Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-06-22
THE CITY.
THE CITY ImBROGLI0.
The Case Before the Chancellor at
GsRlIatIn.
Application for a Receiver,
The Bill Reviewed.

The long protracted corporation case
came before Chancellor Smith yesterday
at Gallatin. The application was for
receiver. The counsel on behalf Ofthe cit
liens we're Colyar and Guild. On behalf
of the acting city officials, Messrs. Nancy,
Burch and Ed. Banter. 1t being the first
day of the Circuit Court there were large
number Of the citizens of Summer present.
The bin covering twenty-five pages Of
closely written matter, setting forth mia
utely and in detail the frauds and pecula-
lion of the defendants during the present
| city administration, was read in a clear and
distinct tone by Mr.. Colysr. The reading
| of the bill commanded not only the close
attention Of the court, land our reporter
says he has rarely seen a more dignifed
and intellectual looking man on the
bench than Chancellor Smith, bat the
entire crowd listened 10 it with the great
est interest. The bill charges that Alden,
the acting Mayor, and a msjority OF the
City Council we're elected by fraud; that
they are not the owners OF real estate as
the charter requires, and that by the terms
of the charter the Offices are vacant; it
charges that Alden and majority of the
City Council colluded with Sheridan, the
Tax Collector, and Msgrane, the Tressu-
rer, and allowed them both to give bonds
which we're known al the time not to be
any protection to the city; that while
these officers handle several hundred thou
sand dollars, they were by fraud and coils
fusion allowed to give bonds that would
not be sufficient for an ordinary constable's
bond; that Msgrsne in q; months received
$SI7 900, most Of which in checks as
money he still holds, and that checks in
many instances paid in for taxes are found
out in circulation and many Of them have
been sued on. The bill charges that so far
as the financial department of city affairs
is concerned, the Mayor and most Of the
City Council cOlluded with the Finance
Committee, and aided them in keeping a
secret their money transactions, which are
not only luxurious, but fraudulent that no
reports were made and published by the
former or present Chairman of the Finance
Committee, and that by singular set Of
circumstances, these frauds have been dis
covered; that it turns out by discovery
within the last few days. that notes have
been given by Alden and the Finance
Committee for $685., 900, which is known
that 1919, 600 ofcollaterlis, in the shape of
city bonds and checks, were deposited %
collateral to these notes that one Of these
notes has lately been protested, and copy
has been seen that it is for $40, 900, given
TO a man who is migratory, and
who has left the country; that there were
put in the hands Of this man as collateral
81, 900 of city bonds with power to sell
them and buy himself and that he should
only be charged with the net proceeds,
that he might sell publicly or privately
without giving any notice, and at any time
| or place and at the expense of the city,
| and that all the notes were Of the same
form as the parties had been informed;
| that two men Sax and Ogden got of these
collaterals and upon these terms $48S, 900;
that they refuse TO tell what they haze done
With them, but say they have used
| them aud that they had permission from
| Allen, the Chairman of the Finsnce Com
mittee, and Alden the Mayor, 10 use them
before The notes fell due; that they have
been by this fraud used, aud the city has
| no protection; that some of the other
transactions were made with RESPONSE
| Bile parties, but most Of them were
| made with unknown and irresponsible
parties, that many Of these notes are now
falling due, but the city officials refuse 10
make defence to them; that S75S, 900 of
cheeks have been Issued without author
| ity of law and for the fraudulent purpose Of
aiding in concentrating the note transac-
tions; that many Of these checks have been
fraudulently put 10 circulation and sued
on and no defense made, that note of
SAG, 900 was given to Ogden payable on
demand, and that he took $4,000 Of checks
"a ceIlaterals when they we're worth 80
cents in the dollar, and that he appropri
ated the whole; and that this was done by
the eonnivance and fraud of the Finance
Committee, and Alden the Mayor; that Of
$3.50 900 of collaterals delivered to Ogden
the former Chairman of the Finance Com
mitlee, he has never been required to
make any showing and has never reported
anv surplus. The bill charges that by
fraud they have bankrnpted the city aud
utterly DESTROYED its credit; that S275, 600
Of judgments have been rendered and most
of the property belonging to the city will
| he sold IL the court does not interfere
, | and pnt the financial affairs Of the city in
| the hands of some of its best citizens; that
| the CITY has the resources and financial
skill to vet save the city, if this skill and
the resources can be put in contact; that 8
portion of the engine horses have already
, | been sold. and that financial ruin is newt
able if something ia not done; that the
| CITY officials admit their inability to raiss
money, and that they are making no efforts
to save the city property from sale; thus
the judgments rendered if not provided for
will sweep away all the city property
, and leave the city exposed to fire. Th'
, bill charges that the Finance Committed
have been paying for money one hundred
per cent; that in one transaction, If The
+ contract Is carried out, the city will pay
S6S, 1000 at the end OF twelve months TO
$4,000. The bill charges that this terri
BILE condition of things is the result o
fraud, and that, seeing they could no
I; manage the city government, the city ol
1 ticisls agreed, on the 18th inst, throug
q their attorney, by way of compromise, +
s have enough Of their number resign to pu
A some known citizens in the Board, men {
good credit and financial skill, who shout
have full power over the finances and th
II expenditures; that the judgments bein
t rendered, and the threatened sale Of prof.
Y erty, and the necessity for defending th
4 fraudulent checks, imperaiively demande
a that this agreement should be carried OF
at once, but for more than a wee
,, the city officials had manifesto
g the utmost indifference about ca
Q. | rying it out, and while the prOpert
\. Of the city had been sacrificed and all Ii
: public and private property endangered
they had tiokled each other by lacetiou
10 messages and rhetorical tiourishss abOl
n the first and the after piece, and at lengt
discussed the law-abiding qualities Of u
men formally agreed upon a. committee
that the indifference manifested # n
y | or;y,;naI uy.s crueI in view of the fact thi