, 1873-04-10
A<>BlC THING.
The Science of Banking as Sus-
p. tained by; the United States
Courts.
Creditors Of Bankrupt Insurance Compa'
MICS Done Ont Of Interest on
an, Average Deposit Of =. ':'
=: ::'" 845S,6G6.
One Banker Carrying the Funds Of
- Eight Out Of Ten Bankrupt
Companies

4
Eight Out Of Ten Bankrupt.
-:"~ Companies:
.,~+ -.
In Mondays TRIBUNE statement wns madt
| in the law column that certain Assignees o1
bankrupt insurance companies had failed to TO
port what interest they had obtained from de-
posits in the different banks designated by the
Court, and suggesting that they would do well
in the future, to stnte separately, what interest
| il any, they had received. The writer had in.
serted tho doubting words, ''f nny," for the
simple reason that ho VISA by no means sure
whether the Assignees did receive interest, o,
not. To solve his doubts. ho noxt morning
questioned an official on the subject and the
conversation, when compared with what follows,
will give the reader faint idea OF the happy-go-
oboyed in this city.
The reporter directed the attention OF tho Of
fetal to the paragraph in TIE TRIBUNE, and
asked him wi1ethor tho banks paid interest or
not upon tho moneys deposited by Assignees.
"Bless my soul; no." quoth the official, sur
prised; "1 I have never hoard Of such d thing be-
ing done, unless BY special arrangement"
"You do not mean to say that all the large
sums Of money lodged in the banks since the
fire, by the AssigneeH Of various bankrupt insur-
ance companies, haye been lying unproductige
in the hands of the bankcrs7''
IT do, though. Nobody has taken any notice
Of the matter; and nothing has been said about
1t until you asked me the question"
'Wel; but you must have thought of it,
sometimes." r:- -
".Yes, I have. think that since the fire.
something should have been done about interest.
Before the fire. when the amounts deposited
We're very ANAL, and the money remained in
any call for being very strict but since so many
hundreds OF thousands OF. dollars have been
pouring into these banks, with hundreds OF
thousands more to hear from, perhaps bomo
special action might have been advisable"
swell, this IS news. Who are the fortunate
bankers who hold these funds? suppose they
are distributed around among the safest inBtitu-
tions Of the city," :.
"Wel, no. There is bank, you see, that
has always acted for tho bankruptcy court, and
"What bank is TINT e. .''
"The Mechanics National, .of. which. Mr.
Scammon is President You see, he has alw.ys
been the banker and tho Court has seen no no
Yes, but the large amount
a0h, Of course; since the fire, things ought
ILLS Mas he deposited anything with tho Court to
How2" Tho official did not seem to Under
stand. . >; -
"Why; any bond or papers, or. anything, in
: .:No; such = thing Was never thought Of"
The reporter left. Two points had been ostab-
1ished; Damely, that no interest was paid by
tho bank that did the whole OF this immonse
buainess,-thcr being no law within tho know1-
edge OF the ofhcials that required tho payment Of
such lntetest; and that, out Of ripe bankrupt
~ tnk H.
OF one bank, without security therefor with tho
prospect OF large additions to those funds: {:
Following up the first thought, the reporter
turned to page 81, OF Title LxIV., Bank
utea. In Section 80 he found: =
When it appears that the distribution of tho estnto
may 30 delayed. BY litigation or other cause, the Court
may direct the temporary Investment Of tho money
Eeiongng TO such eatae In securities to be approved
BY the Judge, or Register, may authorize ths same
to beacrosed tn any Convenient bunk, upon such IN
f<Tes not exceeding the legal ra:c, tho bank may
contract With the Assignee to ray thereon.
= This is construed to mean that the Court 1nay.
or tho Assignee s'may;" it they so elect, obtain
interest. =.
:. Now, rs to the amount Of money deposited in
this enc bank. *.-''
November, 1s75, total Of about s24, % ,57o and its
balances in bank, over since, ha7o averaged,
after paying in and drawing out, about $1,000
only, tho sum Of 500 being in hand for bank
:: The Chicago Nrcman'e nt the end Of its first
financial torn, May, 1872, had e30553s; IN June,
1872, a179,070; September, 1879, S1G2,3sS; De-
esmbe5, 1872 a175 1856; and 1t last account,
Tho Germania had in bank, by it's first account,
5ans 19?2 Fl, s9 s,e 66l September 1874 s7a2ss
The State had in bank, in September. 1871,
e201; 1887, and carried over balance to no.t
financial term Of $G2 1876; In October, 1879. had
run down to s55, ,7s5; in December, s47 ,4g2; and
March last, e49. 509.
Tho Great Western, which waB recently VIC
torous in nearly MI ts suits in the United States
Courts, aggregating IN immense sum Of money, |
has not yet commenced to realize, but what it |
has received-too small SUN to he worth no
The Chicago Fire Insurance Company has only |
just commenced realizing, having $40, 800 in |
February, since which time tlcre has been no rc-
port: =: "
Tho Mutual Security has made no report since |
November last, wlen tile amount reported Was
The Equitable had, :. III September, 1872,
ISIS, sis GOO, and March last, S75, ,391.
1t thus appears, by the first accounts fled, that
;hese companies had in hand not less than |
3727. .068, all Of which must have beon in tho
1ands OF the one banker, at one timo or another,
IN which no interest appears to have been paid,
IS follows: -- 49,
Jome - per first account fled ............$ 24s70
3hicago Fireman's 3o5,5I3
3ermanfa 996 661
;ixta 2o1 1877
3reAt western.
lUtuAl security 4ttt91 1
,hica9o Fire 20 800
Equitable 0l7s
Total. S79,068
Whatever doubt there might exist rs to tho
mount in the hands Of tho banker, at one time,
y the above table, there can bo no doubt that in
September, 1872, ho held in the neishborhood Of
,5l5, 1888, aa follows: -
1omo balance, September, 1872 {no statement,
but E1y}. - |
,hicago EIrcnans 162.388
lcr1nania ......:...-......-....... 8,2C8
tate. 20, ,337
treat western. |
Iut11al Security 23,G29
hicngo Fire {no statemeuD ......--......... .....
,quitabo .-.....-........-....... COLTS