Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-03-17
Or to Trace Out the Guilty Parties En-
gagged With Polk IN the
EmbeZzlement
or the Public Funds-H History of the
Treasury From 1866 Up to
the Present Time.
or the Five Treasurer's During That
Time, Four Have Been Defaulters,
DIR. Morrow
Being the One Exception Radical Re-
forms RseOmmended-Other
Matters Considered.
Special to the Appeal

NASHVILLE, March l6.- Senate. - The
House resolutions to extend an invitation TO
Gen. FrIhugh Lee and Gen. B,sil Duke to
visit the Legislature during their stay in
the city, and to tender thanks to the Mozart
Society of the FIX University for the COM
plimentary concert given the mem bers OF the
Senate, were adopted.
The resolution that the Senate will after
this week hold night sessions then esme up.
Mr.. Dodd thought there wss 40 necessity
for the adoption of the resolution.
Mr.. Galloway: Perhaps the gentleman
has forgotten tha. Ire lived here, and that it
would be convenient for him to sit here after
the time was up, but as for others who lived
aud had business e'seEhere i, was quite diff
ferent, aud he hoped the resolution would
bs adopted. Adopted.
By Mr.. Wiiiiams1u: That the SUN Of $500
be appropriate fog the purpose CT purchas-
ing eoo,s and wiGdog ga for the capitol, and
repairs, repaintirg and for the improvement
OF the grounds. A iepted.
Mr.. Thompson entered motion to recon-
elder the motion 10 hold night sessions.
Mr.. Porter, chairman Of the Committee to
Investigate The Condition of the Treasury,
made the following report:
THE REPORT.
The Joint Committee appointed to investigate
the offices of the comptroller and treasurer re-
final report in regard 10 the matters required to be
examined into by lhen. Since making their for
hciency in the accounts of the former treasurer
NJ. 7. Polk, there has been accounted for the fol,
lowing moneys, which should properly be entered
credit on the said ex-treasureI's account,
namely; The amount On dsPq9Sit P9 wi yith 2, the
a balance on deposit With the Continental Bank
of New York s27lS ST; a balance on deposit Jan
uary Z 1888, W tn the Mechanics National Bank of
Knoxville Tenn, sili2 0l, making total OF s!s-
302 81. This taken from the deficiency of Si02,
56s 81 as SHOWN ey ur i3rmer Der report s leaves sN me
balance in the hands OF the Continental Bank
of New York has heen Withdrawn thelefrUm
order OF your committee Tne amount in the Me-
onanics' Savings Bank OF Knoxville isl simply,
debt against the estate of Thomas O'Conner, de.
ceased. This debt, they informed by the at
torDey for the adminisratrix OF OConner's estate,
badly before The adjournment OF the session of
this General Assembly. Ii it shall not
been requested to take tue necessary
steps to secure the ssme. 1t is in our opinion
good debt, and the State will not lose anything
thereon This constitutes part OF the f1nd turned
to the present depository OF the State at Knox
amount there Is subject to the cseck Of the State
treasurer aud comptroller at any and all times
This bank is the successor OF the Mechanics
treasurer's office was kept with the latter bank
uutu January s. 1883, al, hough the bank had not
been in existence for nine months, and the de-
posts were actually made with the Mechanics
National Bank, aud the checks OF the treasurer
drawn on the Mechanics Savings Bank were paid
by the Mechanics National BanE. During the life
OF Thomas O'Conner, this manner OF transactipg
business was undoubtedly carried on with pur-
pose, but since the bank has been under the
present management while the committee IS OF
the opinion that the ofhceis were guilty OF some
degree of carelessnesS in not having the mater
correctly kept and the checks properly drawn, yet
they find nothing 10 warrant them IN the opinion
that 1t was done with W Ong sr criminal intent,
otherwise than me re cafelessnsss The New York
exchange of s495, which was stopped by your COM
Iner CLERK OF NJ r. Polk, has been also turned into
the treasury. Your committee, upon the quaih-
cation OF the pres MT treasurer, turned over the
Oice and all the assets 10 him. aud he
having executed. a receipt for The same,
him by Polk, the former treaurer. copy of which
is herewith fled and marked exhibit "a 10 this
COPY of the recent given by NJ. 4. Polk to JAIME
~ Gaiues for fifty Unitd States bonds turned over
TO him. which contains description in full Of the
same we have been wholly unable to
of the same and P5,k declines 10 give any account
OF what he did with them. The receipt is fled
herewith. aud marked Exhibit B." In accord
ance with the Instructions of the General Assem-
bly, we employe an expert accountant, Mr.. Isaac
Litton. to .xamiue carefully into the treasurer's
books back to 1870 and fiie herewith his state;
Accounts by Isaac Litton;'' This ex-
animation, extending bsck to 1870,
William Morrow, VINO was the predecessor of NJ.
