Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1869-02-12
THE GRElIEsI SCANDAL IN THE
HISTORY OF TENNESSEE.
HOIC The +" School Fund" sCds
Spirited 4iCay.
FinaacieriHg Under the BrOUR-
S0U DyHdsty.
LoDaity at "a Premium.

~ PnbIie Plnndered.

examine the School Fund curTuption:
Mr.. Rutter being interrugated by the
Committee, said that be was President OF
The National Bank OF N uphs, aud
siOckhnlder in u to the amount OF 3
J. B. Hutchinson was stoekhold-r to The
amount of s. 900, asd vas Vice President
Iuo L, E'chbu vas also a stot kholder OF
: 900. Charles Collum was $50 a stock
DO der Of $40 COO. (and others whose names
/ | viii furuish J | was President all the
time. Hutchinson was Vice President tor
about tw'- third, o. The time Of It's exist
ence, and 4 II. Whitesmore, was acting
| Vice President Tor the balance of the time.
j. l.. Tay lOr was cashier for the purpose OF
organic ttion after him Walter 5. NJ 'rgan
vas Cashier. He was recommended US by
J Hutchinson. After him the pres, NJ cashier,
/ W. A. Hit, who clams to De receiver uudrr
the banking law. The bank was org ,uiz-d.
| think, in June, 1865, aud vent into she
I hands OF the receiver June, 1861.
Question. Watt was tue ac,uAl cash capt.
ial paid by the Stockholders.
Aus TIE law requires a subscription Of
I 100000. With $50 0u0 paid ia before the
!, sucnIse would be granted. We got the
subscription Of the requisite amount; and
as $50 600 had to he pa d w, Mr.. J b.
Hutchinson, formerly Il the NdtiOnal Bank
ot tie Metropolis, OF Washington, furnished
the SJ9 600, and the qusite oath was
made. Aver this Hutchinson requisite d
me 10 cali in the stock, to replace the
money to his bank or him. | called in all
| could think about 80 see books. J
| never cuuid call IN any more.
Q We're Ihe the $1,000 900 Of bonds ever
depOs ted, aud II 50, hoS and whereof
a. Toe 500, 900 d bonds we're deposited
ny Hutchius5u, and tile 500 900 Of circult-
tlou S-re obtained 10y hun anu sent 10 the
Bank at Memphis, aud was entered IN the
rOnks Of the bsuk. THIS circulation was
sent Oui Ia Memphis ia bundles Of $4,000
or $50, 000 Al time, after the calculation
was gued. Part WAS issued 10y The bank
nj part by dividends. The whole $50 600
was put iu.o circulation. Hutchinson was
repaid for the bonds he had deposited by
his drafts on the Tennessee National Bans
of Memphis. Before We procured the de-
post OF the funds, known 80 the School
Fund, We bad not pad Hutchinson fully,
and We sent the S6lS,250 Of bonis, as VIZ
obtained hem, 10 the National Bank of the
Metropolis al Washington. Tue funds bad
ouly been 10 Memphis a short time when |
sent them. They we're sent u Hutchinson
! With distinctions hot to sell them, and We
look a receipt for them especial de
posif." He did not. howevrr, dispose ct
them. He went to the First National Bank
Of NeW YORK. and other banks Of the city,
AID hypo. eAied nearly AL Of said boud,
TOR a loan. Hutchinson wss largely Indebted
10 the United States government Tor de-
posts, aud applied some VI the proceeds lOT
tie liquidation Of his Indebtedness.
Q. How was Hutchinson repaid for tie
100000 be oepo tied ia bOndsl
Tn.. sion flne thar ~,
under the law went to bay Proportional
amount Of the bonds. He ADVANCE tue
Dalancr, and vas repaid by drafts on the
bank at N mPhis; and not having been
fully repaid al the time, the School Fund
was sent To him. We had drawn our &C
C, uut down To the point that he was Indebted
10 us some $500, 900 or muIe, ani o then
refused 10 honor our drafts. Our cashier
fMprgsul teleg apbed Hutchinson in regard
our craving upOn him a. follows g" RUiter
Ortertd The drafts dIawn: IL was not my
fault. There are no more out" THIS was
my irst Information that Hutchinson in
tended u deuy our right 20 draw up0n him
~ the full extent of our deposit. Hutehn
sou had increased hls stock To sl5,Or9, and
after the trouble with the Stale Was made
public, be desired 10 have biz stock credited
90 t. hsm, - that it woald appear that he
]
vrmhvr 10 | teirgrspaed TO sherman o.
r. move oar cullaterals from The hands OF
uuIc insou, / havirg heard that they verr
d, pOt heeated H. New York. M. I'LL sud
J vent q see him, aud urged him to secure
their Return. | aiso consulted lawyer u
Ii "a # could have him arrested for c'n-
vvrIiug special dep sit. He made promi
SIS, which lee nl oke. We u~gO lated with
JOY Cooke 10 o. der 20 serurc Tho bOlfs and
, pay lh. amounts for which they wtFr by
10 hecarrd B, the use Of che X and
nouey succeeded IN setliug $3.50 100, aud
hAd 10 des0sit it With Jay Cu'ke 20. a.
collateral. October "a. 1856 t-ireraphrd
Jay Cooke q Go. "a sell the s550,J0J 70
bands and re.0st the balance, taking ont
ais charges and the iaterr,t duo him, hold
ing balance subject 10 draft.
: Here followed long corresroudence
J principally on the side OF Hutchinson.
A Telegram from Washing on, on Jlu'
F. "a, 1850. from crimson a. Rutter, says
~ propose TO ma * you government dc
pusitury to-mofruw. The moment You e.
: ceivr tie certificate publish li, aud CON
mrucr busiue-s - once"
The certificate was procured accordingly
thruugp the agency, perhaps, Of hulchlu
. son, Nha was sflerwsrd FeSardvd by TIE d
stot the School Fund, which he Esed a.
A Nt,nvss slated a01Se'
La the coud letter, dated Washington
= lane rs. lsC5, be- say; "My brother take
lont a bl.nk draft, Nhich have instructed
MN 10 use IA the purchase Of quarter
= m .stt rs certificates.
Ynu must bear in mind your drst q7arterl,
r.rs.rt must be made before the 10th q
lInly, 10 making 1t / advise you 10 pu
under the b. a. II 'cap.tal stock paid 10,
$50 900. which is all you are required q
~, = The Iuterual Reyeuue Com
nissf, per has rot Yet decided "a give n ih
IN erp-l revenue deposits, bat MI, think
III, as part of thvm. - yer
"A liant IA procuring deposits, IN order {
- a. uany a, possible hsf re- Your compe
,i,i,n increases Oar suridus acc unt
mug treity well drawn upon, d al
contracting liabilities sonleaha'.'
Under date OF February 7, 1865. b
xyi,-. Rntters "In addit on {" ia, msu
Farni,hEd you, thr B =. aud ". Va Petr,
linn Company hsgr two o,feE vtluaol
len. e. to dispose Of, 10 g OIL Oodr"J terri
tors The company hsye already ,Asine'
,nj are pr. parng 90 boar"
a.. urges 3ntlsr 10 60 mo t-r o00ra
ihpsipess. Hn chius1p, him . & appears
h'v,, h,rn a triAs Of boar, aad prett
Ts.r date OF March u 1866, iroI
wN.biueu n, he writes Rutter " The o
stocks q fair 10 be an extraordinary ID