Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-10-28

been committed in the management of
this "school fund, and that large num-
Der of leading Radicals were involved in
that disgracetul swindle. We said then
that the taxpayers of the State would re-
member this great swindle and how the
Legislature, instead of Investigating and
exposing the perpetrators and beneficiaries
of the deed, endeavored TO whitewash
those who were implicated and virtually re-
fused to make the exposure which justice
and right demanded, and that Legisla-
ture would yet be elected which would
lay bare to the gaze Of an indignant people
these dark and damning acts of corrup-
ton. That Legislature has been elected
sooner than the ''school-funders' antici-
pated.
The gold returned with the Bank of
Tennessee was invested in United States
$50 bonds, and by act of the Legislature
declared TO be part of the 'sacred school
fund" Gov. Brownlow stated in the Knox
vile Wing of April 81, 1867, that ''this
fund remained in the keeping of the Gov
ernor and Comptroller for fifteen months
in perfect safety" Then why was it dis
turbed? II wasa large sum and the money
sharks among the faithful regarded ii as a
most tempting bait They set to work
forthwith to get control of this so-called
school fund. 1t appears there were
two parties from Memphis in hot pursuit
Of this money. Mr.. Cherry, President
Of the Merchants National Bank of Mem
phis, with the keen scent of a sluth-hOund,
had spied out this prize, and was hard
at work to secure the selection of his
bank as a depository Of the public
moneys Of the State, or fiscal agent of
State. Mr. r. s. Parham testified before
the committee appointed by the House of
Representatives of the last Legislature to
investigate the loss Of the ''school fund, .
that 'NIr. Cherry was here and actively at
work for that purpose, and had . resolu-
ton or other legislative means pending
looking to that end" Mr. Ruttcr had
fixed his longing gaze upon this tempting
pile of money, and on the way here had
employed Parham "to assist him in defeat
ing Cherry" Let us see what Cherry
had accomplished. In the House of Rep
resentatives on the 18th of December, 1865,
Mr.. Mulloy Offered a resolution re,
curing the Governor, Secretary OF
State and Comptroller TO pay
to the Superintendent of Pub
| lie instruction six hundred and eighteen
thousand two hundred and fifty dollars,
with accrued interest," that being the
amount realized from the sale Of the coir
belonging to the Bank of Tennessee.
| This resolution was adopted on the 18th
So far had Mr.. Cherry progressed, wher
Rutter and Parham appeared on the
scene of contest, the former having EN-
ployed the latter TO aid him lin havin!
his bank (the Tennessee National Banl
Of Memphis) selected as the fiscal agent o
the State. Mr.. ParlIam states the plan o
operations as follows:
"The ultimate plan adopted was that W
would have passed a resolution or bil
through the Legislature leaving it to som
one or more of the State executive officer
to designate what banks should be tn
| fiscal agents and repositories Of the State
and would get political friends so TO indoors
US as would secure the first appointment
thereby insure large deposit and grea
influence; this plan ultimately succeeded
and we secured the passage of a bill I
that effect: the forty-third section of tn
| act passed MAY 90, 1866, being the geners
| appropriation bill, gave the power and al
thority to the Treasurer to select the dc
] positOries. "
| Now let Us take up the journals Of III
| Legislature ard see how this was done
On the 9th of February, 1866, the rcsolu
ton of Mr. Mulloy came upin the Senate
when Mr.. Trimblc offered a bill in lie
"to wind up and settle the business O
the Bank Of Tennessee" This bill wa
passed through the Senate, and when
came up on its third reading in the House
Mr.. Patton, a Radical member, offered a
amendment in lieu of the fifth section
providing as follows:
"The President and directors, withou
delay, and at as early day as practicable
cause an assignment and deeds Of trust Q
all the assets of said bank and branches
and properly of all kinds, real, persons
and mixed, including the fund above dc
scribcd of $G1S, $50, and al interest there
on accrued or acCruing, 10 be made an
executed in the name and behalf of th
Bank of Tennessee, and under its sea
for the uses and in trust as follows: First
to secure the full sum of 81, 800, 600, tn
amount of the common school fund dc
posted in the Bank of Tennessee by act
of the Legislature, which shall be a pre-
ferred claim. with interest accrued and aC
cruing on said sum of 81, 100000, sine
the 9th day of MAY, 1861, which sum o
S6lS,25O, United States seven-thirt
bonds, shall be retained and placed in tn
hands of the Treasurer of the State G
Tennessee, as part of the common schOC
fund originally deposited in the Bank G
Tennessee" etc.
This amendment was adopted Feb. Il
1866, and the bill as amended was passe
on its third reading, by the followin
vote:
Ayes-Mcssrs. Anderson, Arnell, Baker
Carter, Clingan, Doughty, Dowdy, Don
aldson, Duggan, Dunnaway, Fuson, Gan
ner, GilmeT, Grimmett, Hudson, Hale
Jarvis, Jones of Claiborne, Mason, Man
well, McNair, Mullins Moss Norman
Ordway, Parks, Patton, Porter, Pickett
Raulston, Rodgers, Symmetry, Smith o
Hardeman, Smith of ObiOn, Snodderly
Thonburgh, Underwood, Waters o
Wilson, Waters of Madison, Walker 0
Rhea, Welsh, Williams, Willis, Wood
cock and Woods-45.
Noes-Messrs. Brandon, Bledsoe, Cow
ard, Elliott, Faulkner, Garrett, Jones O
Greene, Melton, Murphy, Nix, Scales
Thomas, Warren, VIM and Speake
Heiskell-l5.
The bill as amended came up in tn
Senate on the 18th of February, 1866, TO
concurrence in the House amendments
and it appears that Mr.. Trimble smelt
mouse of considerable size in that portiol
of Che amendmcnt touching the "schoc