, 1872-12-08
THE MUTUAL SECURITY FUNDS.
Judge Hodgett Declines to Order the
Funds in Hand Removed from the
Mechanics National Bank.
He Doubts Mr.. Seammon's Good Taste In Keep"
ing Them, but, to Avoid Greater Evil, Pre-
ters Motto Make Rule Of Court In
Accordance with the Wishes
of the Creditors.

1t tho opening OF the United States District
Court yesterday morning, Judge Blodgett said !:
have been presented By the Register in Bankruptcy
with copy Of some resolutions passed at creditors
meeting Of the Mutual Security Insurance coMpany,
Treasurer Of the bankrupt Insurance company, aa
they Charge ia in the possession OF large amount OF
over, claiming set-of against them by virtue Of
tain policies OF insurance which he holds against
them aso that he is largely indebted to the Company
as stockholder upon stock and stock notes. which he
a1so refnses to nav: and requesting that the Court
would remove tie deposits Of this Company from the
Mechanics National Bank with Which Mr scannmon is
connected and which the resolutions designate Mr.
I have made Inquiries as to the relations Of sr.
scammon with the bank and find that he is the
Of less than onefourth Of the STOCK and is not very
actively engaged in the management Of the bank. At
the same tins to % rsas1nahls q extent
contest with another to have the custody Of that
others funds, with which to conduct the warfare.
The warfare should be conducted with the funda Of
the party who is carrying it rather than with those
Of his opponents, and. he wins, the Court will award
him his costs at the end Of the contest. In other
words hardly think that Mr.. Sca1nmon ought to
carry On controversy with the funds Of this bank
rupt Insurance Company, which is il effect contest
s Sa 6 q
the facts are entirely as is assumed.
The controversy IL not between the Mechanics Na-
tou Bank and the assignee but between the assignee
and hdr. scammon Individually, as Treasurer OF the
Company, and large Btockhoider in the bank He
would Of course, be benefited pro tao by the deposit
Of funds tho bank and to that extent he may bs said
to be benefited by the depoat Of these funds carry
On the contest.
further inquired from the assignee, who also In
formed that the creditors Of the Insurance Company
voted . dividend Of Per cent, and the assignee
funds hand will be exhausted with the exception Of
perhaps $4,000 to s20o, coo; that preparations had
been made to secure this dividend from the bank
checks vouchers, and rolls had been prepared with
reference to that and It would subject the assignee to
good deal Of labor, and the creditors to great deal
Of Inconvenience to change the place Of deposit Of
cannot therefore, suppose that the creditors ouid
desire this to be done and aha not enter
auyorder with reference to the funds In hand thus
leaving the assgnee to pay the dividend to the cre
tors from the funds where they now are.
commence 70 BAY The dividend on Monday ne1t, and
as fast the creditors who do not want Mr: scammon
to BE- Treasurer will get their checks In and Withdraw
the money themselves, their wishes viii be graed In
Tbs rules Of the Court now authorize them to de-
Ros II The Bann ar. the ta
signee viii be ready to be guided By these creditors
meeting far as it is consistent and the assignee SO
I'll were to adopt the rnle intmated by the resolr-
tions, rule Of the Court, hardly know WHARF
Cause nearly all the bankrupt insurance companies
through tter assgnees are In controversy with par
or stock or Otherwise and Is they arc our capitalists
most Of them deposiofs in the banks. Il were to
enter gene:. order that deposits could bs made In
any bank where these parties deposited, but were
to oophne 1t r. banks not holding stock,
it would Shut ne out from nearly all the
banks in the city: 80 that while
eens Of e eredtors aa are repfesented 1t tse
same time should be sinclined to issue any general
order in the premises to allow some other
to come in and make motion that certain property
should be removed to other bank for the
that other person is fighting the Assignee and
uia{ tim ant nT1Hi Ia.
posit have to find whether there any stockholders
Of the bank who resisting payment It would lesd
to endless concts and, inasmuch as 1t is improbable
that any Individual exercises such control the
bank as to affect its credit or Its policy, do not
think the principle should be eugrafted as ruling
principle BY the Court
The proceedings Of this meeting having been e1-
tensyely published, it is not sa1y to give any
further to the contents OF thn resolutions