, 1876-01-07
THE MECHANICS NATIONAL.
Tho Latest Event In Its Troubled
Existence.
Indictment OF J. Y. 5can1mon and
J. S. Rood.
They Are Charged with M;sa9pr oprlat-
ing tho Funds Of tho 1nstf-
tuition.
Tho Amounts Alleged to lIn1o Dccn
Taken by It's Officers.

iaken IT Its UEieerS.
Tho lightning which has been threatening
some anauosa parties la this city Tor long
time hnck tcems TO havo struck it, IN unes-
ptctod place YESTERDAY. for Tho Grand Jury In
Tho United sta.os District Court yesterday u,oru-
Ing to.urnol Mtp Court four indictments, two
agalass Joseph Sampson nood, formerly Cas', or
tthe Mecllauica' National Hank, and two against
Racd and the lion. J. I. BcA,nnlon, who was
President OF tho sAtns bank at tho timo Heetl
was Cashier.
From what faa been u,iear:hod during tho
past two yeats In oo.1nor.on With Alr. soatnuoa'a
connections wiki the aIutuhl Security Inautauca
Company, DOR IN bankruptcy, With tho 1lochan~
lea National Dank. now III voluntary liquidation.
With tho Htruo Company, also do1unct, aud witt,
othes corporations, 1t sean,s that acamtnon for
about soseu yeara had nearly tho full control Of
tt.s Mechanics National Bank. lie uaa aided
aud uaaistcd b7 his aon-tn Law, Joscph $. noea,
and. as iA churgod by = bill fled 1aat September
by lloury L1gttner, tllov managed aEfairs alter
thoir own liking. Sca.nnou, 1t idal!cgo1, ra. Wp
dnbts TO the amount Ct over s4a5 0oo which fro
charged to hla aeconhk on Tho books OF tho bank,
md Heed waB nlloM etl to withtlraw about 30 0DD
md invcst 1t ~ !o pleased. for which ile gaye
little or 10 snrurity. Mr. sc1mmon also soetns
to hnro ut ono stmo bought eono salu ,b'o prop
oEty for Ills wife, which Was paid for by being
charged TO her. Tho slastno Company, nlso,
hnutncr banning institution indor alr. Scam
mons control, wna drawn ill., md accoulltA
changed from one to nnothcr, acoatd.ny to tho
Respective nocda Of each institution, until both
succumhod.
TIE METROPOLITAN NATIONAL DASK
OF Now York alsn sacr1a to have HlfTarcd from
tho tnjudiolnus bocurisioa ta!sen by alr. scammnn
aud turned oyot TO It, mud IL amentfng tho loss
OF ABOUT 9l2o, 600. Its Pfosdene however.
ststoa somo limo ago that !lo thought tl.s haul:
would not suffer any lo4a. as 1t lad Dir. Scam
nous guarantee.
The par.ses who havo been inntrumcnta, In
procuring tloAo Indictments against Messrs.
Scsm.non aud Reed aro without doubt tho atocls-
holders and depositors, who lind themselves by
thclr uullmltol ttues non depriyedof thoir
earnings. or mato liable for dobtB nno loasoB
which were unnecessary,
Tho charges on wh4ch theme indictments nro
bnHod ar0 exactly tho Ban.o rs those But forth LII
Lish.ner's bill filed Ill tho Citcuit Court last
yoas, tho only difference being that tho nllsgh-
slonH ara little moro specific In tho civil than
il tho criminal proceedings. It is told 10 lilo
former, for instance, low tho money alleged to
Aayo bsen frauducnt}r takcH from tho bank vas
squanaere1 in 17erai,!o stock and in various
othor wild and unsuccessful spoculstions. Thoto
during tho lat Two venrs relative to Mr..
Scamnou md Mr.. llcod. aud to tue aGara
Ct the MortEnso COMPANY, liyersxlq, tho
HOUSE, fuie' tho con"catssat Iataa, Lifo comaanS,
and number Of otEior Institutions, That 1t wouid
bo surprising II tho psoaent suit adds anSehinE
now upon thu Bubjeot. Tho faot Is that tho
S2 s s ploSabv f1 s ey iii be nnsSd e
obtain much, u eusthin3, and have therefore
resorted to tho Criminal Court to aes II thoy can
expedite mattnTa. Ne.thor alr. scamtnon nor
probably III Wow Of the small ball tin: no oNo1t
will bo mado to do 80. They will bosa appear
today and surronder themselves.
reporter called yesterday eraulng at Mr
noeas house, but. sa 1nht tho caso during tho tour
or tlyo oehnr aottons. when Iepottor hos called
upon him after tho lliug Of . bill, ho was tnylR-
ibto.
