declared by the bank, one hundred thousand dollars shall be an-
nually set apart for conunoo schools» and the faith of the state is
bere^ pledged for an annual appropriation of said amount to
common schools, to be applied as the general assembly may di-
rect Of the divideoda of the bank remaining, there shall be
annually appropriated (or thirty years and no longer, or not so
kuig, if the bank should not continue so long in operation^ eigh-
teen thousand dollars to county academies, to be applied an the
general assembly nuiy dipect, and the faith of the state is hereby
pledged for the annual payment of said sum : Provided, The
trustees of the respective county academies in the several coun-
ties of this state, shall relinquish to the state all claims which they
have agaiftst the state of Tennessee, for thQ debt due to those iih
slitotions from citizens residing south of French Broad and Hoi*
sloo, and west of Big Pigeon rivers, and all claims they mar
have to lands in the Ocoee district, as well as all claims which
they have against said citiaens, whicli relinquishments shall be
ilod in the office of the secretary of state, and the proceeds of
two half townships of land in the Ocoee district, reserved by the
act disposal^ of said lands for the use of colleges and academies,
flball be set apart for and given to the East Tennessee college and
Nashville university, upon the trustees of said institutions exeeutr
ing such relinquishments as are herein directed for the acadeaiies:
jMi fromded further^ that such of said institutions as shall reUa-
quish, as herein provided for, shall be entitled to their rateable pro*
portion of the fund herein appropriated, aoeordiug to the terms of
and appropriation, and on such further conditions as the present
general assembly may |:M*cscribe, in the event the federal govern-
inent shall hereafter relinquish to the state of Tennessee, the va-
cant iands south and west of the congressional reservation liaOy
an amount of forty thousand dollars, out of the sale of those
lands, shall be set apart as a perpetual fund lor the support of a
college in the western district, provided, that the general govem-
niat in the act of relinquishment shall grant to the use of such
college the appropriation herein made. The balance of the di-
TJdeads shall be set apart as a sinking fund, to be applied to the
eztiagmshooent of the accruing interests on the bonds of the states
whether the same have been executed under any former actf or
amy ba executed under this act

Sec i^* Beit enotied* That the fdllowing powersi rules, co»-



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16g HOUSE DOCUMENTS.

ditioD8» Irmitations and restrictions, shall be fundamental laws of
said bank, viz :

Article 1. The board shall select one of their number to
preside over their deliberations, who shall be elected by a majori-
ty of the directors present, of whom not less than five shall coo-
stitute a quorum to do business, and no person not a citizen of
this state, or who is a stockholder, or director of any other bankt-
or copartner of any such director, in trade and merchandize, shall
be eligible as a director : Provided, should it so happen that any
director should be appointed, who is a stockholder or director ia
any other bank, his seat shall be considered vacant and the place
filled by the other directors, as in other cases of vacancy : Andpro*
tided furtlier, if any director appointed as aforesaid shall, during
his continuance in office, purchase stock or become a director ia
any other bank, his seat shall be vacated, which shall be filled by
the directory as in other cases.

Article 2. The president and directors for the time beinff, shall
have power to elect and remove the cashier, and they shall aho
have power to appoint such officers, clerks, and servants under
them as shall be necessary for executingr the business of the said
corporation, and allow them such compensation for their servicet,
as may be reasonable.

Article 8. No director shall be entitled to' any emolument, but
the directors for the time being shall have power to make such
compensation to the president of the bank, for his extraordinary
attendance at the bank, and superintending its concerns, as thaU
to them seem reasonable. No discount shall be made when Clie
cashier may be a maker or endorser.

Article 4. They shall receive money on deposite, and pay away
the same to order, free of expense, deal in bills of exchange* mmI
buy and sell any of the state stock now issued, or that may herb*
after issue, and discount notes at said bank* with two or more
good endorsers thereon, at a rate of interest not exceeding six per
cent per annum : Provided, That this article shall not be coo*
strued so as to prevent the said bank from demanding and re^
eeiving a reasonable premium for exchange, in addition to ibe
interest, upon bills or notes payable at a point beyond the limits
of this state. Provided, also, that said bank, or either of said
branches, never shall purchase and have running to matiarity» or
on hand, a greater amount of bills of exchange than the anxMim
of notes under discount

Article 5. The total amount of debts which said corporatioiv
shall at any tinrte owe, whether by bond, note, or contract, shadi
not exceed twice the amount of the capital stock paid in at the
time, over and above the moneys on actual deposite for safe keep*
ing. Nor shall the entire amount of the risk or invcstmeni or
securities, in what form soever, (save and except actual currem



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1SOUSB DOOOMBNTSi N#

ocii^ at ai^ tiaie exceed twioe tbe Mnouiit of the mpM ttook
ptidio.

