Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1870-06-22
-CONNUNlCATED.I
The School Fund.

-Hessrs Raic g. T'arcater:
Now that the Legislative Committee have
made their report upon the subject of this fund,
and the same has been copied in nearly every
paper in the State l propose, in a very brief
publication, 10 make my report
Soon after was inaugursted Governor of the
State the Federal army at Augusta, Georgia,
captured upwards of four hundred thousand dot
lars IN SPECIE which was in charge of the Off
Gers of the Bank of Tennessee. This money was
brought by rail to the depot in Nashville and
turned over to me. | hauled it to the Capitol
and had a strong military guard placed over it.
The Legislature as the journals whereof will
show, directed me to dispose of it to the bestiad-
vantage | accordingly sold the specie to Jay
Cooke IL Co, for 7-}O United States bonds, re
ceiving upwards of six hundred thousand dol
lars. These bonds / carefully deposited in the
large iron safe in the Comptroller Office in the
Capitol, and ! considered then, and consider
still, that | made good exchange
These bonds it turned out afterwards. were
secretly conveyed to the Memphis Bank by
Treasurer Stanford. who had made arrange
nents to that effect with Rutter the President
of the bank The first intimation that | ever
had of the removal of these bonds to Memphis
was given me through letter received by Sena-
tor Bosom from Memphis | instantly sent q
brief message 10 the Legislature then in session.
informing that body of the fact and denouncing
the outrage The Legislature directed me To re-
=
powers in regard TO the mode by which | should
attempt their recovery
| accordingly selected from the two Houses a
committee OF men universally esteemed as reia-
BILE and discreet. This committee left for Mem
phs on the first train going to that city. The
committee succeeded in recovering about half
the amount in bonds and currency, which they
brought to Nashville and deposited with the
Comptroller.
These facts, and others equally as pertinent
connected with this subject, will be found in the
journals of the Legislature, where full details
and particulars are given.
Whilst / consider the Memphis Bank one of
the lawful receivers of taxes and dues coming
to the State after its selection for that purpose,
l do not consider, and never did, that the Bank
had any right to transfer these bonds from Nash
vile to Memphis, and the cIdHdestiHe manner
in which the transfer was made, shows that the
State Treasurer and Bank took the same view of
it. and hence, kept their movements concealed.
Mr. George X. Rutter President of this Mem
phis Bank, passing through Washington last
winter sent me. through the Post-otfice the fol-
lowing letter. 1t Is proper that ! state this let
ter was sent me without any solicitation on my
part or any expectation of receiving any such
epistle
"WAsHNGToN, Jan. 3lst, 1870.
Hon w. q. BrooratoU.
DEAR SIR have justread "A speech deliv-
cred in Congress on the 22d inst, by Hon. VIM.
B. Stokes, of Tennessee, in which he very Jn-
Justly indicates that you were identified with
the unfortunate fund known as the school
Fund of Tennessee and thus casts II reflection
upon you in this matter.
As q matter of justice to you, and from the
high esteem in which my father held YOU in
Virginia, before ! was born, ! feel il nv duty
| 10 yourself and to your friends, to make "A can
did Statement-subiect to such use a. You NAV
see fit TO make of it.
AS ! understand IT, some S4O0 600 in gold
and silver, was captured from the Confederate
government and returned to you, while Govern
or Of Tennessee, and by iudicious investment
on your part, in 7-30 United States Securities
/ it realized over $4,000.
after most searching investigation of this
matter, after these bonds had been deposited in
| the Tennessee National Bank of Memphis bv
| the Committee Of the Legislature it appeared
| that neither you or any member of your family
| had aught TO do in placing this deposit in this
| Bank, either directly or indirectly or that YOU
| had ever received one single cent from the pro-
ceeds of this fund.- or that you had ever re-
ceived cent from me personally or from the
| Bank
Upon the contrary, ], personally and by let
| ter, repeatedly requested you to aid ne to make
some compromise Of the matter which then
| thought for the best. but you, upon each and
every occasion while you were willing 10 do
| me personal kindness) refused and declined to
NEEDLE with or mix yourself up in this matter.
! " again repeat, as / did 1T Nashville before
the Committee, under oath, that neither you OF
any member of your family had anything TO do
| with this matter, in any shape or manner and
thatyou never received one cent, either directly
or indirectly
"On the other hand, some Of Mr.. Stokes
most particular friends did borrow money from
me, personally, and, some Of them, from the
! bank, and have never paid it back to this day.
and that some Of them did all they could to pas.
the act by which this fund was put in this bank
| lrhlc uoa Qcrer h,er. 10 mn kaOictedgc thai
such BIN itas pending until It beeame a tqtc
ego. r. RUTTgR."
Mr. Rutter could not have stated otherwise
and told the truth, and those who seek 10 make
political capital by connecting my name with
the school fund, may call witnesses to the stand
from now til doomsday, and if they will stick tC
the truth, they will in no wise connect me witt
the improper use Of single dollar.
Even Mr.. Stokes, three years ago. in his dis
cusson with Etheridge, denounced the Who'll,
affair, so far as j wa concerned. as withJut any
foundation.
Most of the papers Of the State have put lisheC
the Committee report and ] submit il 20 the
sense Of Justice whether they will copy thi
brief publication. w g. BROwNLow
WAsHIEQToS, ID. c., June 10. 1870