Evening star., 1903-10-19
TWO COMPANIES FAIL
Maryland ard Union Trusts
of Baltimore.
BOTH BIG CONCERNS
FORMER EMBARRASSED BY
LOANS TO RAILROADS.
Receiver Appointed for Both Concerns
and Their Doors Closed for
the Present.
BOTH BIG CON GERMS
RMEE EMBARRASSED B
LOANS TO RAILROADS.

BALTIMORE Md, October 19.-The doors
of the Maryland Trust Company were
closed this morning much to the surprise
of the general public. though in financial
circles it was known for several days that
the company was embarrassed and that
its continuance in business would be de-
pendent on the outcome Of efforts that We're
under way to borrow money in London to
tide over pressing difficulties. Last week
the Maryland company had almost com
pleted arrangements for a loan OF $1,000 "No
in London. but on Saturday afternoon. ac-
cording to the admissions of company Of
fici2ls here, the prospective lenders abruptly
withdrew from further negotiations. 1t
was this failure to realize available funds
which precipitated the suspension Of the
institution this morning.
There are many reports rife to the
causes which brought about the failure. but
according to q preliminary statement MADE
by the company officials and by Receiver
Allan McLane. the suspension is solely due
to large loans advanced to the Vera cruz
and Peciiic railroad. 1t l. said that these
loans aggregate an excess OF S56o13,o.
Receiver McLane is now engaged in the
preparation of Il detailed statement setting
forth all the material facts explanatory of
the failure. This statement will be made
public during the afternoon.
Where the Road is Located.
The Vera Cruz and Pacific railroad runs
across the isthmus of Tehuantepec and es-
tablishes a new transcontinentdl route. con-
meeting on one side with the Atlantic ocean
and reaching the Pacific on tire other side.
On the Atlantic SIDE the terminals axe at
Vera Cruz. and on the Pacific side at
SaIina Cruz. Alfred Bishop Mason of New
York as president of the company, directed
its construction, and made several visits to
Baltimore 10 confer with the officials of the
trust company. The building of the road
was slow work on account of the difficulties
found in the construction of railroads
through a tropical country. One year was
consumed in surveying and about three
years in the work of construction, which
was completed early this year
The plans of the railroad company con-
template the employment of its line as a
part Of a transcontinental route from north
Atlantic SeabOard ports including New
York. Philadelphia and Baltimore. to San
Francisco. 1t also proposed to carry ship
ments through from these ports to Japan
and other eastern countries. The railroad
being about 200 miles long. it was figured
that shipments via this route could be car
ried to san Francisco in about twelve days.
President Mason stated on one occasion
that arrangements had been made with
steamship companies for the necessary
water connections. He also announced that
the japanese government had guaranteed
to establish Il subsidized lire of steamers
from Salina Cruz 10 Japan.
Steel bridges and steel rails for the con-
struction of the railroad were shipped from
Baltimore.
John S. Alexander of Philadelphia was
associated with Alfred Bishop Mason as a
promoter Of this railroad.