, 1875-01-19
Suit Against j. Y. Scamm0n by Some
of The Stockholders.
Allegations Of Misnanage.
ment, Etc, OH His Part.
It Is Charged That His indebtedness
10 tflB Bank Is Too Great.
Fears Of Co1np1hinants.

by a number Ut tho htockLollers Ut the
Marine Company OF Chicago against tie
remainder Of the stockholders. bat moro
especially against j. Y. lcannon, tho tfcsi-
dent, who Ia charged with having grossly
| n,ismnnagnh thu Company's hhara, Thu
names Of tho compluinanB arc David Dows.
Solomon A. Smith, 1Ionry X. sbe!dot,. Ann 7.
Sheldon, George +. Stone, Daniel Gnderinll,
Daniel WilstH, Mary V, Willets, adu1iniy~
tratrix; Israel Sheldon, James Goodwin. e.
II. Searer, u. r. and C. II. scaver, Trustees
A. q. Perkins, C. O. Browster, J.. j.
Willets, II. N. Tsumhul!, EXECUTOR Tolman
Wheeler, Jerome I,cocilor, and Cu1liugton Ill
| lings. lilo complaina,ts atato tint they arc
! stockholders in the Marine Company, which IL
| bank, having a nominal capital Of Il, ,0liv.tuD,
| divided into 10000 shares Of $50 each. Scam
| mon las claimed to be tue owner of more than
ono-haff tho stock, aud has controlled the Eatne
for at enHt ten yeafB past. During all that time
| thpro hns been
No MEETING OF THE arorKtoLnsns.
to ti.elr knowledge, escont ONO on tho
4sll day Of n1ay, 1874. bnt Seamnon
praourod several persons TO nct an
Directors, who were greatly under hiB control.
and who lad really no interest iu tue Company.
| ln particular. Charles L. Ebert, clerk of Scam-
mons, bought no.ninalIy twenty shares, giving
hianota ortllenl, which Ii still unpaiI andy yir-
| tue thereof hctcd ~ Director frun April. 1871
until April. 1874. John ForaytLe acquired u like
interest in like way, aud acted as Director from
July, 1861 to April, 1874. y. y. ItogerH, also by
the power Ut twouty Hllaros. has also enjoyed tho
otlico Of Director for about ten years.
TIE nAsE, UNDER gcAMMuS's MANAGEMENT,
It il charged, has been ruined mud a. prcscn. n
great part uf its asseta couHistH Of dehtH duo it
from him. lIo las kept private account tlcaig-
| hated AZ ~, y. Scatnmon, Banker," which he
has largely uveldrnwn, md kept tt ovcrdrawn
for hevcral years, the amount duo from linn vary
ing at different times, and at one period being
over S200 600. In May last it &124. .5i9.-
G2. nnd Bince TINT time 1t has largely increased.
But this Ia only small part Of
HIS NoHnnw1Sa.
Ono hundred and five thousand eight hundred
dollars las beon taken ns "cui ioan," but,
though the Secretary has " chilled" :" several
timeH, Bcammon has uttory failed 10 pny. but
persists u getting an additional loau. Then,
in addition to hin private hccount aud
call loans, the President llas borrowed aG8,O9O
in tho following "ay;, sennmon ap
propriated Ss1,47U, and deposited as Sc
cnrlty 0ia shares of the capital stock of tile
Mechanics National nank. Of this amount,
3l2,333 has beell repnd. Home time after,
Schmmon took back tbs whole Of the stock. leav-
ing Lis debt wholly unsecured. Tho complain
ants Htato that Scanmon liz now
| GREATLY EMBANHAssED.
