Marine Bank - Chicago, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: September 28, 1873
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: b4e599d9

Response Measures

None

Description

The articles describe the Marine Company/Marine Bank ceasing to pay depositors and being virtually suspended beginning during the 1873 panic and explicitly not paying depositors by Jan 1874. Subsequent 1875 reports show creditor suits and motions for a receiver, indicating the institution remained closed and was being wound up. No discrete depositor run (as a separate event) is described in these excerpts; the cause is tied to bank-specific insolvency linked to J. Y. Scammon's troubled personal finances and alleged mismanagement.

Events (5)

1. September 28, 1873 Other

Newspaper Excerpt: MARINE BANK ... was ... doing business ... heavy ... President ... would keep paying ... they would keep paying on paying. ... the bank Scammon ... 'the Marine Bank' referenced in context of confidence during the panic. 'The MARINE BANK, presiding ... was the ...' (OCR text fragmented).
Source: newspapers

2. January 23, 1874 Other

Newspaper Excerpt: If the Mechanics' National shall be thrown into the hands of Receiver and the Marine Company shall be forced to close its doors altogether, the effect on the banking interests of Chicago will not be serious, since the situation has been well understood for two months, and the banks have taken steps to protect themselves.
Source: newspapers

3. January 23, 1874 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank stopped paying depositors after the panic; condition attributed to ties to J. Y. Scammon's personal indebtedness, mismanagement and lack of funds.
Newspaper Excerpt: THE MARINE COMPANY has been virtually suspended since the panic. It is not paying its depositors.
Source: newspapers

4. January 23, 1875 Other

Newspaper Excerpt: THE SCAMMON-MARINE BANK CASE. The motion for a Receiver ... against J. Y. Scammon, the Marine Bank, and others, came up before Judge Farwell yesterday. ... postponed the argument on the appointment of a Receiver until a week from Monday.
Source: newspapers

5. February 19, 1875 Receivership

Newspaper Excerpt: C. V. Dyer filed a creditor's bill against the Marine Company of Chicago ... Complainant ... states that the Company has ceased to transact business, that it is largely indebted; and that a portion of the stockholders have begun suit against it to wind up its affairs ... asks for an account discovery, and the appointment of a Receiver.
Source: newspapers

Newspaper Articles (5)

