Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1874-12-04
THE RANK OLE rENNEssEE.

Assembly passed joint resolution sp-
pointing committee to settle with Mr..
Watson, the Trustee, who has had
charge of the institution many years.
Senator N. Smithson, Chairman Of the
Committee has at last submitted re-
port to Governor Brown. The commit
tee consisted Of N. Smithson, James D.
T;llmau al f. A. James from the SEN
ate, with Horatio L. Moore and jesse
F. Brown from the House. The revela-
items are not fattering to the recent
management of the bank. The Legisla-
ture passed an act February l6, ls66, to
wind up the affairs of the bank. Judge
Watson, then President, became its
Trustee, and on the 4th Of May fled an
inadequate bond of $4,000 in the Chan
Gerry Court. Watson has been settling
all the time, and has done everything
except settle, even TO drawing the COM
Portable salary of $4,000 year. Who
would be in hurry to wind up such
pleasant ,businessl 1t is almost as easy
as clipping the coupons from Govern
ment bonds. A few facts CLEANED from
this report may be of interest to many
who have not time to read il in full.
The committee appointed by the Thirty
eighth General Assembly met October 6.
1873. A few days investigation proved
that the books and papers were in tan
gled condition, and that Mr.. Watson was
not ready to settle. The original inyen-
tory of assets taken at the time of the
assignment had mysteriously disap-
peared. Mr.. Watson claims that it was
taken on small books and loose sheets,
which were afterward copied and then
thrown away, while Mr.. Scovel, one OF
the directors who assisted in making
the inventory, swears that it was taken
on large books and left in Mr.. Watson's
possession. Mr. Watson presents pur-
ported copy which he claims TO be &C.
eurate. 1t appears that he has kept
his books "sorter loose" in fact so
loose that many Of them cannot be
found. The assets Of the bank, when he
became receiver, amounted to $l2,927,-
759 Al; credits, lO,sO8, 800 SO; unsettled,
2,llS,769 90. The common rules OF
book keeping seem to have been utterly
disregarded and the trustee seems TO
have done promiscuous business, of
which no account was ever kept. He
presents bill for S45,603 50 for attor-
ney's fees and $4,000 06 as expenses
paid by him without any accompanying
vouchers, or even a satisfactory itemized
account. A cash account is fled, includ-
ing old and new issues of the bank and
United States currency, lcithoUt distinc
tion and wholly failing to show the re
spective kinds of money. What an
opening for fraud by replacing good
money with deprecated currency. The
books showed s., 933,346 of the notes of
the bank issued and $3.O39,2ll 10
Cancelled, or SlO5,SG5 10 more Cancelled
than was ever issued, unless some of the
Torbct issue has been smuggled in,
which is quite probable. Mr.. Watson
failed to exhibit his bank book and could
give no account of transactions in
bonds, coupons and money, nor show
with whom or when the transactions
were made, nor do his hooks show who
were the aeceptors or indoTsers upon
bills and notes in bis hands Or received
by him, nor do ihey give the numbers Of
the notes and bills, but only show the
makers thereof BE was ordered by the
Chancery Court June &c, 1872, to make
an itemized and detailed report Of the
assets received by him and his doings as
trustee, which order he has utterly dis
regarded. The committee considers that
he is guilty Oe the grossest negligence,
which is as mild word as
they could possibly have used, and
that his failure to preserve the orig
insl inventory is highly eensurable
and culpable neglect Of duty, leaving
an open door for speculation which no
amount of examination could detect
They say he has shown a willingness 20
give any information asked, but seems
TO have been unfortunately ignorant
where many material points are con-
nected with the bank Where itemized
accounts and vouchers should be pro
duced, nothing is forthcoming but the
Trustees verbal statement. he has
acted throughout for nearly nine years as
II be never expected 70 die or 70 settle.
His expenses have been over ten per
cent. Of his entire collections. The fol-
lowing items would indicate that the old
gentleman has not only smoothed the
Reclining years of life with its solid COM
forts but that be has looked to the we'll
bsipg o : his iavoriis employees: S. Wat
son. sslary. $4,000 > wear, Ss7,oss Q5i W.
J. Cochran, cashier, sais.v. Sl2,ls7 sso'
c. Robinson, clerk, salary, s76S y;