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

him by Parham and others. One
case that ! remember, j gave to Mul
Inns some money $500 to give Mr.
| ArneIL. not being able to see
ArneI personally. This money
was given by Mullins tC
f. P. Cone, who, / afterward
learned, gave il to Arnell. ArDeil
was afraid 10 receive the money direct
from me, on accounted its being found
out on him. No receipt ever was
taken for this money, not even a
memorandum.
?. Mr.. Mullins received money to
defeat a resolution introduced in the
House of Representatives by Elliott,
/ believe, "fo convert the 7-30 notes
or bonds into State bonds" Mullins
went actively TO work to defeat the
resolution, because, he said, tnat II
the 1905 were converted INTO state
bands, that / would be called on fos
them. and that he wanted money 70
defeat il. and furnished him money.
No receipt or notes was given Tor TINS
money. l will here state that / lost 8
lot of letters and papers and receipts
from various persons, acknowledging
the receipt Of money by letter and re.
eeipts which have never been found
8. Mr.. Richards received money
also that has never been accounted
for in any way.
4. Mr.. McElwee received some
money that has never been accounted
for. Also, Spence,.W. j. Smith, and
various others. What / mean by no
account being taken of the money
mentioned in this deposition is, that
the bank does not, nor eve did, hold
any evidence of indebtedness for this
money, discussed as mentioned above.
Owing to the pressure brought TO bear
upon this bank by various individu-
ais, it was not able to meet its obhga-
tiOns. Mr.. LOwensteln came out to
Memphis as the special examiner Oh
the condition of the bank under the
provisions of the national banking
law, with power to damage and other
wise injure the institution II he saw
fit. | paid him money (black mall
to let the bank and its affairs alone,
and not to NEEDLE with it. l have
not heard of LOWenstein since. i
know of $500 paid him. The capital
was but 500, 900, and to discharge all
the Indebtedness of the bank Occa-
stoned by the draws made to meet the
obligations to pay members of the
Legislature and others mentioned IN
this deposition, the funds of the bank
were used indiscriminately; also my
GEO. R. BUTTER.
ADDENDA.
OuestiOu-What time did the Ten
nessee National Bank become the de-
pOsitOry of the State, and when were
the first funds received rs q deposit by
the bank?
AnsWer-At the time of the passage
Of the fiscal agency bill, May 70, 1866,
and soon after, Ireeeived deposits from
the State.
Q.-What amount Of funds did you
receive, and how were they depOs-
tied?
Ave received revenue q do not
know the amOunt) and $6lS,25O OF
bonds, generally known as the school
fund.
Odd you have any conference
with q State officer in regard to the
failure Or Suspension of the bank and
the loss of the school fund; if so,
what officer?
Al did, with Gov. BrownlOw, in
Knoxville, Tenn /; and in that con-
versatiOn be favored the continuance
of the bank as the fiscal agent Of the
State. / had frequent conversations
with him before and after the suspen-
sion of the bank, and referred me to
Judge Norman a. 8 man VINO would
do me good in any of my transac-
lions. BrownlOw at all times favored
the bank.
Odd You receive any cOmmuni-
cation from Gov. BrownlOw in regard
to your fiscal agency.o of the State? If
50, Plesss fle any such cOmmunica-
ton as part OF yodF answer TO this
question.
Al did. I received a letter from
Gov. BroYnlOw, dated JanuaryNth "a,
1867, and filed and marked Exhibit
Az
EXHIBIT A.
STATE OF TENNESSEE,
Executive DEPARTMENT,
KNoXyILLE, January Z, 1851
George b. Rutter, ESQ.,:
/ have your esteemed favor Of the
Sd, and hasten a brief reply, being
pressed with letter-writing. From the
hrst l have not blamed the bank; it
did what all banks leginmately do,
procured all the funds it cOuldlaw-
fully to operate upOn. StanfOreis to
blame; for he knew that he Rsd no
right to meddie with the school fund.
let me advise you, once for all,
not to cOnfide in Stanford. He now
states that when he gave you a second
receipt, authorizing the fund to be re-
turned in greenbaeks, he was under
the influence of liquor, and did not
know what it contained,
He is believed to have received pay
for depOsiting alone in one bank las
Middle Tennessee. A COMMITTEES Will
be called for to investigate his entire
conduct. L think the same men will
be appointed who went to Memphis.
Those gentlemen are kind in their
feelings toward you and your baBk.
They were all favOrably impressed
with the honorable and fair manner
in which you scted. They are, ore
over, quite disposed to indulge and
favor the bank and enable it to meet
its engagements rather than injure the
institution. We all feel 50 disposed,
but we feel outraged by Stanford, and
we are disposed TO look into his con-
duct. Very respectfully, etc,
w. q. BROWNLQW,
Governor of Tennessee.
Q-PIease state why 1t was that
BrOWnlOW warned you
against Treasurer Stanford, and what
connection had DR.. Stanford with the
deposit of the school fund in the
bank -?
Ale said that Stanford was an
Old johnson Democrat, and was not
to be trusted under any circumstances,
and l think another reason for it was
that he thought Stanford might turn
upon the party and "bloWn on them
and "show them up in their true
light. Stanford's connection with the
deposits in the bank was honorable;
be did what he conceived to be his
duty under the law creating this bank
the fiscal agent Of the State.
Q.-What parties were chiefly in
strumental in making the Tennessee
National Bank the depository of the
state, or fiscal agent, and what means
was used to sec0re their influence and
cooperation?
A-Some Of the persons who re-
eeived money connected with the
passege of this bin, and to manipulate
the affairs Of the bank, were Sam Ar
nell, James Mullins, VIM. Spencer, T.
ID AFaTV.~na o. oh. LN.kz, =
ID, Davis, Senator W. K. Hall,
Wines, j. s. Mulloy, +. S. Rich
ards, Wilson Duggan, Barbour Lewis,
- Hepburne, John Martin and W.
Smith With the exception OF Bar
Dour Lewis, Martin and Hepburne,
sllwere members of The General AS
Of 1866.
O--Were the sums maid or ad-