1. September 28, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 28, 1873

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obsorved, and and officers First National expressed Banks, the were completest horo confidence BANK OF COMMERCE/ its readiness in the futuro. THE NATIONAL Friday, declared banks suspended whone on offier its perfect Holvency. by the resume the ini iativo, and asserted had not but been diotatod forced by course the same financial Union National. Their desolation suspension of their views vaults, that had directed the NATIONAL Groopebaum, of the its energetio THE GERMAN President paying and Mr. believed receiving the ex- to keep were and doing and business, Mr. Ho intouded as citoment usual, on with would his quickly business as herotofore. BANKS. low SAVINGS AND SAVINGS PRIVATE excitement. INSTITUTION A THE CHICAGO of week and no indications calling during withdraw the their presented bad been their intention to Others giving notice the end of sixty days. satisfied persons at explanations, of departed, President, camo, that bad Mr. balances getting sale. THE felt he and. money was despondent. and He had the contheir Yunge, was not doing, his duty, favor of free banking as against banks were free appointed done, sciousness and was of it. United Ho was Statos in they bonds, should as in be by former over- the be times. hauled If by Examinors, He believed there and should the have Lest be for the over the urvaillanco but n general up all some way paternal Government. would check, well some off. control, Government like locking institutions. distrust to in pro- The the the country and was every one There folt was no floxibility by law. Thero reA money vailed, they had. present managed by which to currency as devised at some means in times logielate of need. for the should bonds be for Congress currency No to ono could avalancho avoid doom special BOHBIO Do of convened. When an out of crisis to the course hove to in eight it way, and to lio down. MARINE BANK, presiding on bowing camo should the safest when emergency a tornado got goddess, was the the which Mr. about the same far from being At the far was bottor of doing Scammon THE was is the Jeisuro. business Judy as heavy. box, ovil day before, which bad pleuty of of Punch and bird of The of clerks the bank Scammon is a sort roosted questioned like than him '57 that or and where, Mr. and told those "bust who worse comfortor, and to omen, thing was He patienco was a poor of Job united rethe free was mecknuse banking stumptail overy waiting. times. with of MOHOB, the for law. Cougres He desired lief, and session a HIDE of AND made BANK everything kindly and special was visited, THE talk. and Mr. Thoy would Grey were keep paying on paying. hind HO much They did encouraging and fixed. and their nover assets. Ho were never in in Congrer tressional and, like any curo currency not at all hazards proportion faith well disonso, to pormanent interference. other take unput was any a financial be no the crupt (on relieved This disease, there itsolf could out. when Let entirely a lasting be- retil it work rked the patient, experience did not was place, matter, curo. The there would of bad and and a performed would wealth He and country to-stricken. and liof lieve in violent It was ankers full of were not short amount time, of Everything be all right. no trouble was would needed if be virtue. was Horono a KEAN moderato in and anJob's all business yesterday inning in the received same were doing their regular intontion of formation David Preston WAH & day Co., in yesterday nounce which course had firm of had ponded resumed for one business its of Detroit, Havings ironowed departments. HIBEINTAN RANK to dilate further upon. Satisfactory. with furnished no could givo no was pointed to botter and of coming The than official that their The business indications.ru week, the aspect Bil+ things times in was bright. THE now. FIDELITY Quietners good. reigned the Ho opin- was Duoyant we have to moud. BANK promo, presented and and nothing Mr. cheer Haines ful, seen and the folt inclinod worst, to and things as ion have that already THE the INTERNATION business B. reasonable. Logirenth Airenthal, its tomers wayn interest He ox- he finds is usual. conducting the his opinion President, was that to very Net the permicious, considere red of the that panic. and the bo abol publican coured pressed 011 call should articlo deposits vious Land to that He immediate to mediate do oblication with rush were by coun- getTimes banks provious The was their funds. ting to INSTITUTION, new of of the city nothing what through try and THE its President, nature to decidedly bad report for had decreased the waH, betwas for withdrawal of mistomers The rush indeed, an believed The was intlar nicely. STATE articlwithdraw light Ho compare change TERROR nn tor. very Saturday days of the at Inst. have One naturwith for! provious been Bank the other its banks, business is tho the run than was of that why considerable. State Savings too, struck that week. should that ordinary tion and Bay- the ally a simp imple as largo as consider account quito the very ton times Taking is paid ing by in bohavior intime etc. about bank banks. has no of less the The of than Prosidone International gonora of much the head ull-lines Bank to do the publication Times bad, trouble, AND THUS COMPANY ac- rethe the present GRANTS' LOAN The against orcausing WAH going cons MERCHAN unidorably ahcad stated smoothly. that loss 40 checking conside BANK and the of counts, portod and allaying. SAVINGS The Pros sident compact Gitement WAS THE RECURRENT as onter bound into the thomas oxerois found institution banks upon is not to his pay judgm mont been long was this by, which rolbon most of having the out the not application stationfoots notice, given The not of of Bay. much bank, panio. troubled not THE with BANK fow OF CHICAGO than had that illiora . of the WAS at & stand-Fairal but further MONTH firsttouor class of itw way. THE GERMANIA dowill and paid and oash, received was is notico bothing understand earthquako to THE BANK can and year or nothing it from BANK short the koop oven. on Log go. DANES OTHER and to about, write visited furnished

2. January 23, 1874 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, January 23, 1874

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part of the citv and south of the city limits, and also in Hydo Park, but all unproductive. THE EFFECT. If the Mechanics' National shall be thrown into the hands of = Receiver and the Marine Company shall be forced to close its doors altogether, the effect on the banking interests of Chicago will not be serious, since the situation has been well understood for two months, and the banks have taken steps to protect themselves. The principal inconvenience will fall upon those who are waiting for the distribution of bankrupt -funds, and those who have deposited in the savings department of the Mariue Company. The bulk of Mr. Scammon's personal debts are amply secured by mortgage on his property, and it is to be hoped that it will not be necessary to sacritice the property at a forced sale. To the credit of Mr. Scammon it must be said that he bas b.n 0 his trials thus far in a very philosophical and becoming spirit.

