Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-02-02

status Of Its r.n,r snita.


The following statement of the suits in
which the Bank Of Tennessee is concerned
VIII De OF Interest to the public. The State
OF tennessee is concerned in these suits,
and inasmuch as the amount involved is
quite large, and the work required in the
investigation Of the subject matter quite in
tricate, and the suits somewhat compli=
Gated, the State has employed two attorneys
Messrs. Quarles and Thompson, to co, operate
with Attorney-Gen. Heiskell in the winding
up OF the affairs of the Bank of Tennessee.
The cases of importance now pending are
! IN the Supreme Court of this State, aud are
as follows: State, and Watson, trustee of
The Bank Of Tennessee, VS.. the creditors of
the Bank, was petition filed several years
| ago Tor the purpose of windingup the affairs
| OF the Bank. Childress ct ais have also
! filed bill in the Chancery Court, here at
lacking the trust deed made by the di-
rectors to Samuel Watson, trustee, asking
ID said bill that the said deed be set aside.
The Bank gained the case, and the op-
poslte party appealed to the Supreme Court.
Humphreys and Lindsey in behalf of
the depOsitoTS of the Bank filed a cross bill,
In which they set forth that they are de-
positors in the Bank of Tennessee, and that
they should have priority of payment over
the School Fund, in the assets of the Bank
They accordingly attached $4,000 of the
School Fund in the hands of the Treasurer,
which had been invested in 7-3O bonds,
claiming that the School Fund was part
of the capital of the Bank and that they
have right to look to it in payment of
their deposits inasmuch as they have put
in their money in the Bank on the faith
of the capital, part or nearly all
of which was the school fund. To this bill
the State by its attorneys demur, which de-
murTer we have already published in this
paper.
There are also the two following suits
relative to Tennessee money now pending
in the Supreme Court of this State. One
is that of Weems, of Dixon county, against
the Bank of Tennessee, tie other is that of
the Bank against Jamison, of Maury
county. Weems in the court below plead
ed tender and decree was entered for the
Bank.
In the case of Jamison the decree was
against the Bank which appealed.
The question here involved is whether or
not the Bank shall take the Torbett issue in
payment Of its debts. The attorneys for
State are directed, so far as the State of
Tennessee is concerned, to carry the cases
to the Supreme Court Of the United States,
in the event of an effort being made to COM
pei the State to receive this issue for taxes.
The objection urged by these attorneys, is
that this money was issued in aid of the re-
belliOn, by fiscal agent ofthe State, while IN
open rebellion against the Government, and
no more can be paid or taken than Con-
tederate money, under the fourteenth
amendment of the Constitution of the Uni
ted States.
This question is one of much magnitude
and of great Importance to the people, es-
pecially the Taxpayers, of Tennessee. For
there is yet outstanding about 100000 of
the old issue of the Bank of Tennessee,and
about Sl,500,0O0 of the TOrbett issue.
The progress of these suits, involving
much of legal disquisition, and
fraught with so much consequence,
will be keenly watched by the
legal profession and people generally. The
demurrer TO the cross bill Of AIessIs. Hum
phreys 81 Lindsey as well as the other suits
will as to their adjudication settle much
that is as yet but ill Comprehended, and
vaguely set forth and defined under our
laws. The lawyers for the State claim that
note holders being preferred creditors,
both in tie charter Of the Bank and under
the trust deed, land the State having redeem
ed a large amount of the notes for taxes
has right to be SUbr0gated to all the rights
of the note holders in the assets of the
Bank to the extent she has redeemed
them.