Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-06-17
THE SCHOOL FUND.
A Gard from Senator s8rosvnlou.
What he Claims 10 Have Done.
---- g.. -. r-....-.-sIl. f.a....-s.i.

4
What he Claims 90 Have Done. s
From the Knoxville Chronicle. p /
Now that the legislative Committe
have made their report upon the subjee
| Of this fund, andthe same has been eepie,
in nearly every paper in the State, pro
pose, in a very brief publication, to mari
my report:
Seon after l was inaugurated Govern
or of the State, The Federal army, at Au
gusta, Georgia, captured upwards of fols
hundred -thOtsdld dollars IN sPRcIB,
which was in charge of the officers oi
the Bank of Tennessee. This money
was brought by rail to the depot in Nash
vile and turned ever to me. hauled Il
to the capitol and had strong military
guard placed over it. ...
The Legislature, as the journals where
of will show, directed me to dispose of 1t
to the best advantage. Iaccordingly sold
the specie to Jay Cooke & Co., for 7-3O
United States bonds, receiving upwards Of
six hundred thousand dollars. These
bonds carefully deposited in the large
iron safe in the Gomptroller's Office in the
capitol and l considered then, and con-
slider still, that made good exchange
These bonds, it turned out afterwards
were secretly conveyed to the Memphis
Bank by Treasurer Stanford, who had
made arrangeRents to that effect with
Rutter, the President of the bank. The
first intimation that ever had of the re-
moval of these bonds to Memphis was
given me through letter received by
Senator Bosom from Memphis. / instantly
sent brief message to the Legislature,
then in session, informing that body of
the fact and denouncing the outrage. The
Legislature directed me to recover the
bonds if possible, giving to me plenary
powers in regard to the mode by which /
should attempt their recovery.
| accordingly selected from the two
houses committee of men universally
esteemed as reliable and discreet. This
committee left for Memphis 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. --..t !
These facts, and others equally as per
tinent, connected with this subject, via
be found in the Journals of the Legisls-
ture, where full details and particulars arc
given. ...s ..- 4
Whilst l consider the Memphis Bank
one Of the lawful receivers of taxes and
dues coming to the State, after its selec-
ton for that purpose, do not consider
and never did, that the Bank had any
| right to transfer these bonds from Nash
vile TO Memphis, and the clqndestille
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 r Rutter, President of thii
Memphis Bank, passing through Wash
ington last winter, sent me, through The
Postofice, the following letter. II i
proper that state, this letter was sen
me without any solicitation on my part o
| any expectation of receiving any sucl
epistle: -44 5a- y ---ls-C3l
| 'WAsHINeToN, JAM 81, I87D.-Hon
w. G.. BrownlOw-DRAR SIR: / hav
| just read speech delivered in Congress
on the 22d inst, by Hon. w. B. Stokes
of Tennessee, in which he very unjustl
indicates that you were identified wit
the unfortunate fund known as til
School Fund of Tennessee and thu
casts reflection upon you in this matter
"As matter of justice to you, an
from the high esteem in which my fatht
held you in Virginia, before was born,
feel it my duty to yourself and you
friends, to make q candid statement
subject to such use as you may see fit {
make of it. 1
Gas l understand it, some S4O0, 900 i
gold and silver, va captured from th
Confederate Government and returned I
you, while Governor of Tennessee, an
by judicious investment on your part
in 1880 United States Securities, il real
} izeG over $500, 600. -.
"After most searching investigation
of this matter, after these bonds had bee
: deposited in the Tennessee National Ban
of Memphis, by the Committee of th
Legislature, il appeared that neither yo
or any member of your family had augh
to do in placing this deposit in this bank
either directly or indirectly, or that 20
2 had ever received one single cent from th
proceeds of this fund, or that you ha
l ever received cent from me PERSONAL
! or from the bank.
= "Cpon the contrary, personally an
l by letter, repeatedly requested you to al
! me TO make some compromise of the maj
; ter, which / then thought for the bes
but you, upon each and every occasion
: (while you were willing to do me PEI
4 sonal kIndness) refused and declined
e meddle with or mix yourself up N th
r matter.
: 81 again repeat, as l did in Nashville
: before the committee, under oath, thi
{ neither you or any member of your fan
e lily had anything to do with this matte
: in any shape or manner, and that yo
| never received one cent, either directly {
: indirectly. zoos
7 con the other hand, some of Mr.. Stoke
e most particular friends did borrow none
e from me, personally, and, some of then
3 from the bank, and have never paid
7 back to this day, and that some of the
3 did all they could to pass the act by whiC
4 this fund was put in this bank, tUhite 90
: neUer EaesC, 10 Dty ERoULedge, thC
e sNch q 6tU l0Gs pending until
5 became q tar.
: "GEo. II. RUTFER."
l Mr.. Rutter could not have stated othe
: wise, and told the truth, and those wh
T seek to aks.3'5iitical capital by connec
: ing my name with the school fund, ms
7 call witnesses to the stand from now Ii
I doomsdsy, and, if they will stick to Il
: truth, they will in no wise connect n
j with the improper use of a single dollar
Y Even Mr.. Stokes, three years ago,
, his discussion with Etheridge, denounce
: the whole affair, 50 far as | was col
cerned, as without any foundation.
Y Most of the papers of the State haE
; published the committees report, and
e submit it to their sense of justice whethI
0 they viii copy this brief publication.
Y o- w. b. BROwNLOw.
WASHINGTON, D. c., June Is, 1870.
\ 81