3. January 23, 1874 Chicago Daily Tribune Chicago, IL

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van age of that permission. It will be remembered that at the meeting of the creditors of the United Security Insurance Company, held when the first dividend was declared. they adopted resolutions praying Judge Blodgett to order the Assignee to take the funds of the bankrupt's estate out of the Mechanics' National, which request was refused. The wisdom of the creditors application is now vindicated. Another dividend was to have been paid next Monday, and perhaps may be: Register Hibbard was informed quite recently by the Cashier of the Mechanics National that it would be paid when called for. RESOURCES. The last statement of the Mechanics' National showed less than $40,000 in currency, or about one-third of the reserve on capital, surplus. and circulation demanded by the National Currency act. There were other cash items" amounting to $25,000. There is an item of $201,000 due from banks and bankers, and the presumption is that a very large proportion of this due from the Marine Company, or from Mr. Scammon as a private banker. THE MARINE COMPANY has been virtually suspended since the panic. It is not paying its depositors. and has endeavored to settle with the most importunate creditors by giving Mr. Scammon's long-time paper, secured by second mortgage on some of propcrty. The condition of this institution reverts in the end to the condition of MR. SCAMMON'S PERSONAL AFFAIRS. How much and how soon the several banks banks controlled by Mr. Scammon will be able is pay can only be determined by the availabi!ity of Mr. Scammon's paper. Mr. Scammon has been treated with commendable forbearance by his creditors, and we understand that they are not disposed even now to press him if he can show a reasonable probability of going through. From trustworthy sources "e learn that Mr. Seammon has borrowed upwards of $650,000 by first mortgages on his buildings and real estate. Before the fire, he was estimated to be worth at least $2,500,000, with an income of over $100,000 per year. The fire swept away his productive property, leaving him still rich in real estate, though not in income. He has expended about $1,000,000 in rebuitding, but his choice of locations proved unfortunate, and he received little in the way of rental. It is the belief of gentlemen well qualified to form a correct judgment in the matter, that Mr. Scammon will come through all right if be is not pushed to the wall, and that the anticipated improvement in the tone of the real estate market, if it comes, will put him fairly upon his feet again. Others, however. are not 80 hopeful. A MORE DETAILED STATEMENT It is known that Mr. Scammon owes the United States Mortgage Company the sum of $220,000 in gold, secured by first mortgage on some of his property. The interest on this sum, also payable in gold, was due Dec. 1, but not paid. Notice was served on Mr. Scammon early this week. by direction of the foreign and American Directors. that. if the interest is not paid by the end of the week, the property will be advertised for sale under the mortgage. The exact sum which Mr. Scazimon owes the Connecticut Mutual Insurance Company is not known, but it is behaved to be in the neighborhood of $400,000, and it 18 also said that the interest due some time since was passed. These loans are also secured by first mortgages on property of a value largely in excess of the amount of the mortgages. In addition to these main items, it is probable that Mr. Scammon owes at least $200.000 to the Mechanics' National, Marine Company. and other creditors who have advanced money on bis notes or collaterals, and the sum of $50,000 more may be set down as interest past due and anpaid. All this, of course, is a matter of estimate. THE RECORDS OF THE LAW COURTS. A month age judgment was recovered against Mr. Scammon and another party. on a promissory note. for $10,000. Saturday, Henry A. Bromley filed a praceipe