Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-02-04
RADICAL MANIPULATION OF THE
SCHOOL FUHB.s

made this statement /
The Federal army at Augusta, Geor-
gia, captured 100000 of the school
fund and returned it TO the Governor,
and the only officer connected with the
State government as State Treasurer
was Greene county johnson Democrat
Without the authority Of law, he Sc
cretly loaned IL 10 an irresponsible, in
solvent bank at Memphis, and il turns
out 60 be n total loss 10 the State. Still, |
these unmiGgatod rascals talk about the
kediesl State government stealing the
school fund Oh shRmel where is thy
hlashS' M
Gov. Brownlow stated in the |
Knoxville Wig of April "a, 1867, |
that "tho fund remained in the
keeping ofthe Governor and Comp
Goller for fifteen months in perfect |
safety Then why was it dis
turbed2. 1t was large sum and
the money sharks regarded it
as a most tempting bait. They
set to work forthwith to get
control of this so-eaIled school
fund. 1t appears there were two
parties from Memphis in hot pur-
suit of this money, Mr. Cherry,
President of the Merchants Ma
tional Bank of Memphis, with the
keen scent of a sluth-hound, had
spied out this prize, and was hard
at work to secure the selection of his
bank as depository of the public
moneys of the State, or fiscal agent
Of State. Mr. r. S. Parham testi-
fies before the committee appointed
by the present Legislature to in
vestigate the loss Of the "school
fund.-" that " Mr.. Cherry was here
and actively at work for that pur-
pose, and had a resolution or other
legislative means pending looking
TO that end" Mr.. Rutter had fixed
his longing gaze upon this tempting
pile of money, and on the way here
had employed Parham "to assist
him in defeating Cherry" Let us
see what Cherry had accomplished.
In the House of Representatives on
the 18th of December, 1865, Mr..
Mulloy offered a "resoIution rcquir-
ing the Governor, Secretary OF
State and Comptroller to pay
to the Superintendent Of Pub
| lie Instruction six hundred and
| eighteen thousand two hundred and
| fifty dollars, with accrued interest,
that being the amount realized
from the sale of the coin belonging
to the Bank of Tennessee. This
resolution was adopted on the nth
So far had Mr.. Cherry progressed.
when Rutter and Parham appeared
on the scene of contest, the former
having employed the latter to ait
him Gin having his bank" (tht
Tennessee National Bank of Mem
phis, selected as the fiscal agent O
the State. Mr.. Parham states the
| plan of operations as follows:
"Tho ultimate plan adopted was tina
we would have passed a resolution o
bill through the Legislature leaving it t
some one or more of the State Executive
| officers to designate what banks shoult
be the fiscal agents and repositories o
the State, and would get political friend
so to indorse us as would secure the frs
appointment, thereby insure a large de
| post and great influence, this plan ulti
mately succeeded, and we secured tn
passage of bill to that effect, the forty
| third section of the act passed May 2t
| 1866, being the general appropriation
bill, gave the power and authority t. tn
Treasurer to select the repositories.
! Now let US take up the journal
of the Legislature and see how TIN
, was done. On the 9Th of February
1866, the resolution Of Mr.. MullO,
! came up in the Senate, when Nh
I Trimble offered a bill in lieu ct
9 wind up. and settle the business c
l the Bank of Tennessee" This bil
, was passed through the Senate, an
when it came up on its third read
= ing in the House, Mr.. Patton,
Radical member, offered an amend
ment in lieu of the fifth section
= providing as follows
= "The President and Directors, withou
I delay, and at as early day as practice
! bic, cause an assignment and deeds (
trust Of all the assets of said bank an
T. branches, and property of all kinds, rea
o | personal and mixed, including the fun
above described of S6lS, $50, and all il
u terest thereon accrued or accruing, TO !
made and executed in the name and bt
q half Of the Bank Of Tennessee, and undo
its seal, for the uses and in trust as 10
Z lows First, to secure the full sum
G | 81 100000, the amount Of the COmmo
school fund deposited in the Bank
Tennessee by acts Of the Legislator
Il which shall be preferred claim, wit
n interest accrued and accruing on SAID SUI
. Of 81, 100000, since the 9th day Of Ma.
u 1861, which sum Of $6lS,2j0, Unite
e States seven>thirty bonds, shall be r
n tanned and placed in the hands of Il
Treasurer of the State of Tennessee,
part Of the common school fund origir
e ally deposited in the Bank of Tenne
is see" etc.
- This amendment was adopte,
- and the bill as amended was passe
# on its third reading, by the follow
ing vote:
Ayes-Messrs. Anderson, Arnell, B
, ker, Carter, Clingan, Doughty, Dowd
Is Donaldson, Duggan, Dunnaway, Fuse
Y | Garner, iilmer, Grimmett. Hudson, Hal
Jarvis. Jones Of Claiborne Mason, Ma.
> well, McNair, Mullins, Moss, Norma
a Ordway, Parks, Patton, Porter, Pucke
D. Raulston, Rodgers, Symmetry, Smith
Hardeman, Smith of Obion, SnOddcrl
Thornburgh, Underwood, Waters
IN Wilson, Waters Of Madison, Walker
es Rhea, Welsh, Williams, Willis, Woo
cock and Woods-45.
y Noes-MesSrs. Brandon, Bledsoe, Co,
rs ard, Elliott, Faulkner Garrett, Jones
il Greene, Melton, Murphy, Nix, Seal,
Thomas. Warren, Vim and Speak