The Savannah morning news., 1903-10-20
STRUCK BY FAILURES
,rIMORE NARROWLY ESCAPED
A FINANCIAL PANIC.
TWO BIG TRUST COMPANIES
..rsE PLACED IN THE HANDS OF
RECEIVERS.

maryland Trust COmpany's suspe"-
.ion Was Announced, ana TINS
~. FOLLOWED Soon After by the
.oouncement of the Suspension
tho Union Trust COmpany-Com-
niDed Liabilities of the Two Con-
.rns Exceed $1O,OOO,O00.
baltimore, Md, Oct. 19.-This mas
Ian day Of marked excitement ana
.hdred anxiety in the financial AMI
.',sirass circles of Baltimore, a day
fuu of momentous events ana Oh
Wild Irresponsible damaging rumors
;. hose streets and marts given over
n monetary transactions.
Luckily a dozen reports. we'll cal
cula+ed to provoke wholesale run
an hanks. got no further than the
rrecincts of South and German streets
poltinore's Wall street district, and
AID not reach the great army or de-
noeitors throughout the city, thus Civ
inc ample time for the conservative
leaders of business to allay popular
annrehension before it reached dan
gerous proportions.
The day began with the announce
ment of the failure of the Maryland
Trust Company, and, except to only
an initiated few, the news came like
holt out of a clear sky, spreading
CONSERVATION in all directions. To
these few it was known that the Mary
land Trust Company had long been
struggling with undigested securities,
that it sustained heavy Withdrawals
of deposits and that, finally, on Satur-
dav last. it had failed in its supreme
effort to bridge over the vawning
cbasm by negotiating a $2,OOO,O00 loan
in London.
Excitement Was Wild.
While the bankers in their offices and
brokers in clusters on the street cor
ners, and money dealers generally and
business men in the exchanges, were
still excitedly discussing the collapse
of the Maryland Company, there came
another bolt out of a clear sky, the
suspension of the Union Trust Com
pany, and it was this latter event,
which happened at a late hour in the
day, that gave impetus to varied
number of baseless rumors as to 9TH
err financial institutions which might
well have created a panic had they
been given currency earlier in the day.
One of these rumors, however, as
sumed more definite shape than the
others, and it is well known that at
the request of another trust company,
the name of which was freely banded
about the clerk of the Circuit Court
kept his Office open an hour later than
the accustomed time to accommodate
one more applicant for a receivership.
But the applicant did not materialize,
and the day ended with only two sus-
pensions to it's credit, and with the as
surance of the cool headed financiers
of the city that all peril Of panic
had passed, and that tomorrow would
note the dissipation of every sign and
portent of further trouble.
CaImness Will Prevent Panic.
A leading banker, perhaps the most
prominent in Baltimore. said:
1T all depends upon how the people
of Baltimore act. If they do not lose
their heads. the trouble will blow over
in time and nobody will be hurt: but
if they become panic stricken the con-
sequences will be serious. This is
time to use calm judgment"
The plain facts in to-day's history
are as follows. Two trust couonanies
closed their doors. The Maryland
Trust Company was the first to an
nounce its suspension. This was fol-
lowed few hours later by the closing
Of the doors of the Union Trust Com
pany.
Allan McLane, third vice president of
the Maryland Trust Company, was APP
POINTED to take charge of the affairs of
mat company. Miles White, Jr., first
vice president of the Union Trust Com
pany' was appointed receiver of that
institution. Mr.. McLane gave bonds
IN the sum of 100000, and Mr.. White
gave bond in the sum of 81, 100000.
Inc last statement of the MARYLAND
trust Company issued on June 3d. 1903,
showed capital stock of S2.125, 900, sur
Fius' $2,43I $780, and undivided profits of
%'"s9S.S6. The company has demand
Nine deposits amounting to $5,773,S17.15.
Inc Union Trust Company. at the
'ioSe OF business on March 81, 1908, had
capital stock of $1,000, OOO surplus of
S-oV'oOO' and undivided profits of $780,
Oo''oo' The Union Trust Company has
Hens.
ne Ming of the first applications for
'eceiVers for the embarrassed compa-
mes was followed by petitions for CO.
'ereVers for both companies.
me total liabilities of the two COM
pahles exceed $4,000. 900.
Investments in Railways.
lie cause of the Maryland Trust
Nonpany's failure was due to the in
'estment of the assets of the company
III Mexican Railway securities, which
ouiu not be marketed The Union
trust Company failed because of q run
al 0n us banking department, about $780,
wv having been Withdrawn by deposit
Today, but the real troubles of the
eo.npany had their origin In the organi-
a'loh OF the South and Western Rail-
aS IN Virginia, in which a capitaliza-
lioh Of about $1,000, 900 was contem-
plated. The TTnton csoxnva,,xv ,,,,a. 80