Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1869-02-04

LEUlpUhlAtD
Tn order that our readers may have
the exact statement OF the W.T.
nes,es as to how the missing School
Fund disappeared, and in whose
pockets it may be found, we oml'
several editorials intended for this
evenings issue. The following is q
svnopsis Of the testimony submitted to
the House on Tuesday by the Special
Committee on the School Fund, as re-
ferred TO in eur report of the proceed
ings. Dispositions and exhibits were
read from George R. Rutter, Z. 8. Par
ham, W. A. Hill, Thomas R. Smith, T.
A. James, Thomas McElwee, W. W.
Coleman and S. W. Hatehet:
GEORGE R. RUrTER, SWORN.
Mr. Rutter being Intercepted by the
comm;t,ee. said that he was President OF
The National Bank of Memphis, and
stakeholder in it to the amount OF
7 r. Hutchinson was stakeholder to
amount of $4,000, and Vice President.
John L. Eicbburg YVES also stockhoider
Of $1,000. Charles Cullom was also
stockbolder of $4,000 land others whose
names will furnish / was President
ali the time. Hutchinson was Vice
President for about two-thirds OF the
time Of it's existence, and 2 81. White
80 was acting Vice President for the
balance Of the time. J. l.. Taylor was
Cashier for purposes of organization
after that W. B. Brsburn was Cashier ;
after him Walter S. Morgan was Cashier.
He was recommended to us BY hutchln-
son. After him the present Cashier, W.
A. Hill. who claims to be Receiver under
the banking law. :.
The hank was organized, think, In
June. 1866, and went into the hands oil
the Receiver June, 1867. =,
Ouestion-What was the actual cash
capital paid by stockholders
Answer-The law requires subscrip'
ton of sl00. 600. $50. 900 paid in, before
the franchise would be granted. We got
The subscription of the requisite amount;
and as $50 900 had 10 be paid in. Mr.. j.
Z. Hutchinson, formerly OF the National
Bank Of the Metropolis, Of Washington,
iurnisbed the $4,000, and the requisite
oath was made. After this Hutchinson
requested ne to call in the stock, to re-
Mace the money to his bank or to him.
/ called 10 all could; think about 3
(s.e books) never could call IN any
o We're the 500. 900 of bonds ever
dsp2si,sd. ard If so. bow and whereg
a. TIE sl0D, 600 Of bonds were depos-
tied by HUTCHINSON, and the $50, 600 OF
circulation we're obtained BY him and
sent to The bank az Memphis, and was
entered on the books Of the bank. This
eircu.s,ion wss sent cut to Memphis in
bundles Of so. 900 or $4,000 at time,
es,er the circulation vas signed. Part
vas issued By the bank and part By divi-
bends. The whole $50. 900 was pat iato
circulation. Hutchinson was repaid tor
the bonds be had deposited by his drafts
on the Tennessee National Bank Of Mem
phis. Before We procured the deposit OF the
funds, known as the School Fund, We had
not paid Hutchinson fully, and We sent
the ssssiiss,250 Of bonds as we obtained
them to the National Bank Of the Me-
tropolis at Washington. The funds had
only been in Memphis short time when
sent them. They were sent 10 Hutch
inson with instructions not 10 sell them,
and we took a receipt for them ss " sps-
cial deposit" He did NOT, hoperer, dis
nose ofthem He went to the First Ma
tionai Bank of New York and other
banks of that city aud hypothecated
nearly all OF said bonds for loan. Hutch
iusou was largely indebted to the
United States Government for deposits,
and applied some Of the proceeds for the
liquidation of bis Indebtedness.
Q How was Hutchinson repaid for the
500 900 be deposited in bondsf
A. The $1,000 that he first put up
under the law went to buy o proper
tional amount Of the bonds. He sd,
ganced the balance. and was repaid By
drafts on The bank at Memphis; and not
having been fully repaid at the time, The
S. hool Fund ioas sent 10 him. We had
drawn our account down to point that
be was indebted to Us some 100000 OF
more, and he then refused TO honor our
drafts Our cashier { Morgan) photographed
Hutchinson in regard to our drawing
upon him as follows: Rutter ordered
the drafts drawn; it was not my fault
There are no more out" This was my
FIRST information that Hutchinson IN
tended to deny our right to draw upon
him to the full extent OF our deposit
Hutchinson had increased his stock tc
fifteen thousand dollars, and after tbs
trouble with the State was made
public he desired to have biz
stock credited up to him, so thai
it would appear that be had set
tied MP in full with the bank. No
vember 10Th / telegraphed TO Sherman to
remove our collaierals from the hands ol
Hutchinson, l having heard that they
were hypothecated in New York. Mr.
Hill and | went 10 see him, aud | urged
him 10 secure their return. | also con-
suited lawyer 10 find if could have
him arrested for converting special de
posit. BE made promises, which be
broke. We negotiated with Jay Cooke
In order to secure the bonds and pay thu
amounts for which they we're hypothe
Gated. By the use Of checks and money
I succeeded in getting $3.50. 600, and hsc
10 deposit it with jay Cooke d Co. al
collaterals. October "a. 1866, tele-
orapbed jay Cooke 4 Co. TO sell the
er-o mn 4, hands and renort the balance,