Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-03-19

Rutter. for which this stock is held as secu
Titv. she Tennessee National Bank ever
owns the safe which the insurance company
has in use. Item Is Of ReSo1rces--"Cas
items and revenue stamps" At least one
half of this item would properly appear
/ under 0suspended debt" 1t consists OF
snndrv over due checks and notes,
and among which is the Presi-
dents memorandum check for
81. 600 given for stock, as herein
after stated. Not more than $25, 900 are
current drafts and checks, which, with
petty expense account, constitute legiti-
mate scash items" Item of Liabilities
0Circulating notes on hand" The amount
of circulating notes on hand, as shown by
the foregoing statement, is S27 1886, while
the amount actually found in the bank is
! 50 25O. only, The difference is $25, 085.
| The cashier represents that these notes
| were signed by him, and taken away by
! Mr.. Rutter on his journey North, as he
alleged, for convenience, to be signed while
absent. Mr.. Rutter has, however, once re-
| turned to Memphis since the notes were
| taken away, and no part OF them has ever
| been returned. leave the controller of
the currency to judge of the propriety of
| the long absence of these notes from the
| bank under the circumstances. Item l of
| liabilities-"C Capital. "-I invite attention to
| the inclosed tabular statement, marked
eAppendix A." relative to the capital stock
| and the payments and dividends thereon.
By this statement it viii appear that the
total amount of money pail toward the
capital is S40,7 200; stock notes are held by
| the bank, a part of which are maturing
after having been renewed, and a part are
overdue, amounting to $4,000, making
total Of $4,000, or $1,000 less than the
nominal capital of the bank.
have seen two or three of the largest of
these nominal stockholders, who have given
their notes, and am assured by them that
they are unable and never expected to pay
those notes; that they were given at the re-
quest of Mr.. Rutter, between whom and
themselves a private agreement exists, that
he (Rutter) will give up their notes and
take the stock to himself whenever they
shall request him TO do so.
1t viii be noticed that many of the small
notes are overdue; also, that dividends have
been paid on that part of the stock only Tor
which cash has been paid. 1t is apparent
to me that large part of the notes given
for stock are valueless, and known 10 be
so, and so considered by all parties con-
nected with the bank. Item 8 of liabilities
-"State of Tennessee. This deposit,
amounting to S618, 250, was obtained in
June last, and at that time the expense &C
count of the bank is charged with about
$1,000, for expense incurred III Nashville.
To secure the State, a penal bond was given
in the sum of 100000. As before stated,
the whole deposit was at once transferred
to the National Bank of the Metropolis,
Washington. l forbear making any COM
ments.
The following is list of the assets Of
the bank in the possession of Mr.. Rutter,
the president, who is absent, jOurneying, it
is said, for pleasure with his family:
Bills of lading on cotton in Philadelphia:
J. w. MOTrison's. 500 IL
John G. Owens. ............. 1903 70
Certificate Of stock in the Mem
phiS Post. Observation-Disclosures, 5OO w
Other securities not known to the
cashier. $4,000 90
Circulating notes Of the bank. E. 1905 90
To this should be added Mr.. Rut-
ter's liabilities to the bank as
follows, viz: Memorandum
stock check for. ........,.... 1900 90
Stock note for. ................ $500 90
Total. .S6S,527 81
Mr.. Rutter is said to be in New York,
and may be heard of at the Croton Ma
tional Bank.
In view of the facts developed by this
examination, l am compelled to recon-
mend a further withdrawal of United
States deposits to the amount of about
10000, after which the securities in pos
session of the Treasurer will be ample, and
also, that instructions be sent to the reve-
nue. and other officers at this point to make
their future deposits in some other depos-
itory.
JOHN BULL, Examiner.
To the Controller of the Currency,
Washington, d. G.
The National Bank of the Metropolis, of
Washington, to which the Tennessee
school fund of 1918, 250 was so promptly
transferred without security, was at the
time of such transfer, rapidly approaching
insolvency. 1t was shortly afterWard placed
il the hands Of a receiver. The loss of
this money OccasiOned an investigation by
4 committee of the Tennessee Legislature,
by which it was developed that the State
Auditor and treasurer had been bribed By
Rutter or his agents, in order to obtain this
deposit. 1t also appeared that certain Con-
gressHlen were implicated, which, to some,
may explain why the fraud was not per-
sued further.
Among the witnesses who have testified
before the Banking and Currency Commit
tee are Examiner Bull, George K. Rutter,
formerly president of the bank, James F.
HOwenstein, and a gentlemen who is now
clerk to one Of the House committees, but
who was, at the time Mr.. Bulls report was
submitted, clerk in the Currency Bureau.
Mr.. Bulls testimony fully sustained the
charges. He stated that Rutter hurried to
Washington after the report, and prevailed
upon the Comptroller TO take no action
against the bank, alleging that its irregular
condition was owing to the bad manage
ment Of its cashier; that Hulburd asked
him (Bul) as TO the propriety of re-
ceiving $500 for the latter; and that per-
sonal friend of Hulburd was chosen as
such cashier, who, ten months afJerward,
was appointed receiver of the bank. 1t viii
be shown before the investigation is con-
Cluded that Mr.. Bull, one of the most eff
Gent bank examiners of the bureau, was
removed by Hurlburd through the influence
Of Calender, the late New York examiner.
Rutter testified that he had paid $500 to
Hurlburd, and about 1890 to HOwenstein,
who, at the time, was chief clerk Of the d.
vision of reports under Hurlburd, and
whose lips it was necessary to seal, The
testimony of the witness referred to as at
present clerk Of a House Committee, fully
corrOborated that of Bull, and, in some
! respects, that Of Rutter. 1t appears that
Rutter told him that he had "fixed up his
| matter - and his hank W-Ould not he mt in
to the hands of a receiver.
DEATH OF COL. CHARLES FO RSY TIL
The Mobile papers of the 14th announce
the death of Col. Charles Forsyth, the
loved and last commander of the veteran
Third Alabama Regiment, the Secretary of
the Cotton Exchange Board, the CONNER
cial Editor and the son of the Editor-in-
cbief Of the Mobile Register. The friendly
/ hand Of a co-aboTer on the Register thus
briefly announces the sad and affective