Click image to open full size in new tab
Article Text
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 Shackamaxon Bank had closed its doors, its accounts having been overdrawn to the extent of $200,000. In & very short time a crowd of excited, noisy, anxious and angry people gathered about the institution. The bank had a large number of depositors. Not only the largest carpet manufacturers were customers, but also butchers and drovers, and all the small shopkeepers for a mile around. The late Wm. 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, a little less than a year ago, the affairs of the institution have been the subject of watchful concern on the part of the officials of the Philadelphia clearing-house, and more especially of T. B. Cummins, president of the Girard Bank, which institution made all collections for the insolvent bank. Mr. Bumm practically owned it. Thomas L. Huggard was nominally the cashier, but in reality the clerical drudge of the place, doing all the routine business of the bank, keeping up the ordinary daily accounts, while Mr. Bumm managed 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. A very critical stateof affairs was 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 Huggard 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 directors, however, succeeded yesterday in discovering that large sums of money 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 $115,000, and that Joseph Conklin, having no account whatever in the bank, had obtained $88,000. The aggregate deficit discovered was $203,000, or $50,000 more than the combined capital and surplus of the bank. Upon the discovery of these facts a special meeting of the board of directors was called yesterday afternoon. Mr. George Bumm, who is a member of the board of directors, and also a member of the firm of Wm. Bumm & Sons, was present at the meeting, and made a statement, in which he pledged the firm as liable for the money which it had drawn, and in consequence. his attorney confessed judgment in favor of the bank for $115,000. 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 $100,000 locked up in the bank, $30,000 of it having been deposited but a few days ago. The bank was made one of the city depositories last June, and the city had deposited in the bank about $10,000.
