Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-05-29

bonds issued in their room and stead
are, and the State is now liable fol
that amount. It is evident that nc
one concerned is an innocent pur'
chaser, consequently the committee
would urge that the said bonds, num-
bered as aforesaid, be rendered null
and void, and for nothing held, and
that the General Assembly take such
other and further steps in the matter
as they may deem necessary.
With reference to the deposits made
in the Tennessee National bank al
Memphis, the matters pertaining to
the so-calIed school fund LEFT with
said bank, the committee have this to
report: That the object was not SO
much TO proveany ones criminal con-
nectiOn with the manipulation OF the
assets Of Tennessee National bank, OF
what Is generally known as the school
fund. but their primary object has
been TO secure to the State whatever
of money or valuable securities may
have been left from the debris Of the
Tennessee National bank. Whatever
NAV have been developed in the
direction first indicated, has been In
cidentally so, as the committee were
Of opinion that, no matter how much
of corruption and criminal cupldlty
INDUCED in to the detriment OF the
State financially, and to the tarnlsh-
ment of the States honor, that the
people of the State are tired OF listen
ing totaleSof rottenneSs upon the part
of those who should have been the
protectors of the States interest.
There was $5O.OO0in 7-30 United States
bonds, returned to the Comptroller
from the Tennessee National Dank
these were first deposited in the Ma
tiOnaI bank of the Republic and alter,
ward changed to the Fourth National
bank of New York, where they are
now subject to the order OF the
Treasurer. The interest on this 500
900 Of bonds has been used in paying
the interest Of the State debt, but this
can be better understood by a state
ment furnished the COMMITTEES by the
Treasurer, tO-wit: Collected from the
Tennessee National Bank, $4,000, IN
bonds of the United States-in the
Fourth National Bank, New York.
The sum of S299, OBJ y in currency,
used As was the interest on the $5O,-
900 in bonds, in payment OF lntepst
on bonds of the State, said interest
amounting to S93Ss 81. Net amount,
afer deducting attorneys fees and
and used in the payment OF
State claims and members of the Both
General Assembly, S5l,II6 81. These
amounts, in the aggregate S4Oo,o30 10,
Is what has been received nom the
Tennessee National Bank and from
interest on bOnds-leaving S254,13 81
of the 1868, 30 obtained by the bank.
From testimony the committee learn
that the very best quality OF
assets of the Tennessee National
Bank were turned Oyer TO MI.
II. W. Brown, of Memphis. From
the last statement of said Brown,
now on file in the Treasurer's office,
tho committee find that the majority
of these assets, consisting of first class
bills receivable, notes, etc, have been
collected, or are in a hair way Tor col
lection. These assets would go far
toward indem1ifying the State for the
losses sustained By The State at the
hands of the managers and manlpu-
lstors Of the Tennessee National
Bank. Yet, a suit is nov being prose-
cnted By said Brown against the
State, and in the event of a decision
against the State, these assets Will
then 90 to indemnify the fiscal bonds
men of George b. Rutter, the Presl-
dent Of said Tennessee National
Bank. The committee would respect
fully suggest the propriety of look
ing into this matter and see that the
State is protected. The committee
herewith give a synopsis of the re-
port Of said Brown, in order that the
General Assembly may see what as
sets properly belonging to the State,
As the committee conceiy6; have been
collected and are now held by said
Brown Awaiting the issue Of the suit
referred to nOW pending in the courts.
The statement is Is tOiloWsl Collected,
sI5.63O So; good and viii be c~olleoted
some in judgments and some Sc
cured by deeds Of trust and mort
gaees on property-k35,l lis 10; besides
Some notes, the amount Of which is
aot named.
The COMMITTEES would refer to said
report for more particular infOrma-
ton, which is filed with this report.
The Committee were led, from a
letter furnished them, to believe that
George r. Rutter was stin in posses
sion of information that would be
beneficial and would lead TO substan-
tial benefits to the State, information
that no former investigation In this
behalf had developed. Consequently
a summons was sent to New York for
Mr.. Rutter, which was Obeycd, and
the committee, after quoting that pOr-
don OF his letter referred TO, and
which led us to the differences spoken
of. desire that the testimony Of Mr..
Rutter 90, together with his written
voluntary statement, as an entirety
20 the people of the State. The letter
spoken of contains the following:
81 am, GRd have been, DESTROYS Of
securing to the State al the intorma-
ton in my possession relative TO the
Tennessee National Bank, but | must
have some legislative protection in
this matter, as ] have cause to fear
the Vaccinations Of those who fear
the result Of my statements
The committee, without altering in
any way either the statement or testi-
mony Of Mr.. Rutter, herewith give
them in full,
TESTIMONY OF Mr.. RUTTER.
George r. Rutter, being duly sworn
according to law, depOsed and said:
i am thirty-nine years of age; l re-
side in Memphis, Tennessee. The
Tennessee National Bank was organ
lied in 1865, at which time L was
elected president Of said bank; subse-
oUantIy the bank became the depos-
ft0rv OF the funds of the State, through
political influences, with the under
standing among the leading Radicals
of the State-amOng whom We're sam.
Arnell, Jas. Mullins, W, j. smith,
A. Num-, Senator w. X. Hall,
John Eaton, Barbour Lewis, and
Others-that this bank vas to support
the Radical party, aud be their
financial agent and furnish money
to "run the machine" when
eVeg they wanted it. This was the
geaersl understanding, and was
talked over prior TO and subsequently
to the passage of the bill making the
National Bank the fiscal
agent of the State. This bill vas
passed with the understanding that
the Treasurer OF the State was to be
influenced to designate the Tennessee
National Bank as the depository Of
the State, and Messrs. ArDeIl, Mullins,
Richards and Wines, and Others, did
advise the Treasurer of the State
TO wit, Stanford) to make this bank
the depository. The influences brought
TO bear on Stanford Were various.
About the time the bank was desig-
mated as a depository Stanford and
were initiated into the Loyal
League, ia the basement Of the
Capitol building Ia Nashville,
About this time he (Stanford) was
advised to deposit what was known
a. the school fund with the bank. At
the meeting Of which L speak, the