New-York tribune., 1872-04-10
THE COURTS.
THE TENTH NATIONAL BANK EXONERATED

TIE TENTH NATIONAL BANK EXONERATED.
TESTIMONY OF PRESIDENT PALMER AND JAr
GOULD-HOw THE PROSECUTION WAS INsIi-
TUTED-THE CHARGES DISMISSED.
The examination of the officers Of the Tenth
National Bank charged with keeping money out OF cir
culaon in violation Of the act Of Feb 49, 1871 was ro
sumed, yesterday, before Commissioner Davenport
David Dudley Field counsel for the BANK said' " AS
Assistant United States DistrictAtorney Purdy made
the affidavit upon which these proceedings were ih'
itated We now propose to examine him."
Mr.. Purdy-I know Of no rule OF practice Dy wMch
you can Mt this stage OF the case, examine me.
Mr. Field-This is an affidavit made on information
and belief and in such cases. 1t Is always tho practice
in the state courts to examine ut the outset the one
who makes the affidavit for the purpose OF discovering
the sources OF his information.
Mr.. Purdy-The practice Of the State courts diners
from that OF the United States courts.
Commissioner Davenport-I shall not allow hir Furdy
to be examined now.
Walter b. Palmer testified / am the President OF the
Tenth National Bank was the President OF that bank
on April and April Mr.. Smith deposited In the
bank over 100000; this deposit was made In checks
and after banking hours Mr. Smith is a director Of the
bank; do not recollect wLo drew these checks; Mr.
Wood is the banks receiving teller he had gone homo
when this deposit was made, and / received the
checks and put them In the safe they were taken out
the next morning, and were added TO tho exchange
of tho Clearinghouse last Friday there are data in
the bank to show where these checks come from; MI
Smith drew, last Friday, 100000 from tho bank; this
amount was drawn out about p. m. the check FOR IL
was presented at m but at that time wo had no money
to pay W the check was drawn to the order OF Osborne
& Chaplin, and when closed our balance at the
clearinghouse that day, 1t was paid
there tho money to pay 1t was in
envelopes supposed to contain legal tenders; the
same day. about p m. Mr. Smith drew an additional
draft FOR $4,000; the actual payment of 1t was not
made until $780, II took time to count the money;
the draft was paid In legal tenders received from the
Clearing rule Of that house TO pay in legal
tenders Mr Smith expressed preference for any par
ticular kind of money; the day before l called In
o loan of about 100000; 1 called 100000 from
G. b. Grnnel Co.. 100000 from Osborne Co.. $4,000
from Joslln Bach Co.. and 100000 from willard Mar
tin Bach; don't recollect how long these loans had
been standing; they secured chiefly, by railroad
stocks and bonds; there connection whatever
between calling in these loans and Smiths trans
action; had no conversation with Smith about
making this large Deposit Smith had before thls'
made largo deposits in the bank for safe Keeping;
don't know that he ever deposited legal tenders me
Summer of1s7l then loaned him 100000 on railroad
bonds no part of this money was Withheld Longer a
Jay Gould is q Director of the bank know who the
largest Stockholders are, and Mr. smith Is not one OF
them Mr. smith j. Director Of the bahA, Dut nc NOUS
no other ciicc IN IT, . ~,
CrosSeXamined-The bank has not Wltnheld inc
money from circulation, charged in the afayt Jay
Gould had nothing whatever to do with Smiths trans
Jay Gould testified am of the directors Of the
Tenth National Bank had 10 knowledge OF this trans
action Of Smiths with It,
Mr.. Purdy-Ihe Government has nothing further to |
Mr.. Field-wc will now have Mr. Purdy sworn as our
Mr. Purdy testified: Imade the affidavit on which |
these proceedings inated derived my informa-
ton mainly from conversation with different persons.
stated that the Tenth National bank was locking up
money and that ON April 8. Mr.. Smith had dspos |
amount of money; 1 also understood thar the |
money had been received from the clearinghouse |
presented for payment 10 Mr. Smith was under the
Impression (the evidence OF Nr. Palmer however, has
irst draft presented To the bank the money was
here bat that by previous arrangement II should nos
DC paid out On that theory based the en- charge
A. IL stated 10 me by persons whose names don0
now rcoOllec;; tin& however that ~ j. Levers toid
something CT the kind that was before this specific
O. Was II not entirely from the newspapers that you
derived your Information A. | think ] may say
hat It was; the first action was instituted for
Iese reasons: Charges had been made, and reiter-
ist' ast i tho ''i bank was being used for the
purpose OF locking money. and as this Is an oflenso
i omd be had especially understood that the Clear
chuuse Committee had concluded TO look into the mat
er tine proposed action OF that house made me think
here was truth in the charges; reeollect now
hat had conyersaiion on inc subject j :, WITH with
rior TO this transaction. that he expected that on
rGay, the Bank wOnld he largely credited 10 the Clear
,,rsons came TO YGe and insisted that an officer
# the Government, 1t was my duty to IN,
esgate the ana , sIhsyc 1y sneeIa co
ntee waited upon him, and was informed Dy MN mat
he ma tier was in the hands of the United states DIS
@ You now admit. do -you not, that this prosecution
las fOunia'i)ni n do, most certainly
nh. art,tif, pxra1 fhena al .UliSg ed