The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-10-20
TWO BALTIMORE
BANKS SUSPEND
%
Liabilities in the Heighborhood o
$ll,OO0,0OO.
@
MANY WILD RUM0RS AFL0AT
A
OTHER INSTITUTIONS MAY BE-
COME INVOLVED.
MANY WILD RUMORS AFLoA

II ALTIMORE. Md. Oct. 19.-Thiy has
Is been a day of marked excitement
and subdued anxiety in the finan-
cia1 ana business circles Of Baltimore.
Luckily a dozen reports well calculated
TO provoke q wholesale run on banks
did not reach the great army of de
positors throughout the city, thus Civ
ing ample time for Conservative leaders
of business to allay popular apprehen-
sion before il reached dangerous pro
portions
The day began with the announce
nent of the failure of the Maryland
Trust company, and except TO a few
The news came as a bolt ont Of a clear
sky, spreading CONSERVATION in all di-
rections To these few il was known
that the trust company had long been
struggling with "undigested securities
that it had sustained heavy withdraw
ais Of deposits and that. finally, on Sat
urday last, il had failed in its efforts
TO negotiate a S2,O0O,OOO loan in London.
Many Rumors Afoat.
The suspension of the Union Trust
company, which happened at a late
hour in the day, gave impetus to many
baseless rumOrs as To other financial
institutions. which might well have
created a panic had they been given
currency early in the day.
1t was agreed among the leaders. and
50 given out, that there is nothing
alarming I'm the general financial situ-
alton in this city, and that the mere
fact that temporary difficulties over
etook one or two concerns is no reason
Why other perfectly solvent institutions
should be regarded with suspicion.
One of the most prominent bankers in
Baltimore said
Time to Keep Cool
1T all depends upon how the people
OF Baltimore act TT they do not lose
their heads the trouble will blow over
I'm time and nobody will be hurt; but if
they become pauic-stricken the COnse-
Quences viii be serious. This is time
20 use calm judgment"
Allan McLane third vice president Of
the Maryland Trust company, was APP
pointed TO sake charge of the affairs of
that company. Miles White jr.. first
vice president OF the Union Trust COM
pauy was appointed receiver Of that
institution. Mr.. McLane gave bond IN
the sum of $2.000.000 and Mr. White
gave bond in the sum Of 100000
The last statement of the Maryland
Trust company. issued on June 30. 1903
showed capital stock of S2125,000. sur
: plus s., 437 500 and undivided profits of
$651, 99S.S6. The company has demand
and time deposits amounting TO So
T13S1715.
The Union Trust company at the
close of business on March 81 1903, had
capital stock Of S1.O00,00o. surplus OF
S250.O00 and undivided profits of Sl59.
6S1.55. The Union Trust company had
deposits amounting TO nearly $1,000 000.
The filing of the first applications for
receivers for the embarrassed compa-
MES was followed by petitions for CO.
receivers for both companies.
Liabilities Nearly Sl1,OOO,OOO.
The total liabilities of the two com
panies exceed $1O,0OO000.
The cause of the Maryland Trust
cOmpany's failure was due, as set forth
in the statement of Receiver NIcLane,
20 the investment of the assets Of the
company in Mexican railway securities
which could not be marketed. The
Union Trust company failed because
OF a run on its banking department.
about Sl50.000 having Decn withdrawn
by depOsitors today but the real trou-
bles of the company had their origin
in the organization Of the South &
Western railway in Virginia, in which
q capitalization Of about 81, 100000 was
y contemplated. The Union company
was the fiscal agent for the Virginia
enterprise. just as the Maryland COM
pauy was the fiscal agent for the Mex
lean railway.
Though these two failures followed
SO closely it can be stated on unuues-
toned authority that there was no con-
rection whatever between the two. The
Maryland TrUCt company and tn
Union Trust company were not Jointly
interested I'm any enterprise. Neither
company managed trust estates.
other Recent Troubles.
There have been other financial trou-
bles I'm Baltimore recently involving the
City Trust d. Banking company and tn
Hammond Ice company and William J
MiddendOrf & Co. but IL is not believed
they were I'm any manner fOTerunners
of today's suspensions. J. w. hidden
uorf. speaking FOR his firm. and J. T.
ii Williams a. sons Of Richmond, said
lTFQday;
81 N~The difficulties OF the Maryland
Trust company have no relationship Go
ours Neither our firm nor Mr. Viii
lams owes n dollar to the Maryland
Trust company. nor does that COM
pany owe us anything.
Among the alarming rumors anoat
was one TO the effect that the munich
pality of Baltimore had millions Of its
treasure realized from the Western
Maryland railroad involved in -today's
failures. Investigation proved how
ever. and the finance commissioner
have so announced. that the CITY has
only $500. 600 invested with the Mary
land Trust company, and that this is
secured by three bonding companies OF
this city.