in assumpsit against E. C. Long and J. Y. Scammon. claiming $50,000, and another against the Marine Company for the same sum, and on Wednesday, Frederick Fischer recovered judgment against him by default in the s.m of $10,000. There is also a judgment against him, now pending in the United States Supreme Court. on appeal from Judge Drummond, to recover 954, claimed by the Mutual Security Insurance Company. This amount is secured by an appeal bond. The folloging advertisement has been appearing in the Iost and Mail for some days TRUSTEE'S SALE-WHEREAS, J. YOUNG SCAM1 mon, of the City of Chicago, County of Cook and State of Illinos, did execute and deliver to the undersigned as Trustee a certain trust deed of the premises hereinal er described, to secure the payment of four (4) certain promissory no:es in said trust deed particufurly des. ribed, which said deed bears date the first day of October, A. D. 1872, end is recorded in the Reccrder's Office of Cook County, State of Illinois, in Book 123 of Records, at page 231. And whereas, default has been made in the payment of three (3) of the notes in said trust deed mentioned and described as fullows, to wit: One note for $1,190, dated May 5, 1871, due two years after date; one note for $1,677.50, dated Nov. 1, 1871, due one year after date, and one note for $1,677.50. dated Nov. 1, 1871. due two years after date, each payable at the First National Bank, Chicago, with interest at 8 per cent per cnnum. On the first note above described, interest payable annually, and on the other two, interest payable semiannually, said notes being given for part of the purchase money of the premises hercinafter described. And, whereas, the said notes, with interest thereon as follows: On the first above described from May 5, 1672. and on the third, from Nor. 1, 1872, are due and wholly unpaid, and there is due and unpaid on the second of said above described notes, the sum of fifteen hundred and four 39-100 dollars ($1,504.39-100) with interest thereon, from Sept. 10, 1872, and application having been made to the undersigned to sell said premises according to the provisions of said trust deed: Now, therefore. public notice is hereby given that the undersigned, in pursuance of suchapplication, and by virtue of the power and authority in him by said trust-deed vested, will on Friday, the 30th day of January, A. D., 1874. at the hour of 10 o'clock in the forenoon, at the northwesterly door of the Court-House (being the door nearest LaSalle street, Su the south side of Adams street,) in the City of Chicago, sell at public auction for the highest and best price the same will bring in cash, all the following deacribed lands and premises, situate in the Conuty of Cook and State of Illinois, to-wit: Lots one (1), two (2), and twenty-four (24), in block six (6) of Pryor and Hopkins subdivision of the west half of the northwest quarter of Sec. three (3), in township thirtyeight north, range fourteen (14) east, of the third principal meridian, together with all and singular the tenements, hereditaments, privileges, and appurtenances thereto belonging, and all the right, title, beneat, and equity of redemption of said J. Young Scammon, his heirs or assignstherein. BENJAMIN L. HONORE, Trustee. CHICAGO, Jan. 7, 1874. The property herein referred to is situated on the northeast corner of Indiana avenue and Forty-third street. ACTUAL AND CONTINGENT LIABILITIES. United States Mortgage Company ($220,000 $250,000 gold) Connecticut Mutual Insurance Company, 400,000 (about) Due Mechanics' National Marine Company and 200,000 other persons (estimated) 60,000 Interest due (prohably) 75,000 Indgements about $975,000 Total 100,000 Suite commenced The last item may be included in the previous ones. MR. SCAMMON S PROPERTY. Mr. Scammon's principal buildings are on the corner of Michigan avenue and Congress, Wa268h avenue and Congress, Wabash avenue and VanBuren, S. E. corner of Lake and Clark, N. E. corner of Lake and LaSalle. N. W. corner of

