Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-04-13
Important DecIsIOn-The Tennessee
National Bank Smit

Every intelligent reader remembers the
] imbrOgiO Of the Tennessee National Bank
/ Of Memphis in regard TO its insolvency
soon after portion of the School fund of
/ the State was deposited in said bank. The
! bank about April, 1866, turned over its as
/ sets TO the State Of Tennessee, to which it
was indebted by virtue of the School fund
/ deposit, and suit was instituted in a great
| many cases against debtors of the bank.
! In some instances these suits were COM
/ menced 10y the National Bank of TenneS-
! see, aad the suits subsequently turned
/ over TO the State. In other cases
/ the suits have been commenced
/ by the State and large number of cases
are now pending, by appeal before the Su-
| preme Court. A letter was received here
/ yesterday from one Of the attorneys in a
| case brought up from Memphis, stating that
the Supreme Court at Jackson had decided
adversely to the compliments interest in
the suit Of the Tennessee National Bank.
for use of State Of Tennessee vs.. G. Ii.
Ebbert X Co, E. VI. Avery, NJ. Hawks, ct al.
While The phraSeOlOey of the attorneys
letter is somewhat ambiguous, we think he
means to say that the Court decided against
the State. In the caption of the suit, he
represents the bank as complainant and the
other parties, above named, as defendants,
though he must have made a mistake, and
that the caption is that of the case while in
the Chancery Court. The facts Of the case
are these:
&. II. Gilbert n Co.. merchants, of Mem
phS, being largely indebted TO complain
ant, executed a deed Of trust bearing date
Nov. 7, 1866, 10 j. X. p. Prtchard as Trus-
tee, to secure two other debts then also due
to Z. NJ. Avery and NJ. Hawks, Trustees,
but on which further time was given.
The property conveyed by this instru-
menL consisted Of liquors, including ''the
old stock, the present stock and any new
stock" together with their store fixtures
and other appurtenanceS. The conveyance
stipulated that G. II. Ebber should retain
possession and continue the business as
usual with the stock Of goods, until default of
payment Of some one of the notes given. or
some breach of faith, when the trustee was
authorized to take possession and enforce
the trust. This conveyance was aCknOwl-
edged on the 10Th day Of November, 1866:
and was few days thereafter filed for re-
cord and recorded.
On the 9th of November ensuing, Eb-
bert X Co. being still in possession and
conducting business with the goods, the
complainant filed this bill in the Chancerv
Court of Memphis, under section 1888 Of
the Code, TO set aside said trust deed, and
to subject the property to the satisfaction
of the debt due complainant. Gilbert x
CO., Pritchard, Avery & Hawks were all
made defendants and served with process.
and they all answered.
The stock of liquors was attached and
then replevied by Gilbert " Co;
was afterwards rescued and the
small remainder Of it sold by a receiver,
realizing fund Of about $500 which is in
the custody of the Chancery Court. While
the stock Of goods was held by Gilbert &
Co.. under the replevy after attachment,
Prichard, the trustee, demanded possession
and was refused. He never had possession
under the trust.
The decree of the ChanCery Court sets
aside the conveyance as fraudulent, and di-
rected the application of the fund 10 the
payment of compliments debt pro tanto.
From this decree Avery II Hawks appealed
to this court, TO the Supreme Court of Ten
nessee, and the case was argued before this
latter tribunal about year ago. The SUI
preme Court ON the 10th at Jackson de-
cided against compliments. We merely
give this case as there are others of like
character before the Supreme Court.