, 1874-01-23
How It Is Connected with 1Ir. Sc,m-
mons Other Eanks.
The Outcome Turns upon the Condition
Of Mr. Scammon's Personal
Affairs.
How His Building Operations
Have Involved Him
in Debt.
HIS Property Believed to BE Ampls to
Pay Oh Al Liabilities.

AA-0 -@o9~Asy 0CAoFeA ~ o6 d10ple TO
Pay OF Al Liabilities.
The difficulties of the a1echanics' National
Bank, and the entering up Of spndfy judgments
against Mr. J. Y. Scammon, have brought the
endorsements Of the latter gentleman, which
have been for long time the subject of street
talk, into the public prints. We sincerely ree1et
that financial misfortunes have oycrtal;eu oce
who has done so much as Mr. Scammou has to
rebuild md beautiiy the city since tue fire.
Probably nobody except 3Ir. Potter Palmer
has done more. Although constrained to crit
icise Mr. Scammon with some severity
in mora prosperous times, TIE T11n-
USE cannot view his embarrasaments
as anything less than cel.a.ity to the city with
which he has been 10 long aud 30 prominently
Identified Nor should We now allule to the
matter but for the fact that the very magnitude
Of his enterprises takes it out Of the category Of
ordinary business complications.
NE. ncAM.1oS's BAsk1Sa BUSINESS
is the turning point in the situation, and the
TACT that he is the President and principal owner
Of the Mechanics National Bank has brought
his aGAirB under closer and prompter scrutiny
dian they would otherwise have received Ar.
Scainulon has really been the head Ut u quadrl-
lateral banklug Institution, n,-coaststlIg Ut The
AecuAulcs' National Bunk, the Marine Com
pany, tue Savings department OF the Ma-
llue Company, aud J. Y. Scammon, private
bunker. All lnese Lanking institutions are in
the same building, anu uhdor tAs dlrect cuutrul
Ut mir. Scaloinuu. Iue A4rine CJmpa1y mar
norruw 1roul the Mecnacica' Aatoual. a.4d All.
scalumon troa. the Marine Company, and 70 On
through. Ike affairs OF one Lalk sie, tAere-
tore, suore Or less mixed up with the 4Ialrs IT
the others, eud tie condition ii all depends in
tue euu upon the cGlu1ton Of Dir. ScaMmoas
personal ILL ATS. Tue inst to be- exzaAueu Ii
THE MECHANICS NATIONAL,
a8 it is sut,Ject the rules the Clearing
Aouse a1lu the Comptroller If the Currency
turcu5n tie Iuc.4 Bank Examiner.
line actlun Ol tile CiearlA g-HOuse Association
up 10 yeotei day may be- ut4e1y tult- SOHO l1iue
:lgo, the EXECUTIVE COMMITTEE M, instructed to
iuycoug4.e 11e coua1llou VI the .AccAa4cs Ns-
tlunal, a:lu Ats Reports we're not fafullule. For
alxLy uaya lupto, euleut has been ul4.ue IN the
cuudlt4uu of Ihe oauk. Lie uAus recelyaule We're
reaured by very small amouuE the reserve
Fequ4reu Ny 1Au hAlluEa CURRENCY has
no. oeeu kept up; and lie Dusiness has 4aaler-
auv 1al1en uH- large proportion ol Tue a.pos-
IL, cuuuls4s Ut bauk4upL auu uu-t luuas, sllch
Lave HOT ueen drawn out, Lad c1ulI not ua p34d
un ueulanu- lie bank has met 4ts clearing e,11y
uay, LuG tnele nas peen L constant neEYvusaess
alu.ug tue Associated b4uxa mat 1t Light
uus been forced 10 ILLS extreme IS
cue III lart IL the forbrafauce of the
large LeDosstors. and Ill pars to ulo fact tnaE
v.1y IGN c.4ecaB ure dIa"u on tie Hecual1les.
oavtrhi vi tbs Leading p1nks, however, uaye Ie-
ruoeu To tA..e cett4uc. checks ua tue AecuAulcs',
ae SUCH acceptance WOulu tele.5e the ulAkc15 Ut
( he talecAs. aud utl,eie Lave td4sueu tue Elac-
Tux, o1 seuulnE The checks to lie Accha.lcs tor
culect1uu upon t44e4r pleoeusat4uu %1tuuua waak-
lll:, LIE c1easluG;s. 1no stAnu4uS VI tue bank
uus oeeu uucerta4u anu tesnle e't1 siuca <ue
patllc.
