The Providence news. (Providence [R.I.]) 1891-1906, 1903-10-20
BANKS SUSPEND
IN BAL LT|M0RE,
Maryland and Union Trust Companies Go
Into the Hands of Receiver, Causing
Wide CONSERVATION.


and told them that In my opinion we
could not run the risk Of waiting until
Tuesday for action by the directors AT
their quarterly meeting, as, should large
Withdrawals take place Monday. the com
pany would manifestly be unable to meet
them and We would have TO suspend.
THE committee approved OF this view
and the same evening at the same place
I'm conference with representatives OF
some OF the largest and most responsible
financial institutions In this city. who
had been invited 10 meet there. laid be-
fore them the entire state OF the case.
After a protracted conference. lasting In
to Monday morning. II was unanimously
decided by all present with great regret
that thore was nothing to do but follow
the course proposed.
cat this time. with a more accurate
examination of the books and exact
knowledge OF the various figures. I shall
not attempt 10 give figures to the press.
but will do so at the earliest practicable
opportunity. In the meantime prompt
and earnest efforts will be made TO advise
With the leading creditors OF the oom-
pany with view 10 preparing plans for
realizing 20 the best advantage on the
various assets"
RUN ON UNION TRUST
The Union Trust company failed be-
cause Of run on its banking depart
ment, about $4,000 having been with
drawn by depositors today. but the real
troubles OF the company had their origin
In the organization OF the South and
Western railway in Virginia In which
a capitalization OF about 100000 was
contemplated. The Union company was
the fiscal agent for the Virginia enter
prise. just as the Maryland company
was the fiscal agent for the Mexican
railway. Though these two failures fol-
lowed so closely. IL can be stated on un-
questioned authority that there was no
connection whatever between the two. II
may also he stated that neither com
pany managed trust estates.
There have been other financial troubles
i'm Baltimore within a recent period. but II
is not believed that they were in any
manner the forerunners OF today's sus-
pensions.
The city OF Baltimore has $500 900 invest
cd with the Maryland Trust company.
and this Is secured by three bonding
companies OF this city. the finance com
missioners report.
The feeling In financial circles at the
close OF business was one OF confidence
, that there will he no failures In this city.
TROUBLES ONLY TEMPORARY.
Charles. T. Crane, vice president OF the
Union Trust company. said that the trou-
bles Of the company were only tempor-
airy. I'VE could not realize quickly on our
securities. and the run which followed
the announcement OF the receivership OF
the Maryland Trust company caused the
trouble" said he. at was therefore hur-
riedly decided to apply for receiver for
our company. Miles White, Jr.. first vice
president OF the company, was appointed
receiver by common consent A statement
will be furnished the public later In the
day
Miles White, Jr., receiver for the
Unan Trust company. verified the state
nent Of Vice President Crane After the
announcement OF the failure OF the
company was begun by its depositors. We
feared that this would take on larger
proportions tomorrow and swamp US IN
order 70 protect everyone IL was decided
to go into court today and apply for a re-
ceiver. l am not yet able to make a de-
tailed statement. but know positively
the companys assets are good and that
every deposition will be paid In full"
So far as known there is no financial or
business Connection between the two sus-
pended companies
Business was practically suspended on
the Baltimore Stock Exchange today.
There was large attendance at both
calls today. but the brokers realizing tho
nervousness I'm the financial circles and
the hopelessness OF Offering stocks and
bonds except at material reduction In
prices. concluded not 70 force sales
Holders OF securities were advised by
bankers and brokers not 10 sacrifice their
investments