The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1903-10-22
TWO BIG FAILURES
Shock People of Baltimore.
Trust Companies Collapse
MILLIONS ARE INVOLVED
Concerns Forced to the Wall are the
Maryland Trust Company and the
Union Trust Company, Both
Immense Corporations.

Monday was a day of marked excite
ment and sUL:!.ci :n3::it:.: il. the f1na1-
cial and business circles of Baltimore,
day full of momentous events and OF
wild, irresponsible damaging rumors
in those streets and marts given over
to monetary transactions.
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
a bolt out of 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 Saturday
last, it had failed in its supreme effort
to bridge over the yawning chasm ty
negotiating a s2,OO0.000 loan in Loa'
don.
While the bankers in their Offices
and brokers in clusters on the street
corners, and money dealers generally
and businss men In the exchange,
were still e>citedly discussing The col
lapse of the Maryland company there
came another bolt out of transpa-
rent sky, the suspension of The Union
Trust Company, and it was this later
event, which happened at late honr
In the day, that gave impetus to va
ried number of baseless rnmors as to
other financial institutions which
might we'll have created a panic had
they been given currency earlier il
the day.
Receivers Appointed.
Allen McLane, third vice president
of the Maryland Trust Company, was
appointed 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. Mr.. McLane gave bond
in the sum of s2,OOO,OOO. and Mr..
White gave bond in the sum Of $1,000,
600.
The last statement Of the Maryland
Trust Company, issued on June 80,
1908, showed capital stock OF $l,lz',-
600, surplus s2,437,5OO and undivided
profits of .s67,99S.S6. The company
has demand time deposits amount
ing to $5,773,S17.15.
The Union Trust Company, at the
close Of business on March 21, 1903,
had a capital of s1,000,0O0, surplus OF
s25O,oO0 AMI undivided profits OF. $l59,'
.6S7.55. The Union Trust Company has
deposits amounting to nearly $1,000
900. The fling of the first applica-
tions for receivers for the embarrass'
ed companies was followed by petl'
tions for co-receivers for both compa-
nies.
The total liabilities of the two com
panies exceed s1O,OO0,000.
The cause of the Maryland Trust
Company's failure was due to the in
yestment Of the assets of the company
in Mexican railway securities, when
could not be marketed. The Union
Trust Company failed because OF a
run on its banking department, aDout
s15O,OOO having been Withdrawn py
depositors; but the real troubles OF
the company had their origin In the
organization of the South and west
ern railway in Virginia. in which q
Capitalization of about S11, 100000 was
contemplated. The Union company
was the fiscal agent for the Virginia
enterprise, just as the Maryland com
pany was tie fiscal agent for the Mex.
ican railway. -,
Though ttese two failures followed
so closely, it can be stated on unques'
toned authority that there was no coa'
nection whatever between the two.
The Maryland Trust Company and the
Union Trust Company were not Jointly
interested in any enterprise, SO that
the suspension of one had no direct
bearing upon the other.