The evening times. [volume] (Washington, D.C.) 1895-1902, 1897-01-30
THE SCHEME FELL THROUGH
Emmett C. GibsOn'S Purchase Of
the Hammond Sanitarium.
A BANKS GENEROUS ACT
The National Safe Deposit Company
Was Obliged to Resu me Possession
of the Property and Assumed All
Obligations for Remodeling Work
by Local Contractors.

An interesting incident in picturesque
career was closed two days ago by the
sale under foreclosure of the Hammond
Sanitarium, at ourteenth and Park streets,
Mount Pleasant. The last act illustrates
the genei osity of the management OF the
National Safe Deposit Company. An cpl
code of the affair is the somewhat meteoric
career here of Mr.. Emmett Gibson, Of
the Mills building, New York, at one
time, and generally reputed, a large capi-
talist of Pittsburg, Boston, Chicago, or
any other old town he happened to choose
as his residence.
The sanitarium property was bid in on
Thursday by the Safe DeposltCompan for
the first III ortgage of $4,000, and win be
used as an apartment house. 1t is under
stood that half a dozen men were seeking
to rent it for that purpose within an hour
after the sale. 1t has already been fitted
up in elegant style for the purpose, and
that is where Mfr. Gibson comes in along
with the generous business policy OF Presi-
dent Snyder, Vice President zones and their
associates in the Safe Deposit Company.
DIR. william A Hammond, whose castle
place OF interest, and who was in war
time surgeon general Of the United States
Army, few years ago conceived the idea
of a national sanitarium for the treatment
of nervous diseases. He paid 81 $4,000
for the property sold on Thursday and eS-
tablished the institution. He employed DR..
Mahlon ID. Hutchinson as his assistant.
For some reason the place was not SO
great a business success as hoped for. DIR.
Hammond and DR.. Hutchinson formed a
sanitariUm company, and Mr.. Gibson ap-
peared on the scene as purchaser OF
large amount of the stock. The company
secured a loan of $50 900 from the Safe
Deposit Company, giving a first mortgage
on the property, with Benjamin + Snyder,
OF the company, and Francis H. Smith, Of
Smith & Sons, No. / AIS T street north
west, as trustees Later Mr. Gibson got
another loan of $4,000 ON a second mort
gage OH the property. This came from
Pittsburg, and in some way was under
stood to be furnished by Mr.. Gibson through
a company which he controlled.
A disagreement arose between Dr. Ham
mond and DR.. Hutchinson and they went
into the courts. The result was the break
ing up Of the sanitarium business.
Then Mr.. Gibson undertook TO turn the
place into an apartment house He adver-
tised for bids and let contracts to a num-
Der of contractors for reInodellIng the
house and fitting for its new use. The
work as pushed forward rapidly. All who
were interested expressed satisfaction with
the plans. Mr.. Gibson made q fine ap-
pearance, the prospect OF making q busi
ness success was flattering and the con-
tractors asked few questions
One day Mr.. Gibson wanted $500, and
got the assistance of one OF the contractors
in securing it. The time was short, and
when the money was wanted Mr.. Gibson
was not able to furnish it. The contractors
had some trouble over the matter, and at
last. when the little piece OF financeering
had been set right, their confidence in Mr.
Gibson's possession Of great wealth WIS
shaken. other contractors shared this feel
ing, and work came to q standstill. Me-
chanic's liens were filed in court TO secure
the none invested by contractors, but there
appeared a clause in the contract which
rendered it doubtful whether they would
bring it.. THIS was to the effect that no
money wouIdbe due till contracts were CON-
pleted. This added to the suspicion. and
there was talk that Mr.. Gibson would not
be able to pay.
At this juncture the Deposit Company
stepped in, guaranteed the payment of the
workmen and of everybody who had put
time or material into remodeIing tue house
The work was completed in the best man
ner, and the place made ready for use.
1t is understood that the Deposit Company
bought in the $40 900 mortgage also, so
as to save complications 1t was over the
handling of this obligation that Mr. Glib
son seemed to have broken down, but lust
what his relations in Pittsburg were did
not become fully known here
Having put the property in condition for
use, the Deposit Company foreclosed its
four bids only, running from $40 600 up
to $50, 900. In addition to this amount
the new owners will need to put out about
as much more to meet the demands OF con-
tractors. This they will do in a spirit
OF business ma agHaninIity, to save Washing
ton business men and workingInen who
have done the work of remoieEng At
torneys say they might have simply taken
the property on their mortgage, without
ness men say, however, that they will
make handsome profit out of the trans
action as whole. They get property
that cost S150, 900 originally for much
smaller sum.
Mrs. Beecher Failing.