determine upon, all th.
facts being presented Sd far as / was per
sonally concerned. Ihad 40 objection e
their being used for the payment Of taxes
or Tor any other purpose 80 that no per
cent was made upon them, being satisfied
that the city should at the end Of the year
redeem that amount of checks by the pay
ment Of SOC, 900, and there being no other
way 10 raise the money absolutely needed
| by the city at that time. The bargain
was the best that could DO made at that
time.
Q. 16. If the checks have been counter
signed and sold, what security has the
corporation against them2 May not the
corporation be compelled to pay SIS, GOO
and interest for the SIS, 900 in checks In
other words, does not your contract
amount to this, that for $4,000 cash and
the same amount in checks worth about
Sis, 500 making $4,000, you put in
circulation $4,000 OF checks having in
terest, and gave note which ia still out
standing against the corporation for
$50, 600.
A. 1t does not 30 far as regards the note
which, from its face, cannot be collected
without the prof RI of so much money,
($75,0OO in checks) and think l am able
TO secure the city from any possible risk if
the notes are paid at maturity, though, Of
course, 10 all business transactions there
is liability to loss. Yet think this is as
we'll secured as any Transaction csn be, as
the principal party 10 the arrangement is
admitted by all the business men Of the
city 10 be honorable and responsible.
Q. IL. What property has the principal
party? lEl. s
A. ! only know that he ia the head of
bank that has abundance ofmeans and the
confidence of the entire business commu-
nifty.
Q Is. Has he any property that is a
guarantee against loss if the SIS, 900 in
checks are put out p? ...r
A. do not know of what his property
consists, but As he has a good name and
reputation in the commercial world, /
think | am justified in believing that he
will respond satisfactorily to any thing
for which he may be responsible.
q, l9. see that on the 29th Of October
last you had issaed to your seven checks of
5000 cash making $40, 900, and on the
same day one for $4,000 making in ali
So, 900; please state what was done with
these checks, and what was realized on
them. H
A. On or about that time the city had
some 100000 10 pay in the United States
court, and used the proceeds Of these
checks to pay the same, but without refer
ence TO my memora-@ I,Io,>,~nnot give Yon
The exae4. - Iiona yon ~. -,,I
OF the city property Of great value, 10 VIII
OF the value Of eight hundred thousand
dollars, to say nothing of lots and real es-
tate unimpToVed, was under execution
and levied upon by the United
States Marshal, and at that
time, as at all times since, obtained
money upon the best possible terms TO be
had, and used the same to save the prop
erty and credit of the city.
@. 20 How did you raise money on
these checks, by sale or pledge, and from
whom?
A. nv recollection is that l obtain
ed the money from the Peoples Bank, who
hired il as | understood from some out
side party, and took the checks as security.
The loan was call loan and the Bank
accounted for the checks at the highest
market rate
(All the questions asked are objected 70
for same reason stated with respect 10 me
frat question, viz because the transactions
inquired of are of a date subsequent TO
the filing Of bill. K. Me SMITH, Counsel.)
Julius Sax, being called and sworn as a
witness, states as follows:
o. Where arethe $4,000 Of checks
issued to you by the corporation OF Nash
Vile on the l2th Of this, month Msy)
Have you disposed Of them, or do you
own them. -. MN
a. m ron
subsequent to date Of bilD F.E
A. Some are in my possession, some
mo-; cannot tell by heart; will be able to tell
tomorrow.
Q. 2. Did you not hold the checks
as collateral security for the notes, and
| if so, did you hayethe right 10 sell them,
before the notes become due.
| A. | took the checks as collateral secu-
rity with the understanding that, | might
| sell some Of them, to be used IN paying
| taxes.
These are the memoranda referred TO in
the evidence of S. F. Allen: ~ cE1
| GCoPY.]
NASHVILLE. May 12, 1S69.-Borrowed
for use of the city, of Frederick Bright
5000 for one year, at ak per cent, One-hal
cash and one-half past due city checks, fol
which city gives note for $1,000, secured
by checks az collateral security to tins
amount of $l3,500, to be returned uPoT
payment of the note.
asa [coPY.
/ NASHVILLE. May IL, lS69.-BorroWe'
| of Edward Hughes for use oil the city
Sc, 900 for one year, at six per cent one
half cash and one half past due city check
for which city sgiVes note for $9VOO, &c
cured by checks as collateral security u
the amount of $l3, 500, to be returned upo
| payment of the note.
| NASHVILLE, May II. l869.-BOrroWe
for use OF the city, of John Brent, S., 90
for one wear, at six per cent, one-half cas-
and one-baIf past due city checks, to
which city gives note for ST, 900, secured b
checks "a collateral security to the amour
of 81 5000. TO be returned upon the pa
ment Of the note.
COPY
: NASHVILLE, May IL, S69.-Borrowe
for use of the city, Of Gustavus Moor
: $4,000 for one year, at ak per cent, on
! half cash aud one half past due city check
D for which city gives note for ST., 600, s
cured BY checks as collateral security
0 the amount of $4,000, 10 be return
1 upon the payment of the note.
[ooPY.1
ri NASHVILLE, May IL, 1S69.-BorroE'
y | for use of the city, Of Geo. DAughert
4 IS 600 for one year, at six per cent, on
l half cash and one half past due city chect
J. for which city gives note Tor So,VCo'
y cured by checks as collateral security
the amount of 81 500, TO be returned up
| al oo,zt Of fha nofp