Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1903-10-24
TWO BIG FAILURES
49, In BALTIMORE
Receivers Appointed For Maryland
and Union Trust Companies.
TOTAL CAPITAL WAS 1925, 900

Baltimore, Oct. 20.-The suspension
of the Maryland Trust Company Great
ed intense excitement in financial and
business circles. and many people hur-
ried 10 the vicinity to verify the news
The excitement was greatly intensified
two hours afterwards by the announce
ment that the Union Trust Company
had also failed. Bankers and fnan-
ciers generally, however, combined to
allay what ever of panicky feeling was
made manifest and by assurances that
the troubles of the companies were
only temporary.
Allan McLane third vice president
OF the Maryland Trust Company, was
appointed receiver of the concern, Civ
ing bond of s2,000,00 and Miles
White, Jr.. vice president of the Union
Trust Company, was appointed receiv-
er OF that corporation, his bond being
placed at $1,000,000. Receiver McLane
promptly issued a general statement
to the effect that the embarrassment
of the Maryland Company was due to
the heavy loans made to the Vera Cruz
and Pacific Railroad Company, aggre-
eating $6,000,O00. The Maryland Trust
Company was fiscal agent of the rail-
road
1t is officially announced that the
company's local investments had moth
ing to do with its embarrassment. The
trust company arranged a loan of 81
100000 in London on last week for the
purpose of supplying the Vera Cruz
and Pacific Railroad Company with
nQpdpd in,
struction, but before the money was
turned over to the fiscal agent the ne
gotiations were broken off and this
precipitated the suspension.
The suspension of the Union Trust
Company was owing to a run made
upon it by depositors in consequence
OF the announced failure of the Mary
land company.
SO far as known, there is no finan-
cial or business connection between
the two suspended com 0anies.
The last statement of the MARYLAND
Trust Company, issued on June 80.
lSOS, showed capital stock of S2,125,-
600, surplus s2,4377, 5000. and undi-
vided profits of S677,99S.S6. The COM
pany has demand and time deposits
amounting to S5,773,S1715.
The Union Trust Company at the
close Of business on March 81. 1909.
had capital stock of 81, 00O, 900. surplus
OF S125,000 and undivided profits of
S159, 6S7.55. The Union Trust Com
pany has deposits amounting to nearly
two millions. The filing of the first
applications for receivers for the en-
barrassed companies was followed bv
petitions for co-receivers for both COM
panies.
The total liabilities of the two COM
panies exceed $4,000.
The cause of the MARYLAND Trust
Conpany's failure was due. as is set
forth in the statement of Receiver Nc
Lane, to the investment of the assets
or the company in Mexican railwy Sc
curities which could not be marketed.
The Union Trust Company failed be-
cause of a run on it's banking depart-
ment. about $50, 900 having been with
drawn by depositors, but the real trou-
bles of the company had their origin
in the organization of the South and
western Railway in Virginia. in which
a capitalization of about $1,000. 900
was contemplated. The Union Com
pany was the fiscal agent for the Vir-
ginia enterprise, just as the Maryland
Company was the fiscal agent for the
Mexican railway