Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-12-08
THE BANK OF TENNESSEE.
Important Statemest from Hon. Sam.
mel Watson, Trustee, in Answer
the Fayette Expresses
Article.
His Report Made Seven Years Ago TO the
Legislature has Never been Ones
tiOned-Gress Injustice of
the Express.
How he Proceeded with his Trust, and
Wound up the Affairs of the Bank
There is No Confusion in the
Affairs Of the Bank.

having puOl1Shed the article Complained o
in the following letter, we copy 1t from th'
Nashville Union and American, in the col
umns of which paper it appeared on tht
fourth instant. Mr.. Watson addresses the
editor of that paper and says:
| In your paper OF November 18th you have
| an extract from the Fayetteville Express
! containing several unjust statements OF my
| management Of the bank of Tenne see
| Amongst other things ii is stated that gave
no receipt for the assets of the bank that the
vast interests of the bank have not been reg
| ularly entered upon books, but conided 70
| loose momOrandums and defective memories
! that adopted no satisfactory system of set
| tlement OF the affairs Of the bank, and, con-
| sequently, that there has been culpably loose
management, involving the affairs of the
| official careleSsness the State Will be burden
ed with large liabilities; and, furthermore
| that the legislative committee OF tnYestiga-
/ ton adjourned because was not ready with
| the necessary documents for them.
A BRIEF STATEMENT
of my management of the bank OF Tennes-
see will show the gross injustice OF the above
statements. The assets Of the Bank of Ten
nessee were turned over by the State TO a
/ board of directors, of whom / was one and
the president. These assets. excepting the
| State bonds, were In thirty-nine large boxes.
These boxes were receiptsd for 10 the secre-
taTy OF state by myself and one or two Of the
board Of directors. The State bonds belong
ing to the bank were In the hands of the
comptroller of the State and receipted for to
the comptroller byme Soon after the assets
of the bank came into the hands of the di-
Tectors, was appointed trustee of the bank,
and the assets were turned over TO me. After
the assets in these thirty mine boxes came
into the hands of the directors, two, and
sometimes more, of the board of directors
and myself, assisted by three clerks, examined
every one of these boxes, which contained
numerous unimpOrtant papers, and selected
out OF them the
ASSETS BELONGING TO THE BANK,
and made an inventory OF them. They were
afterward carefully examined, and the time
taken in the examination and re-exRmina-
ton being some months. After re-eXamina-
tion of these assets a full and complete report
of all of them that came Into the hands of the
directors, and afterward into my hands, was
made by me to the board of directors. Every
director admitted this statement of assets in
my report 10 be correct. The same report was
made 10 the chancery court, and to the legis-
lature of the State; and for seven years the
correctness of this report has not been Ques-
toned, nor is there the slightest evidence OF
its being incorrect. This report, If not re-
ceipt, was certainly an acknowledgment 10
the proper authorities of the State of the
sets that came to my hands, that not only
gave a receipt as director and president to the
state authorities when the assets were turned
over to the board Of directors, but also gave
receipt as trustee, OF an acknowledgment
which is fully equivalent to it, to the board OF
directors of the bank, to the chancery court
and to the State, of all the assets that come,to
myihands.
THIS STATEMENT OF ASSETS
was entered upon our journal and ledger, and
each note and bill was entered upon Seperate
book, the amount OF the notes and bills in
that book corresponding exactly with the
amount entered upon our jonrnal and ledger.
The amount OF notes and bills collected Is
entered upon our journal and ledger, and the
books also show the amount uncollected, and
after a settlement and report by my attorneys
and agents, 1 can show the condition of every
note and bill unpaid, whether 1t is good,
doubtful, or bad, and whether IL is in suit or
in Judgment. The statement Of all the other
assets OF the bank, and what disposition has
been made Of them, is entered upon our jour
nal and ledger. And there is not traDsac-
tion of mine in winding up the bank of Ten
nessee that is not regularly and explicitly en-
tered upon our journal and ledger unless il
may be in case of some accidental omission.
so that the charges that the vast interests Of
the bank, or my acts in connection with
them, have not been regularly entered upon
books, but confined TO loose memorandums or
defective memories, is wholly untrue.
