Evening journal., 1903-10-20
EXCITEMENT OVER
BIG FAILURES
Maryland Trust Company and
Union Trust Company of
Baltimore, Go Under
LIABILITIES ARE OVER S1O,O0O,010

Baltimore, Oct. 2O.-The suspension
Of the Maryland Trust GompHny Great
ed intense excitement in financial and
business circles, and many people hur-
ried to the vicinity towerify the news.
The excitement was greatly intenained
two hours afterwards by the announce
ment that tie Union Trust Company
had also faxed Bankers and hnan-
ciers generally. however combined to
alIay what ever W panicky feeling was
made manifest aih> 'by assurances tnat
the troubles Of the companies were
only temporary.
Allan McLsne. third vice president
Of the Maryland Trust company was
appointed receiver Of the G oncern' CIV
ing a bond of 100000 a nd Miles
White, Jr. vice president Of ne Union
Trust Company, was appointed recelV-
er Of that corporation, his boni being
placed at 100000. Receiver MeA ane
promptly issued a general stateRat ut
to the effect that the embarrassment P.
Of the Maryland Company was due 20
the heavy loans made to the Vera Cruz
and Pacific Railroad Company, aggre-
eating $60OOO OOO The Maryland Trust
Company was fiscal agent of the rail-
road.
1t is oficially announced that the
company's local investments had moth
ing to do with its embarrassment The
trust company arranged loan Of S2,-
100000 in London on last week for the
purpose OF supplying the Vera Cruz
and Pacific Railroad Company with
needed cash in connection with con-
struction, but before the money was
turned over to the fiscal agent the ne
gotiations were broken OFF aid this
precipitated the suspension.
The suspension of the Union Trust
Company was owing to a run made
upon It by depositors in consequence
of the announced failure of the Mary
land company.
So far as known, there is no fnan-
cial or BUSINESS connection between
the two suspended companies
The last statement of the Maryland
Trust Company, issued on June 80,
1903. showed capital stock of S2125,
600, surplus s2.4377, 5000. and undi-
vided profits of S677, ,99ss6. The COM
pany has demand and time deposits
amounting to s5,773.s1715
The Union Trust Company at the
close Of business on March 81, 1903,
had capital stock OF s1,Ooo,00O, Surplus
of S1250O0 and undivided profits ci
$159, ,6S755. The Union Trust Com
pany has deposits amounting to nearly
two millions. The filing of the first
applications for receivers for the en-
barrassed companies was followed by
petitions for co-receivers for both COM
panies.
The total liabinties of the two com
panies exceed $4,000.
The cause OF the Maryland Trust
Conpany's failure was due, as is sci
forth in the statement of Receiver Nc
Lane, to the investment of the assets
Of the company in Mexican railwy se
curlties which could not be marketed
The Union Trust Company failed be
cause of a run on it's banking depart
ment, about s150.O00 having been with
drawn by depositors, but the real trou
bles Of the company had their origiT
= in the organization of the South anG
E Western Railway in Virginia, in which
a capitalization of about S11, 1,00O.00I
e was contemplated The Union Com
pany was the fiscal agent for the Vir
ginia enterprise, just as the Maryland
4 Company was the fiscal agent for thu
n Mexican railway.