4. January 23, 1875 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, January 23, 1875

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Mr. Scammon Is Given a Little Time to Study Up Matters. Life Insurance Policies and Insanity. Judgments and New Suits. THE SCAMMON-MARINE BANK CASE. The motion for a Receiver in the recently filed bill of Dow and others against J. Y. Scammon, the Marine Bank, and others, came up before Judge Farwell yesterday. The parties were not ready, and as they could not agree on a time to which to postpone the argument, Mr. Le Moyne, attorney for the complainants, asked the Court to appoint an early day to hear the argument of the motion. Mr. Ayer, on behalf of Mr. Scammon, said that he wished the argument postponed until Mr. Scammon could answer the bill. There was great doubt whether such a bill could be filed by a minority of the stockholaers against a majority to wind up the bank, and as the affairs of Mr. Scammon were thoroughly reviewed in the bill he should have ample time to read it and prepare his defense. Mr. Scammon then said that the bill went into a history of the bank ever since his connection with it, and he should want at least ten days to prepare his defense. He also wanted to get the deposition of Mr. Rogers, who had been with the bank for many years, and was as respectable a man as there was on the footstool. Judge Farwell said he was inclined to give the time, asked as he did not 800 that there would be any great distress or risk. There was DO necessity to hear it at once. It was a case where the parties should have a chance to be heard, and where the mocto should be to hasten slowlr, as it involved large business transactions. The books could not be altered in the meantime, nor the papers be disposed of. Mr. Le Moyne said he wished to be heard before the Court decided the question. lle said the present case was not an application for the appointment of & Receiver for Air. Scammon, but for the Marine Company, and, by an affidavit of Mr. Bogue already filed, it could be seen that the corporation made no resistance. The affidavit referred to was to the effect that & meeting of the Board of Directors had bean held the day before the bill was filed, and with notice that it would be filed. at which meeting it was voted to make no defense to the bill. Mr. LeMoyne proceeded to remark that Mr. Scammou had pretended to be the bank, and had persisted in holding on to the shell after the contents were exhausted. He had also squandered the money of the bank. and, as appeared by the affidavit of Coddington Billings, had taken a number of the bank's notes, canceled them, and delivered them up to the parties who made them. The affidavit referred to alleges that Scammon lately took four notes for $100 each, one made by John Forsyth, another by one Evarts, and a third by Roge:s, and surrendered them to the makers, charging the amount to the old organization account." Coupsel urged that it was necessary to have an early day appointed to hear the mation; that it would not interfere with Mr. Scammon personally, and that he could have plenty of time in which to answer the bill individually. Judge Farwell, however, declined to push matters. and postponed the argument on the appointment of & Receiver until a week from Monday. SANE OR INSANE. In the case of Chapman Shipman VS. The Ropublic Life Insurance Company, Judge Blodge bt made a decision yesterday upholding the right of an insurance company to limit its liability against deaths from suicide when the insured committed the deed in & moment of insapit The policy in the present instance contained & promise that the Company should not be liable where death was caused by the act and intention of the insured. A replication was filed on the ground that, when Mr. Shipman abot bimself, be was SO insaue that be could not perform a voluntary act. To this replication a demurrer was filed, and sustained by the Judge, who held the plea good. The case WILB similar to the Biglow case last spring, where the Judge reviewed the conflicting authorities at length, and decided in favor of the Company 's authority to limit its liability. DIVORCES. Ellen Heiderman complains tbat her husbon d, Thomas Heiderman, is in the habit of giving her almost daily corrections with & strap, occasion ally varying the exercises with threats of using: & batchet, until what with her actual sufferm and those sho fears still more severe, she can endure it no longer, and therefore asks for a divorce. Mary Johnston complains that her husbrind has given himself up to adulterous practices " ith one Mary, and she therefore prays for a divorce. Emma F. Spohn states that her busis nd, Wairen Spohn, was convicted of burglary in Canada in October last, and is now serv thg a seren years' sentence for that crime. St: e accordingly asks that she may be forever freed from such man. UNITED STATES COURTS. C. C. Waite, a stockholder in the Pullman Palace- Company, filed two bills, one inst Michael Evane, to restrain the collection of State and county taxes, the other against George Von Hollen, to restrain the collection of city taxes on the capital stock of the Company. Tempo rary injunctions were issued under bonds for $10, OUO. J.W. Drexel filed a bill against William RaLeigh and Charles M. Smith to foreclose a trustdeed for $3,000 on Sub-lots 22, 23, and 21, in the subdivision of Lots 1 and 2. in Block 48, of the Canal Trustees' Subdivision of the W. 1/2, and part of the S. E. 1/4 of Sec. 21, 39, 14. The American Life Insurance Company began & suit against the Town of Norton for :B1 800 another against the Town of Eagle for $11,800 ; a third against the Town of Limestone for 1,500; another for $4,000 against the Town of Bruce and a fifth against the Town of Pilot for: $1,800. J. P. Cowing, Philo Cowing, and George Clowing sued P. C. Goble, W. R. England, and T. C. Estee for $5,000. BANKRUPTCY ITEMS. In the matter of Jchn A. Griffith, Joseph Spafford was required to answer immed intely as to the excessive charges made by him or he would be removed. G. W. Corderman and F. Kuueger were adjudicated bankrupt by default, and warrants were issued returnable Feb. 22. A composition meeting was held in the case of Engel & Livingston, and the creditors voted to accept 45 per cent of their claims. SUPERIOR COURT IN BRIEF. T. W. Bullard commenced suit in debt

