Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-08-16
BANK OF TENNESSEE.
Clerk and Master Wrenns's Impor-
tant Mission to New York.
The Litigation over the State
Proper Bonds Interesting
Points AbOut the Assets.
Nashville American.i4.

Ashorttime ago Mr.. Thomas W
Wrenne, Clerk and Master Of tn
Chancery Court, aud Receiver Of th,
Bank of Tennessee, sold Sl65, 900 o
bonds Of the State Of Tennessee, mos
Of which we're State debt propet
bonds. As they only brought from
thirty-seven to sixty nine cents on th,
dollar, Chancellor A. G. Merritt re
fused to confirm the sale. This act or
the part OF the Chancellor has beer
fayorably commented on By all who
are acquainted with the condition Of
the assets Of the Bank of Tennessee
and the nature and extent of the
claims against them. The soupdnes:
OF the Chancellor's decision is also
proven by the fact that Mr.. Wrenne,
the Receiver, since the sale, has been
offered seventy two and a half cents
for the whole OF the bonds By New
York men. Encouraged BY this offer,
and being otherwise informed that the
prevailing sentiment in Wall street is
growing more favorable every day to-
wards the acceptance of the 90 3 act
as a final settlement OF the State debt
question, Mr.. Wrenne leaves this at,
ternoon for the purpose OF obtaining
additional bids on those Sl65, 600 State
debt proper bonds.
Speaking with a prominent lawyer
yesterday, who is well acquainted with
all of the actions and decisions taken
and made in the case Of the State OF
Tennessee and others againstthe Bank
of Tennessee, an American reporter
learned that nothing could have been
gained in the way Of the immediate
distribution of the assets Of the bank
among its creditors, even if the Chan
cellor had confirmed the sale of the
State debt proper bonds, because OF
the following facts: The assets are
claimed by two different classes OF
creditors Of the bank, namely, the note
holders or owners OF the Torbett issue,
on one side, and the depositors on the
other. The claims amount to upwards
Of $2,0OO,0OO, aboGt equally divided
between two classes OF claimants. The
whole Of the assets will not amount to
enough to pay forty per cent on either
class of claims. The law passed BY
the last Legislature provides that the
note holders shall FIRST exhaust the
assets OF the bank in the payment of
their claims, and after these have been
applied for that purpose the State will
issue its receivable warrants for the
balance, to be absorbed by being re-
ceived in payment of all taxes due the
State, at the rate of one fifth each
year. AS soon as the act was passed
he depositors fled a petition in the
Jhanoery Court here asking the Chan.
1ellor to give them preference over the
note holders as to the application of
.he assets of the bank.
That question was argued fully and
The Chancellor held that the note
holders had the preference.
This decision, said the reports in
formant, is but a repetition Of former
decisions Of the Supreme Court of this
State and Of the United States Su
preme Court. notwithstanding these
decisions, the depositors prayed an
appeal to the next term of the Su.
preme Court. This appeal, until
passed upon By the Supreme Court,
will prevent the assets Ct the bank
rom being distributed. Until that
appeal is decided it isstill question as
70 which Of the contestants is entitled
10 the assets Of the Bank Of Tennes
zee, amongst which are tue proceeds
Of these bonds. The bonds in question
we're sold before the appeal was per.
fected. but the sale was made subject
% confirmation by the court. The
Chancellor, knowing that no distri
button could be made as long as the
appeal was pending, and feeling that
The price reslizea from the bonds was
700 low, refused to confirm the sale
and left the matter open until the
October term of the court.