Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-09-11
From Nashville Patriot
To the Legislative Investigating Commit


GESTLENEN My attention having been called
to the following paragraph in your address to the
public and having some knowledge Of facts throw
ing light upon the matter under discussion, / beg
leave to make statement. You say:
In his three several reports 10 the Legislature Mr.
rozer seems have thought that State bonds which
had been issued 10 the Lagrange and Memphis Rail
road, amounting to $40 $50, had been cancelled,
when in fact the bonds still outstanding and he
has been paying interest upon them for six years
apparently without knowing il. These bonds, Nos.
y, %, "A, % %, p, %, %, 80 and 81, are now
in the hands Of Mr. A Y. s LINDsLEY, who has been
regularly drawing interest upon them, and yet Mr.
CROKER has never reported these bonds as a part
of the State debt One other case of this sort we
will cite and pass to other matters State bond for
$780, issued TO the Gal!atin Turnpike Co, was re-
turned and lieu Of it and parts oftWO bonds amount
ing to S50O) issued to the Lagrange Memphis road
two new bonds were issued of $1,000 each, keeping
out the same amount Of liability. Yet Mr.. CRozER
has not regarded the $1,000 bond issued to the Gal
latin Turnpike Company and has failed repeatedly to
report the same 10 the Legislature
These bonds amount 10 the aggregate of Sl1, $50.
Under the direction Of the act Of 1912, ch l27 the
Governor Of Tennessee, on the Ist February 1915
transferred TO the Planters Bank Sll 800 of school
fund STOCK held by the State in that bank received
in exchange for it the above mentioned bonds,
AOunting to-. $50
And fifty dollars in money 80
Making in 10000. ......... Sll, 800
As directed by the Law, the Governor deposited
these assets il the Bank Of Tennessee, where they
became part of the capital stock of that bank. The
Governor, in his message to the Legislature Of Ocu
tober 1885, thus reported the transaction:
Bonds TO the amount of 81, $50 were received
from the Planters Bank these we're not cancelled,
as the stock given in exchange for them constituted
a part of the school fund They were delivered to
the Bank Of Tennessee, and receipt for the same
deposited in the Secretary Of States Office"
l was at that time acting as Comptroller of the
Treasury, and entered in the books of the Comp
rollers office list of these bonds, giving the number
and amount of each, and noting them as "EIchaRged
6g Planters Bank for School Fund Stock " In my
report to the Legislature of October, lS45, in the
statement of State stocks, l reported
The amount Of the Common School Fund
investment In stock of the Planters
Bank S244 500
Of which has been exchanged for State
BONDS '.''''''' II 500
Remaining stock in Planters Bank.......S282 zoo
In the same report stated the 'tOtal liabilities of
the State on bonds outstanding, So 254, 4l6 66-ad-
ding, that 'n addition" there were Of bonds 'Sll-
500 exchanged for stock in Planters Bank, and de
posted IN the Bank Of Tennessee School Funds under
the 9th section of the act Of 1872, Oh. l27."
1t will be noticed that, while the stock exchanged
amounted to SllSO the bonds received by the
Governor, and deposited in the Bank of Tennessee
amounted to but ST., 75O-the difference having
been paid in money. In my next biennial report to
the Legislature # Oct II, l847, in giving the list Of
State stacks, again copied the words quoted above,
as to State stocks, from the report of 1915; and in
the list OF State bonds reported these bonds separate
ly, in these improvement bonds made
School Fund Sll, $50" In giving a statement ''of
the capital stock OF the Bank of Tennessee" this
item Of bonds included in the 'SchoOl Fund"
item of that stock. Having properly included them
in the amount Of bank capital and deducted from the
school fund stock in the Planters Bank the stock
which had been exchanged for them, deemed ii
more explicit TO report them separately as "Bonds
made School Fund keeping them apartfrom the mass
Of bonds outstanding in the hands Of individuals
Thus after deducting them, the residue of bonds
was stated as the amount Of "bonds outstanding"
This may have mislcd Mr.. Crozior; who perhaps
10, observing the various explanations showing he
precise condition Of this Sll,7JO locked only at the
aggregate bonds at the foot Of the statement and
thus was led to suppose that it embraced all the
bonds issued and not cancelled. understand that
the Bank of Tennessee has since sold these bonds
and hence Mr.. Lindsey is the holder and draws
the interest upon them. 1 have deemed this state
ment due TO all parties. As TO the renewal Of the
bends, have not stopped TO enquire into the facts,
as it occurred long after l resigned the Office of
Comptroller, Very respectfully,
+. & Z0LLICOFFER