The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-10


Q. What was done with them them A. They
were added to the exchanges OF the Clearing Hon se
added on 100000 that came from Albany that
o. VIII the books show on what banks the cbect.
were drawn and the amounts2 A. Yes.
q. WIN they show the names OF the parties nv
Smith made two drafts, the first one OF al ooo 600:
that was at twelve O'Clock, and declined 10 nav ~
bank; - '-S
HAD NINE HUNDRED THOUSAND DOLLARS
10 the bank; the check was drawn to the order OF
Osborne Chapln, and when the balance was
cleared that day at the Clearing House the pay nj
was made there; the money was PAID In envelopes
presumed to contain legal tenders there was an
additional draft for SO, 100 0OO drawn by Mr.. Smith
about three o'clock that day; the actual payments
did not take place until halfpast three as It took
some time 70 count the money; the money was paid
In legal tenders received from the Clearing House:
ents Dy legal tenders: Mr. Smith dd not p ,ss
larry state any preference for any particular kind OF
SaG oe a daS ad caea Loan
called 500, 900 from
@. b. GRINNELL CO.,
500 600 from Osborne Co., $3.50, 600 from Jocelyn.
Beach Co.. aud 500. 900 from Willard, Martin
Co.; do not recollcct how long the loans were
these loans were pledged chiefly on rail-
O. Hau you any conversation with Mr.. Smith In
There was no connection whatever between the
loans OF the bank and Mr.. Smiths transactions ana
TO in the neighborhood OF SIS 900, and nv presump
ton was as President o. the bank that my deposits
would sun lurtner iail, because l anticipated
day and Wednesday, and had not realized
the total amount OF my calls, but was
obliged to indulge various parties in the pay
ment OF bonds and renewing them In the afternoons;
on this Thursday, In the morning l made up my
without any knowledge that Mr.. Smith made these
transactions; received the Information that he
two O'Clock, or about that time; had no conversa-
ton with MIR. Smith prior to the deposit In relation
70 the draft; Mr. Smith has made deposits in the
n
know whether he has deposited legal tenders for
sale keeping; have no recollection OF hts stating to
only time ever loaned Mr.. Smith any money was
TWO HUNDRED THOUSAND DOLLARS ON RAILROAD
in the summer Of 1871; there was no portion
OF this money withheld other than was absolutely
over to Mr.. Smith as soon as could count it; re-
ceived no knowledge from any other person In re-
gard TO this draft or to large credit 10 he made at
the Clearing House on Friday morning.
q; VINO mas charge Of making loans IN the bankf
A. have; DO Il chiefly; we nave discounts. ,.
4 Yes and the securities on which the loans are
made.
q. Had you any intimation from any source that
these deposits were about to be nader A. No; It
was saia that made such statement; but could
which WIN had no Rnowledge; firm # made any saca
statement 1t must have been predicated on my call
calling in my loans The whole week up to tnisai9e
Q. Is Mr.. Jay Gould director OF the bank2 A.
Q. And Mr.. Smith, also9 A. Yes, sir.
q. DO you know who the largest stockholder OF
Mr. ID. D. Field did not think there was any neces-
silly for Mr. purdy TO go into the private HISTORY Of
MIR. Purdy put the question in this form-is Mr..
Smith the largest stocKholuer OF the Dankt
Wltness-He Is not.
q. Does Mr. Smith hold any ONCE IN the bank but
that OF directors A. He does not.
cross examined by Mr. FieidnAre you aware that
use Tor a Consideration a certain amount OF United
states notes and national bank notess A. Yes.
consideration, any national bank or United states
notes? A. Never, not at all, sir.
q. Had Mr.. Jay Gould anything whatever to do
with those depositing and drawing out? A. Not at
q. Nothing whatevers A. Nothing whatever.
EXAMINATION OF Mr.. JAY GOULD.
Mr. Field. addressing Mr.. Purdy, sald, that 1t had
been stated that Mr. Jay Gould had something to
do with this anair-with' those deposits. Mr. Gould
had voluntarily came down here and was IN attend
ance to make o statement.
Mr. Purdy-l Will call HIM.
Mr. Jay Goald sworn, examined bv Mr. d. d.
Fied-Q. Are you one OF the directors or the Tenth
q. Are you acquainted with Mr.. Henry N Smith,
q. Had you any knowledge from Mr.. Smith, or
otherwise, OF his being about to deposit and draw
out this money ? A. No knowledge wnatever-not
Mr. b. D. Field-That is all; now desire to ex.
anime Mr.. Purdy.
TESTIMONY OF A. H. PURDY.
Mr.. A. H. Purdy, Assistant District Attorney, was
+. IL.
made the affidavit ns,ltuung this prosecution; the
main sources CT my information were statements
made TO me by parties ana what ! mad read In the
National Bank mad been Tor a long time engaged In
'LoCXING UP'' MONEY.
but more especially lnat on the Sd OF April Mr..
Smith deposited In the bank checks for an unusual
amount. aud, as understood, the money had been
receive from the Clearing House during the oay.
although these checks had been presented TO Mr..
Smith FOR pay ment; was under the belief-the EVIL
dence OF Mi. Palmer has satisfied me it was not So
Al O'clock
was presented the money was there, but that by q
previous arrangement 1t was determined 1t should
not be paid out them and on that theory based the
charge.
papers aoneY A. 1t was stated to me by parties
whose names cannot now recall, and think MIR.
H. j. Bowers stated facts OF that kind; that was be-
fore this particular transaction.
z. Have you not entirely cot your Information
FROM THE NEwsPAPER5g
A. think may say IL was: the prosecution was
instituted for this RESPONSIVENESS had been made
ana reiterated several time5-lt appeared In the
papers OF that day--that the bank was being used
Tor locking-up money, and felt some investigation
ought TO be made, especially as / understood that
the Clearing House Committee nave resolved to In
vestlgate the matter, so thought there must be
something wrong In 1t.
q. Having stated mat you obtained your imfor-
ma0n regarding these matters from the news
papers, did you not think IL your duty To make
some inquiry as To the correctness OF the report
before commencing criminal prosecutions A.
saw IN the newspapers that Mr. Palmer had made
these statements about these matters; had u con-
received information that Mr. Palmer had stated to
Mr.. Moore prior to these matters that lie expected
on Friday the Uank would be largely credited to the
Clearing House; asked HIM II that was so, aud ne
replied he had made no sta ement OF
the kind; 1 was Ofilcially complained OF
In this case; parties nslsted it was the
duty OF the government to investigate this Affair."
ana special committee waited on Secretary Bout
well, VINO stated that the matter entirely In Tho
hands OF the District Attorney, so thai II IL was not
Investigated 1t would reflect dlscredit on the Dis
trict Attorneys ofice; do no, think 1t would be
proper 10 mention the names OF my iniormants.
though personally have no objection to do so.
O. You now know that there
IS NO FOUNDATION FOR THE PROSECUTION
after the explanation OF Mir. PalmerS A. 1 am
willing TO say there is no foundation Tor 1t.
q. AT whose instance was this prosecution tnsLt-
tutedy A. received Information from many
sources bur In this particular transaction the facts
the amount or money deposited, anu by whom IL
was drawn, was gathered entirely from the news
papers.
q. We're you urged to this prosecution BY any IN.
dividual A. tnink should nave begun 1t myself
voluntarily.
z. We're you not induced to do so on the COM
plants 60 which you re:erS A. l might DC lnnu,
encpd ~ the COmulaluts Of DartteS. whose names