Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-03

The checks so hyp0thecated or pledged were
sometimes made payable to the name Of the person
III whom the loan was negotiated, or bearer-as 70
Julius Sax, or bearer, with whom more transactions
Of this kind were had than with any other party,
far as known. But many of the checks were made
payable to "emplOyes, 10 the Finance Committee,
and to the names Of persons unknown, or to hcti-
tiOus names, IS to "Oiustayus Moore" Fred.
Bright, and various others. list of such checks
would be issued of 81 900 each, of $500 each, of $3.50
each, of $3.50 each and 50 on, to enable the holder
the better TO dispose of them. In one three
several loans appear TO have been effected with
VIM. VermuIen, Of 5000 each, and the notes given
with interest added and in this perhaps the
checks hypothetical were single, per each nOte-a
single check appearing TO have been hypothetical
calling for something over 81 600 TO secure each
note. The way the chairman Of the Finance Com
mittee effected these loans as follows: To give
the lender enormous interest, and yet, with the
hope Of evading the usury laws, the lender would
let the borrower have One-Ialf of the loan in cash
and Onehalf in corporation checks-eitber the same
kind of checks that were Hypothetical with him,
any others. In perhaps few instances the proper
ton Of cash and checks paid in for the notes
different, it is asserted but this was, accord
ing 10 complainants' best information, almost the
universal rule. At the times when the various
loans affected, the checks could be bought at
from 20 TO So per cent. discount; so that the lem
der of $1,000 could buy 5000 of corporation
checks for 81 900 at most, which would be taken
by the borrower for 8, 900. Thus the lender was
enabled TO usury to the amount Of 81 900 in
advance, and would receive the interest acCruing
upon $40 900 for outlay of 50 200. This is put
ting the matter in its best light Compliments have
information that large checks of the corporation
sold low Csc in the dollar long before the
abuse here spoken of was stOpped-and the lenders
doubtless made in some cases larger profits. But
though the face Of the contract collateral To the
note, las above glven,) clearly shows that the
corporation checks so pledged were TO be held
by the lender in trust rs tn property of the
corporation Of Nashville, yet large numbers OF
them were sold or used by the plclgcTs almost
Immediately after they were received. A. be
fore said a these lOang a. T.
fectcd with one Julius Sax. How many loans
were negotiated with this Sax. and on what
terms, Is not positively known; but on his oath
he has stated the following:
On Jan. 13 1869 he lent to one Silas F. Alien,
the aforesaid Chairman OF the Finance Com
mittce. who protested in this matter to act As
such, $1,000 which Sax says was all lent in
cash; and for this note was given at six
months, and SIS OOO checks were hypOthecated.
These checks were all dated Jan r. 1869 or 50
appear from the books, AID numbered from
- to -, inclusive. and were for F.
each. On Jan. 16, $4,000. of which S6UC rs
he Gays, was cash, and 81 600 in checks. As
for this loan note was given at six months,
and checks Of same date pledged, for 300,
numbered from - TO ---, for s. each.
All the subsequent loans, he says, were made
half in cash and half in checks; aud he states
the transactions as fOllOwS-the numbers and
date and respective amounts of the checks is
sued being taken not from SaN's statement,
but from memoranda on the books kept by ".
| Mills the Recorder:
Feb - note at four mOnts for SO, 900 SC
cured by hypothecation of $4,000 in checks Of
| same date for - each, numbers Ito --
Feb 4, note for GOO at five months secured by
| 5000 in checks Of the same date, Nos. - to -,
| OF - each.
Feb Is, note for $4,000, six months, secured by
S26,5OO in checks Of the same date, Nos. lG3 10
4,52l inclusive, Of $500 each.
Feb. %, note for Ss4OO, five months, 1000 IN
checks.
April 10, note for $4,000, six months, $4,000 in
| Auril l6 note for s25 600 six months Sl3 900 iii