Year: 1872




OF HIS BROTHER-IN-LAw EXPLAINED.


lBY TELEGRAPH TO THE TRIBUNE


WASHINGTON, April S.-Mr. Hooper, Chair
man of the House Committee on Banking and Currency
hasreceived from H. r. Hulburd late Controller oil the
Currency affidavit in reply TO the most serious accu-
satlons made against him in connection with the Ten
nessee National Bank of Memphis The following Is an
abstract of the affidavit Mr. Hulburd says that George r.
Rutter President of the Tennessee National Bank early
in August 1866, paid for carriage which he, HulDurd
was negotiating for. This was soon after the reslgna
ton of Clarke and while Hulburd was the dep
uty and acting Controller He attached no especial sig
ncance to this at the time In the latter part of the
same month he was informed that the affairs Of the
Tennessee National Bank were not in good con-
dition, and examiner was sent 10 Mem
phis to make investigation. According TO
the Examiners report there had been failure on the
part the bank to comply with several important pro
visions Of law, and numerous irregularities OF manage
ment which required correction had been committed
Huburd goes on to say that lie did not suppress the re-
port as the records of his office will show AS 10 the
appointment OF receiver to take charge OF the affairs
of the bank he reference to the law Is necessary
in order determine upon what grounds receiver may
be legally appointed. Section 80 Of the National
Currency act provides that the Controller of the Cur
rency may on becoming satisfied that any association
has refused to pay its circulating notes. and in default
forthwith appoint Teceiver This Is the only ground
upon which to apponta receiver forthwith and the re-
port showed that the entire circulation OF the bank at
that time to be only $4,000, while the
money in its hands amounted to s93527. The
lawful money Of the bank was deficit in the sum
of 2s2 bs Under the Currency act, provided in
Section ST. it was duty of the Controller to notify the
bank make good this reserve and on failure OF the
bank to do so within 80 days, he could with the
concurrence of the Secretary Of the Treasury,
appoint o receiver to wind up its business. The
report also showed that the capital Of the bank had
never been fully paid IN rge amount OF M ~ Png PEN ere re-
presented by stock notes Section 10 OF t1e law pro,
vides that in any SHAREHOLDER shall Iall 10 pay any
instalment the stock. the directors OF the association
may sell such stock at public auction, after pubic nOce
OF three weeks If bidder can be found the amount
due the stock the cost OF advertisement ana SAFE ana
Association and the stock sold. the Directors
order within six months, and If not sold u Is 70 pecan
celaon and reduction reduces the capital below tho
minimum required by the law, the capital STOCK must De
increased within so days Ill de%ut OF WHICH receiver


I tie Controller could do in the case Of the Tennessee
comply with the provisions of the law To show ihat ne
dayit letter to the bank in which calls its attention
to the following Irregularities and Insisting upon com
pance with the law But $1,000 Gi 1nG eaps G @ OeS sV
The oath Of May; that the remainder Of the capital con
cent by over 10000 the loan the National Bank of
the Metropolis was uncalled for the ovcrdrafts were
cent of the paid up capital; cash items We're
which could be considered; the records OF
the bank imperfect ana not in accordance win the
instructions and suggestions Of the Controller or the
Currency the records dd not show that the Danh ad
any directors and OF those supposed to be directors
did appear the books to possess the requisite
amount stock portion of the net earnings appeared
TO have been carried to the surplus fund.- previous
On On file in The Contrcer's office the certificate of four
directors that $4,000 had been paid III, while IL ,he
quarterly report of the bank the cashier swears tha
100000 had been paid in and there was surplus 1und
of al O5 This letter, lie shows that every re-
QuiFeinent of the law had been complied win.


Within three weeks the report or me bank showed the
amount of money hand 70 be sl5i46 ana the amount
required for sl4,3l8 showing surplus OF
slO42S. This particular point being complied
pointing q receiver this ground Mean,
While the Legislature Of Tennessee inquired
into the subject of the funds belonging to the state ed


Nv tbe hank and eventually withdrew all its funds and
rsceived the obligations Of the bank the balance.
Upon the maturity Of the first BILL the bank was unable
to pay and suspended. An agent was sent to investigate
and receiver was appointed undef sec " ol
the act, about March ], 1etI v,,,,


In relation to the appointment OF WIN. A. I'LL as
cashier Of the Tennessee National Bank, liuDuId says
that his only agency bring the President and hlm
together, the former having applied TO MN as sultape
person for position In conclusion HuDurd asserts


that the testimony taken before the COMMITTEE on oter
points is not such should have been admitted having
been made up gossip and hearsay and proving moth
ing He also adds: have never received dIccty or
Indirectly money property for the performance OF any
official duty for refrainng from the performance ot
any duty or for any favor which mad it In my power TO
grant in consequence Of my official position,
and do not know and do not believe
that any subordinate in the employment OF
this Bureau has. directly indirectly, received money
or property for official favOrs, for the exercise OF IN


uence real assumed with the head OF the Bureau IN
sfdayt is appended the report of Examiner Bull and
letter from Thomas r. Smith OF Memphis, written Ill
1859 in regard to the affairs of the bank


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