Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-09-25
FUNDING.
How the Process f. Going on ia
New York.


Nashville World, g.
Mr.. II. R. Lucas, jr., a relative BY
marriage OF Comptroller james N.
Nolan, arrived in the city yesterday
from New York, where he has been
STAYING for two weeks. During his
stay there, Mr., Lucas visited the
rooms of the Tennessee Funding
Board every day, and as anything CON
corning the operations of this board is
of interest, and as Mr.. Lucas was
fresh from the scene of action, a repre-.
sentative OF the World called on him
at the Maxwell House last night and
sought an interview with him. 1t was
readily granted. Mr.. Lucas says the
board occupy three rooms over the
Continental Bank, No. Z Nassau street.
One OF the rooms is occupied by Colo
mel NJ. T. Polk, another is occupied by
Foster Cheatham, who is kept quite
busy cancelliLg bonds. He cuts out
two pieces of each coupon, the seal OF
the State aud the Dunture of the
Governor.
The other room is occupied by
Comptroller Nolan aud his clerk,
Russell Duncan. The rooms are not
very large, and Mr.. Lucas says that
they are not as neatly furnished as
some other Offices which he was in
while 10 New York.
The reporter asked Mr.. Lucas to
describe the box, about which so
much has been said, and he said it
was a plain, ordinary box, FIVE feet
long, two and a half feet wide and
about three feet deep. In that box is
deposited the remnants of bonds that
have been cancelled. Being asked
about the seal of the State, he said
that Mr.. Nolan kept it in his possess
sion and when the hour Of business
closes il is deposited in the vault Of
the Continental Bank, where the
bonds and property of the Board are
deposited.
Mr.. Lucas says the Board com
mence business at 9 am. and close at
3 p.mr but sometimes the clerks are
kept there later. The members Of
the Board get 81 each for every bond
that is funded, which is paid by the
person presenting the bonds to be
funded. Mr.. Lucas thinks that the
members Of the Board have made
about $4,000 each since they com
mecced funding.
The gentleman was asked how mauy
bonds had been presented, aud he
replied about eight millions and a half,
which, he said, would make about FIVE
millions aud a half Of new bonds
funded. They were receiving $500
to 100000 in old bonds per day when
he left. 0ne day while he was there
he saw them take 10 1925, 600 in bonds.
but that was an extra day. The last
day he was there, which was Monday,
Mr.. Peter Geddes brought in $4,000
in bonds, and Mr.. Eugene Kelly
brought in about $4,000, for which
they received new bonds. Mr.. Lucas
said that he learned before leaving
New York that a man named Terry
was expected to arrive from England
with a large number Of bonds to be
funded into new bonds. He did not
know how many bonds Mr.. Terry rep.
resented. Messrs. Geddes & Kelly
represent a good many bonds them
selves, and, besides, control a great
many on the outside.
The reporter asked Mr.. Lucas why
there was no more activity in the way
of funding, aud he said that he sup.
posed that it was done to keep tie
Funding Board there until after the
coming election 10 Tennessee, SO that
the bondholders could tell what kind
of a Legislature was elected.
He gave this simply as an opinion
Of his own.
Mr.. Lucas then weat on 10 describe
the workings Of the board. He said
the holders Of the bonds would bring
them there and present them. They
would then be taken and their mum.
bers put down on the Comptroller's
book. New bonds are then issued
and their numbers are also resolved
and placedOpposite the other numbers
Theu a receipt is taken from each
bondholder that takes up
new bonds. The great seal of
the State is put on the new bonds. If
a man brings in a sufficient amount Of
old bonds to get a certain Dumber Of
new bonds, and there are two or three
hundred dollars over that amount is
issued IN script, which can be sold at
sixty cents on the dollar, or he can
buy enough script TO get him another
bond. Most Of the bondholders, as
soon as they get the new bonds in
their possession, clip off the past due
coupon for interest due the FIRST o flast
July and the Continental Bank cashes
lttor them. Ifitis taken from a $1,000
bond he gets SIS, and if taken from a
$500 bond he is paid 81 so.
Mr.. Lucas is of the opinion that
money will be kept on hand to nav
this interest IS long as there is auv
hope Of more bonds coming in.
Mr.. Lucas is a native Tennesseeap.
but now lives in Louisiana. He says
the World is often seen IN the rooms
OIL the Funding Board. aud that the
members look very blue when thew
read the glowing reports Of General
Blte's triumphant march TO victory.
He is a strong Bate man aud is yery
DESTROYS to see bin elected.
While in New York he saws he saw
P%lnchback, Yarmouth and other
prominent politicians from Louisiana
and that he saw some from Tennessee.
he will leave for Waverly to day
whittier he goes TO visit friends and
relatives. He called on Colonel M, T
Polk at bis ~re,idenee on Vine street
Yesterday afternoon, to convey some
message ( ON Comptroller Nolan. III
says Colooel Polk is confined to his
bed with iufllmwatory rheumatism,
A Good Example.
Little Rock Gazette.