Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-05-04
ESTABLISHED 1910.

duu QlU uOl make cent. AncA AAbSNCs
each other, the city and the bank.
In answer to members of committee
The $4,000 transaction took place a lev
days before failure. Mr.. Johnson, II
my opinion, did not anticipate failure o
the bank. Bank was in good credit NJ
to the time of failure. 1t would fre
uuently be ahead; was generally. Some
times the city was ahead, but very sci
dom. Mr.. johnson, as mayor, had th'
same arrangement with our bank a
with others.
Mr.. TObey, sworn and examined by
Colonel Phelan-Was president Of tn
CITY bank until its failure in 1872
Bought few bonds on speculation, il
which Mayor johnson was interested
with me. This was in 1870. The amour
was about $50, 600 or S25, ,OO0 in bonds
aud occurred about the first of May o
June. They were plain city bonds.
was to buy the bonds and put up am
proportion of margin. Mr.. Johnsoi
put up his share of margin amounting
to about $1,000. / sold the lot about sil
months afterward; perhaps in the win
ter of 1870 or spring of 1871. The prof
on the whole transaction was, perhaps
$500 or $1,000 each. l paid him a
his share of profits, perhaps $1,000 alto
gether; don't now remember. Neve
had another individual transac
ton with the mayor. Had some tall
about buying coupons in 1871, but die
not go into any speculation. Asked
johnson what could be done with cou
pons, and he replied that they could b.
funded or paid in for taxes.
have no recollection of any Othe
transaction with the mayor in which h,
shared in the profits. Commenced
funding Immediately after the passage
OF the funding ordinance and received
from the mayor, as consideration, the
liberty to pay part of my coupons in fol
taxes and fund the balance. In one
transaction gave $500 in coupons anC
received $4,000 in bonds and $500 in cash
and consider it the best trade ever made
for the city. Balances were sometime:
one way and sometimes the Other-fOl
or against the city or the bank, but
never amounted to but little. / made 9
trade with johnson for SIC, 600 in bonds
and $4,000 in notes of the city-it wa:
a funding trade-the notes were drawn
at four, five, six, seven and eight months
In July, 1872, ! was to be allowed eight
per cent interest in payment of taxes
When the transaction was closed W
the interest amounted to S400. The
coupons We're from old bond;
due prior to 1871, and some Of
the new bonds issued since and
including 1871. Paid part in
coupons and gave due-bill for the bal.
anee, and got bonds and notes-notes
same as any other city notes. Could
not afford to take all bonds, notes were
more valuable. When the bank closed
il owed the city fifteen thousand dollars
in coupons; part of this was on tax ac-
count. Used the city notes above men.
toned as collateral for the very coupons
/ had paid in the transaction. Have
not paid the debt due the city by the
bank when it broke. It is still due
Gave Mr.. Guion a check on the city
since the failure of the bank, which was
marked good by the mayor. Had pre-
viOusly had the check marked good by
the mayor on delivery of coupons to
that amount to him. Sold coupons tC
Guion at eighty cents. Had no ar
rangement with Mr.. johnson to check
on him for amount of deposits since the
close of the bank. Brought up past.
had it passed to my credit on city
books and checked against it once on
my own account. Due-bill given 10y
him to city was as president of the bank.
His present occupation is that of negO-
tiator of loans and for payment of taxes.
Never heard of any transactions, save
one, with Greenlaw.
Examined by Mr.. Jackson-There was
no discrimination made with his bank.
johnson always made good trades fol
the city, and never had any private
profit with him. The mayor had no in
timation of the failure of the bank, nor
any reason to doubt its solvency. In
the last transaction the mayor took the
to know that the coupons
were hypothecated to Mr.. Goodwin.
johnson had no part 10 the trades. No
personal to me were
ever made by the mayor.
Examined by COmmittee-The City
bank was not the financial agent of the
city; it was like all other banks.
EXAMINATION OF WITNESSES on FIRST
CHARGE.
Mr.. Harrington sworn, and examined
by Colonel Phelan-Is president of the
Union and Planters bank, and has been
ever since its organization. Had been
engaged in the purchase and sale of city
bonds with Mr.. johnson. In May to
October, 1870, Mr.. Greenlaw and myself
bought $4,000 bonds of the city OF
Memphis, in which transaction Mr..
johnson was personally interested. Mr..
Greenlaw made the proposition. Lad
no objection to Mr.. JOhnson's part in it,
if he bore bis proportion of loss as well
as profit. Money was easy at the north,
aud / believed the transaction could
easily be effected. Mr.. johnson agreed
to bear his proportion of loss, if any,
and Mr.. Greenlaw went on to New
York and bought bonds, as stated, to the
amount of $4,000. The speculation
was conducted by Mr.. Green
law and myself We sold the
bonds, commencing in 1871, and
concluded in February, 1872. All
three were equally interested, and
we accordingly divided the profits.
Each share amounted to S9630. Paid
Mayor johnson S3S53 cash and $3.50 in
city coupons as his share. In the cash
perhaps one or two city bonds were in
cluded. Paid him February, 1872. l did
not put in any capital. Mr.. Greenlaw
put up a margin, and gave him my
promise TO make all losses good. Mr..
Greenlaw approached Mr.. Johnson, ]
did not. Do not know how he did it.
/ decline to give my opinion of what |
;hink of the mayors conduct in this
case. P. NJ. Myers q Co., of New York,
conducted the transaction for us there.
Mr.. johnson never gave any orders in
the transaction. Most of it was effected
by Mr.. Greenlaw, and the original papers
in regard to it were kept in Greenlaw's
name. Mayor johnson never advised
with US, and did not put in or advance
capital in the transaction.
Examined by the Committee-Mr,
Greenlaw had higher ideas than !, and
wanted to buy more bonds and hold
them for higher market. There was
no limit. We were to buy so long as q
profit was possible, and we could carry
them. Had several conversations with
Greenlaw and johnson relative to the
matter. II was year before the sales
were effected. The first purchase was
made in May, and the first sale on Feb
ruary ., 1871. Sold 80 bonds at 60c, sold
them all at a profit. Made in round
numbers $4,000 each. Had no particu-
lar agreement with each other, beyond
that stated. Purchases and sales were
made by Myers & Co., of New York,
and the transaction was conducted in
Greenlaw's name. Being mayor did
not add much to Mr.. Johnson's credit.
The credit Of the city was at too low an
ebb.
Examined by Colonel Phelan-Paid
January and July, 1871, coupons. In
January, 1871, the bank was depository
for the city. The mayor approached us
in December, 1870, and asked US to rem
der him assistance in paying the interest
OF the city debt in January, stating that
the taxes were coming in in promis-
ing amounts, and he thought he would
be able TO 20 through. Agreed TO do so,
ttl. a. 1,ndarsfeudiuo that r,a ,,,,,.t