Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-02


of said bank, and to supply any deficiency
in the funds hereinafter specifically
pledged, and to give indemnity for all
losses arising from such deficiency.
1t further provided (sec y that the CAPT
tai stock of said bank should be $5,000,000,
to be raised and constituted as follows:
The whole of the common school fund and
the proceeds of the Ocoee lands, and the
surplus revenue then in the State Treasury,
were to constitute a part of its capital; and
in addition thereto the State was to raise a
sufficient sum of specie to make the capt.
tai S5,000,000.
1t further provided (sec. 81 that the Gov
ernor should appoint twelve directors of
said bank, subject to confirmation or rejec-
ton by the General Assembly, Zone Of
whom should be Presidency to continue in
Office two years or until their successors
were nominated and confirmed.
Said act further provided (sec - that
SIlS,0e0 of the dividends of said bank
should be appropriated for the benefit Of
schools and academies, and the remainder
of the dividends applied to the payment of
interest on the State bonds as a sinking
fund.
1t also provided (sec. 12) that the notes
Of said bank should abe receivable at the
Treasury Of the State, and by all tax col
lectorS and other public officers, in all
payments for taxes or other moneys due the
State"
An act of the General Assembly Of
Tennessee, supplementary to the
above act, passed Jany. 20, 1888, provided
among other things that the President and
Directors Of the Bank Of Tennessee, should
appoint twelve Directors for each Of the
branches of said bank, aud that the capital
of said bank should be divided among the
bank and branches in 2 manner therein
specified; and that the dividends of the
branches should be paid into the principal
bank semi-annually.
By an act of the General Assembly passed
-, 1889, entitled IAN act to provide
for the reduction of State debt" the capt.
tai of said bank was reduced TO $500, OK O.
and so remained so far as the law was con-
cerned; but according to the books Of the
bank, the actual capital of the bank never
reached s., 600, though it was at times
nominally more than this.
Reports of the President of the Bank OF
Tennessee show that it did very prosper
Gus business previous TO the late war
From 1899 to 1858, its profits upon its cap
itsl stock averaged s per cent. per annam
The assets of the BANK on the first day Of
January, 1861, were S7,0l1 ,2S3.9O, as pei
Exhibit A to this report, of which sun
S6SI, 493. ~ were in gold and silver.
The assets of the bank in May, 1865, &C
cording to its books, were Sl4,9O2, Sl2.7T
as per Exhibit BIZ to this report. Of thi:
amount S6,2S0,4ST were in Confederate
bonds and about S4,256,310.12 in Tennes
see war bonds and claims against the Mill
tary Board and State Treasurer for fund.
checked out by the Board and Treasurer.
The assets of the bank, together with 1t:
books and papers, were removed iron
Nashville about the middle of February
1862, by Cashier Fisher, President TOrbet
and others; and the officers of most OF the
branches joined the officers of the principa
bank in the South, with their books, paper
and assets.
The statement of II. L. Claiborne show:
that the bank was first removed from Nash
Vile to Memphis, thence 10 ChattanOOgi
and afterwards to Atlanta, Griffin, Greens
boro, Macon, Raleigh and Augusta, ant
that the assets were seized at Augusta.
The assets were seized by Gen. UptOn,o
the United States army, and returned Il
the State under guard, being accompanies
by Jesse f. Brown, Cashier of the Trenton
branch.
The assets, books and papers of the bank
were delivered to Gov. BrOwniOw abou
the first OF June, 1865, and appear to hay
been examined by a Legislative Commit
tee appointed for that purpose, but theI
schedule was so indefinite and uncertain a!
to be worthless. IL wholly failed to item
ize any Of the assets, and wholly omitte'
many valuable assets.
TIE Legislature on the 10th day of Feb
ruary, 1866, passed an act entitled "Al
Act TO wind UP and settle the business o
the Bank of Tennessee" whereby it wa
provided that the President and Board
Directors of said bank, should make al
assignment of the assets of the bank Il
trust, etc, and that said bank go int
liquidation.
The President and Board of Directors o
the bank, on the 4th day of May, 1866, il
pursuance of said act, did execute dee
of trust by the terms of which they assign
ed to Samuel Watson all the assets Of tn
bank i'm trust for the settlement of its al
fairs. Said Watson accepted the Trustee
ship. but did not give bonds as Trustee
| for the ALLEGED reason that the bond re
quired by law was too large. He filed hi
| bill In the Chancery Court at Nashville TO
| the execution of the trust, and was appoint
ed receiver under the orders Of said court
He has had possession and control of tn
assets and affairs of the bank since Ma
| "a. 1866, on which day lie executed a bon,
| in the penal sum of $4,000, as trustee an
receiver. He was also elected president c
the bank soon after the return Of the as
sets, and was president when the assign
ment was made to himself.
settlement with watson, Trustee.
In obedience to the foregoing resOiutio
your committee met at the Bank Of Ter
nessee, in Nashville, Oh the 9th day of o.
tober, 1873, for the purpose Of investigator
the affairs of the Bank. The committe
had expected to find Mr.. Watson fully pre-
pared to make a full exhibit of the affairs {
the Bank, and of his doings as Trustee. Blu
on the contrary not a step had been taken
make such exhibit, and the cOmmitte
were forced to wait for Dir. Watson to max
out the various statements desired by th
committee.
| 1t will be seen that the resolution 7,
quiTes the committee to ''settle" with Nj
Watson. This, he committee could NJ
do. in the present condition of the asset!
| and the committee have therefore state
| the account with the trustee in a geneF;
way as per exhibit CT to this report
which is as accurate and specific as il ca
be made from the data in possession {
reach of the committee.
Said exhibit c shows that the Who'll
! amount Of assets received by said WatsO
as trustee was Sl2,927, 1914, except res
estate unsold, and rents received, and pr
ceeds Of bank furniture sold, which are NJ
| included in this SUM.
OF this sum SS,644, 39l.02 were
Confederate bonds, Confederate coupons
Confederate treasury notes, certificates {
deposit on Confederate Treasury, ienne:
see war bonds, and accounts against d
State Treasury and Military Board; an,
therefore, worthless and unavailable Z
assets.
In the sum Of assets were also include
STE. 4SO. 23, of notes Of the Bank OF Tel
nessee. Deducting these two sums; an
Tennessee money burned and Cancelled; an
| also amount of expenses and attorney