Article fk la case of exoess^ tlie direclora, vmder wboaa ad»
mioistration it shall happen, shall be liable for tbe same ki iheif*
mrivate capaehies, and an action of debt may, in sooh case^ be'
broiighl agatost them or any^ of them, or their bdri, exeeatoM o^'
adflomitrators, in any court of this slate, having jarisdiotien, by'
any creditor or eredkors of tbe said corporalioot and nnay bt pro*
aacated to jadganeat and exeeotioot any c<ondkion^ ciovenam, and
agreeniaBt»4o tbe eontrary nornithstandiag^ But thisshaH aoi
be so coBsCmed to exempt said bank% or the lands, teaemetits^
goods or chattels of the same, and on their insufBcienoy, the statof
0f Teoaessee heme also liable for, and being chargeabfe with, the
aaid exoesi^ such (? tbe directors who may have beeaalMeotwhw
aftid excess was cootraeted or created, shaH be exonerated (tcml
individual liability ; or who may have dissented from the resoloi^
tkn or act by which (he same was contraded or ereated» may
reapodiveiy exonerate themselves from being individuallt liable;
bgr ealeiing, if present, their dissent on the b^oks of the ba(nk,'ait
tlie lime mt debt may bo so contracted, and forthwith gtve aocicai
of the same to the comptrotiei of the slate.

Article 7. In case of vacancy, occasioned by the deaths reaig-
mtion, or removal out of the state, or otherwise, of any diredoVr
a ras^orily of the directors shall fill such vacancy, and the diraoloi'.
ao appointed shall hold his office daring the unexpired term of
the director so vacating : and in case of sickness or necessary^
absence o( tbe president, the board may appoint a president m*
tbe time.

Article 8. The directors shall keep &ir and renter mitnalev of
tfieir proceedings, in a well bomid book, and on questions wkerc^
two directors shall request it, the yeas and nays shall be ordeved^'
and on all snch questions every member present shall be reqaMed
Id vote: and th^ minutes shall at all times be produced» on the
demand of the legislature, or any committee legally authomed W
require the sante.

Article 0. Every president and cashier, before be enters on the*
execution of his duty, shall give bond, with two or more seoori'^
' ties, to the satisfiictioa of the directors, payable to the governor
of the state, in a sum not less than one hundred thousand dollara^
conditioned for the (aithful performance of his duty, and the tetbrs'
and clerks shall give like security, in a sum not less than twenty
tboosaad dollars, which bonds shall be filed and recorded in tfie^
secretary's office.

Articie 10. The president, directors and cashiers, and all othef

officers ot the principal bank and branches, shall take and sub*

aeribe the foitowing oath on entering on the duties of their re«

speelivo offices. ** I, A. B., do solemnty swear or affim, that f

22



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17$ HOUSE DOCUMENTS.

i»iIl*6itUully ditcharge ihe trust reposed in me as i of the
Bank of Tennessee, and that I will not 'wilfully or knowingly
violate aby direction or provision of the charter thereof; so help
me Grod.

Article 11. AH bills* bonds and notes of the corporation^ shall
be signed by the president and countersigned by the cashier there-
of and the fund of the bank shall in no wise be held respoosiUe
therefor» unless the same shall be executed as aforesaid.

Article 12. The bills or. notes which it shall be lawful for said
corporation to issue and circulate, shall not be for a less denomi-
nation than five dollars, and after the 1st day of January, 1841^
not less than ten dollars.

Article 13. The board of directors shall be capable of exercit-
log such other powers and authorities as may be neoessary for»
the well governing and ordering the af&irs oi the said oorpcMiiti(»H
and of promoting its interests and credit.

