Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-05-29
THE OITY's CHECKS.
The Chairman of the Finance Gem
nsittee before the Chancery
Court as n Witness. fEs
The "MiIk Department. -

Il Il
OF the Wholesale manner in which ehecl
were being issned by order of the FL
ance Committee, and promised then
have Capt. Allen summoned as a witne
before the Chancery Court. This invest
CATION, commenced yesterday with Cap
Allen as the first witness. Capt. Allen,
| will be remembered, promised at The sam
meeting, TO answer any question whic
might be propounded, bat it appears fror
the following that he excerpts" on th
ground that the questions were put subse
qacnt TO the Cling of the bill.
State Of Tennessee on the Relation Of jane
| MhitWorth aud Others VS.. A. 4. Alden AN
Others.
Silas f. Allen, one Of the defendants
being examined ia the presence Of couuse
on 10th sides at the Clerk and Master
ofhee, on the 18th of May, 1869, states a
follows:
Question. 1. From the Recorders book
happesrs that in the present month thers
| were issned TO or 10 the name of Gustayu:
Morse 40 checks for $3.50 each; to or In the
name Of Edward Hughes 80 checks Of
$3.50; TO or in the name of Fred Bright
so checks for $3.50 each; John Brant 25
checks for $500; Geo. Daugherty % checks
for $500. As these checks seem to have
been issued by your order, please state il
you are personally acquainted with these
gentlemen, and where they reside.
(The defendants except, because the
1atf pf hSu A.
lions since the bill was filed
Answer. These checks were issued by
order of the Finance Committee, and notes
were given TO the same parties l am not
personally acquainted with any of these
parties. l understand that they we're men
residing in other parts of the country, who
sent money here for investment. e
q. 2. Please state what you mean by
the expression above, land notes were
given 10 the same parties" State also to
whom you delivered these checks, and
what you realized for the checks. lob
jected to rs above.)
A. The notes were given for money
borrowed on one years time. The checks
we're given as collateral security at the
rate Of 62S cents on the dollar. Both
notes and checks were delivered to Julius
Sax, President of the National ST.
wings Bank, by the Recorder.
Q. 3. As the checks were all Issued ex
cept one, on the same day, and at the same
time 80 checks of $500 each were also is.
sued to Sax, making in all $4,000, you
will please state with whom you made the
trade, and if the whole $4,000 was COW
cred by one trade. State the exact amount
of money received by the Finance Com
mittee on these checks and what the notes
were given for. Please exhibit your book
or memorandum of this transaction made
at the time, aud which you or the Finance
Committee report. Collected to from
same reasons above.
A. made the transaction with Mr.. ]
Sax after stating TO the Finance Commit
lee what could be done, and being directed
by them TO close the matter. The 1reasu-
rer received the proceeds suppose, which,
by the terms of the bargain were to be
twenty Eve thousand dollars in money,
and twenty five thousand dollars in past
due checks, the seventy five thousand dol.
lars given AS security TO be returned upon
The payment Of the note. The arrange
ment was made with Mr.. Sax several days
before it was closed. do not keep the
books of the Recorder or Treasurer, and
they are not In my power. i put memo
randa OF these transactions, the entire sub
stance OF which Is embraced, in the an.
SVLaE, II>s uN.C,oo- ! A>---,.---- - -
hearing of this canse if required.
q. 4. Did the Treasurer have anything
10 40 in making the contract, and did he
or the Recorder keep or make any copy OF
the contract? Please state what the Re-
corder or Treasurer had to do with making
the contract? How much is the note for,
and when is it due? Please exhibit the
memorandum of the contract now in your
possession, as the papers al the hearing
will not answer the purpose. Objected
10 for same reason ss abOyeO
A. The Recorder had nothing to do
with making the contract except making
and signing the notes aud checks. The
Treasurer had nothing TO do with the
matter except TO receive the proceeds
and disburse the same. The copies of the
memorandum herewith submitted explains
all the transaction so far as | know. The
Recorder, l suppose, enters In proper
books all the transactions of his Office, and
the Treasurer does the same, as ! under
stand it, all of which are open TO the in-
spection of citizens or taxpayers at any
time.
O. Do you keep a book Of these
transactions, and are these papers copies
from your book
F A. / have memoranda of all my trans
actions for the city, which keep for my
own information and guidance, bat | have
never entered them into any book. These
papers are exact copies of such memo
randa.
O.6. Are these memoranda signed by
auy body, if 30, by whom? Please file the
conies. and mark them from ] to 6.
A, | keep these memoranda only for
the purpose of knowing the terms Of con-
tracts, and when money will become due.
All the essential terms are expressed in
the face of the notes given. There are not
stoned but in most cases where have
made loans for the city, have taken
written agreements from the parties OF
whom l have borrowed money to the
same effect.
| O. 7. Do the notes or checks bear
| interest?
A. THE notes do not bear interes', as in
| all cases interest is paid in advance at
| ak per cent, or this is the case in most
| instance; in the others the notes specify
| interest on their face at the rate OF ak per
| cent: checks bear interest after they are
| presented 10 the Treasurer, and are
countersigned by him. mean by what
| have said Of no eJ that in the cases abov,
referred to, and in some others, the interes
/ has been demanded and paid i'll advance
| while In others it has not, and the notes
written are given for 80 much money will
use.
s.. 10 all cases when checks are issuet
are they not Immediately presented AM
couutersigned by the Treasurer, snd va
not that SO il this case?
A. | do not know how this is, haV
never seen the Treasurer countersiga
check to my recollection. My opinion !
that they are not.
%, Was it agreed that the cheek
should be held until the note fell due, o
did the parties have the right 10 use them
A. The checks are specified by number
in the notes, and 1 think also in the agre'
, ments, to be returned on the payment G
, | the notes; whether they would have til
| right under the circumstances to use ihel
and return the same amount, IL qnesuo
, | that | am not prepared to answer.
@. 10. Don't You know that in all Il
| cases or nearly all, the checks are used
once, and was not that 20 in this case.
A. | know that in all the cases
a nearly all, the checks have been held
= The parties 10 whom they were given, Al
a if in this case any one has been used
. do not know of it, though | am not pr
. pared to state positively that some nj
p not have been used. t
~ :, 81 1;S,;noilv ststad ar