CHALLENGE AN INVESTIGATION
OF our books and n comparison of them with
any other books of any other bank, for their
accuracy and system. 1t is charged that l
have adopted no satisfactory system of set
tlement of the affairs of the bank, conse-
pably loose, involving the affairs of the bank
in hopeless confusion. Immediately after
my appointment as trustee, selected the fol-
lowing agents to wind up the business of the
ten branches of the bank: For the Memphis
branch, Judge Thomas r. Smith; Somerville
branch, Humphreys and Pullium; Trenton
branch, o. NJ. Blackman; Columbia branch,
John Baird; ShelbyYille branch, Thomas II.
Caldwell; Sparta Branch, 2. ID. Marbury;
Athens branch, \. BLIZZARD; Knoxville branch,
Judge o. NJ. Temple; Rogersville branch, {. j.
Mckinney. The public will observe that
these appointments OF mine were not mere
politicians, but faithful and efficient business
men. trusted
THESE AGENTS
to use all possible diligence to collect the
debts of the bank, and to collect them al
little expense as possible. The collection OF
the debts of the mother-bank attended to In
person, and after collecting all could collect,
placed the remainder in the hands of attOr-
neys for collection. II this is not a satifactory
system for settling the affairs OF the bank /
know not what is, or can be. As to culpable
looseness in managing the affairs OF the bank,
| have yet to see, and the public has vet to
learn, one single fact sustaining this charge.
The charge that the affairs of the bank are In
a hopeless confusion is wholly without foun-
dation. The books of the bank show clearly
what notes and bills of the bank have been
paid, and what are unpaid. The books show
what
came to my hands, the mode in which these
bonds have been increased from 100000 TO
$4,000, and what interest has been paid upon
these bonds, and the currency IL has been paid
in. The books Of the bank show what
southern bapk-notes and what bank OF Ten
neSSee notes, old and new issue, came into my
hands, and what disposition has been made of
them. They show what real estate Is now in
my hands, what has been sold and what has
been paid on those sales, and the currency
that IL has been paid in. In short, the books
of the bank show clearly what assets came
into my hands, and what disposition has
been made of them. There may be confusion
in the minds of the legislative committee of
investigation. There may be confusion in my
statements TO the committee called for by
them without much system, and made by me
sometimes verbally and sometimes in writing
But there is no cQnfus:on whatever in the al
THE BANK OF TENNESSEE
In my charge, Tor is there any confusinn
whatever in our books, nor do believe there
is any confusion in the fun and elaborate re-
port Of the affairs Of my truSteeship which I
have recently submitted 10 the chancery
court. If this report had been before the COM
mittee at first, before their investigation COM
menced. think that they would have adj
lnitted it to be clear and full statement of
the affairs Of the Bank OF Tennessee. II is
charged that owing 10 my ollictsl earelessness
the State will be burthened with Increased
liabilities. SO far from this being the case
the State by my management has been re-
lieved of a very large amount Of Its liabilities.
During the first year of my trusteeship, when
when debts were paid in United states eur
rency, 10 hives the procesds "a the Dlg issues
Of the bank. With about $4,000 Of this United
States currency, bought upwards OF $4,000
.-'- s200.000 would have been still outstand-
f0y s sNaJ and the state or is taxpayers would
have been Obliged TO redeem 49, -. ilonaI
amount OF the old issues OF the bank. BY
THIS PULICF
have certainly relieved the State of $4,000,
al least of It's Indebtedness. In addition to
this amount saved to the State, / have eaved
a large amount to the creditors of the hank
nv manaRernent OF Its assets. In one claim 1
saved the Bank OF Tennessee upward of S50-
O00 had securities amounting TO S59, ,lS6 "a To
pay debt Of sll2O0e. so managed these Sc