Sec. 10. Be it enacted. That the bills, obligatory or c^ credit^
under the seal of said corporation, which shall be made to any per-
son or personst shall be assignable by indorsement thereupon, un-
der the band or hands of such persons, and of his, her or their as-
signee or assignees, and so as absolutely to transfer and vest the
property thereof in each and every assignee or ass^nees succes-
sively, and to enable such assignee or assignees to bring and main-
tain an action thereupon in his, her or their name or names ; and
bills or notes which may be assigned, by order of the said corpo-
ration, signed by the president wad countersigned by the casiuer
thereof, promising the pavment of money to any person or per-
sons, his, her or their order, or to bearer, though not under the
seal of the said corporations, shall be binding and obligatory upon
the same in like manner, and with the like force and efiect as up-
on any private person or persons, if issued by him, her or them,
kk bith her or their private or natural capacity or capacities, aad
shall be. assignable and negotiable in like manner as if they weFe
so issued by such private person or persons ; that is to ray, those
which are or shall be payable to person or persons, his, her or
thtftc. order, shall be assignable by endorsement in like manner as
foreign bills of exchange now are, and those which are or shall be
payable to bearer, shall be negotiable and assignable by delivery
only.

See U. Be it enacted, That it shall be the ddty of the preei-
deot and directors of the principal bank and branches, to fumisb
to the general assembly, in the first Week of every regular session,
statements of the amount of the capital stock of said corporation,
and of the debts due the same, of the monejs deposited therein,
of the notes in circulation, and of the cash on hand, together with
ali other property of said bank, both real and personal ; and the
general assembly shall have the right to inspect all such acooupto



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HOUSE DOOUBfBNTS. ITl

in the bade as rotate to the titaunu^km of laid prioe^ huk
and branches* aod shall, whenever it may be deemed necessaiVy
appoint a joint committee of both houses of the general assembly
for that purpose, with full power to send for persons and papers;
and it shaU be the duty of the comptroller to inspect ail accounts
]Q the books of the principal bank and branches, as often as ha
may please, and it shall, and is hereby declared to be his duty,
fiuthfuUy to report all aod every violation cf the fundamental rules
of this corporation to the legislature*

Sec. 12. Be U enactedf That the bills or notes of the said cor^
poratioQ ori^nally made payable, or which shall become payable
oo demand m gold and silver coin, shall be receivable at the trea-
sury of this state, and by all. tax collectors and other public ofll«
cars in all payments for taxes or other moneys due to the state*

Sea 13. Be it enadedj That a majority of the membcors pre-
aent at any r^^Iar meeting of the directors of the principal bade
and brandies, may suspend any director with a view to bis ex-
pulsion; and any member may be expelled at a meeting of the
Doerd of directors, specially convened by the president &x tint
purpose, as soon afier such suspension takes place as practioaUe,
out such expulsion shall not be made by a majority of less ^tbn
twa thirds of the whole number of directors.

Sec. 14. Beit mulcted. That it shall be the duty of the cooip*
troUer to enake a biennial report to the legislature oo the subject
af the prkicipal bank and branches, and if, in his opimon» the trans*
actions of the principal bank and branches, or any particular cir*
cumstances relatinj; thereto, shall require it, he shall apply to the
general assembly for a select ccxnmittee, who shall take into con-
sideration any matter relating to the principal bank and branches
submitted to them by the comptroller, and report thereon at the
ilisoretion of the legislature, and the comptroller shall be furnished
by the principal bank and branches with a general statement it
their condition once in every month.

Sec. 15. Be k enacted, That itsh^l be the daty of the presi-
deot and directors of the bank, to publish quarterly, in some
newspaper, the state and condition of the bank and its branefaes.

Sec. 16. Be it ena^ed. That if any presidei^t, director or
eashier, or other officer of the said bank, or any of its bradohesy
riiall embezsle, or fraudulently convert to his, or to their own use,
aay sum of moneyt bank note, bill of exchange, check, bond, or
elber security, placed under his care and management, the pefseH
so offending, bis aiders, abettors, and counsellors, upon conviotioD
thereof* shall be judged guilty of felony, and be sentenced to im*
poisonment in the state penitentiary, for a term not less than tfiree
Bor more than twenty-one years, the term to be fixed at the <fis-
eretioD of the jury trying said c&nce^ and shall forever thereafter



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Its HOUSE iX}CUMBNT&

k» daiiMdifiod fnm bbUiag mjt office of profit or tiMI » «fa»
steAt^ aod shall moreover be liable for tbe stun embeciled.

