The Birmingham age-herald., 1903-10-20
Maryland Trust Ca and Union Trust Ca Go Down in a
 Financial Crash
NEWS OF FAILURE LIKE
 BOLT FROM CLEAR SKY
Had Invested Too Heavily In Undi- gested Securites-Had No Connec- ton Whatever With Midden-
 dorf & Williams Trouble.

Baltimore. October 19-This has been day of marked excitement and subdued anxiety in the financial and business cir cles of Baltimore, day full of momen- tous events, and of wild. irresponsible damaging rumors in those streets and marts given over to monetary transac- tions
 The day began with the announcement of the failure of the Maryland Trust com pany, and except to an initiated few the news came like bolt out of clear sky, spreading eonsternatlon i'll all directions. To those few it was known that the Mary land Trust company, had long been strug- gling with undigested securities, that it sustained heavy withdrawals of deposits, and that finally, on Saturday last, 1t had failed in it's supreme effort to bridge over the yawning chasm by negotiating s2,- OOO, 900 loan in London.
 While the bankers and business men were still excitedly discussing the collapse of the Maryland Trust compnay, there came another bolt out of a transparent sky, the suspension of the Union Trust company. and it was the latter event which happened at a late hour in the day. that gave impetus to varied number of baseless rumors as 10 other financial institutions which might well have ere ated panic, had they been given curren- cy earlier in the day.
 Another Collapse Reported.
 One of these rumors, however, assumed a more definite shape than the others. and it is well known that the rumored bursting of another trust compnay, the name of which was freely banded about, caused the clerk of the circuit court to keep his office open an hour later than the accustomed time to accommodate an ex- pected applicant for a receivership. But the applicant did not materialize, and the day ended with only two suspensions and with the assurance of the cool headed financiers of the city that all peril of panic had passed and that tomorrow would note the dissipation of every DOT tent of further trouble
 A leading banker said:
 "It 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 be- come panic stricken, the consequence will DN@---- judgment"
 Allen McLane, third president of the Maryland Trust company. was ap pointed to take charge of the affairs of that company. Miles White, Jr, first vice. president of the Union Trust company, was appointed receiver of that company. MT. McLane gave bond in the sum of S2 900, 900 and MT. White gave bond in the sum of S1 100000.
 Statement of the Companies. The last statement of the Maryland Trust company. issued on June 30, 1905, showed capital stock of S2,125COO. surplus | $2, ,437, ,5OO and undivided profits of S67, 99S. The company has demanded time deposits amounting to S5,713,Sl3
 The Union trust at the close of busi- ness on March 31, 1903, had a capital stock of S1, ,000,000, surplus of S25000O and un- divided profits of sl59,6S1
 The Union Trust company has deposits amounting to nearly two millions. The
 filing of the first applications for re- ceivers for the embarrassed companies was followed by petitions for core ceiyers for both companies. The total liabilities of the two com panies exceed s10OO0,000.
 The cause of the Maryland Trust com pany's failure was due to the investment of the assets of the company in Mexican railway securities, which could not be marketed The Union Trust company fail- ed because of a run on it's banking de- partment about S150O O00 having been withdrawn by depositors today. but the real troubles of the company had their origin in the organization of the South and Western railroad in Virginia in which a capitalization of about S11 GOO, GOO was contemplated. The Union company was the financial agent of the Virginia enterprise, just as the Maryland com pany was the financial agent for the Mexican railway.
 No Connection Whatever.
 Though these two failures came so close together it can be stated on unquestion- ed authority that there was no connec- tion whatever between the two. The Maryland Trust company and the Union Trust company were not jointly interest ed in any enterprise, SC that the suspen- sion of one had no direct bearing upon tbe other. It also may be stated that neither company managed trust estates. AS is well known there have been other financial troubles in Baltimore with in recent period involving first the City rrrust and Banking company, and CO., Incidentally the Hammond Ice company, and then William J. Middendorff & Co.,, hut if is not believed they were in any manner the forerunners of today's sus- pensions
 l. w. Mlddendorff. speaking for his firm and J. L. Williams & Sons of Rich mond said today:
 Middendorf Talks. "The difficulties of the Maryland Trust oornany have no relationship to ours. That institution has never been identified a,,th seaboard interests. nor does it own, nor has it ever owned. so far as our inowledge goes. share of Seaboard Stnck Neither my firm nor MT. Williams o.yes dollar to the Maryland Trust com nen1. nor does that company owe us any thing.
 Among the alarming rumors afloat was one to the effect that the municipality of Baltimore had millions of its treasure re-