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

issue burned and Cancelled as old issue, the
amount of new issue now outstanding is
Sl,569, 1920.
| The resolution does not authorize the
| committee to consider the liability of the
State as to the new or TOrbet issue. They,
| Therefore, express no opinion in relation
to it.
Discrepancy Between Elk hIbits II and G.
There is a discrepany Of Sl3O.s5O.00 be-
tween exhibits b aud q as 10 the circula-
ton Of the bank when it went into liquida-
| ton.
According to Exhibit B, which shows
the assets Of the Bank, when seized by the
United States authorities, (as shown by
the books of the Bank, the assets were
| $I4,902,3I2.I1. According to Exhibit e."
which is Watson's statement Of the assets
received by him, the assets were 81, 927,
| 7j9.47. The difference between these
amounts is Si,9T4, 553.30. This difference
results in part from the fact that several
items in Exhibit 3 are omitted from Ex-
hibit G, and from the further fact that the
trustee las only charged himself with the
amount Of bills and notes, bonds, etc, ac-
tually received, while Exhibit b merely
| states what assets should have been on
hand according TO the books. There is
also some real estate now On hand, the pro
| cee.lS # which would 90 70 balance these
exhibits.
The coin returned with the assets and
which formed part of the cash mentioned
in Exhibit b, did not come to the hands Of
| the trustee, and also accounts for the dis
erepancy inpart.
/ The Manner la Which the Trustee
Has Discharged HiS Dates.
The committee are Of opinion that the
trustee acted fOr the best Interest OF the
bank in refusing to bring suits against the
officers of the bank, and Others who had
drawn funds from the bank after the re-
! InOval from Tennessee, and after May o,
, 1861, although required to do so by act Of
the Legislature. Ii may have been that
some such persons should have been sued,
and that actions against them would have
been successful, but indiscriminate suits
against them would have been ruinous TO
the bank.
The committee are also Of opinion that
the compromises made by the trustee, with
Vim. SPENCE and with John Erskine, were
/ highly advantageous to the bank, and that
the Spence matter resulted in a very con-
siderable saving 20 Il. There may be other
cases in which the bank was bene tied in
the same way.
| The trustee states that he contracted with
nearly all his agents and attorneys to pay
| them p per cent. on amounts collected and
paid over by them, which were certainly
good terms for the bank and as low as
could be asked.
On the other hand the testimony of II.
G. ScOvel and others, shows that full and
accurate inventory Of the notes and bills
and other assets was taken by said ScOvel,
Watson and Lowering, who were appointed
by the Board Of Directors for that purpose.
The committee called upon the trustee for
said original schedule or inventory; but the
trustee failed to produce this important and
essential paper. He replied that the in
ventOgy had been taken upon small books,
lOOse papers, and that they were thrown
aside as useless, and were not at hand. On
the contrary, ii. q. ScOyel, who was a
director when the inventory was made,
and assisted to make 1t, swears that it was
taken on large books and left in the custody
of said Watson.
By the loss Of or failure to get said
original schedule, the committee have been
deprived of the beginning corner Of this in
vestigation. 1t can never be known. what
assets were received by said Watson, unless
said schedule is found except by his OWL
statement. Hence an additional reason
why the committee could not make salts
factory sett' ement with the trustee.
When called upon for the inventory, Mr..
Watson replied that the itemized list OF
notes and bills shown the committee bad
been carefully copied from the original in
ventOry, but did not remember who copied
it; and that his report to the Chancery
Court and Governor, made from said copy,
.'was intended to be and was conclusive
evidence of what the directors turned over
to him."
The trustee cannot state or show when,
nor with whom, he exchanged coupons foI
bonds OF cash; nor when he exchanged the
South Carolina money for bonds; nor does
he show from whom, nor when, he received
United States currency on dues to the
bank; nor the amount of United States cur
rency received; nor to whom nor when the
Southern bank notes were sold; nor did he
exhibit to the committee his bank book
showing his account with the Peoples
Bank as trustee when called upon TO do so
but filed what he stated TO be copy of his
account Herewith; nor do his books show
who were the acceptOrs and endOTseTs upon
bills and notes in his hands or received by
him; nor do they give the numbers of the
notes and bills, but only show the makers
thereof.
The Chancery Court of Davidson county
on the 10Th cay of June, 1872, ordered the
trustee to make an itemized and de
tailed report of the assets received by hin
and of his doingsas trustee. He has not made
such report or complied with it in the least
He never has at any time previous to the
meeting of this committee, made any de.
tailed report or statement of assets received
, by him, nor of collections made, nor OF
payments, so far as the committee can as
certain. In these respects he is guilty OF
the grOssest negligence, and his failure L
preserve the original inventory is highly
censurable.
The committee regard the trustees fail
ure to preserve the particulars of his trans
actions, as a culpable neglect Of duty, lea
ing an open door for speculation, which M
amount Of examination could detect.
1t is due the trustee to say that he ha
: shown a willingness to give any infOrma
ton asked for, but he seems to have beeI
unfortunately ignorant upon many mate
rial points connected with the affairs
} the bank.
But the committee are Of opinion that
trust fund should be so managed, and suel
books and accounts kept, that its condition
could be ascertained without relying ex
clusively upon the statements OF In
trustee.
Expenses.
The Trustee states that his expenses
,tt.o.1Ts,-sS faes -. 5000 8
Total ..----.......-- So ~ y
The following items are part Of the ex
, penses: 49, eco n
, C,ai,ra, csssbiar salarv--. I2,1sI q
" 't ~. cIerL- salary - $3.50 7,
, - 80. cia1L saIar, - POI O
n n - $500 risrk saiary,... 60 O
| n M Hnuell clerk. salary. UO v