The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1869-02-12
THE MISSING SCHOOL FUND.
How 1t was Disposed Of---Bribery
and COrruptiOH. 'f j''R 2


the PosT last week, the Special Com
mittee appointed to investigate the
School Fund Corruption in connection
with the National Bank at Memphis,
made a full report on the I'd instant,
which was read in the House of Repre-
sentatives, and five thousand copies Or
dered to be printed. Itis lengthy, COW
ciing five hundred pages Of fcolscap,
and, as previously intimated, makes de-
velopments of an astounding character,
and which are producing intense excite
ment, not only among the members OF
the Legislature, but in every direction
The Report is too long to attempt even
an intelligent synopsis, and we must
ask our readers to be content with the
following. '"..
1t will be remembered, that after the
surrender, some four hundred thousand
dollars of the School Fund was recov-
cred and turned over to the custody of
the State authorities at Nashville. The
fund was subsequently, deposited with
the Memphis institution named, OF
which Geo. II. Ruttcr was tile Presi-
dent, by the State Treasurer, DR.. STAN
ford, under the authority of ap act or
resolution, worked through the Legis-
lature by bribery, fraud and corruption.
When the collapse occurred and it be-
came evident that a large portion ofthe
Fund was hopelessly lost, DR.. Stanford,
who had probably been overreached,
duped and betrayed by others. sought
refuge in the grave of a suicide, and
much of the censure due to the really
guilty fell upon his memory. An agent
was appointed TO look into the business,
and the subject has occasionally been
referred TO in strong terms by the Nash
vile and Memphis papers. Finally it
was determined to have the fraud le-
gally and thoroughly investigated and
the really guilty parties exposed. For
this purpose steps were taken to arrest
Rutter, the President of the defaulting
Bank and bring him to Nashville, be-
fore Committee Of Investigation rails
ed by the Legislature, which was ulti-
mately done. Under the fear of a crimi-
nal prosecution, Rutter appears to have
made clean breast of it, detailing all
the particulars of the transaction, the
history of his Bank, the means and ap-
pliances used to get possession of the
School Fund, the hames of members
of the Legislature of 1866 implicated,
&c. Rutter's statements are fully corro-
borated by the correspondence between
the high contracting parties pending
the inception, development and culmi-
nation of the schcme, and by other evi-
deuce adduccd before the Committee.
81" Standing out among the most promi-
nent of those who were bribed stands
S. II. Arneil, present member Of Con-
gress, ard who was then a member OF
the Legislature and well known as the
author of the Tennessee franchise law
Two other members Of Congress, Mul.
Inns and Num-, who were then members
of the House, also, according to the
most ample testimony, received bribes
but they were not so deep in the vii.
lainy as Arnen. The latter's name
figures largely through the testimony
and correspondence, it being clearly
proved that he pocketed $500 at one
haul" Mullins was cheaper man. lie
seems TO have sold out for the pitiful
sum of five hundred dollars. Speaker
Richards and other prominent parties
are implicated by the testimony adduc.
ed and published in the Report. A cor.
respondent, writing on the subject. says;
"In looking over the testimony and
correspondence, it is somewhat anus
ing to see how beautifully bribery and
loyalty are blended together, and with
what charming naivotte Arnell talks
about promoting the good cause of Rad
icalism, while he pocketed his thousands
of stolen funds" 'un 1p. 1. .-'t'
We regard it unfortunate that the pro-
portions of the Report place it beyond
the limits ofordinary newspaper space,
as in attempting to colidensc Injustice
may OBSERVATION-DISCLOSURES done, we think
howeyerthat, the following testimony
ofthe hiefllobbyist, inconncction with
what has already been published, will
inttelligept, and candid reader
a pretty correct idea of the character OF
the TRANSACTION and the means and men
employedrfn its consummatioh. The
wiMessy w1as III 4hc capacity OF Rutter's
confidential adviser and agent, and can,
therefore, speakiby the Gard. His reve-
latipns are as foIo#s:" iil..., 'l'' >.
r.. s. ParIpm, sworn: Question
Please !. state yonr !1aaite, lame, age, residence
IA &SsWsEf. &ASsE"iGF' ny pamsiss Richard S. Par
ham, my age II fpfty-three,, my rest
patiSn SHAT AZ ah ,Attorney-at-lsw.t
Qbest. Please state II you are acquaint-
ed with Geoi'ge r. Rutter, Of Memphis.
and his relgtion TO the Tennessee Ma
tional Bank OF that city; if So, when
you became So 'acquaintSd? "'' ''"' I"
,Atno No ~, IA 4 ~ ~ F,,, s+Jy m