Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-02-26
LETTER FROM MEMPHIS.


sued a circular letter in which he sets forth
the financial condition of the road in a way
not at all pleasant to those interested. 1t
appears from this exhibit that the liabili-
ties of the road exceed its assets by about
5000 900, and those acquainted with the as
sets represent them as not amounting to
anything near their face value. In order
to save the road stockholders are asked to
contribute ten per cent. of the amount of
their stock. To say that such a demand
comes like clap of thunder in clear sky,
would be putting il very mildly. But a
short time ago dividends were being de-
clared, and it seems very strange that the
road should become so seriously involved
in so short time. If the road was in debt
then, where did the money come from to
pay dividends? If the officers of the COM
pany were so flush then, why is it so hope
lessly involved now? Did its former man
ayers borrow money to pay dividends ip
order to keep up ppearances-to keep un
the price of stock-or has the business of
the company been so recklessly managed
as to account for the present state of affairs
These are questions that come up very
naturally and people aUiU tGik.
Three of the Directors of the road, resid-
ing in North Alabama, add a significant
note to the bottom of the circular letter
issaed by Mr.. Rather, (the new President),
to the effect that they have no doubt of the
honest application of the ten per cent. call
ed for, to its legitimate purpose. They en-
dUrse the honesty of the new President,
land very Justly we have no doubt, for he
seems to he q gentleman of the very high
est integrity and says he will honestly APP
ply his funds. Why, such declaration,
if the funds have been honestly managed
by the former President, who is reported
to have resigned few weeks ago on ac-
count of Urgent pirate business All,
thereby hangs tale. 1t looks very much
as if there was large sized cat in the meal
tub.
Whether, in view of past transactions,
these stockholders will respond to the call
made upon them, remains to be seen.
Thousands of dollars of stock is owned,
especially in North Alabama, by the es-
tates of deceased persons-by widows and
orphaus-who have been induced to sub
scribe to it because it was thought to be a
safe and paying investment, and now for
them to have to come forward and make
further contributions to save the stock
from irretrievable loss as the result of
mismanagement,t to use no harsher term, it
looks very hard. 1t looks very much as
if some men who have stood high in the
world, as men of honesty, integrity and
financial capacity, have betrayed the con-
tidence placed in them, and have been
playing high game on other peoples
capital
Col. John Baxter, of Knoxville, arrived
in the city to-day and is being consulted
in connection with "a debt due from the
late Memphis Savings Bank to some of its
creditors. Things do not look very well,
We learn, for the Bank and its affairs. 1t
will be remembered that Maj. Moses j.
Weeks President of the bank, announced
Immediately upon its failure, with some
thing of flourish of trumpets, that he
stood ready to discharge its obligations out
of his private funds. 1t has leaked out,
and present indications point to an early
deveIopment of the fact that the assets of
the bank, as well as his private estate, are
not much security to creditors. The as
sets turn out to be of little value. | hear
of several thousand dollars of National
Bank stock reported among the assets that
appear to be owned in Baltimore. Among
other assets is $50, 600 Alabama and Chat
tanooga Railroad second mortgage bonds.
And then there is S15O,OOO notes of the
Bank of Chattanooga. Notes on private
individuals have been spoken of, which
either do not exist at all, or have been
Cancelled. Upon the whole, the thing
wears all ugly look, and a bill in Chancery
might unearth some things that would
add nothing to the reputation for honesty,
OF those concerned. AS it is proposed to
hold the Directors of the bank responsible
for its obligations, further proceedings
Il
Greenlaw, Sam. Tate and others. With
such transactions i'll the background, as
seem now to have taken place in connec-
ton with the failure of this bank, no one
will be surprised that the principal actors
look with some concern upon the presence
of such man as Col. Baxter, who, with
other eminent counsel, is to overhaul their
transactions. He has penchant for UNI
raveiing such things, and unless q cons
promise is effected, the public may look
for developments that will place some of
our Tennessee financiers alongside of JAY
Gould, only on q smaller scale. w.R
On the 23d day of December, the follow
ing communication was received al the
hands of friend, addressed as below:
The SAVINGS BANK OF MEMPHIS, }
MEMPHIS, TENN, Dec. 20, 1872.
MesSrS. Rute d. Rfcks, PrODriet0rs Of the
RnorUiLLe Chronicle.
DEAR SIRs: In your issue of the 18th
inst. there is letter from Memphis over
the signature w. R., and bearing date the
10th inst The libels contained in it can
not pass unnoticed. / intend to hold the
writer to a strict responsibility. You are
we'll aware of the rules of journalism,
Whlch impose upon you responsibility for
all articles published by you, or else a du-
" To give to the party demanding it, the
name of its writer. / demand the name
of the writer of the article alluded to.
Your immediate attention is requested
to tbs matter. Respectfully,
MI WICKs.
or the next day the following reply was
sent