The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-01-18


did you give VIM. T. Burdett loan at Q
per cent when your rate was 10 per cent ?
was objected to. =,
Counsel Arnett said that witness could
not be asked for his own private motive.
Tho question was allowed.
The witness said the negotiation was
made with the Board Of Directors OF the
bank.
Witness said that in the convention be.
fore mentioned, John S. Burdett said he
would endorse and give collateral securi-
~ for the loan to Wm. T. Burdett. John
S. Burdett said he would favor the bank
with deposits II he could. John S. Bur-
dett paid the interest on the loan, having
come to attend q certain meeting at Shep-
herdstown. The negotiable loan was for
twelve months. The bank generally dis
counted paper for 90 or 90 days. Witness
gave the names Of the directors OF the
bank. Next June itwould be three years
since that loan was negotiated. The note
had been renewed June l2, "a, and June
l5, rs. The note has not yet been paid
nor reduced.
The question, What rules have been in
force in the bank, in regard to the renewal
Of such notes, established prior to June,
1875? was objected to by counsel for the
respondent.
The question was allowed, modified by
inserting "custom" instead Of "rules,"
and the witness said that rule was es.
tablished that sixty days paper curtailed
one.fourth, and ninety day paper one
third; that the rules were not always ad-
hered to; that this rule was adopted prior
10 June, 1875; witness had received a
communication from Wm. T. Burdett in
relation 10 the loan; witness could not
find it; looked for 1t; that he had it here
before the Investigating Committee; he
thought that the clerk OF the committee
han ded il back TO him.
Mr.. Stroggins, Clerk Of the lnvestigat;,
ing Committee, testified that he handed
it back to Mr.. Harrison; that it was han
died by members OF the committee before
he copied il; that il was his recollection
that he gave it back TO Mr.. Harrison.
The managers asked what was the con-
tents OF the letter; objected to; witness
started to read copy, but was not per:
mitted until after the Senate had voted
upon the ruling. The vote stood, ayes 20,
noes 3; Messrs. Camden, Guston and Price
voting in the negative.
Witness said that he wrote to VIM. s.
Burdett that the note would mature at a
certain time, and this letter was the an
swer. The letter read something like
this: "Can't you allow me 10 renew the
note at the same time and terms. can.
not pay the note and keep the stock"
(which the Shepherdstown Bank held a:
collateral. "The stock is paying 10 pei
, cent premium"
]. S. Burdett said that this loan wai
wanted to pay for bank stock subscribed
for by VIM. +. Burdett in the Knnawha
Valley Bank.
| Witness said that Mr.. ]. S. Burdet
said that per cent. was too much inter
est on the note, as the stock was paying
W. T. Burdett but Z! per cent.
Observation-Disclosures testified thai
the conversation with j. S. Burdett in re
gard to the loan was had in April
Neither Burdett made any proposition
to keep an average deposit Of State funds
in the bank. The average deposit hat
been at that time betweenSS 900 and Sl2,
900. ]. S. Burdett said he was paying
the interest ION Wm. Us loan) for Bill
They had been paying 8 per cent. VIM
T. Burdett had an audience with thu
board OF directors OF the bank before tht
loan was made. He (Burdett was no
present when the loan was made. Tho
check for the balance OF the interes
(part Of which was paid the bank by j. 5
Burdett's check.
AFTERNOON SESSION.
Mr.. Sheppard stated that on the Sd Of
4th OF September, in Wheeling, he had
conversation with John S. Burdett, il
which he (Burdett) asked him TO compare
notes with Mr.. Harrison, who had beer
summoned to testify in the case, and hi
wanted them to let him down easy-a:
easy as possible. He (Burdett) though
that Harrison had deceived himself ii
well as the bank.
Mr.. J. W. Mathews was then called
who stated that he was resident OF Lew
isburg and cashier Of the Lewisburt
Bank, which is State depository; knew
) tha. W.T.. Burdett effected q loan from
his bank OF $500, the note for which
was endorsed by John S. Burdett and fur
ther secured by a certificate OF stock il
the Kanawha Valley Bank, OF Charles
ton, W. Va. He stated that the none!
was loaned to Burdett at @ per cent, Will,
the ordinary rate charged by the banl
was from Toto u per cent.
. Manager Good asked what the motiy
: was which induced the bank to loan W
7. Burdett the money at 0 per cent, Z
: which question Counselor Arnett OBJ
iected, on the ground that the witness
prior to the transaction under considcra
lion had never had any conversation
with John s. Burdett or his son, and tht
: question as to motives was therefor
irrelevant .and had no bearing upon tn
question proper for the consideration Q
the court. The witness had been callet
to testify to facts, not motives.
Mr.. Good stated that the object Of tn
Managers was to find out what arrange
ment had been made as IN inducement Il
. loan this money to Burdett at rate Q
: interest unusual by the bank. Hcwoul'
modify the question BY asking wha
, agreement was made.
Mr.. Mathews answered that no propo
sition had been made by Burdett unit
after the loan had been effected.
Mr.. Good asked what arrangement wa
then made. The question was objected Z
by counsel for defense, but ordered to b
allowed by n vote Of the Senate.
Mr.. Mathews then stated that Burdet
NV. IT. after receiving the money state
that the bank would lose nothing by tn
favor shown him as we will keep deposi
Of S25, 900 in your bank permanently. ID
(Mathews) stated that this note was draw
Tor six months and had been renewe
every six months ever since, that il ha
never been curtailed, that usually tn
bank only discounted paper for fou
months and that the note was still run
nipg.
Mr.. Harrison (rccallcd) stated tha
. John S. Burdett was not known TO thei
bank except as the endorser for his son.
Mr.Grantham was next called, who sta,
, cd bis business 10 be that Of merchandii
inc: he is also President OF the Bank {
Charleston; that his bank is a State dt
J pository and that the rate OF intere'
paid on State deposits was 8 per cent "
. M Tho net of the Legislature increased tn