Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-03-19
UNION AND AMERICAN.
THE SACRED SCHOOL FUND"
Some Very Suspicious Facts Recently
Developed.
How the Comptroller Of Currency
Failed in His Duty Towards
the Tennessee National
Bank,
An Allegation that He was Influenced
by Money Gratuity.

by Money Gratuity'
A Washington correspondent of the New
York Tribune furnishes the following inter-
esting developments:
You have already learned through your
regular correspondent that the testimony in
the case of Controller Hulburd, elected be-
fore the Banking and Currency Committee
of the House, has developed some very sus-
picious facts, and that the charges against
Mr.. Hulburd have taken a serious shape.
Within few days still more damaging ac-
cusations have come to light. 1t is now as
serted that the Controller unlawfuly sup
pressed and failed to take action on the Of
fetal report of MIR. John Bull, National
Bank Examiner, showing the condition of
the Tennessee National Bank of Memphis
requiring the appointment Of a receiver and
the winding up of the institution; and that
the Controller was influenced in this action
by money paid to him by George r. Rutter
the President of the Bank. The following
is a copy of the report alluded to, emitting
some unimpoTtant parts; together with the
tabular S atement Of resources and liabili-
ties, and the more minute details given in
the appendix and accompanying papers.
The report is dated Aug. "A, 1866:
Examiners report Of the Tennessee Ma
tiOnal Bank Of Memphis, located at Mem
phis, in the county Of Shelby, State of Ten
nessee, Aug. p, 1866. George r. Rutter,
President; Walter S. Morgan, Cashier.
Records. - Incomplete and imperfect.
Election proceedings noS recorded.
DirectOrS.-It is very doubtful whether
any of the persons now acting as Directors
are legally such. This subject will be ex-
planned hereafter.
DiUjdeRds and SmpIuS.-The only diyi-
dend declared was on the third of April
last, and purported to be for fifteen per
cent. No portion Of the net earnings was
carried to the surplus fund account as re
quired by section thirty-three.
LdIrtM Money RcSerUe. - The lawful
money reserve made necessary by the con-
dition Of the bank on the day of examina-
ten was S115,j9729; amount in bank,
S93, 52717; amount with redeeming agent,
1857, "a; total S94414.91, showing a de-
fciency of reserve of S21, 2S2.O0.
General Remarks The foregoing
statement of the condition Of the bank is
as the same appears on the books of the
bank. l submit it because it is impossible
for me to make a correct one, which would
balance. This, however, is erroneous in
many important particulars. l shall pro-
coed to point out wherein it is correct, and
TO make such explanations as are required.
Items ! and 8 Of ResOUrCeS.-AIY eXamina-
ton makes the "Loans and Discounts" and
the suspended Debt to fall short of the
amounts given in the statement by the sum
Of s., 091.S4. Two days search has not en-
abled them to discover the error, if it be an
error. Item Of Resources
The two principal items Of Overdrafts are
one of J. w. Morrison for SS,199.14, and
the other of John @. Owen for SlS043.70.
Both of these are said to be secured by
bills of lading on cotton, shipped to Phila-
delphia, which bills Of laden are in posses
sion of Mr.. Rutter, the president Of the
bank, who is absent at the North. Hereafter
a full statement Of the assets Of the bank,
which Mr.. Rutter has taken away with
him will be given, to which attention is par
ticularly invited. A full list of the over
drafts is inclosed herewith, marked ZAP
pendix B." Item Z Of RaSOTceS-"DUe
from other National Banks" This item is
principally composed of an indebtedness
from the National Bank of the metropolis,
Washington, D. c., amounting to S6lS,25O.
1t will be observed that this is precisely the
amount received by the Tennessee National
Bank OIL deposit, from the State Of Tennes-
see. 1t was in fact the identical money and
securities received by the Tennessee Ma
tional Bank from the State Of Tennessee as
a deposit, aud almost Immediately thereaf-
ter, to-wit: On the Goth Of June, 1866,
loaned to the National Bank Of the Metrop-
oils of Washington, d. O., without security.
It will also be observed that the National
Bank of the metropolis has account on both
sides of the foregoing statement, as 1t has
two accounts on the books Of the Tennes-
see National bank. BY the first of these
= Hi ,s,lgs fI,.a~Yn I'm
pears to be due from the Ma
tional Bank of the Metropolis the
sum of S61S,2j0, as above stated,
and by the other there appears to be due to
the National Bank Of the Metropolis the
sum of 1891, O22.44. Deducting the bal
ance of the latter account from the balance
of the former, it leaves the sum OF S22I I,
227p5O due from the National BaRk of the
Metropolis to the Tennessee Nationa
Bank, As matter Of course, this makes
the solvency of the latter bank to depend
upon the ability Of the former to pay thi;
debt, and shows the necessity Of an early
re-examination Of it. Item 10 of resources
-"IJnited States bonds and securities OF
hand" All Of the securities composing
this item that l have been able to find ar
as follows, viz:
rs 10 Treasury notes. ..........''S JOO9
$40 bonds, .........s....s''. LOU
Stock of the National Insurance
Company Of Memphis. ......... lO,0O'
Note of the Memphis and Ohio
Railroad Company, due Sept. I,
1906. ....s....s. .....s......'' 1;VO'
Note of the Mississippi and Tennes-
see Railroad Company, due Aug.
II, loOO. Observation-Disclosures I,VV'
r,taI s84 45t
This leaves q deficiency IN this Item
S1O,5OO, which the cashier explains rs fol
lows, VIZ A: $500 of the stock Of the Memphi:
Post "a newspaper, the estimate for whicl
is in possession of Mr.. Rutter; $4,000 il
some other security CHE cashier does no
know WHAT, also in the possession Of Mr.
Rutter.
Of the securities above named, the item
of $4,000 stock of the National Insurance
Company is of very doubtful value. Tn
company is owned and managed by tw
vonng men, named Cameron and Cary
who paid 81, 800 for an old charter, unde
which they are now operating. No none,
is known to have been paid in on thei
stock, except the sum Of $4,000 by MI