Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-03-07
TIE BANK OF TENNESSEE.
The Suits against us Debtors
Radical Plan of winding up the
Concern.
The Nashville Banner of March 5.h

AAeC saO IA VI AO AhA4ALR4 D6Ak W 4
has been a mysterious institution. ThI
Legislature adopted a plan for what wa
termed " winding" it up, nut, judginl
from the statements given below, it's ope
rstious have been by 10 means chsrac'
terizsd by elOck-work regularity. It vii
be remembered that q bill to sell out tins
whole concern was on its third passags
In the House when the General Assem-.
bly, adjourned.
The folio wing report from the commit.
tee appointed to investigate the manage
ment Of the bank are Of much interest
TESTIMONY OF T.. J.. scovEL.
Under the act passed February I6,
1885, l was nominated by the Governor
to the Senate, and confirmed rs Director
Of the BANK of Tennessee, with five
others. Immediately thereafter the
Board met, and was organized by the
election OF S. Watson as President :
w~hereupon q committee of three, viz :
Watson, Lowering and Scovel were ap-
pointed as the Working Committee-to
obtain an inventory of the assets of the
Bank OF Tennessee and its branches.
These assets, in large and small haxss.
trunks and vehicles OF various kinda.
some IN tolerable order, and others in S.
great confusion, as can easily be ion ar-
ined, were received, with which the com.
m1ttee iabored in asserting, classifying.
aud inventoring several CONSECUTIVE
weeks, until the work was accomplishment
when the whole was entrusted to The
custody Of the officers elect Of the bank
viz s. Watson, President, and w. J.
Cochran, Cashier.
the Board met fur several consecutive
months, with considerable promptness:
business was conducted with as much
harmony as usually attends Boards.
regular minutes being kept;
Seversl weeks after the appointment Of
Mr.. Watson as Trustee, 2 question was
sprung, and with some considerable en-
eFgy attempted to &c sustained, by three
OF the members of the Board, to-witi
Ignoring the authority OF the Board TO
control either the bank or lis assets after
the appointment OF s trustee. Where
upon, after some discussion, it was re.
solved that the written opinion of the
banks counsellor, Hon. John Trimb,s,
should bs obtained. This opinion was
speedily afforded, awarding, agreeable
to the act Of the Legislature, ths active
cOutr0l Of the bank and is assets to the
Board appointed by that honorable body.
Alter this Important question was
sprung. agreeable TO my memory, very
little business was transacted by the
Board, and the important negotiations
that were made were GJnsunmated by
the Trustee.
> =
On several occasions the President
was absent from the baEk and the cjtv
Tor several weeks, as was supposed, upon
business, though q q Sc The instance
OF the Board or permission thereof;
neither st sny time Vas business intro
duced in the Board that resulted In IN.
structi0ns TO the President TO visit any
point. This course, as -pursued by the
President, may have been attributable
more TO his deep-sested conviction that,
oy viEtue Of the power and authority
vested IN him, as the legally constituted
trustee, he had the entire control Of the
bark and its assets, than from any de-
sire to do anything whereby any criti-
;isms might be aroused.
TEsTImONy or A, LOWERING.
We completed the organic alton of the
board by the election CT cashier and
,ierk. After about one months labor by
.he committee, and after the president
nj cashier had given bond, as required
0y law, We turned over the assets,-S50,-
money received from the Athens
was left by the committee
the Directors. Il was nv advice
md suggestion that it be turned over 10
ne Treasurer, SIS 3 part Of the School
Fund, which was not done. 1 was after
ward informed that it was obtained by
Watson, and loaned or DEPOSITED
With the First National Bank of Tonnes
ZEE. The committee appointed Mr.. Wat
on as trustee. After his epp0intment az
Tustee he proceeded, without reference
o us, to obtain al appointments Is Rs-
in the Chancsry Court OF David
on county, by bill in Chsacery Va. cred
tsrs. {
The Directors appointed John Trimble ;
ounsel for the bank. By his advice s
nd written opinion, the board we're the {
managers 20 wind up the affairs {
( the bRnk. Mr.. Watson, by acts, did {
Ot recognize N Tcimble, and has s
allied TO recognize the powers of said S
'osrd OF Directors, managing the busi
esS without the advice and consent Of ]
aid soa-d, unless he wanted soma OF ais
Cts confirmed. BY the seventh section {
the act under which we were appoint
we were required TO give notice to all
srsOns, 20 VINO any money of the
snk had been illegally paid, that the l
anne should be refunded and returned
'ithin thirty days, and thereafter suits
lOuld be brought against all such per i
,ns failing 70 refund such money. 1 q
q resolution in accordance with
nd section, which was passed by the +
GARD, and notice given accordingly. Z
| never could induce Mr.. Watson TO O
ring any suits u .dsr this section, d
Though we were required to do so, and Q
require Of q attorneys the greatest 2
l., IT, a4fa.fr +, so NJ 1
~peTemptOrIly declined taking Y
oy further action in the matter.
. y g a
Ia all claims of great value, due the
ank, and connected with which were s
gal questions, which, when rendered, 3
Guild advantage the State, hs has, with O
1t the consent OF said Board, settled Y
le same, or made preliminary arrange ]
tents thereto. q
MIR. Watson appointed Mr.. Baird, one \
the Directors, as agent TO settle up /,
lie Branch Bank at Columbia also, Mr., !
IeKinney, at R~Ogersyiile and Nj. q
LcElwee, at Athens sll without refer a
nee to the Board. r.
MIR. Scovel and myself were also ap. \
TO count the currency received L
payment OF dues to the bank, Ia the q
of 1867, and proceeded ia that in. q
-StlSAtluH iuE tHU OF ttrSe WSeAS, q Il
uBd several errors. We we're impeded Il
the President, and refused payment :,
T our labor. n
TESTIMONY OF SAMUEL WATSON. N
o a,
ANswBR.-There were found among 2.
10 assets OF the bank, evidences OF gold 0i
ing advanced or paid to Isham G. Har- E
3 sad others, who were officers of the e
ats or bank, or Ia some other way 81
with the C~Onfederacy. These 81
amounted ia all 10 S2S. Sal 80. Sc
have been brought on all these 10
aims, but S4l40; but nothing has vet N
ien recovered. O1e of the defendants, P
hose indebtedness is S9325 G6, having te
me into bankruptcy another being in- Il
lvent; and another, whose indebted 81
,ss amounts to 1895 SO, having proved J,
at 10 gold was advanced to him, but P
ily Confederate money reduced to gold IS
sis. 10 the other cases Judgment has J
IT yet been obtained. j.
In the cases where we have not v
ought suit, we have delayed because to
ie Of the parties promises to psy, and 2
could be recovered By suit sn. W
her has of re- to compromise, but the 10
fer has not yet been accepted. The 4
Der cases are advances to bank officers, s:
"a the question being made whether or 3