8e& 17. Bekemactedt That the sum discounted on nolei» wkh
two or more eufficient securitjes, as provided for by this act^ shall
be apportioned, as far as practicable, among the several countm
IB this state, annually, ia proportion to the qualified voters ; and
the priBsidenit and cashier of the bank or branch, shall give notion
AQ eooM public paper^ printed ia the county in which me baidi or
branch may be located, stating the amount that each county nay
be eoChled lo borrow, within tea dayis after the right to borrow io
manner aforesaid, may arise ; and should the sum, or any pMt
thereof to which any county skoukj be thus entitled, be not ap.
pKed for within fifteen days after such notice, by the inhabitants
jtheceoC by presenting bills or notes for discount, with good ein-
.dorsers, that it may be dieoounted as aforesaid, to any perKn or
Jiersons applying for the same. The principal bank and three
jbrancbes shall be located in middle Tennessee^ two branches of
the aaid bank in the Iveslem district* and two branches in east
Tennessee.

SeCi 18. BekaUuted, That the lands, tenements, and heredit»-
meots, wliicfa it may be tawftil for said corporation to iiold, shall
be .only such as shall be requisite for its insmediate acoommoahb-
tion ifor the transaction of its business, and sudi ae have been
ftoM jUe mortgaged to it by way of security for, or conveyed to
it in aatiifaotioti of, debts previously ccmtracted^ in the course of
ordiQary banking business, or purchased at sakes upon judgwMMa
,er decrees readied in favor of said bank.

Sec. lik Beit mooted. That it shall be the duty of die mmt^
jBor, as soon as the directors are appointed of the principal bank
and branches, to convene the several boards of the satne, by ad«
vertisement in seme newspaper, giving ten days' notice thereof^
at the place the bank or branch osay be located, for the purpose
p{ carrying this act into effect.

^c. 20. Be it ^nmOei, That whenever the president aod di-
lectorp of any ^company, incorporated for the purpoee of intetnal
imprbvement, shall negotiate any bonds executed under the pro-
visions of thfs aot, ^t jriiall be their duty to no^ the president and
diraotora of the bank of 1^ place at which the interest on said
bonds is stipulated to be paid, which shall be within tbe limits of
ihe.UiMted Stiates; and the prefiident and directora of the bank
shall pnvftde for the payment of the interest aforesaid, out of tke
dividends qC tbe bantt : PtoMted^ That if there shaU be a sur]dai
of the dividends, after seuing af»rt die amount appropriated to
joomsnonsohools and academies, a^d after paymg the interest on
.the bonds of the state, tbe same shall be held by tiie bank as a
mntiiq^ent fimd* to be approprialed at any tatie when there itopf
.occur a deficiency in the diyidendf fo;r the purposes aforesaid :



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HOUSB D00UMBNT8. 173

Jni f iv oU k d, ahcK ihst if at anjr time there flhall be « defi d euey
in the dividends, to liquidate the aecming interest on (be atate
bonds, and the contingent fund shall be insufficient for such pur-
poae» such deficiency shall be made up out of any uninvested funds
that may have been declared on the stock owned by the state in
the several works of internal improvement s and if there should
stiU be a deficiency, the same shall be made up by the individual
stockholdere of the several roads in which the state has subscribed
for stocky in proportion to the amount for which the state may
bav« issued ber bonds : in each the amount so paid by the several
companies, to be reimbursed out of the first dividends declared in
Avor of the state on her stock in said companies. In the event
the dividends of 4he bank and the profits arising from the stock
oC the state in internal improvements) shall prove insufficmnt to
liquidate the interest on the bonds of the state, issued for the
purpose of internal improvement, it shall be the duty of the go*
iFeinor to notify the president and directors of such companies, m
wUoh the state has subscribed for stock, at least three months
before the interest will become payable on the state bonds, of the
probable deficit, and of the amount which will be required of
each company to be paid, in order to meet the interest on the
bonds of the state t ana upon receiving such notice irom the go-
â–¼emor) it shall be the dmy of the president and directors of eadi
and every company thus notified, forthwith to make a call upon
the individual stockholders for an amount equal to the sum claimed
by the governor, in his notice to said companies : which sum or
aoma of money shall be paid at the time, place and manner re-
qoirsd by the governor \ and upon failure thereof by any of the
said companies to meet the instalment thus required, it shall bo
deemed and taken to be a forfeiture of the interest of the indi*
Wddal stoekholders, thus fiiiling to pay the instahnent called for
by the governor. Aftd prmrided further^ Thiit no state bonds
soaH be issued for the payment of state stock in works of internal
iBftprovement, under the provisions of this act, until the bank
hmtfy established, shall go into operation.

