The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-10-20

request of another trust company. the
name of which was freely banded
about, the clerk of the circuit court
kept his office open an hour later than
the accustomed time to accommodate
one more applicant for a receivership.
But the applicant did not materialize,
and the day ended with only two sus-
pensions to its credit and with the as
surance of the cool-headed financiers
of the city that all peril of a panic had
passed, and that tomorrow would note
the dissipation of every sign and por-
tent of further trouble
No Cause for Alarm.
1t was agreed among the leaders,
and so given out, that there is nothing
alarming in the general financial situa-
ton in this city, and the mere fact that
temporary difficulties overlook one or
TWO concerns is no reason why other
perfectly solvent institutions should be
regarded with suspicion. AS one Of the
most influential bankers in Baltimore
put it, Our financial institutions are
strong and have placed themselves in
position to withstand any assaults upon
their credit standing" Or as another
leading banker, perhaps the most
prominent in Baltimore put it, 1T all
depends upon how the people Of Bal
timore act. If they do not lose their
heads, the trouble will blow over in
time and nobody will be hurt; but if
they become panic stricken the conse-
quence will be serious. This is a time
to use calm judgment"
The plain facts in today's history are
as follows: Two trust companies
closed their doors. The Maryland
Trust company was the first to an
nounce its suspension. This was fol-
lowed a few hours later by the closing
of the doors of the Union Trust COM
pany.
Allan McLane third vice president
of the Maryland Trust company, was
| appointed to take charge of the af-
| fairs of that company Miles White
Jr., first vice president of the Union
| Trust company, was appointed receiv-
er of that institution. Mr.. McLane
gave bond in the sum of $4,000, 900,
| and Mr.. White gave bond in the sum
of $1,OO0,OOO.
The last statement of the Maryland
Trust company issued on June 80,
1908, showed capital stock of $2,125,-
600; surplus, $2,437, 500, and undivided
| profits of $677,99S.86. The company
has demand and time deposits amount
| ing to $5,773,S17.15.
The Union Trust company, at the
| close of business on March 81, 1903,
had capital stock of 100000 surplus
of $250,000 and undivided profits Of
| $159,687.55. The Union Trust COM
pany has deposits amounting to near
! ly 100000. The filing of the first
| applications for receivers for the en-
| barrassed companies was followed by
| petitions for co-receivers for both
companies.
The total liabilities of the two COM
panies exceed $10,000,000.
Backed Mexican Railroad.
The cause of the Maryland Trust
| company's failure was due, as is set
! forth in the statement of Receiver Nc
| Lane, to the investment of the assets
| of the company in Mexican railway Sc
| curities which could not be marketed.
The Union Trust company failed be-
| cause of a run on its banking depart
! ment, about $150,000 having been with
drawn by depositOrs today, but the
real troubles of the company had their
origin in the organization Of the South
| 81 Western railway in Virginia, in
| which a capitalization Of about SILL
! 000,0 900 was contemplated. The Union
| company was the fiscal agent for the
! Virginia enterprise just as the Mary
| land company was the fiscal agent for
! the Mexican railway.
Though these two failures followed
J so closely, it can be stated on unques-
| toned authority that there was no
| connection 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 bear
| ing upon the other. 1t may also be
! stated that neither company managed
! trust estates. This is the business in
! which the trustees take charge OF
properties and manage them in the
interest of widows, orphans and other
heirs.
AS is we'll known there have been
al in
within a recent period, involving, first,
! the City Trust and Banking company
and coincidently the Hammond Ice
company, and then William J. Midden-
dorf & Co, but it is not believed they
were in any manner the forerunners Of
! today's suspensions. W. J. hidden
dorf, speaking for his firm and J. l..
| Williams & Sons, of Richmand, said
today:
THE difficulties of the Maryland
Trust company have no relationship to
ours. That institution has never been
identified with seaboard interests. nor
does it own, nor has it ever owned, 50
far as our knowledge goes, a share of
! Seaboard stock. Neither my firm nor
| Mr.. Williams owes a dollar to the
Maryland Trust company, nor does
that company owe us anything"
Among the alarming rumors afloat
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 commissioners
have so announced, that the city has
/ only 100000 invested with the Mary
! land Trust company and that this is
secured by three bonding companies OF
4 this city.
| While the events of today have pro-
1
/ ing in financial circles at the close of
! business was one of confidence that
there will be no more failures in this
city, an6 that after a brief period OF