II. Polk and the successor Of Z. Rush In making
out n statement OF the bank deposits during the
said Morrow adminstrs ton. and comparing the
same with the amounts called r by the comp
crepsueies ting in so me instances TO as high
as S9Co, ,OgO. They called DR.. AOrroW before them
toran explanation OF the same and they ionnd tnat
these discrepancies were oeeasioned by the very
large amount Of the old issue of the Bank OF Ten
nesste, which was pouring into his office at that
Cancelled. There was Cancelled aud burned Of
this money during said Morrows administration
the sum of sl,9I1, "a DR., wm Morrow went
into office in Msy. 1870 aud retired ia February
1871 During his term OF othee the books
show that ESQ O75 49 passed through his hands.
After having sutj cted his books and voucher: 10
a critical examination, your com mittee take
pleasure in reporting tpnt they nnd MS account.
voucher file in its proper place iorsll payments
made by him, aud that he pGid over 10 nis sucSes.
him as h,ving proved faithful and and
committee beg leave TO Call attention to the fact
that out of five state treasnTers since 1863, a
period of seventeen years. during the administrs
tion of four Of them the State has sutsreI heavy
loss by defalca ons and otherwise. X. T. stan
ing his term of office the stat was plundered o.
the remnants OF hsr Public school Fund
which had been preserved through the war
kust, and with neither of these officials was the
state ever able TO secure settlement. and suffered
heavy loss from her ire isury j. f. Rust was sue
eeeded by Morrow, and, IN 1877, Morrow sue
ceeded by M 7. Polk and the treasury was again
robbed and pundered OF nearly $500 900 by one II
whom the people placed implicit confidence
There must be some radical error in the
working machinery of the Treasury Department
that permits such continued Ioooilg of revenues
by public officers. some material and well con
H. sidered changes should be made in the laws gov
eruing the saEe. In Gddidsn TO what has aread 2
been reported as TO the c0mptroller's department
we report that there is on hand there a receipt o
Ihos. Z. Smith, attorney, for iour notes, payable
TO ). A. Hatchett. executed by q. K. Rutter
amounting 70 $3.50 lS7 50, and dated Decem Der IS
1866, and due al three, six, nine and twelve
months. These notes were sued or by said
Smith, ard, after serious litigation, small
judgment was obtained the sam,
amounting to $500 in the law courts al Memphis
and the same being uncollscted, they suggest thai
the attorney general give this his attention at once
also i0ur notes executed by W. II. Rogers anc
ram II. Brooks at Helena, Ark, and payable II
Memphis 10 order Of }. w. Brown. and dated Jan
uary 1, 1859 amounting ts in all $56OO ind rsed BY
Brown TO ID. L davenport receiver, and by hin Il
the state comptroller We have no Information
as to the notes, and recommend the attorney gen
10 look after at once; also the joint not
due December |, 1878, for rent and license o
View Farm. They recommend this be at one
collected Your committee have Cancelled tn
twsnty-one bonds paid into the comptroller
Office by the Memphis and Charleston railroad il
1873, correct list cf Whch bonds is here will
filed 4hey have also burned the bank bills
coupons and treasury warrants instructed 10
day by the Senate joint resolution No. 80. an'
they q herewith correct schedule of the same
Your comm ittee desire TO call attention to III
fact thai III settling with the treasurer for tn
rent of the penitenary for the years 1881 aud ISs1
- uad Tho snF q -