Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-29
THE BANK OF TENNESSEE-IM.
PORTANT STATEMENT.

PORTANT STATEMENT.
The following article, which appears
in the editorial columns of the Fayette-
riIIe Express of the 9th inst, was EVIL
IDENTIFY inspired by q member of the
committee appointed at the last session
of the Legislature to investigate the
affairs of the Bank of Tennessee:
Twelve years hare SlarsAd since the
Bank of Tennessee ceased 10 10 bust
ness in this State, yet its affairs, SO fan
from being wound up, are further from
anything like satisfactory settlement
than ever. Seven years ago it was
thrown into bankruptcy, yet the itiga-
ton between note-holders and claimants
for the school fund, appears to have
Just commenced. The capital stock OF
the bank was fixed in the original char.
ter, or act authorizing its formation, at
S., 900, 000-the school fund, which was
then $1,500,00O, being recognized as
part of the capital stock. By leglsla-
tive enactment, something like 81 $780,
000of State bonds were also to consti-
tute part of the capital stock; but be.
fore they were put upon the market, OF
made available for this purpose, Hon
George w. Jones, of this county, then
member of the Legislature, intro
duced and secured the passage of bill
repeating the act. Thus, the capital
stock of the bank never, in fact, ex-
ceeded S3,500,000, of which 81, 500, OOO
belonged to the school fund of the
State. In 1888 the bank went into OBJ
GRAFTON andcontinuedt to do legitimate
profitable business until the late wal
commenced. During the war several
millions of the assets were invested in
Confederate bonds, State war bonds
and Confederate treasury notes. The
gold which was ON hand at the close OF
the war was, to a great extent, squan-
dered; or applied indiscriminately to
public uses by the State authorities.
I'm 1866, impelled by the disordered
condition of the affairs of the bank, the
Legislature authorized, or we may say
directed, the execution of deed OF
trust by the managers of the bank.
which trust assignment was accordingly
made in the month of May in that year
Samuel Watson, President of the Board
of Directors, becoming the trustee
This appointment, which at the time
elected no particular comments, SO fan
from having produced any satisfactory
system of adjudication or settlement
has, we have reason to believe, owing
to cul pably loose management, involved
the affairs of the bank in hopeless con
fusion.
"Mr. Watson never gave any receipts
for the assets which came into his
hands; but, it is probable, none were
ever demanded. Bonds and uncurrent
money of various denominations, and
values, must have been received by the
trustee, as well as several millions in
notes and bills. The bonds still re-
main in his hands, and he must have
collected over one million dollars of
notes and bills. These vast interests,
certainly merited some regular book
keeping, but at present the indications
are that they were thought to be suffi-
GENTLY unimportant to be confded to
loose memorandum and defective mem
Dries.
"a committee, consisting of Tillman,
Smithson and James of the Senate, and
Moore, Brown and Houk of the lower
house, was appointed by the last legis-
ture to examine Mr.. Watson's accounts
and make settlement with him; but, we
are informed, that, owing to uncertain
ty as to the amount of assets that went
into the hands of the trustee, and the
loose manner in which he has perform
ed his duties, the committee can not
bring matters to anything ike an in
telhgible conclusion. The expenses of
the trustee were enormous. largely over
ten per cent, of his collections
1T appears that about 100000 more
ofthe "old issue" of the bank was burn
ed, or cancelled, than were ever issued.
How much of it is now outstanding no
one knows. If this 100000, burned as
'old issue" was in fact ''nelC issue, F"
there must be of the latter, now in the
hands of spectators and others, some
thing over S1,500,000. The Supreme
Court has held that the new issue" of
South Carolina notes was receivablefor
taxes; and it is probable that our State
authorities will be compelled to obey
the effects of this decision, and receive
in similar way both issues of the
Bank of Tennessee. 1t is likely, there
fore, that the people of the State, ow-
ing to official carelessness, will be bur-
thened with liabilities growing out of
this defunct institution, for, years to
come. The Investigating Committee
in the midst of its perplexity has ad-
journed, and the subcommittee left to
the capital to audit the vouchers of the
trustees, has also temporarily suspend
ed its labors, for the reason that the
trustee was not ready with the necessa-
ry documents"