Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-03

! which complainants placed their funds in
the bank; and established an arbitrary rule
of distribution of the effects Of the institu-
ton, in total subyersion ofits contracts, and
Of the supreme law Of the land. They
have seized Its properly, and in effect con-
fiscated it, for public purposes.
Compliments have made due demand Of
their claims against the bank, in conform
| ity with law and the usage Of banks, but
have been refused payment
Complainants state that in 1870, the Leg
stature enacted law, providing that In
| conformity with the charter of the Bank of
Tennessee, notes of the bank should be
taken at par in discharge Of taxes due the
| State; that the notes when taken up from
the holders thereof should be destroyed by
certain officers; and that the Treasurer Of
the State should take a written acknOwl-
edgement Of the amount destroyed,
as evidence Of the Indebtedness
of the Bank Of Tennessee 70 the State.
The State having taken up a large
amount of said notes; the said act declares
that the State shall be substituted to the
rights of the note-holders, as against the
effects Of the bank, and that the trustee
should so act in the distribution of the as
sets. These eOmplainants recognize 10
rights on the part of the State, as against
said assets, and refer this question to the
Judiciary. The State Of Tennessee, own
ing all the stock of the Bank of Tennessee,
and receiving all its profits, is a principal,
to the extent of the Obligations Of its char
ter, TO wit: five million of dollars, is en-
titled to no rights to any distributive share
of these assets, until it shall have paid and
discharged the debts lawfully contracted by
its fiscal agent, 10 an amount sufficient 70
replace the amount illegally withdrawn,
and to supply the deficiency resulting from
the failure of the State to supply the amount
of capital stock pledged for the payment Of
debts
Though the State as a sovereign power,
be not liable to be sued except by its own
consent, in the mode indicated by itself, vet,
having given its consent, and coming into
its own courts, and making the creditors of
its fiscal agent parties to the proceeding,
compliments come in and ask that the
States obligations be ascertained and de-
clared.
Complainants state that their claims as
depOsitOrs against said Bank Of Tennessee,
now amount, with the accrued interest
thereon, 10 about the sum of ono hundred
and twenty thousand dollars (S120,000.)
Complainants pray that the amounts due
them respectively may be settled by a
decree Of this Court. That the deed of
trust, prescribing the distribution of the
effects Of the bank, be declared Of no
validity; that the rights of these complain
ants to satisfaction out of the whole of the
property of the bank be decreed and
enforced. That if said property be INSULT
Gent to discharge the claims of complain
ants, they pray that the right ofcomplainants
to hold the State bound to supply the five
million Of capital stock be recognized and
declared. That the State be charged with
the amount of capital stock not supplied or
withdrawn, and held liable TO make good
all losses arising from stock not supplied or
withdrawn.
Complainants state that there are now in
the hands Of John g. Brown, Governor Of
the State; w. Morrow, Treasurer of the
State; W. Morrow, Superintendent of Pub
lie Instruction; L. r. Pennebaker. Comp
troller Of the State; I. II. Butler, Secretary
of the State, United States bonds or securi-
ties, known as United States five-twentY
bonds, or other bends of the United States,
amounting to The sum Of fifty thousand
dollars, with the coupons added thereto;
and that there are bonds Of the State Of
Tennessee in the hands of the Comptroller
of the State amounting to two thousand
dollars; and that all of said bonds are the
direct and unquestionable proceeds of the
capital stock Of the late Bank Of Tennessee;
and that said bonds are therefore pledged
for the satisfaction of compliments claims.
And that said officers Of the State of Ten
nessee hold said United States securities
and State bonds clothed with trust for the
satisfaction Of complainants' claims. Com
plainants therefore pray that all of said
United States bonds or securities amount
ing to the sum Of fifty thousand dollars,
and accrued interest, and said State bonds
amounting TO the sum of two thousand
dollars, and accrued interest, be attached by
the process of this court, in the hands
Of the Governor, Secretary, Treasurer
and Comptroller of the State, and
Of Public Instruction, and
held subject to the claims Of these com
plainants on the final adjudication Of their
rights in the judicial departments of the
State. And compliments pray particularly
that said United States bonds, or securities, |
Of whatever series, amounting to the sum
Of fifty thousand dollars, and cOupOns /
thereon, now in the hands Of W. Morrow, (
of Public instruction of the /
State Of Tennessee, and the said two thou /
and dollars in State of Tennessee bonds,
md all accrued interest, now in the hands
If the Comptroller of the State, and held /
~ them as part Of the School fund of the
State, be attached by the process of this
Court for the satisfaction Of cOmplainants'
laiIns, and held subject to the orders of
his Court, as well as all other bonds or Sc
urities which may hereafter be received
" said officers as a part of said School
unds TO the amount of compliments claims.
Ind that the said Governor, Secretary,
and Treasurer of the State, and
of Public Instruction, be en-
0ined from disposing Of the same
4 any manner; but that they hold
hem, with the interest accrued and accru-
lg, subject to the orders of the court in this
ause.
Compliments pray that all parties so
AIMED in the caption be made defendants
} this bill by al proper process. Com
lainants further pray that they be allowed
} file this as their answer and cross bill in
le case of "The State of Tennessee and
amuel Watson, trustee, VS.. the Bank of
ct ais, !" heretofore brought in this
onorable court. This is the first applica-
on for writs of attachment and Injunction
! this cross bill. Complainants pray for
i further relief they may need, and for
'hich they will ever pray, etc.
HUMPHREYS 81 LINDSEY,
Solicitors for DenOsftorS