Iuere has been . growing sentiment among
the Associated Ba;li-a tu1. tney wee c4tT,4n< il
cuanY institution Ut Tie rl:k lAd - tie uett1-
.neu1 OF tie strung Lanks. 1t Was, tnafe1oiet
ue.erMlneI to luy4to tue liechanlco
TO WITHDRAW Fns,M THE: cLElRtN0-uousE
and " lorulai uut4i4:atlon 70 tuls enecs Tas
served upon tie Dauk 1desday By the Executive
Comuall.eo- Ill Ieepolse To 1u4o, -Af. s<:AinLoun
sent Il c<m -nuu1cltlon TO the Executive tuul4.E-
lee, tAe cAu;s purpog. Ut W14cn Ii not kuown,
DUE WHICH Ii bentled to have been request
tnAl tie Clearinghouse Should suspend ac.41u
Lew days, w4til i psonlae That Tie c5nu4.lOu VI
LIE bAuh suould te lulpro.ed Tlo E1ecutlre
COMMITTEE Aad this communication uuder
cono4uelation at Mee.lns he'd
ed nut to take the responsibility of either
suspeuulug tie bauk OF e2LeLulng the time, bus
tu l4uow t4o whoie ulAtter LUCK UPON tia Aseo-
clatlou.
yESrEADAys MEETING OF THE CLEARINGHOUSE
L. w4s tuls uecIalun rual lel tu = caIl iur =
Of tic Clearug -Auuee Assoclstluu, ,wtIch
was held 1t lta roons yeaseauAj a1Lefnoun Al /
u clock, WLep tue hublect WAS p4-aeuteu, buk 10
formal aGl1un Was taecu. 1Ae1e "as HI !utvrmal
vi tie "Au!e Auair, II mllcA t~o
I,uluLs were uotaIle: /. 4 p1epou1eratiuE heu-
Lluerr tnai the Arc1aulcs' 4>a.uual Blua ought
to WltnuIAw from tue Association; and, =,
lesilatuu Oh lLe pnit uI every one
10 take lie initiative. III bringing
ubout withdrawal. There was u hope ou al
slues that tue bank woull Aee4 the Invitation
10 wltAuraw alr=a1y issued, and tile Association
au jouruea until Que dsy ue1L week, leaving the
uu.4ce TO that effect to slAud- the situation,
then, Il snls Tue Mcchau4ca' National BauS ts
still o memLer OF the Association, but requested
10 retire. II it does lot voluntarily W4Audlax
before tic middle Ut next weeA, or dues not
make good its reserve, lt will prol'a-
bly, be expelled frum the Assuciauon-
1t IL due 10 tie Associated BAnkS OF tile CITY 70
say thxt the cou.se they have :aAeu was adoptea
with much hesitation and regret, and that taeg
hare entieavo1ed to keep the whole matter ~
private as possible. TAls conslderaiene+s nas
uecn suggested more by & seuse of regret anu
sympathy tor UT. Scammoua embAlrasa4nen
thu1. by anything e1ee.
TILE BANK E1AMNER's STATEMENT.
Mr. Alfred Sphinx. Goyelument Bluk E1auia
er, When questioned 1elaiive to the status Ut lae
bank. stated that he had not made an oxamina-
lion OF It's condition aluce the regular sc1ai"an-
1ual inspection last fall, pre7lous to tbe
pnnic that At that time it wns LII much better
condition tnan at present, as shown "
it's last statement, though it WAS tnen
about $50, Quo short OF its legal reserve. az.
Sp1iuk at that time caused the bank to better ~
condition. Since then the Bank Examiner nio
received no in4trucuons from the CompsfoNet
of the Currency to examine into the condition "
the bank nor to take Steps toward winding upna
at1a1rs Unless he 1eceIsed such instructions,
3r depositor made complaint that deposlfs "eto
not paid On demand, he could not take eny ao
tlou Whatever. The last statement a. pupnsnreo r'
recently would probably induce the compsfoues
10 require the bank to MAKO good It's reserve
within thirty days or to 60 into liquidation, ...
With regard to the assets, Mr. splnk saia .nas
The capital was $3.50, ,000, and the surplus rese1ss
$780, ,GU0 more tile amount due from Q otue. 10
banks was not over 5200, ,00O, and, hence, u ;oe
whole amount 60 owed WAS Que from the alA1aSe abe
Bank and J. Y. Scammon, private bankel, 10
depositors would still be secured, even SUPPLE,
ing that the Marine Bank and 31r+ scamsuA ~
failed to pay anything. The depo-its ano 10 10
serve were both dependent, however. upon .t'e IT,
lva,lable condition OF the collate1ala anu ~ r.
ability of the borrowers On call to pay up - -
was the opinion Of Mr. Sphinx that, "nen .a
COMPTROLLER OF the Currency should zee tno s'5 ish
statement Of the Mechanics National no "ooo
order special examination.