The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-30
BANK FAILURE AT PHILADELPHIA.
Funds of the Shackamaxon Bank Loaned to
Two Firms, and the Concern Suspends.

PHILADELPHIA, May 29-There was an early
morning sensation on Third street. to-day, when
the announcement was made that the Shacka-
maxon Bank had closed its doors, its accounts
having been overdrawn to the extent of 300, 600
In a very short time crowd of excited, noisy,
anxious and angry people gathered about the
institution. The bank had o large number of
depositors. Not only the largest carpet manu-
facturers were customers. but also butchers
and drovers, and all the small shop
keepers for mile around. The late
VIM. Bumm, salt importer, who was a
leading politician, and who for years represented
the Eighteenth ward in the Select Council. was
the originator of this bank, which was opened
about ten years ago. Ever since his death.
little less than year ago, the affairs OF the in
stitution have been the subject of watchful con-
Germ on the part of the officials of the Philadel-
phia clearing house. and more especially of L.
B. Cummins, president of the Girard Bank,
which institution made ali collections for the in
solvent bank Mr.. Bumm practically owned it.
Thomas L. Huggard was nominaly the cashier,
but in reality the clerical drudge Of the place,
doing all the routine business Of the
a bank, keeping up the ordinary m.n daily
his own affairs with a sort of exclusive
care which precluded the possibility OF any one
else gaining an insight into his peculiar doings.
Bumm's successor had assumed control, and the
accounts of the institution could be overhauled.
very critical state of affairs found to exist.
On Monday the auditing committee of the board
of directors met at the bank for the purpose OF
examining the accounts When Cashier Hug
gard was called upon to explain certain matters,
it is said that he was taken suddenly Ill, so
seriously as to alarm the gentlemen present, by
whom he was removed to his home. The di
rectors, however, succeeded yesterday in
discovering that large sums Of non
ey had been obtained from the
cashier, of which they had not been informed.
They found checks indicating that William
Bumm & Sons salt merchants had obtained
the sum of $1l5, 900, and that Joseph Conklin,
having no account whatever in the bank, had
obtained $S8 600. The aggregate deficit discov-
cred was $203 900, or $50, 900 more than the COM
bined capital and surplus of the bank. Upon
the discovery of these facts special meeting of
the board of directors was called yesterday after
noon. Mr.. George Bumm, who is . member OF
the board of directors, and also a member of the
meeting. and made statement, In which
he pledged the firm as liable for the money
which it had drawn, and in consequence. his at
torney confessed Judgment in favor of the bank
for $115, 900. The directors unanimously, near
midnight last night, resolved to suspend, and
accordingly, at 10 o'clock this morning.. the
doors of the bank were not opened for business.
The stockholders, it is understood, will pay off
every dollar of the Indebtedness. In addition.
the directors themselves it is said, have $780, 600
locked up in the bank, $50 600 of it having been
deposited bat few days ago. The bank was
made one of the city repositories last June, and
the city had deposited in the bank about $40 600.