, 1872-11-09
An interesting Account Of Their Trans
actions With Jesse Hoyt, OF
New York.
All the Facts About That Ce1e-
brated Mortgage.

few days ago, defendant said that at
the time it YVES given, Hoyt had an
unusual quantity Of their grain on band,
and prices declined very materially from
cost, and drafts were made by them upon the
grain which they could not meet. The mortgage
was given to secure the drafts. or more prop
er1y to secure the losses that had occurred in the
transaction, rather than to secure advances On
the grain. That YVES the whole Of their indebt-
edness that year and the firm owed him moth
ing before they generally had credit with
him. Their losses that year were over $500, 900.
Powell &; Co. failed, and they had accepted for
deponent, and did not pay; Hoyt advanced
them s60, 900, chiefly to meet those drafts, part
Of which amount WAS included in the sum total
Of the advances intended to be covered by the
mortgage, ss in order to keep everything lovely,
you know" as deponent said. There was no
settlement Of accounts before the mortgage was
given, but the deed was understoodto be intend
ed to cover the S60, 900, together with all ad-
7ances made, and losses On the grain. The
mortgage was given ont the LIST OF December, 1858,
and defendant saw Hoyt in his Office in New
York, about that time, both before and after.
The arrangementsto give the mortgage were mado
three or four weeks before the is. Of December,
az soon as it was seen that there would be heavy
losses On the grain He did not know the exact
date, nor how the figures we're made up, having
lost all his papers in the October fire, but he cal
culated that his loss must be $3.50, 900, and that
this mortgage would cover that amount it did
not, however, by any means cover that loss.
When the matter was closed up, in the winter, it
was found that this view was correct, and that
the frned owed more to Hoyt than the mortgage
could coyer-anywhere from s15oooo to $780,
000.. With regard to the making Of the mortgage,
he drew it out himself, and sent it to Hoyt for
approval; it was changed by Hoyt, re-copied
and sent back, and deponent then, executed
it here; it was acknowledged here, and delivered
over few days afterwards, personally, when he
went to New York. Did not recollect the exact
proceedings in the matter Of the notes given,
which this mortgage was supposed to cover, but
he believed that they were signed by Mr. Scott
and himself IS Individuals, and not as firm,
and that they we're executed here; they we're
taken to New York and delivered to Hoyt, with
the mortgage; deponent believed he was credit
ed with the amount represented by the notes, in
Hoyt's books, as so much money. It WAS ar
ranged that, il it WAS afterwards found that they
did not Owe so much money as the notes repre-
sented, the matter wes to be resdjusted. The
method OF procel re by which the debt had been
contracted was this: When deponent shipped
cargo Of grain, he would attach the draft to
the bill Of lading, and he then drew for
certain amount for that shipment; each ship
ment was thus drawn for, and each draft was
houored BY Hoyt: With regard to their signing
notes in their individual capacity, he said they
had done that before, in cases where mortgages
had been given. The stamps we're put On the
papers at New York, and not at the time Of
their execution. He could not remember when
the settlement WAS arrived at, as all his papers
ont statement in the spring. which YES conn.,
pared with his books, and found correct. He
had gone on shipping, and drawing against the
shipments ever since. He could not state the
exact amount. Of such transactions, but they
ons Of doaIs 1sa; ao and afsyt tRey hsa %
sometimeo owed Hoyt on the new
account as much as 5000, 600 at time, and at
the present moment, not counting the mort
gage, he expected his indebtedness to Hoyt
would amount to from $50, 900 to $4,000. No
special arrangement WAS made as to interest; he
sometimes remitted money to Hoyt, large sums
OF money as well as property, and these we're
placed to the credit of his account; nothing was
the repayment of the principal They had
never at any time been even, but they we're
nearer even now than they ever had been their
losses had been constant ever since the mort
gage was given; they had been accommodating
since 1868. He had lost more since 1853 than he
had made in that year. He did all he could to
obtain property to ship, thinking to get his &C
count even, but 1t proved disastrous. The notes
bore 10. per cent interest, and no
payment had been made on account OF them.
He could not say what the mortgaged property
WAS worth, but be believed it paid them ID per
cent value on million OF dollars; it would not
be worth that SUM for sale, and it's market value
might be in the neighborhood Of $3.50. 900 or
S700,o00;; Had no communication With Hoyt as
to the sale OF the property, and did not know
anything about it until it was done. Hoyt had
not sent any account, and he could not say how
they now stood with him. He had conveyed the
property to Mr. Armour, is tho frm,-in
August or September, on the expectation that he
Hoyt was not put on record. at the earnest So
1icitation Of defendant who feared that the fact
being recorded would at once have affected his
credit; his plea in so soliciting Hoyt IVES that
gage both the mortgagee and himself might be
endangered; and he told him, as well, that it he
put it on record, and threw him into bankrupt
cy, the deed would not be good for anything.
Hoyt finally recorded it without defendants
knowledge There WAS no reason at that par
ticular time why Hoyt should have taken hos
tile proceedings, contrary to the verbal agree
ment made; but. on the other hand, the time 1t
was understood the notes we're to run had e1-
pired, and defendant was unable to pay; H.. Ihe
deed was recorded On the 21st OF april, 1871, at
which time he owed Hoyt more than in 1869, and
more than at any subsequent period All he had
done in this matter was with the hope Of being
;ek able ns to dsb At out the me ot tho
mortgage, no Hoyt also held his property wheat
sud corn-to value OF perhaps million Of dol
lars; held in bis hands unsold. He did not at
that time buy any grain in New York, nor did
he owe Hoyt anything for grain so bought. Had
shipped Hoyt more than q million this season,
and considered that all this was to go in Iquida-
ton OF the debt. His connection with Bruce
WAS in this shape: Bruce bought up the property
that Mum l. Scott shipped to Hoyt in their own
name; and if any profit vas made on it, one
hall 5r1a ~ 1ia Yrn1nrfion ~ ha