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

NNaA a.
teams were brought from Augusta,
Ga. by order of John A Fisher, in
charge Of b. Lanier, who was acting
as the agent of mr.. Fisher. He
never heard b. Lanier set up any
claim to this property, but it was al
WAYS recognized as bank property. The
mules would average something near
one hundred and seventy-five dollars
each. From the deposition OF Mr..
Joseph f. Brown, who was the CASH
Ter ofthe Trenton Branch Of the Bank
of Tennessee, and who is the most
likely TO be acquainted with the
detail of the bank from vari-
Gus facts furnished che commit
tee, says in his deposition, after
stating an impression hat there were
three wagons and twelve mules, that
he is positive about the bank owning
two wagons and eight mules; these
were not disposed of to his knowledge,
and were put in charge of y. Lanier for
the purpose Of bringing them through
to Nashville. The COMMITTEES have
left il to the General Assembly to
reconcile, if possible, the testimony Of
these witnesses, and either exoueTate
or convict the party concerned by the
necessary steps to that end.
1t may be proper for the committee
to state here, that it was the prevail
ing opinion in the committee that
after the State embarked her school
fund in the banking business i'm the
Bank Of Tennessee, that il necessarily
lost its identity IS a particular fund,
and could not be classed otherwise
than as a general fund and as part Of
the assets Of the Bank OF Tennessee.
Recognizing this, the committee
knew that il would be a useless IN
dertaking to attempt to identify any
particular portion of the assets of the
Bank of Tennessee as theschOOl fund,
hence they have made a general in
vestigatiOn into the entire assets Of
the Bank # Tennessee in this con-
neetiOn, and have to report that their
investigation has laid bare an enOr-
nous fraud, well conceived, aptly cal
culated and promptly executed, to-
wit: The laws in regard to insurance
companies doing business in this
Estate require that the different COM
I panies shall deposit with the Comp
trOller bonds of the State TO the
amount of 10000, to protect those
who. insure in the said COMPANIES.
| This was done by the Insurance
/ Company of the Valley OF Nir-
ginia, and the bonds deposited
with the Comptroller were by him
placed in the Bank of Tennessee for
safety, we suppose. These S2O,OOO
! in bonds went with the bank when it
went from the State, being placed to
the credit of said company on the
books of the bank, said bonds being
made payable on their face TO the In
surance Company of the Valley of
Virginia, and numbered as follows:
$685., 1854, 1885, 1920, 1856, j497,
3I6g, I742, 1857, 55g7. 42l, 1886, 91l5,
7722, 1888, 77&, S2lS, iO,5l6, 1885,
1878, and could not get out of the bank
properly without the Endorsement Of
either the company OF the officers of
the bank. When the bank was at
Chattanooga, as the committee learn,
/ the officers Of the Insurance Company
of the Valley of Virginia sent for their
$50. GEO in bonds, and these particular
bonds being boxed up with other as
sets of the bank, and not easily got
at. other bonds to the amount OF So
600 were given to said company, who
left a power Of attorney with John A.
Fisher, in order that he might trans
fer these bonds to the bank.
The Insurance Company of the Val
lev of Virginia have written that they
bonds by the bank; consequently the
bonds became the property Of the
hank. The committee find a law
passed December u, 1866, entitled
tan act for the relief of bondhOld-
ers," which said act was, in the Opin-
ion of the committee. procured to be
passed as part of the scheme to de-
fraud the State out of not only these
$4,000 of bonds, but others that were
obtained under and by foul and unfair
means. The committee find that all
these bonds issued to the Insurance
| Company of the Valley of Virginia
have been renewed under the said
act of 18th of December, 1866, and
green or new bonds issued in their
stead. These bonds are as perfect,
with the exception Of the cancellation
of the Comptroller, as the day they
were printed. The committee find in
the offices of the Secretary of State
and Comptroller a written notice from
Samuel Watson, Trustee of the Bank
of Tennessee, stating to bOthSecretary
of State and Comptroller that these
bonds referred to are improperly ont
Of the Bank Of Tennessee; neyerthe-
less the same have been renewed, and
the State now stands responsible for
the amount. Seventeen of these bonds
were renewed by one John Osment,
who, being put upon oath, says that he
acted as the agent of one WaterhOuse,
of the firm of Waterhouse, Pearl 81
Co., of New York, that the bonds were
purchased sometime previous to the
passage of the act referred to, and
were purchased Of one William H.
Tibbs, of Dalton, Georgia, and G. l..
HardWiek, of Cleveland, Tennessee,
by the witness, Mr.. Osment, and sent
to New York. After the passage of
the bill referred to they were sent
hack. renewed and carried back to
New York, by the witness himself.
The witness says that the said Water
house knew the bonds were in the
country, for he got some Of them at
the same time that Tibbs and Hard
wick did. The witness says that the
said WaterhOuse urged him TO buy
these bonds in various letters, saying
that he ''cOuld use them after a little
trouble" Two of these letters the
witness placed upon file, and the COM
mittee have thought proper to copy
them in order to show more fully the
combination Of what the committee
cannot do otherwise than call UitGiHy
TO defraud the State.
NEW YORK, November q, 1866.
John Osment;
Dear Sir: Yours of the 10Th is at
hand and contents noted. You say
you will buy the bonds as low as you
can, but do not say what will be your
limit. You wrote me you could buy
them at $500 each, coupons of till
January /, 1868. / don't suppose you
will give over that price, and as much
below as possible. Do what you do
at once, and let us know what to de-
pend ON. 1 can have all matters ar
ranged by taking time and some risk.
Yours, truly, E. WATERHOUSE.
The committee would call especial
attention to the last sentence in this
letter, as also a like intimatiOn of
making things all 30. K" by time,
and some trouble in the other letter,
to-wit;
NEW YORK, November "a, 1866.
Osment:
Dear Sir. 1 wrote you some time
ago TO buy certain bonds, and have
not heard from you as to what you
have done. can get them made all
o. by a little trouble, and insist
upon you making the purchase II you
without delay. Let me hear
from you at once.