Sec. 2U Ai it enacted, That the sute of Tennessee shall be-
eome a sobseriber for one half of the capital stock in all railroads,
ntMUsadamited turnpikes, graded turnpikes, and sanded turnpikes^
Ito which nots of incorporation have heretofore been granted, or
fbr whioii acts of incorporation may be hereafter granted : /Vo-
tidBdf That the subseriptiott on the part of Che state shall not* ex-
oeed an average of three Ihoosaad dollars per mile, In any com.
pcmy, for maeadamlsad tompikes, nor shall it exceed one thousand
daHarsfsar mile on graded turnpikes, nor seven hundred and fifly
dol/ars per mile in sanded turnpikes : Prmrided^ abo^ The sub*
s^ption by ttie state to the Charleston and Cincinnati railroad,
and the Hiw ifsce n9ln)ft<l» <h«ll npt excee^ qm miNioii three bun*



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174 HOUSB DOCUMBNTS.

dred tiiousaiid dollars, to be equally divided between dieiDy and to
be expended withiti the state of TenEiessee.

Sec 22. Be it enacted, That wheoever the governor shall be
notified in writing by the president and directors of an^ company,
for the construction of railroads, macadamized turnpikes, ffraded
turnpikes or sanded turnpikes, that one half of the capital stock
of said company has been subscribed for, thereupon the governor
shall appoint a number of directors, to be stockholders, equal lo
the number elected by individual stockholders; and if in the
opinion of two-thirds of said entire board, the payment is well
secured by the individual stockholders, or that the individual
stockholders are good and sdvent persons, and folly able to pay
the amount, of stock subscribed for by each of them) and that tbejr
have paid ten per cent upon the stock, the governor of the state
is hereby authorized and empowered, and required to subscribe,
on behalf of the state, for the amount provided for, in the fonypo-
ing section : and from the date of the subscription by the gover-
nor, the state shall have a lieu upon the property of each individual
stockholder, to the amount of the stock owned by each : and upon
die failure of any stockholder to pay any subsequent instalooeol
after the first, said failure shall not operate as a forfeiture of the
stock, unless the president and directors shall so agree ; but pay*
ment shall be enforced by the president and directors, and im>
transfer or assignment of stock shall defeat the said lien : Prooidedp
That said lien shall cease after the individual stockholders shall
have been paid in one half of their stock.

Sec. 23. Be it enacted^ That whenever the individual slock-^
holders of any of the said companies in which the state has be-
come a stockholder under this act, shall have paid five per cent
in addition to the ten per cent heretofore provided to be paid,
making fifteen per cent upon the amount of their stoek, and the
president and directors of such company shall notify the governor
of that fact, he is hereby authorized and required to issue Oie booda
of the state, signed officially by him, and countersigned by the
secretary of state, with the seal of the state, payable thirjty yaani
after execution, and bearing an interest of five per cent per an-
num, payable semi-annually at the office of the treasurer of Ten*
nessee, or such other place as the president and directors pegoftia-
tjng the same may designate, for an amount equal to fifteen pet
centj^of the stock subscribed by the state in said company, and
deliver said bonds to the presicteot and directors of said compan)r.
in full payment of fifteen per cent of the state subscription. And
upon the further payment of fifteen per cent upon the stock of
individual stockholders in any of said companies, the governor
shall issue the bonds of the state for fifteen per cent more of the
stock of the state in the same manner, and under the same rulea,
regulations and lestrictions as hereinbefore provided ; and upon



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HOUSB documents; 17»

the fbrtber payment of five per cent or more upon theiftoek of
ib^vidoal stockholders, the governor is authorized and required to
itsoe the bonds of the state for the like proportion of stock du9
by the state, under the same rules, regulations and restrictions aa
befiire, and in like manner the amounts paid by individuals and
the state at the several subsequent calls, shall be eoual until the
wbok amount required to complete the work, is paid in, and from
time to time he shall take the receipts of the president and di-
rectors for the several sums as paid.

So soon as the president and directors of the Louisville, Ciacin*
oati and Charleston railroad company shall certify to the govern*
(»r of the state, ihat the stockholders of said company have paid
lo five per cent on their stock, the governor of the state shall aob-
soribe on behalf of the state, six hundred and fifty thousand dol-
lars in stock in said company, and shall issue bonds of the state to