The Montgomery advertiser., 1903-10-20
TWO CONCERNS | 6QIO WALL |BaltimoreT Trust Companies Fail. LIABILITIES $lo.ooo.ooo The Maryland and the Union
 Ask Receivers. Rumorsd That Another is in Than ciai Ddmeultiss and Panic
 May Rssult from the
 Present Conditions.
LIABILITIES $lo.ooo.ooo

I | Present Conditions.
 Baltimore. Oct. la-This has been . day of marked excitement in the financial l and business circles of Baltimore. . day full of momentous events and of wild ir- I responsible damaging rumors in tho4e streets. and marts given over to mons- tary transactions.
 The day began with the announcement
 of the failure of the Maryland Trust Company and except to an initiated few.
 the news came like a bolt out of clear sky. spreading consternation in all di- rections. To these few it was known that the Maryland Trust Company had long been etruggiing with undisestsd securi- ties, that 1t sustained heavy withdrawals | of deposits and that finally, Saturday last. 1t had failed in its supreme effort to bridge over the yawning chasm by ne- l gotiating 6 $2.ooo00o loan in London. | Another Bolt. | While tho bankers and business men were still excitedly discussing the col- lapse of the Maryland company. there l came another bolt out of a transparent | sky--the suspension of the Union Trust | Company and 1t was the latter event. which happened at . lats hour in the day. that gave impetus to a varied num- Der of baseless rumors as to other finan- created panic. had they been given currency earlier in the day. 1 One of these runlofs. however, assum- | ed a more definite shape than the others. l and 1t Is well known that the rumored bursting of another trust company, ths Il aR A-t. 4fssH caused the clerk of the circuit court to l keep his office open an hour later than | the accustomed time to accommodate an expected applicant for receivership. But | the applicant did not materialize, and | the day ended with only two suspensions and with the assurance of the cool head | ed financiers of the city that all peril ! of panic had passed. and that to-mor- row would note the dissipation of every lportent of further trouble. Time for Galmneas. 'I A leading banker said: Tt all depends upon how the people Of Baltimore act if
 they do not lose their heads the trou- ble will blow over in time and nobody will be hurt; but if they become panic stricken the consequences will be se-
 rfous. This is time to use calm judk- ment."
 Allen McLane. third vice president of | the Maryland Trust Company. was ap- pOinbeu 10 taKe cnafBe or tne AIairS or that company. Miles White, Jr., first vice president of the Union Trust Com pany. was appointed receiver of that | company. MT. McLane gave bonds in the sum of $2.000,000. and Mir. White gave bond in the sum of S1, 100000.
 The last statement of the Maryland Trust Company. issued on June 30. 1903, showed capital stock of q. 2.l25. 900. surplus g. 800 and undivided profits of $67.ses. | The company has demand time deposits amounting to $5,77S,Si7.
 The Union Trust Company at the close | of business on March S1. 1903, had a cap l ital stock of $1, 1,O00 900, surplus of S250000 and undivided profits of s15s.6S7. The Un- ion Trust Company has deposits amount ing to nearly $2,0O0.O00. The filing of the first applications for receivers for the embarrassed companies was followed by petitions for co-receivers for both com panies
 Total Liabilities $1o,oo0 ,oo0. 1, The total liabilities of the two com panies exceed 0.O00.
 The cause of the Maryland Trust Com pany's failure was due to the investment of the assets of the company in Mexican Railway Securities. which could not be marketed. The Union Trust Company failed because of a run on it's banking department. about s15O.OO0 having been withdrawn by sdepositors today. but the
 
 origin in the organization of the South and Western Railway in Virginia, in which capitalization of about S1l, ,0O0,0oo was contemplated. The Union Company was a fiscal agent for the Virginia enter prise. just as the Maryland Company was the fiscal agent for the Mexican Railway.
 Though these two failures came so close together, 1t can be stated on unques- toned authority that there was no con nection whatever between the two. The Maryland Trust Company and the Union Trust Company were not jointly inter- ested in any enterprise, so that the srs- pension of one had no direct bearing upon the other. It also may be stated that neither company managed trust estates. - Other Financial Troubles.
 As is well known, there have been other financial troubles in Baltimore within g recent period. involving. first, the City Trust and Banking Company and coin- cidentally the Hammond Ice Company, and then William J. Middendorf & Co. but 1t is not believed that they were in any manner the forerunners of today's suspensions. J. W. Middendorf, speak ing for his firm, and J. L. Williams & Sons of Richmond, said today:
 ''The difaculties of the Maryland Trust Company have no relationship to ours The institution has never been identified with Seaboard interests, nor does 1t own nor has it ever owned, so far as our knowledge goes, share of Seaboard stock. Neither my firm nor Mir. Williams owes a dollar to the Maryland Trust Company, nor does that company owe us anything"
 Among the alarming rumors afioat was one to the effect that the municipality of Baltimore had millions of its treas ure realized from the Western Maryland Railroad involved in today's failures. Investigation proved, however. and the finance commissioners have so announced. that the city had only $aOOoOO invested with the Maryland Trust Company, and that this Is secured by three bonding companies of this city.
 While the events of today have provok- ed inevitable uneasiness, the feeling in financial circles at the close of business was one of confidence that there will be no more failures In this city, and that after brief period of unrest, business will settle down to it's accustomed chan ueia of RecuFikw