, 1873-09-19
their houses In order. There ia nothing to
nlako o general panic out Of.
BCAMMoN ON IrqSURANOE.

llo ch8o OF hlf. 6chmn0h ma tno cteu1tOfa o
tho Mutua1 Security Firo insurance Company
ltaa advanced another stop. Two yours ngo, tho
Mutual Security Insurance Company was doing a
heavy buanoss iii tho way Of receiving premiums
from tho croduloun public. Mr. scammon wns
ono Of tho originatora, was largo stockholder,
Director, and Troaauror. Ho received all tho
money that waa pAid In ovor tho counter, and
forthwith deposited It in q bank Of which ho was
President, and afterwards, ns he claims, borrow
cl 1t rs a "privato bankor." Two yoarB ago,
loss ono month, thoro camo q fro, and tho 1osson
Of tho po1ioy-holders wcro great. Tho Company
called upon tho Trcasuror to deliver tho funds !;
1t also called on Mr. scammon, as stockholder,
to pay tho amount of hiH certain promfHaorv
notos Which ho had given in place Of cash for
lis atock. But Mr. sca1nmon WAS doaf to all
such domandH. Tho Company was "mutual
acourisy" one, add Mr. 8cammon insfsted TINT
tho mutually existing botwoon J. Y. scammon
debtor, and J. Y. scammon, Troasuror, and j. Y.
Bcammon, stockholder, and J. Y. Scammon, pri-
vate banker, forbade him, either as banker,
Treasurer, atockholdor, or Individually, applying
tho money in his hands to any purpose
oxoopt to sooure himaolf against his
own lossos by fro. IIo had borrowed
OF tho Insurance Company tho vsluo Of Lis own
stock, dopositing With hinaaolf his own notes as
security thorofor; he had, as Treasurer, loaned
tho money of tho Company to nimBolf as bankor,
and had then borrowed 1t OF himself as banker
for business purposes. How could ho as Troas-
uror refund tho money ho had loaned to tho
bank, and which the bank Ind loaned TO him
self? As m offset. he exhibited number Of
policies equaling tho amount of lis indebted
ncss, and claimed, in his capaclty OF Treasurer,
that 1t was hia frat duty, aB businoBs man, md
as banker, and as q citizon, to pay himsolf; /;
having dono this and exhausted tho Treasury,
ho offered his paid-ofr policies aa vouoh-
ers. It WAS imnlatorial TINT tho general
public held policies for half million
Of dollars Of lossos, tho mutually Of tho
Company existed only between stockholders, and
not botweon Mr.. scammon, TronBuror, and any
othor polioy-holder than A1r, scammon.
After two years Of litigation, Judge Druuamond,
Of tho Unitod States Circuit Court haB docrocd
that Mr. scammon mnst pay tho amount Of hiB
stock-notos, and must also pay tho amount Of tho
Company'a moneys in his hands as Treasurer,
tho two BUNS amounting to S54 900; and thai
Mr. 6cammon'a pretended offsets aro not valid
aud cannot DO allowed. Mr. soa1nmon, however,
WAS oqusl to tho emergency. As banker, ho Was
nivo to tho business; ho in1medinte-
ly filed an appeal bond with tho
Clerk of tho Court and borrowed the $5i, 900
for IN Indefinite period at Q per cent interest,
by taking the case to tho Supreme Court Of the
Unitod States. Despite the decroo, Mr.. Scam
mon remains in possession Of tho s54, 900, at 6
per cent interest, and is ovory inch the same
Treasurer, Director, stockholder, Bank-prosi-
don't, private bankor, and poliey-holder that ho
WAS iu tho beginning. All this, except the
actual decision of tho Court, We told tho public
oightoon months ago.