5. February 19, 1875 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, February 19, 1875

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CHICAGO COURTS. THE MARINE COMPANY. C. V. Dyer filed & creditor's bill against the Marine Company of Chicago 00 & judgment for 60,539 50, obtained a short time ago against the Company. Dyer allegos that execution was issued, but that the Sheriff failed to find any property on which be could levy. Complainant, however, is of the opinion that the bank has some real estate which it has put out of the reach of its creditors, but where it can enjoy the profits. Complainant also states that the Company has coased to transact business that It is largely indebted; and that A portion of the stockholders have begun suit against It to wind up its affairs. The officers also are largely indebted to the Company, but are taking no steps to wind up Its affairs, and its rights and interests are likely to be damaged. Dyer also alleges that the bank has made divers preferential payments to certain of its creditors, and, in conclusion, asks for an account discovery, and the appointment of & Receiver. A NUISANCE CASE. Judge Farwell gave A decision yesterday morning in the case of Martin Morf TH. Jacob Huber. Complainant had filed & bill stating that be owned & residence opposite & vacant lot on the corner of Ward street and Belden avenue, owned by Huber. and that the latter was filling ins lot with offal and refuse which tainted the air to such an extent as to make the neighborhood unwbolesome. To prevent this an injunotion was asked and granted temporarily. It was made perpetual yesterday, the Judge holding that the allegation of the bill showed that ltuber was establishing a puisance. Proporty-owners had a right to the free and unmolested use of their property, and their lights should not be invaded by anything which would affect their comfort or health. The present case was one where a court of equity would interfere. The injunotion was, therefore, made perpetual to prevent any more such deposits. DIVORCES. Rebecca L. Terhune filed & bill against Theodore O. Terhune, asking for & divorce on account of her husband's long-continued desertion. Frederika Hanshalter accuses ber husband of having treated her with extremo and repeated cruelty ever since their marriage, and therefore prays for a divorce. UNITED STATES COURT. Pitzgerald, Flagg & Co. sued P. C. Goble, W. R. England, and T. 0, Estoo for $2,000. The Cleveland Paper Company sucd H. N. F. . Lewis for $1,000. II. G. Hull began a suit for €2,500 against the Town of Aurora. SUPERIOR COURT IN BRIEF. David and George I. Wilbur began a suit for $2.000 against Joseph Hass and Samuel l'o will. J. B. Sweatt commenced A auit in debt against Lucius B. Converse, laying damages at $1,000. William Voorhies began & Buit for $5,000 against Samuel B. Gookins. Holmes, Pyott & Co. sucd Darius Clelaud for 81,500. J. H. Doulin sued the City of Chicago for $1.000. Daniel Lander, Delos Root, J. B. Root, and E.