The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-17

ton then observed that the statement was non
ociai act the part of the defendant and, there
fore, not competent 20 be given IN evidence.
Mr.. Purdy offered the statement TO show thar the
defendant made an untrue examination OF me
BANK, 10 beng his duty TO make \ fuh, true ana
faithful investigation OF ITS affairs and condition
Mr. Fullerton contended that the statement was
friendly action on the part OF Mr.. Calender
towards Judge Fancher. Mr.. Calender was not
bound, at the bidding OF every stranger ne met ~
ne street 10 WAX an and make an Was 20 be-
made only at the request OF the ComptroHef VI '"e
Judge Benedict said ne did not understand that
that was the Jaw
Mr.. Fullerton observed that he ala not know OF
any such Office As "a permap ent bank examiner
The law stated that the Comptroller OF the Cur
ency, with the appreciation OF the secretary OF
sary should appoint a suitable person TO make the
examination. ana he can CeslRnatc person 70
make the examination, Fne eXanll a eoaa ho''
Mr.. Purdy-That Is Just what thought ne could
Mr.. Fullerton--lt was not an of1cial examination
OF the bank.
Judge Benedict said his present impression was
that II a man, beng a bank examiner made an
examination OF bank he eoala not afterwards
turn round and say he hao made such examination
IN ms capacity as a private ctizen. II the point
taken by Mr. Fullerton were wen taken there was.
OF course, an end OF the case but he did not at
present decide II or rule against IT. He would ad
mt the statement, subject TO the objection.
the statement was tnen read IN evidence by Mr..
Purdy. II was az ionows:-
Examined 81 and th LAYS q October and found
satisfactory progress evident all branches entire
will make The INSTITUTION grand success and place IL
CHARLES CALENDER Examiner.
EX-Judge Fancher was recalled He said this
was me statement he had before MIN az the meet
loot OF the page was Mr. Calender's
TO Mr.. Fullerton think the writing was writ
ten on the day OF the meeting.
TESTIMONY OF COLUMBUS S. STEPHENSON.
Columbus s. stephenson sworn am q farmer
now; in October, 1871. | was President OF the
Ocean National Bank; know Mr.. Cailender; had
known HIM some three years before Octot er, 1871
hau known him as a bank examiner; recolect
OF his making an examinatlon OF the affairs OF the
Ocean National Bank; Mr.. Calender got some ac-
COMMUNICATION from the bank in the way OF loans;
cannot state the amount now: the accommOda-
ton was at different times; cannot state what IL
would amount TO In the aggregate. "a check for
$4,000 on the Union Square National Bank shown
this check before, This check was drawn by
Calender ana the ocean National Bank paid hun
the Third National Bank and one on the shoe and
Leather National Bank Tor $4,000; these checks
were kept by the paying teller ana counted as
sented loan; at the time OF the examination
coald not say II the loan was paid; the check OF
$2j, 600 was loan; have a knowledge OF the con
dition or the Ocean National Bank on the Sd and
Atm OF October. 1871; between thar time and the
month of December in the same year IL lost u large
amount OF its reserves-greenbacAs-by the IRE IN
Chicago. but there was no difference during that
period in Its assets; its deposits ran down, but
property OF the bank; the character
OF the assets did not change from that
time afterwards: l have general knowledge
OF the condition Of the bank on the I'd OF October,
1871; as 20 what the condition OF the bank was
that day regarding It's reserves cannon say
without LOOKING at the books: a. TO whether the
bank on that day had any assets rom which money
could be ioaned-!rom which paper could be DIS
counted cannot answer that question; know
that on tue I'd OF october, 1871, the bank loaned
some money 10 Calender, and that the bank teller
was Instructed to carry those checks as cash:
told teller those checks : cash l9
account, because it was understood between myself
and Mr.. Calender that Mr.. Calender would take
them up next day: il is my recollection that it
was necessary " count those checks OF Mr.. Callen-
der on which the money was paid a. legal tenders
reserve which were required by law 10
keep on hand; II those cheeks had not been
counted as cash the reserve OF the bank would
have been below the legal limit; my impression is
that would not have loaned the money in that
way to anybody but Charles Calender, he being
bank examiner: the panl PAID Mr. Calender 500
for making that examination, on the requlsition
OF the Comptroller OF the Currency: that was the
practice. and that money was paid Tor THIS par
ticular examination.
Cross-examination-Q Do you mean to say that
Mr. Calender got the money on those checks? A.
In some cases he got the money; cannot say
which; II he did get the money he got the bank
cashiers cneck, PAYABLE to him. or perhaps Mr..
Caender's check certified TO the bank; do
not know what Mr.. Calender got in lieu OF the
several checks produced here.
O. DO you know that, III any one case, he received
the money A. can say as to one, but cannot
say whether 1t before after the 10Th
b i
in one case; what case 1t was do not know; my
impression Is mat he got cashiers check and
also his own check on the ocean Bank certified as
being good: there was nothing SAID about taking
up Portage Lake bonds that belonged TO the ocean
National Bank; Dir. Calender tried to borrow
some money Tor the ocean Bank on Dils recelv-
able. but DAD not succeed; the bank had some
Portage Lake bonds on hand at the time; the
Ocean Bank never had any loan Tor Which Portage
Lake bonds were c0liatelals; M impression is
that this SIG, 0C0 loan was not entirely and eXciu-
svely lor the benefit of Charles Calender: the
books Will snow II Mr.. Calender put any securI-
collaterals appear in the books, which are now IN
the hands OF Mr.. Theodore NJ. Davis, the receiver
OF the bank: Nj. Calender may have deposited
some OF the securities mentioned, at the time the
bank made the loan regarded the collateral given
by MIR. Calienner together with his name, good
security Tor the loan; the bank allowed Mir. CAL
lender money before on the same security. and
the loans pad he paid the usual interest for
the loan the bank got an equivalent; note en-
dOrsed by Mr.. Martin former President OF the
bank, came into the bank security for Of
collateral for the loans OF october and u
thought ! getting good security for the
money: Mr.. Calender tod me that he wanted to
tne money To take up loans that he had in
other bank IN the city Of New York, where he had
deposited bonds of the Portage Lake and Lake
superior Canal company and a note; do not know
that in every other transaction there were notes.
in several cases he brought me the same collateral
that he had m banks where he paid Off the loans;
/ cannot say that he did it IN all cases. they
were brought down and deposited with me and
regarded inc securities as good.
The court adjourned Till this morning al eleven
NJ