Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-02-04
BANK OF TENNESSEE.
The New Issue and the Liabilities OF
Tennessee Thersfor-FIVe MIL.
Hon Dollars Involved.
Claims OF DepOsitOrs for the Assets
A Contest for a Big PlIe-Tax-
payers IRteresIed.

The osses of the dspositors of the BanB
of Tennessee against that bank, says the
| Nashville Banner, will, directly or indi
rectly, involve nearly five million dollars
the creditors claiming q right to all OF
| what should have been paid in as its CAPT.
tai stock. In the deed of trust made by
the bank, the note-hoidsrs are the pre-
ferred creditors, and next to them the
| school-fund. In the cross bill, which has
heretofore been published, filed in the
chaneery court by Messrs. Humphreys
and Lindsey, solicitors for certain cre-
| ditOrs, they attack the deed OF trust and
insistthst they have 3 superior claim TO
the school fund, because Il was q part of
the capital stock of the bank; that they
placed their deposits in that institution in
consequences Of she faith inspired by that
capital and that the State, having used
| the school fund, is liable TO them for
the amount of their deposits. To secure
these deposits they attached, some time
since, fifty Thousand dollars of the school
fund, which, by ofder of the legislature,
WIS invested by Governor BroWnloW in
7-90 United States bonds, now in the
hands of the State treasurer.
The attorneys for tina State, consisting
of Attorney General Heiskell and Gem
eral James Quarles and Major John @.
Thompson, appointed by the bank to de-
fend it in all suits now pending against it,
contend that, as the note-holders are GER
5ainly the preferred creditors, both under
the charter and the deed Of trust, the
State, having taken up the Judgment on
these notes in taxes and otherwise, is en-.
titled to be subrogated to the rights Of the
nOte-holders, and is, In legal effect, note
holder to the amount of the notes taken
up, and therefore entitled to be rsim-
bursed out of the assets of the bank.
The case in which Humphreys and
Lindsey are the solicitors will very short
ly come up for hearing IN our chancery
court.
The case of Weems, of Dickson county,
vs.. the bank, involves the question rs TO
whether what Is known as the Torbstt or
new issue shall be taken in payment of
debts due the bank. A bill OF exchange
tor one thOussnd dollars is held by the
bank, for which Weems tenders the Tor
bett issue in payment. The bank having
got a Judgment against Weems, the latter
appealed 70 the supreme court, in which
tribunal the case Is now pending.
In the case of s. Watson, trustee of the
Bank Of Tennessee, vs.. Jamison, of Msury
county, involving the same question,
Judgment was rendered in favor of Jami-
son, the jury deciding that the Torbett is
sue was good tender to the bank. This
case wss also sppealUd. There are good
many other GASES of this class, which will
hardly be settled until they reach the SUI
prsme court of the United States, to
which tribunal they are pretty certain to
be appealed by one side or tbs other.
The books of the bank exhibit the fact
that there are now not yet retired about
s600, 900 of the old issue, snd 81, ,5S5, ,7l2 Of
the Torbett issue outstanding.
The attorneys for the State contend that
ToTbett was elected president of the bsnk
after the 9th of May, 1851, at which date
the senate WIS in open rebellion against
the government of the United States; that
the State bank, which issued the Torbett
money, was the fiscal agent of rebellious
State, and that the money was issued at
the instance and by the commands of the
authorities OF the State then in rebellion
against the government, and in aid OF the
rebellion; that, under the fourteenth
amendment to the constitution of the
United States, the TOrbett issue can no
more be paid than the Confederate war
debt. They also claim that it was issued,
for the most part, for the purchase of the
eight per cent. State bonds issued by the
State to equip the military forces after
the State had attempted TO secsde, snd
that ting State cannot be held liable for
that payment.