The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-20
Receivers Appointed for Both Compa-
nies, which Were I'm No Way Con-
Hected In Business.
LOANS WERE MUCH TOO HEAVY
MARYLAND TRUST COMPANY WAS
BACKING a NEW RAILWAY.
Was the Fiscal Agent of the Vera
Cruz & Pacific Road, and Had
Loaned II s6,OOO,OOO.

BALTIMORE. Oct. 1o.-This has been a
day Of marked excitement and subdued
anxiety in the financial and business cir
cles OF Baltimore. a day full of momentous
events and of wild. irresponsible. damaging
rumors in those streets and marts given
over TO monetary transactions Luckily a
dozen reports well calculated to provoke
a Wholesale run on banks got no further
than the precincts Of South and German
streets. Baltimore's Wall street district.
and did not reach the great army OF de-
positors throughout the city. thus giving
ample time for the conservative leaders of
business TO allay popular apprehension be-
fore II reached dangerous proportions.
The day began with the announcement of
the failure OF the Maryland Trust Com
pany, and except to only an initiated few
the news came like a bolt out of a clear
SKY. spreading CONSERVATION in all direc-
tons. To these few IL was known that the
Maryland Trust Company had long been
struggling with undgested securities OF the
Vera Cruz * Pacific Railroad Company.
that il suffere,. heavy Withdrawals OF de-
pOsits and that finally on Saturday last il
had failed in it's supreme efforts to bridge
over the yawning chasm by negotiating
a 100000 loan In London.
While the bankers. in their Offices, and
brokers. in clusters on the streets. and
money dealers generally and business men
IN the exchanges were still excitedly dis
cussing the collapse OF the Maryland COM
pany there came another bolt out of a
transparent sky-the suspension of the
Union Trust Company. and IL was this lat
ter event which happened at a late hour
in the day that gave impetus 10 a varied
number OF baseless rurnors as TO other
financial institutions which might well
have created panic had they been given
currency earlier in the day.
ANOTHER FAILURE AvERTED.
One of these rumors assumed a more def
mite shape than the others and il is well
known that at the request OF another
trust company the name of which was
freely banded about the clerk of the Cir
cult 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 suspensions to its
credit ard with the assurance OF the cool
headed fnanciers OF the city that all peril
OF panic had passed and that tomorrow
would note the dissipation OF every sign
and portent OF further trouble
IL was agreed among the leaders and so
given out that there is nothing alarming
in the general financial situation in this
city and the mere fact that temporary diff
culties overlook one or two concerns is no
reason why other perfectly solvent insti-
.utions should be regarded with suspicion.
AS one of the most influential bankers in
Baltimore put Ii. "our financial institutions
are strong and have placed themselves in
position 10 withstand any assaults upon
ing banker, perhaps the most prominent in
Baltimore. put II, 1T all depends upon
how the people of Baltimore act III they
do not lose their heads the trouble will
blow over in time and nobody will be hurt
but IL they become panic stricken the con-
seQence will be serious This Is time to
use calm Judgment"
The plain facts in to-days history are as
follows: Two trust companies closed their
doors. The Maryland Trust Company was
the first to announce its suspension. This
vas followed a few hours later by the
closing OF the doors of the Union Trust
Company. Allen McLane, third vice presi-
dent OF the Maryland Trust Company, was
appointed 10 take charge OF the affairs OF
that eompa1y ~, les ,,on mhfs, r, 1r'' Iirss wee
was appointed receiver OF that institution
Mr.. McLane gave bond in the sum of So
100000 and Mr.. White gave bond in the
sum OF s1.Oo0.0o0.
OVER ELEVEN MILLIONS.
The last statement Of the Maryland Trust
Company. issued on June 80 1903. showed
q capital stock OF s2125.oo0: surplus. s.. 437, =
800. and undivided profits of s617,99S.S6. The
company has demand and time deposits
amounting TO s5.773.s17.15.
The Union Trust Company at the close of
business on March 81, 1903, had capital
stock OF 100000; surplus OF $4,000. and un-
divided profits OF si5s.ss755. The Union
Trust Company has deposits amounting to
nearly 100000
The filing OF the first applications for re-
ceiyers CT the embarras ssed companies was
fol
both companies. The total liabilities OF the
two companies exceed s100oo.oo0.
The cause OF the Maryland Trust COM
panys failure was due. as set forth in a
statement by Receiver McLane, TO the in
vestment of the assets of the company in
Mexican Railway securities. which could
not be marketed. The company loaned the
railway about 100000. The Union Trust
Company failed because of run on its
banking department., about $4,000 having
been withdrawn by depositOrs to-day but
the real troubles of the company had their
origin in the organization OF the South &
Western Railway in Virginia, in which a
Capitalization of about sll.000.O00 was con-
teruplated- The Union company was the fis-
cal agent for the Virginia enterprise. just
as the Maryland company was the financial
agent for the Mexican railway.
Though these two failures followed so
closely. IL can be stated on unquestioned
authority that there was no connection
whatever between the two. The Maryland
Trust Company and the Union Trust Com
pany were not jointly interested Ia any en-.
no direct bearing upon the other. IL may
be also stated that neither company man.
aged trust estates. This Is the business
which the trustees take charge Of proper
ties and manage them In the interest Of
widows, orphans and other heirs
MIDDENDoRF'S STATEMENT
As Is well known there have been other
financial troubles In Baltimore within re-
cent period. involving. hrst. the City Trust
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