Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-12-29
The Latest Developments Rela-
tive to the Missing $500, O0O.,
Arrest OF Mr.. George Z. Rutter
at the Instance or the state
q u Authorities. -
Sensations Ahead What De-
EelOpments viii PrOYe-Hig
b State Officials Neck Deep
i Hlm In Corruption.
Rutter Sought to be Made the
Scapeg0at to Save Radical
LegislatOFsfrOm Indictment 4

Quite SoOSaLlOn was produced IN ceIs
tain circles yesterday by the arrival Of a
Mr.. Ryan, q member of the, Nashville
police, with warrant for the arrest o
Mr.. Geo. r. Rutter, awell known citizen
and late President of the defunct Tennes-
sec National Bank. The warrant was
issued bya Nashville magistrate at the
instance OF Attorney General Tuthill,
and served on Mr., Rntter . few hours az
ter the officers arrival. 1t charges Mr..
Rutter with fraudulent breach Of trust
and obtaiuing smDneg under false pre-
lenses. ,,..r -s..f 80.
OF course the notorious "school fund, .
on which the charges have been so often,
so thrillingiy and Sc musically rung, is
the inspiration Of this arrest. There are
some ugly facts and few ugly fancies
connected with this fund, which not few
people high in official position, here and
elsewhere, perhaps do not care to face ;
and lately the newspapers have revived
the subject in shape that admitted of no
further delay. Hence we have Mr.. Rut>
ters arrest as an official renewal Of the
agitation
The "school fund.- esser its return to
the State, was placed in the possession of
the Tennessee National Bank, then a
fiscal agent of the State. This was done
with the consent Of the Legislature, aud
through the influence of certain mem>
bers, whose names, now that the matter
is again on the surface, will perhaps come
more prominently before the public than
some Of them desire. -...-....
Upwards of 100000 were brought to
Memphis. OF this vast sum $2S0000
are unaccounted for. This fact was
known as early as March, 1867, when
the bank suspended; yet, instead Of
taking prompt action to force thorough
expose in the interests OF the swindled
taxpayers, every disposition was shown
to bury the entire matter from view. 1t
was mentioned only at rare intervals and
in whispers by those who, only short
time before, had grown most eloquent on
the sacred school fund" -
But the newspapers not in the Radical
interest occasionally alluded to the
'Gund" in that peculiarly gentle and
touching manner in which Radical rob
beries are mentioned. The result was a
war by BroWnlow and the members of
the Legislature, whose influence procured
the transfer, upon Mr.. Stanford, Treasurer
Of the State. Although simply obeying
their behests he was bounded without
mercy and one day he ended his
troubles by suicide. ~
After the denOuemelt went the rounds
OF the press, poor StanfOrd's fate was for
gotten. The bank matter was left unin>
vestigated. The relations of the Cow
ernor and these virtuous legislators with
the institution did not materially change.
1t was evidently believed that the at
tempt to make a seapegoat of Stanford
had been a brilliant success.
This was a mistake. Stolen school
| fund" like murder, will "out" Banquo's
| ghost never came ND more regularly in
| Macbeth's banquet hall than have the
apparitions of these missing dollars before
the people. A few weeks since more in"
| auiries were made by the Memphis press
| They were reechoel throughout the
State. The Governor and Legislature
| were pressed for information. 1t became
necessary to do something. Perhap:
Stanford's ghost still fitted about the
wings of the Capitol, but it was beyond
their reach. A new scapegoat must b'
found. Nobody so fitting as Rutter
So Rutter was arrested and will leave
for Nashville to-day. This will bring
developments, with sensational heading
in solemn black types. Some queer fact
ars in store, founded upon documentary
evidence in possession Of parties who vii
use them effectively at the proper time
They relste Of Legislators being bribed t
secure the transfer of this money. The,
will have something to say about iniquit,
and crime in high stations, and officia
malfeasance on the part Of many VIII
have heretofore occupied, and still occupy
prominent positions in the State. 1t vii
appear that great portion Of this none
was used to secure the re,slection {
BrownloW, aid the Loyal Leagues, ant
also advance the interests Of certain pol
iticians whose selection TO the Leglsla
ture from West Tennessee was deeme
necessary to properly reconstruct thu
portion Of the State. How much Of thi
school fund was thus used will doubles
| soon be known. The names, facts sn
figures are now TO come.
Rutter wanted money. The Stat
authorities had it, and were willing-fo
a consideration, the extent Of which vii
appear in due time-to divert it from II
legitimate use, to subserve their privat
and political ends. Rutter was adroitl
. manipulated; and instead of having en-
tire possession Of the funds, to use in h
, business as he saw fit, found himself 1
, the mercy of those who placed them
his hands, and compelled him to ''for
OVER whenever and as they pleased. A
} least such an influence was powerful
: and repeatedly exerted, as we have III
doubted reasons for believing.
On the wisdom or folly, guilt or inn'
> cence OF Mr.. Rutter in this matter, it
not necessary to speak. The facts, 50 f
as he was originally concerned, wei
long ago before the public. WHAT v
have limited is the revelation to com
when the little bell rings and the curta
rises on the last acts OF the drama
Memphis Avalanche, Dec. q.