Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-12-04

sued and put in circulation all or nearly all,
OF the enormous amount of $29S,000 in these
corporation checks, not one of which he had at
the time any right whatever 10 use, SELL or
disp0se oi-they having been deposited with
MN IN trust, only with authority to sell on de-
lault OF the payment of the notes 10 secure
which they were deposited. If the said checks
are property at all, they were and are still the
property of the corporation Of Nashville. For
these S2lS geo of checks the persons pretending
TO act for said corporation only received Sl13,-
zoo in money and S10l 200 in checks, being
S21j 400 in money and checks, showing in this
view q loss of SIS, 900, and gave pretended notes
of the corporation, which are still outstanding,
for S2l5 400. And the money and checks thus
used in defrauding the corporation were raised
by the sale of its checks by the said Sax. The
said Allen admits that he told the said Sax on
one occasion that he had 10 objection, person
ally. to the said Sax selling the checks depOs-
tied with him, but does not pretend that he OIL
cially gave him any such authority-nOr would
this be material. as the said Allen could have
no such authority, officially or otherwise. nor
anY'Guthority 10 issue and deposit checks as
collateral. or TO confer upon the persOa with
whom deposited the power to sell them a any
time. A u such transactions, by whomsoeycr
made, were illegal and void. The said sax,
when examined on oath, claimed that he still
retained some part Of the checks deposited
with him Nav -, 1869, but declined TO tell how
many. He also admitted that he had sold all
of the notes except eight amounting together
10 S6s.O0J. The said Sax is believed to be a
man OF small means. and has shown himself
by inc Nl>itHillpu OF tIttkS lIattu III his
hands as collateral not 10 be over scrupulOus;
and has thUs been entrusted with what pur-
ports TO be the notes and checks of the cOrpo-
ration TO the amount of Sjl3 400 which il is
now sought to hold the corporation bound for
During the two years of the said usUrpatiOn,
transactions of a similar character were made with
various other parties, Of whom the following are
known 10 complalnants, tO-Wlt: with one j. G.
Ogden and the Peoples Bank, "a corporation crca-
ted by act Of the General Assembly Of the State OF
Tennessee, J. W. ParamOre, First National Bank
Of Nashville, "a corporation under the national
banking law VIM. Shane, Wing, Tobey d Co,
CONSISTING Of Charles 7. Wing, - ToJey and y.
G. Ogdou) Fourth National Bank Of Nashville, "a
corporation abOye.) ". W. Ingersoll, II. H.
Thomas John Hugh smith, J. p Rexford f. r. |
Driver A. J. Duncan, John c. Burch, r. McP.
Smith, all Of Davidson county; and VIM Vermul- |
len, said to be Of New York; the Shelbyvile |
Savings Bank, OF Bedford county, and the follow
ing, who either fictitious persons, their resi-
dence rs unknown. tOwit: r. r. Baker, r. l. Casey,
Charles Warren, Henry Grceper. 4. W. Brockway. /
(Of whom money was borrowed on hypOthocation OF |
bonds,) Gustlgus Moor, Edward Hughes, Fred !
Bright, John Braut. Go rye Douahcrty. To some /
of these supposed h.iitiuus names checks were I
made payable. ana deposited with Sax Other names
Of parties to whom checks were uulaWfuliy issued I
viii appear on Exhibit , above spoken Of and hero
with filed.
Complainants do nos mean to say that ali Of these
parties above named have acted in a manner SINH
ar to the fraudulent and unlawful con 1uct Of the
aid Julius Sax. some Of them may have been
guilty OF nothing dishonest or unlawful, except that
Is cuupl4nants believe, they have al acted in vio-
alton Of the Gsury laws. Nor do c0uplaiuauts |
mean 10 say, thst the original transactions between
he pretended corporate authorities and each OF tie
PARTIES above named were Of precisely the same
'AaractCr. or in every respect similar But COM
llNnants DO charge, ulpl their best information |
md belief, that in the transactions with each OF !
hose parties. checks were made and signed by the
Recorder ,sO-called), and cOuuteCsigned by 4. J..
Alden or ". G.. Kinney, pretending to be Mayor or
Mayor lru tg1a., without authority of law; and that
uch checks were delivered TO these parties not
Ter authority OF existing laws or by any authority
If the sO-called City Council And COmplainauts |
insist that the drawing of any check on the Treas
rer of the corporation of Nashville by the Record
p, and its cOuutersigning 10y the Mayor, is a plain
nd paipahlC fraud upon the corporation, unless Ia
he same be done by authority Of the City Council |
II in pursuance of existing laws And complain |
uts further insist that the Mayor and Recorde= OF
he city have no general power to execute checks |
pon its Treasurer, but, at most, may only adopt |
AIs means to draw money from the Treasury |
Inch has been appropriated by special act u the |
lily Council, or Is directed 20 be paid ont by exist
ng laws; and that all persons dealing with these |
ihCers must look 10 their authority as officers or
gents OF the corporation, at their OWL peril. But
specially is this rulc TO be applied, compliments
re advised whore the transaction Is Of a character
o unusual, and SO far out of the lawful course Of
business OF municipal corporation.
tCmpl.iEaDt~ further say. that HE Finance |
ommiuc ol the said prCfCndCTs, duIiug the
econd year Of the usurpation. and ia Ger
ain extent IS they believe during the first !
ear, transacted their business secretly. in
aspect 10 the Issuance of checks and the Dor
owing n Unpy. AMI m some Instances in the | !
imperfect investigations which have been
attempted, the persons called as witnesses | .
ave failed or refused % disclose the details |
md particulars OF The .'"grul transactions
ID that cbmplainuutS are compelled TO bring
har-ts against the various parties generally |
nd vaguely rs TO dCtailS-hui rot Is to the ma I
rrial fact that they have received, and have | !
i>pO>cd OF or hold check, which were issued | !
and uauIulcuty. And though | :
ere little nui of Its appropriate place. com
claimants further show that during the time | 7
lese U-uriaU~ and fraudulent issues and de | !
o>lts ui checks were being made, repeated | !
nurt- were made bN some of the members of | :
be- So-ca!lsd City Council 10 require their HI |
aucc Committee 10 report it, prUcg CdinE> and | 7
clumur was raised ahOut The matter in the | :
lty- yet the said committee utterly failed to | 7
l~Closc these unlawful proceedings until the |
ubhle OF ats financial policy was pTiCkcl by 7
he same proceedings, legal AM popular. | !
Inch finally led TO AN injunction of their | I
heCE-maklu@ operations. and the appoint ! !
lcnt of Receiver tOyirtUallv sUpplaut them |
O that IN this matter. cnmplainants conceive | =
bat the real corporation and the CDrporators |
ave been guilty of no such lachcs or acguicS- |
aurc On these frauds. a- 10 CstOp them L. seek | =
I'D TgIlDt I'm the premises. The c0rV0TltOT> |
al been repeatedly repealed and thwartld in | f
IClr efforts to stay, an amy way. the reckless | :
rnyor.iIn-~ OF a combination OF wicked aud | ,
i~hpnc~r Adventures. who had. 10y fraud and |
'lrr- In open contempt OF all right. and in | 7
pen and -rcatia-tly resisted violation of the |
IS, driven Cnmp'aUaut-' officers from their 1
lace AuI seized their corporate property | y
nj arCnlvta. and who held on in the same |
.IEncr though their offices were. by law. | 2
c.lHrct vacant.