[ and that tho Company iB in EreAt danger Of loE-
ing its ciatrnH. as there arc Judgments against
Bcaumou to the amount Of over 500, ,U10. It is
no1t charged that in and prior to October.
ls52, Bcamn9n had .dsahoet iarge
| at the titno above moutioned SeasuInun. without
authority, caused an entry TO bo matte on tho
books Of the Company against 1lonora Of &1a4,~
4G9 76, and the Yalue aulount to be erptaited TO
/ 1,,1rh md
to the Company, to alHo turn over to 1t a large
amount of property WHICH Honoro had co1lyoseJ
to him as security therefor lie then appropri-
ated this amount to his own Nse. Comp'ainaMta
say that this debt iB not collectAblo against
lIonors, but belongs to scamn,on personally
aud has noyer boon raid.
In 1860 Eugene G. Long and 9: D. Pevcy
orty were ongpKoa i'll tho busiheas Of manufac-
turing matches under the nn1no of Tho
E1ECTN1u MATCH o.rAyv.
bslng In need .s OF fu,,ls they applied to hlr.
OF about $70,000 which llas been lpAt to tho
Company. Long was at that time Treasurer
both OF the Marine and Mattel. Companies and
Scammon must have known, it in alleged, llis
pecunary condition, In fact, complaunlts aro
Of tho opinion that Hcatnnlun had all interest In
tho Alatch Company himself, aud thorafore, waa
moro inclined to allow Long to draw tha banks
funds without giving security.
lu tie next place it is charged that Mir. scam-
mon lao gnnoto
| TILE SAVINGS DEPARTMENT
Of tho Marine Company. aId appropriated a
seain1non borrowed from The AMet,cnn E1-
change National Bank Sl5O.0u0 without author
ity, and gaya larEe number Of pEomissusy
notes belonging to the tho ba'k ~ ascsnrlty. Iha
1afuaos to surrender thonl until tho loan il re-
rnid. The transaction IL also characterized as d
fraud.
Ia Anril, 1872, scn1nmon aud tho Company be-
| Inn bf,tL phart n ehh11ra fita fnru,hr ilAucH A
circular inviting tue stockholders to
ruT MORE MONEY INTO THE BANK,
and showing III a. very lucid nannor what elo-
rlous tuturv WAS in storo.for thntn ii they would
only put money In the bank. NoE content with
this, be lsaued glowing advertisement Of tho
return Of the savings bank to lta old quartors.
rsr,qual security for sayings and trust fan1s
stock, al.0o0.0Do branch oflloo, A. 10 Scamtnon
court,' etc., etc.
but tho si,arpest grievance OF complainants Is
that, by tho charter, stockholders in tho Compa-
ny arc, ~ to all funds, deposited iu the savings
= 'l''' N' 1sp1stpuA1tiv LIABLE
for tho amount OF their stock, cFen for six
savings department il yet oI,ol,, a1M the coul.
plaiuanss shudder as tley think what further
sutns may ba depoaitod tu its capaclous suaw,
uoinE back, tllsn, feW yenrB, 1t IL charged
that in 1865 tho Company owned
VALUABLE r1ECE Or PROPERTY
IN Hyde Park. In July, 1864. the Company bv
soammau President, conveyed this property to
Maria s. Heaalmou vito OF J. 7. BcalnlDon, for
tho nominal price at s20.D0O. 1n Huntsnbcr
following al account wss openod with Msa.
soammon, wllen she uas dooitod With lilo
$40, 900. This daLit was e1tnguished IN May.
1865, by. credit Of ,,sao,ooo, md .
corresponding dehis os the ea.ue aasount
to the accoult OF ]. Y. Scaiuluoi.
1nasmuch hs Bcammon'H account MAS largely
oyerdr&wn when this additional weight WAY
thrown In. complainanss are decidedly sseptical
about it ever batug mada up, aud therefore ask
tint MrB. Hcammon may bo compelled to recon-
vey tho property. as tho money OF the corpora
ton taa taen exhauasad, Aud Judgments hara
baen rendered agaiust it iu favor OF angry de-
positors,
Ccmp!aiuants then allcSe. In
| GENERAL TERMS. .
that tho bank could pay itH debts In full II
sca,umon would only pay Ills that .ts charter IL
valuable, ~ is alHo ita real estate, though In
numbered. They cannot bring. suit aAais's.
kcRmmou In tho name Of the Marine Company