Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-13

? their charge, and they cannot do it; and
Will challenge any one TO specify a singh
: case involving an important legal question
r in winding up the bank in which | havc
: not used all Of the diligence in my power
} to reach final decision.
J Every case involving questions Of import
ance in winding up the bank, was brought
as early as 1867, unless il may be the new
issue question. Cases involving this ques-
ton were brought in the three divisions OF
the State fully six years since, think.
The lower courts decided in favor of the
legality Of the new issue, and one case was
taken to the Supreme COurt,it being agreed
that the others should abide by the decision
of that case. That case has been before the
Supreme Court three years. It's not being
decided is surely not my fault. It is the
want of decision on this question that de-
lays winding up the bank; for the payment
Of almost every debt is enjoined or delayed
to await this decision.
MY EIGHT YEARS OF FINANCIAL BLUM
DERING AND NIsMANAGENIENT OF THE
| BANK.
The UNION AND AMERICAN charges me
with eight years of financial laundering
and mismanagement in winding up the
Bank of Tennessee.
was appointed director Of the bank in
1866, by Gov. Brownlow, and my appoint
ment was confirmed by a Republican
Senate, with the understanding that was
TO be the President of the bank, and trus-
tee. Not being political partisan myself,
although having decided political opinions,
l resolved that | would wind up the bank,
as business institution, and not use any
patronage l might have for the benefit Of
any political party.
Accordingly never made an appoint
ment Of an agent or attorney from political
motives, but sought men Of integrity, good
business qualifications and ability as law
yers, where lawyers were needed For it
so happens-for il was from no design on
my part-that twO-thirds, az least, of these
agents and attorneys belonged to the party
now in power. And these appointments,
1t must be 7ecolected, were made when the
Republican party ruled the State, and when
its rule seemed likely to be permanent.
This was my first step in the misman-
agement Gas charged on mel Of my Trustee
ship.
The seventh section of the act for wind
ing up the bank required me to bring suits
against all officers Of the bank who were
paid salaries subsequent to the 9th of May,
1861, and against all officers Of the State,
and others, who drew money from the bank |
that went to aid the rebellion.
Believing this section to be unjust and |
harassing TO those who were to be sued, and |
very injurious to the bank, i disregarded it, |
and never brought a suit under that section; |
and this 1 did in the face of the then exas-
perated and powerful political party.
1t brought upon me frequent threats Of /
my removal from my trnsteeship, but no /
serious efforts We're made TO do so, and /
never have been made, excepting by the po-
litical friends Of those parties whom l, and
alone, protected and defended against the
then Oyerruling power in the State.
This was the second step of my misman-
agement in my trusteeship.
All Of the valuable real estate of the
bank has been sold, excepting the banking
house Of Nashville, and l am justified in
saying that there have never been better
sales of real estate made by any trustee or
or agent in the State Of Tennessee.
There has not en- a day since the saies
were made when the property would have
sold at the prices paid for il. The bank
ing-hOuse and lot in Memphis, fronting
twenty-fOur feet on Madisoa street, and
running back seventy-five feet, with COM
mon twO-stOry brick building on it, sold
for S5i 900, on time, with interest. Other
lots as large, and very near it, and much
better improved, have since sold for So, COO,
and Sold too at time when real estate was
in demand and the money market easy.
l have loaned the United States currency
that came into my hands, to the amount Of
upwards of 100000.
| believe that not one dollar Of this
money loaned will be lost, unless the sales
of real estate, mOrtgaged 10 secure it, shall
be forced during the present money pres
sure, and while real estate is greatly de- I
pressed.
These loans were for the benefit of our
own citizens, and the money has been kept
in circulation N the State. | understand
that il is the present policy of the State to
call in these loans, take the money, and
the money derived from the interest on
State bonds and all other sources and buy
with il United s. ates bonds at the present
hish rate OF premium-thus sending the
money Ous Of the State, and locking it up
in Government bonds, without benefit To
any one. certainly without benefit to any
one in Tennessee.
leave the pubic to judge which is the
best policy for our citizens, mine or that OF
the State officers.
will now refer to some instances of my
''eight years laundering financial policy"
BY not bringing suits under section of
the act for winding up the bank, | saved
the bank at least $4,000 in costs and law
yers' fees. For these suits would certainly
have been unsuccessful. There would have
been many hundreds of them throughout
the State, and some Of them in other States,
and no lawyer at the Nashville bar has ever
the saving in not bringing these
suits at less than $4,000.
exchanged $1,000 Of past due State
bonds, and Sl5,240 of past due coupons,
all of which bore no interest, for $4,000
of State bonds, bearing interest, thus earn
ing for the bank by the exchange 81, 800
L Exchanged 5000 of South Carolina
bonds for $1,000 Of Tennessee bonds, saving
to the bank in this exchange $500.
There was debt of $4,000 owing the
bank, called the Spence debt. All Of the
parties were insOlvent-
We had SIS, 1876 9+1O0 principal and in-
terest Of notes Of different individuals
pledged to pay this debt. With these notes
l paid Off S1O8,33S 31-1OO Of the. Spence
debt, being the whole of the principal and
almost { e entire interest.
This saved for the bank so, 1876 37-lOO.
BY skillful and judiciOus management,
the details OF which l have not space to
give, 1 secured the payment Of S2O,4l3 81
100 on debt of John ETSk.ne, Of Memphis,
the principal of VIII ch was SlS,564. With
in six months afterward he went into bank
ruptcy, and did not pay over five cents on
the dollar.
BY the same management, / saved a very
large amount in a debt due from ;. 7.
Walker. The saving to the bank in these
two cases, was certainly $4,000.
have enumerated above, only the most
important transactions in my financial
policy ard management in winding up the
bank.
The saving to the bank in these transac-
tions is SlOS,S10, which are S16,SlO more
than the entire expense account Of the
including salaries Of officers and
clerks. Are these transactions any evidence
of eight years laundering financial policy
and mismanagemenl If not, where are
there such evidences.
The public may rest assured that every
important fact in this communication relat-
ing to the Bank Of Tennessee, will be con-
firmed by the forthcoming report of the ap-
pOintees of the Chancery Court. And L
hope every one will take especial notice