Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-05-27

II ~
J as they may deem necessary, =.
With reference 10 the deposits n11'ie IN
the Tennessee National Bank II Mem
phis, the matters pertaining "a. The So
and called School Fund left with said
bank, the committee have this 10
report: That the object was rot
so much to prove any sone's
criminal connection with the H,anipula-
ton of the assets of Tennessee National
Bank, or what is generally known a. the
School Fund, but their primary object
has been tosecure to the State whatever
of money or valuable securities may have
been left from the debris of the TeRnes-
| see National Bank. Whatever may have
been developed in the direction frs; midi
Gated, has been incidentally 50, as the
committee were of opinion that, no mat
ter how much OF corruption and criminal
cupidity INDUCED in to the detrimeut of
the State financially, and TO the tarnish-
ment of the States honor, that the peo-
pie of the State are tired OF listening to
tales of rotteness upon the part Of those
who should have been the protectors OF
the States interest. There was $50, 900
in7-30 United States bonds, returned to
the Comptroller from the Tennessee Ma
tional Bank; these were first deposited in
| the National 3 INK Of the Republic and
| afterwards changed to the Fourth Ma
1 tional Bank of New York, where they are
now subject To the order of the Treasurer.
The interest on this $50, 600 of bonds.
has been used in paying the interest on the
State debt, but this can better be under
stood by a statement furnished the COM
mittee by the Treasurer, to wit: Col
lected from the Tennessee National Bank,
$50, 900, in bonds Of. United S,ates-in
the Fourth National Bank, New York.
The sum of $29S, 022 ~ in currency,
used, as was the interest on. the $50, 900
in bonds, in payment of interest on bonds
of State, said interest amounting to
50, 364 so. Nett amount, after deducting
attorneys fees and expenses and used in
the payment of State claims and members
of the seth General Assembly, $5l, lis 81.
These amounts, in the aggregate $408,
526 Is, is what has been received from
the Tennessee National Bank and from
interest on bonds--leaYing S254, 1913 81
of the 1865, $50 90 obtained by the bank
From testimony the committee learn that
the very best quality of assets Of the
Tennessee National Bank were turned
over TO Mr. T. w. Brown, at Memphis.
From the last statement of said Brown,
now on file in the Treasurer's Office, the |
committee find that the majority of |
these assets, consisting of FIRST class |
bills receivable, notes. etc, have been |
collected or are in fair way for eollec- |
ton, these assets would go far toward in
Identifying the State for tie losses sus-
tanned by the State at the hands of the
managers and manipGlatOrs of the Ten
nesSee National Bank. Yet suit is now
being prosecuted by said Brown against |
the State, and in the event of a decision |
against the State these assets will then go |
to indemnify the fiscal bondsmen of Geo.
r. Rutter, the President of said Tennessee 4
National Bank The committee would |
respectfully suggest the propriety of look
ing into this matter and see that the State
is protected. The committee herewith
give a synopsis of the report of said
bly, may see what amount of assets, prop
erly belonging to the State as the cum
mittee conceive, have been collected aud
are now held by said Brown awaiting the
issue of the suit referred to now peuding
in the courts The statement is as fol
lows: Collected, SIS, $50. SO; good and
will be collected, some in judgments and
some secured by deeds of trust and mort
cages on property, $50, 11S.15; besides
some notes, the amount of which is not
named. sT
The committee would refer to said re-
port for more particular information,
which is filed with this report. - ~
The committee were led, from letter
furnished them, to believe that George r.
Rutter was s. i'll in possession of informa-
ton that would be beneficial and would
lead to substantial benefits to the State,
information that no former investigation
IN this behalf had developed. Consequent
ly a summons was sent to New York for
Mr.. Rutter, which was obeyed, and the
committee, after quoting that portion of
his letter referred to, and which led US to
the differences spoken of, desire that the
testimony of Mr.. Rutter 60, together
with his written voluntary statement, as
an entirety to the people of the State.
The letter spoken of contains the follow
inc:
81 am, and have been, DESTROYS of Sc
curing TO the State all the information in
my possession relative to the Tennessee
National Bank. but l must have some
legislative protection in this matter, as
have cause to fear the Vaccinations of
those who fear the result of my state
ments."
The committee, without altering in any |
way either the statement or testimony \
of Mr.. Rutter, herewith give them in
full
TESTIMONY OF MR. RITTER.
George Il. Rutter being duly sworn ac-
cording to law deposed and said: am
thirty-nine years Opage; | reside in
Memphis, Tennessee. The Tennessee
National Bank was organized in 1865,
at which time l was elected President of
said bank; subsequently the bank be-
came the depository of the funds OF
the State, through political influences, with
the understanding among the leading
Radicals of the State, among whom were
Sam. Arnell Jas. Mullins, w. J.--SmJth,
d. A. Num-, Senator w. b. Hall, John
Eaton, Barbour Lewis. and others, that
this bank was to support the Radical
party and be their financial agent and
furnish money to "run the machine"
whenever they wanted it, This was the
general understanding, and was talked
over prior to and subsequently 10 the
passage of the bill making the Tennessee
National Bank the fiscal agent of the
State. This bill was passed with the un-
derstanding that the Treasurer ofthe State
was to be influenced to designate
the Tennessee National Bank As the dc |
p0sitOrY of the State, and Messrs Arnell, |
Mullins, Richards and Wines and others,
did 50 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 designated as q
depositoryc Stanford and myself were
initiated into the Loyal League, in the
basement of the capitol building in Nash
vile. About this time he (Stant1rd) was
advised TO deposit what was known as the
school fund with the bank. At the meet
ing of which l speak, the Loyal League
voted me a vote of thanks for what /
had done, and speeches were made by
various parties And the election for
Governor and members of Congress
coming on about that time, or soon after,
the necessity for money was made known
in vigorous language, and gave between
$500 and 81 600 They said that they
Che Radicals) had everything they want
ed but financial headquarters. All the
deposits made by the State IN the bank
we're general deposits. except the State
bonds, which were special, and were
returned intact, and could not be other