Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-23
Chancery Suit Decided.

Chancery suit Decided.
Judge Easi's Opinion.
We lay before our readers this morning
a part of the able opinion of Chancellor
East, rendered yesterday in the Bank case,
and will publish the remainder tomorrow.
We invite the special attention of our
readers to the questions therein settled, as
there may be many among them holding
the notes of these banks. We are not in
formed as to whether or not the solicitors
for the banks will appeal from the de-
/ cision.
On the Sd day of July, 1865, the Plan
| ters' Bank Of Tennessee made an assign
ment to Dempsy Weaver, Trustee, of all
its assets, real, personal and mixed, con-
sisting of S1O9, 900 in gold, $145, 247 in
sterling exchange, a large amount Of legal
tender notes Of the United States Gov
eminent, together with large amount of
national bank currency, and the currency
of other banks, amounting in all to the
estimated and nominal value of more than
| four millions of dollars. This deed was
made by said bank, looking to its with
| drawal from business, and surrender of
| its franchise. This deed recites the fact
that many persons have obtained judgments
| on the issues of said bank, before the
courts of the country, and that certain
| persons, in behalf of the bank, had stayed
some of these judgments, and from others
| the bank had appealed, and had given
securities on these appeals; and after pre-
| ferring the expenses of the trust, 1t pro-
ceeds next in order to prefer these securi-
| ties. Ne. :, if means sufficient should
| come to the hands of the Trustee, he Is
directed to pay the holders of the issues
of the bank; if not sufficient TO pay all,
then to pay each pro rata. Next to
these all other creditors were to be paid,
| and any residue was 20 be divided among
| the stockholders. The Trustee is en-
| powered to use all necessary haste in the
| collection of the assets of the bank, and
| to this end is authorized to employ agents
and attorneys, and is directed from time
| to time to make distributions and dividends
| of the amounts collected by him TO the
persons and in theOrder of priority named
| above, always retaining sufficient in his
hands to pay the expenses of executing
the trust Under the laws of Tennessee
| every trustee or assignee, under convey
ances of the character and amount, as the
one under consideration, before entering
| upon the discharge of his duties, is re
| uuired to give bond and securities in an
! amount equal to the value of the property
assigned, and also to take prescribed
| oath. And it is further provided, that,
| if tie named trustee refuses to give the
required bond and take the oath, the
court is empowered to appoint trustee
or receiver who will. Weaver refused to
qualify under the Code, and on the 9TH
! day of July, 1865, W. W. Berry filed
his bill in this court, against the bank,
Weaver and others, and alleged that he
was the creditor of said bank, and was
the holder of the issues of said bank to
the amount of $4,000. The al
legations of this bill are That said bank
has become practically insolvent and
unable TO pay or redeem its
issues in specie. That the bank is the
owner and holder of large amount OF
property-suficient probably, to pay all
the noteholders, and that said bank was
proceeding so to do, but certain note
holders have commenced suits in the vari-
Gus courts of the State, with view OF
securing to themselves, payments IN tull
without regard to the interest OF the other
billholders. That the bank had made an
assignment of its effects to Weaver, who
refused to accept, because of the amount
of the bond required by law to be given
that the assignment is valid, and the trusts
created are good and can be made etfec-
tive, and its execution is to the interest OF
the biIholdcrs, in whose behalf the bill
is filed.
Said bill further states that by section
3,43l of the Code of Tennessee, 1t is pro
vided that any creditor with or without
! iudgmentl of an insOvent corporation
may file a bill against the same, attach the
corporate property, and have the same ap-
piled to the debts, and any surplus applied
to the stockholders. This bill is filed with
two aspeCts-one looking to the validity
of the assignment, and the other to It's
invaliditv, and if invalid, then an adjust
ment and winding up under the provisions
of the Code. The bill prays that all note
holders and other creditors be required to
come in, that the property be attached,
that the judgment creditors of said bank
be cnioined from levying their judgments
: upon the property assigned, that trustee
or receiver, as suggested, be appointed
that the assignment be carried out accord
inc to its true iutent and meaning, and II
this cannot be done then the corporation
, be wound up according 70 the provisions
, | of Code governing insolvent corporations,
t | and the charter of said bank.
Upon this bill the Chancellor gave fla
l in substance, ordering the writs of injunc
ton and attachment to issue, appointing
: Weaver " the receiver and acting trustee
under the deed of assignment" and re
| curing him ''bcfOre accepting said re
Ceivership, or to act as trustee, to give
] bond with security in the sum OF tittl
Q thousand dollars, conditioned, etc, etc
\ all of which was done by Weaver, and IL
t the one, or other relation, he has been act
n ing until the present time -cOllecting an(
b disbursing the assets of the bank, ant
0 recently reported TO the court that he ha
r paid and settled all claims filed against tn
n bank, or has sufficient in his hands to d
so, and also sufficient to declare dividen
Q of twelve and One-half per cent 70 tn
~ stockholders.
i On the 18th of March, 1869, the pet
=, toner, McCauly filed a petition in tn
7 cause of w. w. Berry VS.. the PLAN
n ers' Bank ct ais. still pending in thi
n court. the same under which Weave
l; had been appointed originally, an
,e had acted subsequently, and
/, said petition alleged that he was the hold(
E. of the issues of..said bank, both in his ow
d right, and as the personal representative
u several deceased relatives, and that he Ina
ct held the same for several years, and wit
1t his petition makes profert of the SAM
E. That he recently had occasion to use son
5 portion of said money, and was informC
L that it was of little or no value, and upc
inquiry he has found now, for the FIR
i | time, that the Trustee or Receiver of sal
re bank heretofore gave notice for all persol
re- holding the issues of said bank to presel
h them for redemption, within specific
IS time, to-wit: Jan. !, 1869. II he hi
nv known of said notice, he would have cor
IS, piled with it; asks that his petition be q
| lowed 10 DC ulCu Ill odiu CAUSE VI W. '
Berry VS.. the Planters Bank ct. ais, al
prays that the said Trustee or Receiver
re allowed and ordered to pay the same,
by he has paid others.
as To this petition the defendants put IN
Is, plea to the following effect, to-wit;
OF l. That the bank made an assignme
~ to Weaver, which was valid. Weaver
~ fused to qualify as trustee; thatBeTy I'll
~ ~ a bill to have the trust administers
,aI Weaver was appointed by the court IrJ
ITS tee to execute the trusts; that he contlnu
in to act as such to the present timei that
IN. the 18th day of December, 1866, t
rise General Assembly passed an act entitl
es. Gan act to expedite the DISTRIBUTE