Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-02-05
The Testimony Of Rutt6r.
HISTORY OF THE BANK

III ANHGAAAhOAal Va AAAANANAa
HISTORY OF THE BANK.
Mr.. Rutter being interrogsted By the
Committee, said that be was President
of the National Bank Of Memphis, and
3 stockhOlder in it to the amount OF s.
J. b. Hutchinson was a stakeholder TO
the amount of $1,000, and was Vice Pres.
ident John L. Elohtu7g was also q
stockhOlder OF $1,000. Charles Collum
was also q stakeholder of $4,000, and
Others whose names I will furnish.
was President all the time. Hutchinson
was Vice President for about two thirds
of the time Of its existence, aud Z. II.
Whitesmore wss actiDg Vice President
for the balance of the time. J. L. Tay-
lOr WRs Cashier for the purpose Of organ
jZatiOn after that W. B. RrisbuFn was
Cashier; after him, Walter s. Morgan
was Cashier. He wss recommended US
by Hutchinson. After him, the present
Cashier, w. A. Hill, who claims to be
Receiver under the banking Law. The
bank wss organized, think, in June,
1865, and went into the hands Of the Re-
celver in June, 1867.
WHO FURNISHED THE CAPITAL FOR
THE BANK.
q. What was the actual cash capital
paid by stockholders?
A. The law requires a subscription Cf
SlOO, GOO, with $50, coo paid in before the
franchise would be granted. We got the
subscription Of the re 5uisite amount !;
and as $4,000 had to be paid in, Mr.. J.
B. Hutchinson, formerly Of the National
Bank Of the Metropolis, Of Washington,
furnished the $4,000, and the requisite
oath wss made. After this, Hutchinson
requested me to call 10 the stock, to re-
Fha 70, -. l. IL
1 called in all / cOuid-I think about $
(see books.) l never could call in any
more.
HOW THE BANK WAS STARTED.
@. Were the SlOOO 900 OF bonds ever de-
posted, and if so, how and where?
A. The 500 600 of bonds were depos-
tied by Hutchinson, snd the 500 600 Of
circulation were obtained by him and
sent 10 the bank at Memphis, and was
entered on the books OF the bank. This
circulation was sent cut TO Memphis in
bundles Of $4,000 or $50, 600 al D time,
after the circulation was signed. Part
was issued by the bank, and part by div
idends. The whole so, 900 was put into
circulation. Hutchinson as repaid for
the bonds he had deposited by his drafts
on the Tennessee National Bank OF
Memphis. Before he procured the de-
pOsit Of the funds known as the school
fund, we had not paid Hutchinson fully,
and we sent the S6lS, $50 Of bonds, as We
obtained them, to the National Bank of
the Metropolis at Washington. The
funds had only been In Memphis q short
time when / sent them. They were
sent 10 Hutchinson with Instructions not
90 sell them, and We took a recent f0r
them as a Especial deposit" be did
not, however, dispose Of them. He went
to the First National Bank Of New York
and other banks Cf the city, and hypOth-
ecated said bonds for 3 loan. Hutchin-
son was largely indebted TO the United
States Government for deposits, aud ap-
piled some OF the proceeds for the lioui-
dRtiOn Of his Indebtedness.
HOW HUTCHINSON WAS REPAID FOR
HIS OUTLAY.
O. How was Hutchinson repsid f,r
the SlO0 600 he deposited in bonds.
A. The 500 900 that he first put up
under the law went 10 buy proportional
amount of the bonds. He advanced the
balance, and was repaid by drafts on the
bank at Memphis; and not having been
fully repaid st the time, the school fups
was sent to him. We bad drawn our &C
count down to the point that he was in
debted to US some t200.OO0 or more, aud
he then refused 70 honor our drafts. Our
Cashier (MorgsD) telegraphed Hutchin-
son in regard TO our drawing upon him
as follows: Rutter ordered the drafts
drawn; II was not my fault. There are
no more out" This was my first infor- /
nation that Hutchinson intended TO 1
deny our right to draw upon him to the 1
full extent Of our deposit. Hutchinson /
had increased his stock 10 SIS 600 and I
after the trouble with the state WAS
made public, he desired to have his stock |
credited up 70 him, 50 that it would ap- .
pear that be had settled up in full with /
the bank. November 10, telegrsphsd /
TO Sherman to remove our colleterals |
from the hands Of Hutchinson, having I
heard that they were hyp0thecated IN
New YORK. Mr.. Hill and / went to see
him. and urged him to secure their re-
turn. / also consulted q lawyer 10 find
il could have him arrested for convert |
ing special deposit. He made prom /
ises, which hs broke. We negotiated /
with jag Cooke in order to secure the 4
bonds and pay the amounts for which
they were hypothecsted. BY the use of /
checks and money, 1 succeeded in get
ting $3.50 600, and had TO deposit it with /
jay Cooke q Go. as collateral. October l
"A, 1866, / telegraphed Jay Cooke d Co. to /
sell the $3.50 600 in bonds and report the
balance, taking out his charges and the I
interest due him, holding balance sub
lect to draft.