Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-08-15
Heavy Sale OF Tennessee Bonds.

Nashville American: A short lime ago Mr.
Thomas w. Wrenne, clerk and master oi
the Chancery Court, and receiver of the
Bank of Tennessee, sold $165, 900 of bonds OF
the State of Tennessee, most of which were
State debt proper bonds. As they only
brought from thirty y-sev.n 10 sixty niue cents
on the dollar, Chancellor A. q Merritt re-
fused 10 confirm the ale. This act on the
part Of the chancellor has been favorably
commented on by all who are acquainted
with the condition Of the assets OF the Bank
oil Tennessee, aud the nature and extent OF
the claims against them. The soundness of
the chancellor's d. cision is ASP proven by
The fact that Mr.. Wrenne, the receiver, since
the sale, has been offered seventy-two and a
half cents for the whele of the bonds by New
York mec. Il couragsd by this offer and
being otherwise informed that the prevail
ing sentiment in Wall street is growing
more favorable every day toward the &C.
ceptance OF the 6fiy-and-three act as fual
settle tpt OF the State debt question, M.
Wrenne leaves this sfternoon for the purpose
Of obtaining additional bids on these $l65,.
600 State debt proper bonds. Speaking with
prominent lawyer yesterday, who is well
acqu aiuted with all of the actions and de-
cisIons taken and made in the case of the
State of Tennessee and others against the
Bank OF Tennessee, an American reporter
learned thai nothing could have been game
in the way OF the immt ate distribu ion of
the assets OF the back among its creditors,
even if the chancellor had confirmed the sale
Of the S. ate deb. proper bonds, because of the
following facts; The asseis are claimed by
two diff rent classes of creditors OF the bank,
namely, the noteholders or owners OF the
Torbett issue, on oue side, and ihe depositors
on the other. The claims amount to up
yard of s2000,000, about eq Tally divided be-
twses tgo Glasses of claimsntr. Toe whole
of the assets will net aplount TO enough TO pay
forty per cent. en- either ci aEs OF claims. The
law passed by the last LEGISLATURE rovides
that the noleholders shall first exhaust the
assets Of the bank in the payment of their
claims and af.er thsse have been applied for
that purpose the State will issue Its recsiv-
able warrants for the balance, TO be absorbed
by baing received in payment of all taxes
cue the State, at the rate OF one-hfth each
year, As coon ae the act wss passed the de-
ps1itors Eie6 a petition in the Chancery
Court hers asking the chslGellor TO give
them preference over the noteholders as TO
the application of the asaets OF the bsnk.
That question was argued fully and the
csapseiIor held that the n0teholcers had the
preference. This decision, said the reporters
informant, is but repetition Of former de-
cisions of the Supreme Court OF this State
and of the United States Supreme Court.
Notwithstanding these decisions, the dep2sit-
ors prayed an appeal to the next term of the
Supreme Court. This appeal, until passed
ppos 81 the Supreme Court, will prsysnt the
aase;s Of the baRk from being distributed.
Until that appeal is decided it is still q
question as 10 which Of The contestants il en-.
Titled to the assets Of the Bank OF Tennessee
among which are the proceeds of these bonds
The 10 question we're sold before the
appeal was perfected, but the lie was madt
subject TO confirm alton by the court. The
chancellor, knowing that no disribulior
could b. p1ade ss lopg as the appeal was
'pendiog, and ie.lils that the price realized
from the bonds was too low, reiCstd 70 Con
| firm the sale and left the matter open un
I Ill the D jtober term OF the court.