Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-05-10

johnson was called up. but was not proceed
| cd with on account of absence OF wilnc.,e.
ana the msetins va men na3o "n Chslrmar
| Norton calling the commlttonto order, Y Vas,
| on announcement Of Mr.. Pnolan that he had
/ further charges 10 make, on motion OF Alder
man Bu.by. adopted, .c.,..
| mel phelan be reduced 10 writing before beinl
| entertained BY tho committee. -
ON motion Of Alderman Davis, Mr., Phelan'
fuTther. written !eherEes we're received.
Mr., Howell jackson appeared as eounsol
Recorder +. M. Winters present 10 admits.
Ter oatha each witness was sworn rs he APP
peared 70 give evidence.
j. A. Hayes, ira, (sworn and examined ~
Mr.. Phelanl-f was assistant cashier Of the
City HANK Mr.. johnson, ~ Mayor. and The
City bank had quito number Of transaciioni
In funding the sold bonds ffom the time o.
ps.,ins ne funding oFoin n m , nrnsples
| a. other banks; We paid coupons TO Mr.. John
son and received gold bonds; tho payment,
Of coupons aud receiving Of bonds were sen
orally simpltaneousi sometimes We hn1 =
times the balance was the other way we
sometimes oycrdrow 70 the amount OF a few
hundred dollars; cant tell the exact amounts
Mr.. Toboy generally paid the full amount or
near Il at the time Of getting bonds; paid mp
always The full amount Of bonds sooner or
later; the last transaction was a large
amount; don't know the sum exactly; some
times did not pay whole amount AZ time OF
getting bondsi ne coupons mignt % on inv
the bonds would pay all up; some time before
the bank broke lin Transaction which haa
lust previously been entered intol. MT, Iobey
told Mr.. Jehnson he had sold bonds 70 DO 90,
liVored. and did not have them, and needed
them. and that he had SUFFICIENT coupons.
some Hypothetical and some In New York, 10
cover the transaction, and then Mt. johnson
let Mr.. Tobey have large amount, leaving
20 me by Mr.. Tobey; IhAd no conversation
with Mr.. johnson; the coupons were notpaid
ia 20 Mr.. johnson at tho time the pAnk
failed. r.
the best of my knowledge. Mr. johnson had no
interest; he had no benefit In any Of the trans
actions; Mr johnson had no previous knowl-
edge OF the breaking Of the bank; the whole OF
the transactions were in the regular way OF
business; the bank was in good credit up I'll the
time OF failure; that he had the same kind OF
arrangements with other banks; tho funding
J. A.. HAYES, ~
Sworn TO and subscribed before me, this 80
day of May. 1873. s4 T. M. M MlN TIM
MIS-. II. TOboy was then sworn and exam
med: l,, w.
Presindent Of the City BANK from us ofgani.
ration to its close in 1877. Ia 1870 bought some
city bonds, in which Mr., johnson had an IN.
terest: bought some $4,000 TO s2o.OO0, not
more, in May or June think; did mot BUY
over that amount; these were the PLAIN city
bonds and not the gold bonds; the bonds were
houeht In Baltimore on margin; Mr.. johnson
put up his share Of the margin, think slvyO,
and the agreement was that i was 70 90 me
buying and divide the profits with him. SOLD
tho bonds some six or eight months aiilefNaIus,
.tI. han ant m latter
Of 1870 or early in 1871. Realized. as near as
remember, 5000 to $1,000 preft; am not certain
whether that was the whole profit or the
amount each received. Had some talk with
him about transaction in coupons, but did
mot complete one in which he held any inter
est. Inquired what could be done with the
nast-due coupons and was told by him that
they could be used only in funding or IN pay
ment of past-due taxes due prior TO 1871. nave
no recollection Of any other transaction IN
which Mr.. johnson had any interest. Had
frequent transactions in funding past-due
debt into gold bonds. | generally made the
hest trade / could for myself, and Mr.. johnson
the best he could for the city; the coupons
were worth more than the gold bonds, and to
facilitate funding was allowed, in considers
tion az taking a certain number of gold bonds
even for past-due debt, to pay certain
amount of taxes in past-due coupons.
The transactions were numerous, and can
not reeollect the dates or terms Of each. | do
remember, however, that in one instance
ave $500 in past-due debt for S600O in gold
bonds and $500 In taxesi ! remember this be-
cause thought l had made bad trade, Inc
last Transaction in which the City Bank be-
came indebted TO the city of Memphis was as
ner memorandum shown me here, as follows
was 10 give SIC. 900 in old coupons due prior
10 January, 1871, interest t. be- allowed to
May. 1872. for SIG, OoO 70 gold bonds. ex-Msay,
and Including 1871 for $4,000 in city notes
and 500 interest TO be paid in cash; notes
drawn at four. ave, six, seven and eight
months. from July /. 2Sl2, which would
make the rate o. interest ns5s @I'" SaiS on him
between bcuwI $1,000 and 5000 in coupons and
gave him my duesbill as President OF the City
Bank for the balancei, told NJ. johnson had
coupons hypothecated with Mr.. GOODWIN and
had to write to him before could exchange
securities; did not receive his reply until the
hank had closed. / received the notes and
bonds from Mr.. johnson, and had heard
from Mr.. GOODWIN in time could have gotten
the coupons. I. or rather the bank. owed the
eitv on losing the transactions about $4,000,
a small portion Of ii on account taxes,
7 In funding transactions the bank sometimes
had a balance to its credit and sometimes was
little overdraWn until coupons could come
Had a transaction some six weeks ago in
which / gave a check on tho Mayor and had II
accepted by him. but gave him coupons az toe
time TO meet the check; this check 1 sold 70
Mr.. Guion to pay taxes duo PRIOR Y ls.oi ioi
other amounts placed to my credit and
cbecked for them TO pay past-due taxes; &c
not consider the $1,000 rs an individual debt;
am not aware Of any suit pending against me
10 recover it; if there is any suit 1t is against
the assignee Of the bank, and am not aware
Of IL am engaged in paying taxes and nego-
' Cross examined by Mr.. Jaokson, Mr.
johnson had no interest In the funding trans;
ad M them
always thought he made the best trade he could
for the city; he. to the best of my knowledge,
had no intimation that the bank was liable y
break; at the time of the transaction the bank
was in good credit so far as know; II It had
not been heavily drawn upon after the trans,
action was made the debt TO the city weuld
Sworn to and subscribed before me, this 3rd
day Of May, 1873. P. N. WINTERS
City Recorder.
WIN. NJ. Farrington's statement: am
President of the Union and Planters' Bank Of
Memphis, and have been so since its organi-
cation. In the early part Of the year loiU'
after ohm johnson was elected Mayor. prop
to speculate in the bonds Of the city Of Mem;
phis. We talked over the matter and agreed
to 20 into the speculation. GreenlaW then
said he intended or thought Of Offering john
son an opportunity Of joining. in the adyen,
ture, and asked If had objection. replied
that had no objection, provided Mr.. John
son was able and would promise 10 pay his
part OF the loss in case tho Transaction was
unfortunate. This matter was communicated
10 Mr.. johnson. who replied that be agreed
with us that the adventure would be profit
able; was willing TO 60 into II, and would un-
dertake TO pay his part Of the loss in the event
there was any. He believed the bonds had
reached their lowest price. and II any change
in their value it must be an improvement
Greenlaw then gave an order to our brokers or
a0ontq in New York to buy bonds from time