Ont Of tho quar1ss Of indicsmenss tho first
ono picked up was found to be HRaindt
JOSEPH BANrBoN REED,
and tho allegations were that ha wns Cashier Of
tho MechRuica' National Bank nj OF data Jau.
q, 1871; that hs had at that time In bis
cnatoay a1 contro o. py yr.o OF ~ VII enoS e money!
that ho did tnisaapply certain s20. .0a0 Of taid
funda unlawEuily aid willtuliy, without tho Ru-
thorty OF tho Directors Of tho bank, or any otlor
authority.
Tao second count in the same Indictment al
iogeH that Hood embczxlod tho above mentioned
sum Of S:0. O0D wi., intont to dctraud aud lDilre
thy banltlng institution.
Tho bull under this Indictment was fixed Ut
$500.
THE SECOND INDICTMENT
is also against Joseph Sampson Heed, aud nt-
Ieges that while ho WIS Cashiss, as above stated
aud On tho 2ai or January. 1871. he un!aNfully
aud wltfully misapplieu S70.010 Ut tho fnRus Of
tho banl, with iuleut 10 defsAud and ,uju1o
tho illatitus[on.
Tho Booond count alleges that nool nsap-
pIled 3B5, ,B9l ,G5 by uniawfuly loaniuE To him.
Aef, individually gai,i Bum With0nk any author-
lily. II is alleged That tf,n grnss aim nan,ed WAS
tnndo up ot nceuun!B under tic following namcs
III :5os T. Ill., assa n::l SisIm
1io&d & d39tt.tt
And That nend know that ths loun to hunsolf
WAS excessive aud nninwfut.
A,otlor count asaerts tint Rned put upon tho
books nn account for his own roraona! nod pti-
vate ckpenAcu, aud TINT 1t amounted to Male
than SJ,tuu. All lhia vi 4ato Jan. o., 1all.
Aud It liz fnrthnr alipsel lin. AZ regarded the
sum OF %J,0uJ, itcci ordered TINT Il DO car,iul
on q memorandum ~ Cash. aud not put al'on.tho
booXa.Hk ali.
Anotnar count alleges shat Reed ombczz!ca
$7'k01D IA OF tito daIuo dato.
Tha bail uuIer this indusnont Is also fixed as
$500.
scAHNoH AND nEEp.
Tho third lnd,c'.ment-a JOINT QUO ncainpt
Jonathan Young Scannson and lotoph Hau1usun
lsced-reeltcs tilnt Tho former aas Iresiuen. u
tue Mechanics National BANK, aud that Iced
was III CasA1tr TINT si,ey had in taels chasAa,
u.oncys. tunns. Ana credits 70 the au,onl,t nf
$3.50 900 tl,at un tho 23;i Of January, la7I, tho
Dank waH Indebted iu tho amount Ut sli90 0o3 to
tho Metropolitan National -laut1 OF Now York
that A. tue Sumo tllno GtAtftulon NAa personally
Indebted to the nkme bank IN ths Hum Of 49,
6u0. hnd that Aeod Was Indebted III tho
tnskor nj d noto-aud B:aMmon Us its iudorsar
TO lhe Hanle bank in tho sum Of 4l5,01U Tint ut
tbs samo ttme benjamin V. Page. who had
heretofore boen E,cu-ptosldent OF the .leoi,an-
to- National l}ank. Was lnlsotol as tho maaes
and acamtnan III tto lpdorsor uf a noto IL tho
pnme I2nk IN tho sun. OF Ei5,CG0. Tae total
u,nouut ot tho ttroo pgo:nissnry notes uns
$47,U0D, no pait OF which the Mechanics Bank
waB liablo for; that soamHon ani itoei. ns
otilcora OF tho bank, did III i.s behat mike fifteen
amounting to aiUl,0o0. which thcy ou the sanlo
day delivered hnh guaranteed tnoIr payment to
the Metropolitan Bank. nnd cortaln othsr certlh.
casea mada in favor ut the Meshau!cs' Hank BY
tho Marine Company nf Chesgo, 1hssa olheE
certificates wcro tlftoea in number. and cover