Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-06-04
"A strong Indictmenf Against the Ciss
T~ Ring.
The check MIN stopped.
The Cooperation no Longer a Bank Q
.frph ~ Issue.
A BSnd Worth MiiIIens
Noble Response ON ihe Part of Out
Citizens.
The Writ Served ON Cooperation ON
GERS not 90 Receive or Issue, and
Sax not to Use Checks.
"OthellO.s Occupation's aoner'

'OtheilO's Occupations Gener'
Five Hundred Citizens Against A. r.
Alden, Mayor. and the Board Of
city Council.
Our readers were yesterday apprized Of
the fact that Chancellor Smith of Clarks'
vile had granted an Injunction againsI
certain city officials for issuing and re-
ceiving checks, and against Sax for using
those already issued by the Finance Com
mittee. Col. Colyar arrived on the train
yesterday and filed the bill in the Office Of
the Clerk of the .Chancery Court, which
will be found in full below, except the
names of the REALTORS, numbering some Eve
hundred Of our we'll known citizens.
In granting the injunction, Chancellor
Smith required bond Of 800, 900 10 be
executed, which was made out about II
o'clock and LEFT at The Chaneery Court
Clerks Office. Our citizens, as soon as il
was known that such bond was required
voluntarily came forward and subscribed
their names. II is only necessary to refer
to the bondsmen to show that our property
holders are in earnest. Instead of 500, 600
as required, the bond itself is good for mil
lions. Here is the bill which speaks for
itself:
The complainant on behalf of the re.
lators and many other citizens too numer-
GUS to be named, would chow unto your
honor that portion Of defendants named,
on the acting Mayor and City Council Of
the city of Nashville, that the acting
Mayor and most of the other defendants
lack the qualifications prescribed for such
Offices, not being the owners of real estate,
and that by the very terms Of the law, the
offices are vacant when this is the case.
These charges are all specific in a bill
filed by portion of the REALTORS about the
30th Of November, 1868, and to which
reference ia made. Many charges Of fraud
are made in said bill 10 which reference is
made and which are here repeated.
Since said bill was flied, it has come to
the knowledge of the REALTORS, and they
charge the same to be irie, that with the,
knowledge and approval of the Mayor,
Alden, the Finance Committee, whose
chairman is Silas F. Allen, have had
issued to themselves and to other parties
acting in collusion with them, several hun
dred thousand dollars of checks, issued by
the Recorder as the REALTORS believe aud
charge, without authority of Law. The
Chairman of the Finance Committee, as
summing to act under general order Of the
Board, by which they undertook to confer
upon the Finance Committee the right to
have checks issued, has gone to the extent
Of having about $780, 700 of cheeks issued
not in payment of audited claims as the
law II quires, but issued to said committee,
aud to defendant Sax, and to various other
parties, most of whom, as ia believed, are
fictitious persons, at least are wholly un-
known to the citizens Of Nashville. Many
of these checks were issued in terms to
"emPlOyes," which was fraud, and 10
tended TO deceive. IL Is impossible to tell
what has been done with large portion
Of these checks, or where they are, but it
is known that many Of them were used 10
raise money. About 100000 went into
the hands Of Jalius Sax upon contracts
which were not only usurious, but frauda-
lent. One of the transactions, as lately
developed, being kept q secret until
brought ont in the suit above referred to,
was that Allen, the Chairman of the FL
nance Committee, gave Sax SIS, 1000 in
checks, bearing interest as the city officials
III ..ls L.
"a Allen and Sax both State, were TO be
used at once, although according TO their
own showing, they were placed in Ssx's
hands as collateral security for a note
given for $50, 900 by the Chairman of the
Finance Committee, the said Sax taking
both note and checks, and issuing the
checks; the confederation was a return of
$25, 900 and cash $25, 900 as alleged by
them, which is in effect making the city
pay the check for $5O, 600 put out and in
terest thereon for $25, 900 in cash. 1t is
stated by said parties that it is now part
Of the agreement, that upon payment OF
the note at the end Of twelve months in
money, the corporation would be entitled
to the $75, 900 in checks, and that Sax will
have the right to collect the note upon re-
turning the checks. Now the REALTORS eX-
pressly charge that said parties all knew
the city would not be able to pay
the note, and il was not intended
or expected. They expressly charge that
in their opinion, and from the facts de-
veloped it was the deliberate purpose ofthe
parties to issue checks to such an extent
that they would be Valueless, 80 that the
collateral part Of the contract would inure
the benefit of the said Sax, and it is be-
lieved the said Allen was partner in this
transaction, as no sane man could have
made such a contract acting for the good
of the city. The said Sax made many
other such contracts, and in many cases
the collateral have not been disposed Of,
but are held by said Sax. 5.
The REALTORS learn from the examination
Of said Allen that nearly or quite all OF
said checks thus Illegally issued have been
issued in the above manner, but with whom
| is not known, and The REALTORS at present
have no means of 6nding out, but the re-
lators expressly charge that in all such
cases the checks are void, that the trans
actions are not only usurious, but grossly
fraudulent; that to join with the Chair
man of the Finance Committee in such 8
transaction, knowing that he was trustee
for the city, was to become party to the
| fraud The Recorders books show thai
| the amount thus issued merely upon the
order of the Chairman of the Finance
Committee ia very large, and if the partie;
| holding them are not restrained from using
| them, the loss of the city will be very
| heavy.
The relators charge that the Tax Col
| lector ia collecting taxes and is taking il
| payment of taxes these fraudulently Issued
checks, and that as they believe without
| keeping any record by which the parties
whO pay them in can be reached. The
Treasurer is also receiving them as if they
we're valid checks, but nothing on his
books will point to the party or parlie'
who held them.
This enormous fraud in checks is moi
only going on, but the Chairman Of IhC
WaterWorks Committee, the Chairman o
the Finance Committee, and the keeper o
the workhouse, have all joined 10 making
contracts, which are manifesily fraudu
lent, and ON which, or by the use of which
contracts, large amounts Of checks ar,
fraudulently issued. Many contracts hav,
been made, in which parties to the con
tract, who were pretending 10 act for th,
corporation, we're interested, ss the relstor
have learned, and as they believe.
These facts make it dangerous for th
Recorder to issue checks at all until il Cal
be seen what contracts are valid, and VIVA
are not and especially Is this 30 whe