, 1875-01-01
Mr. MoOagg Abandons the Thank
less Task Of Extrioating It.
What Can Be Learned About
Assets and Liabilities,
Mr.. Reeds Share In Their Troubles.

previous, aud unanimously resolved to 60 into
voluntary liquidation. The announcement |
created degree Il surprise, notwithstanding
tho fact that tho public lad long been aware Of
its feeble condition. - Tho bank Was Organized
somo ten yearn ago. under the general banking
Law. From iss organization, tho ability
Of iss managers was diatruBted, and from time to
timo it has bad to bear up under the greatest
financial distress. The institution has edged Its
way along. however, its changes Of management, !
ttrat,Ge to aaS. having largely contributed to |
Establish It in confidence, Following the great
fire Of 1871 tue bank suffered
ITS sEvEnEsr TRlA1s.
which MORO nlloviated BY tho doubtful policy OF
borrowing from to pay L, aud from to pay |
4. Tho 3Iatine Company, which was doing =
savings banl: buEi1eGs about that time, came to
its rescue, Tho ot1lceIa Of the two institutions
having common interest. This help, 1t appears.
ras Inadequate to Hustain the Mechanics Eank,
but sufficient to kill tho Marine Com
pauy, which, 81! .hings considered, vaa
a fortunate deatl. Other means Of
auccor we're rcsortod to, availlug nothing, how
ever, except to increase tho difficulties OF the
bank. This wan while it was under the manage
ment Of J. Young 6canmon, President. The
debt under this management loomaa up to about
sG25.000, While the asscsa were less than $780,
600. Notwithstanding the real insolvent coudi-
tion Of the concern, b. hook or crook its hetd
was kept above waser, and III vaa made to appear
to tue public Is being reasonably sussese{ul. On
tho 29th OF January, 1871, o meeting Of tho D-
roctors was held which wae matter moro Of
necessity than pleasure. The sltration WAS
thoroughly canTaescd and
A CHANGE OF MANAGEMENT
9gseed IT, y D. scasf vs. ss,es esssd led
fused new life into tile bunk. but it appears did
| not carry it on to victory, unless tile word IL
robbed Of ita ordinary definition. "Wednesday
! ANOTHER MEETING
/ OF tho stockholders waH held, aud also OF tho
Directors, called by the PFesident. There were
present nt tho meetings +. i. NcCagg, D. ".
i!aYlnond. ]. Young Scammon. +. VI: Palmer,
1lerTey Lghtncr. md J. >, Herd. The sltua-
| lion was Rsail discussed. Experience was
claimed to have been dear teacher to most OF
| them, when at the suggestion OF Atr. MecRsg
it was unauimouhly resolved to voluntarily 90
| Into liquidation.
At q subsequent meeting Of tho Directors Mr..
11cCagg resigned tho Presidency, and Mr. Her
voy Lsghtucr, OF Peoria, Was at onco elected to
| fill the Office. ...
~ s0o, as tho announcement raa made yes
terlay that tho bank had goue into voluntary
liquidation, reporter waited upon
at his res'dence. Tie gentleman was found re-
cinng upon = lounge. III almost as feebio con-
dition as tho bank over which lie had for d Jaar
presided. lie anticipated the object Of tho visit
Ia moment, and broachcd tho subject Che
following statement WAS secured, which vii DO
accepted az defense Of his management ualy
On the 1st Of February 1873, reluctantly &C
oepted the Presidency Of tho Mechanics N17f.
found tue liabilities to be s400, 900. over and
above The ovor-drafts On the Metropolitan 1lAus,
which had been led to believe were not over
100000. Tho assets wero over 5GG0, 900. After
had becn in the Mechanics Bank awhile. l
found that tho bauk had guaranteed certificates
Of the Marine Company Bank to tho Metropolis,
tan Dauk OF New York to tho additional amoun:
Of SlaU.000. ali Of which would become duo in
one, two, and three years. TITO first inssailulcnt
was duo January, 1876. then set about e1nnin.
ing tho assets, which was aouo with great caro-.
fonud the assets generalt' OF yeEy indifferent
character, many Of tl'-m worso than could
possibly haso suppoaed. I have been. en-
ahlel, however, to reduce the indebtedness
, from over sl00, 200, exclusive OF tho e22i, ,0v{
certificates, to about s7U,000, and to place the
remaining assets III as good condition IS pos
sib1o for tho ultimate payment Of the remaining
debts found the bank holding
LARGE AMOUNT or REAL ESTATE.
: mostly incunborcd with unpaid taxes, aud inter
: est constantly aecruipg. waa in hope th'
! timch would grow better, and that could Sc!
real estate during the year sufficient to meet th
| remaining :7o. oUs) indebtedness. have offeres
! tho lands OF tue bank in aud around the city at
ruinoua sacrifice. Ill order to make provision 10
8 the Metropolitan Bank debt, which was mos
!, pressing but hayo not aucceeded in solinG. ad
Yscl tho stockholders Wednesday to 60 iuto vos
urtary liquidation, Which 10 me seemed the M1ses
course. never had but u II 900 interest in th
: bank, and, under the circumstances, mas iii
+, willing to take upon myself the further manage
= mcnt bolIeye the abects will pay tue 0obts Q
| tho bank, but Ito stockholders will DO wipe
. out.
. In q conversation following tho above state
. ment. llr. McCagg refuaed to give any fnrthe
:. information bearing upon tho case, other thai
: that -
; THE ASSETS or THE INSTITUTION
amounted to atont ai50.00o. lie would nay nott
ing cf the stockholders, and refused to give th
, | clasactet Of tho bills receivable.
! NIL. HARVEY LtaHrNEH.
the Preeident-eloct, whose duty it il to lqudat'
= was uoxt called upou. He vas not rrorared {
y make statement of the condition OF tho banl
= ILe know nothing, and would say nothing, h
y y lips being apparently locked. After grcat del
= | of iabor, however, tue gentleman made soH
s !, ntatcments, which are appended, and which vi
l. astoniph no one moro than MIR. Lishtnes. who
j., sca1cely aware that ho aali ANYTHING:
- Reporter-What Is the real condition OF yos
+, bank?
Mir. L.-Weli, hardly know. mora titan th
it il III voluntary liquiaation. Now. seu. ! can
~ home only yesterday aud am only the l'sca1dcl
~ Of day.
- TIE LIABILITIES AND ABsETs
,s Mr. L.-Part!hllv. The, liabilities, coveri1
the deposits certified checks. sna zee accounts Wit
other banks, amount to about SO, 900.
Naporter-ls s70oo0 all tho bank oWes?
Mr. L.-Among tue bills payable ! fit
el94. .000, for which the pastles have ample re
estate security.
It Reporter-Your assets7
ID Mr. 1.-The bills rcceivabie amount
il 5000, ,000, ...,
y. l.cporter--Wllat is the nature Of the aBeots7
MF. LII must be excused from stating an
tl..ne now; when tbs tln,o COMES will giyo It
st puLlic everything. will cay, though, nt depo
itoys will bo secure; and you eau tnEtaor u
thst they pood not lay awnko nbo4s their mone ~
tho Stockholders, -.
10 ReporteE.-ls Mr.. scammon OF air. Heed Il
to debtea to The bauk? ,........
- y aIr. LII must again scfnse to answer. ~ II
- bank-cfllcer would. .
d, neporter.-Aud you positively refuse to gi'
any doA OF the assets?
Mr. L.-Yes, siE, anything more than alFeae
4, mato tho worth Of anything il hazardona..