New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-20
TRUST COMPANIES FAIL.
TWO 60 UP IN BALTIMORE.
-fffem pts 10 Finance Railroad
Schemes Fatal.
Railroad

Baltirnore oct ra-This city was struck to-
CAV by the greatest financial crash IN its his
tory Tho Maryland and Union Trust conpa-
MES closed their doors and placed in the
hands OF receivers. The collapse Of the two
trust companies paraiyzed business on the Stock
Exchange. Holders OF securities were advised
by bankers and brokers not 20 sacrifice invest
ll1enfs and panic was feared in some quarters.
but leading nnonciers gave assurance of safe
~ President II A orrfck Of the Stock EN-
change said thas the exchange would take no
action. as the two trust companies were not
identified with any local enterprise and the
failures would have little effect on the brokers.
one or two more trust companies are reported
in = weak condition. and il is yet impossible
20 determine TO what extent the blow viii be
felt This evening all sorts OF sensational III
Inors are s1oat
Colonel J. Wilcox Brown president Of the
Maryland Trust Company. is III at his home
He was in New-York last week and made ire
rnendous efforts TO tide over the difficulties Of
his company He was almost Frustrated BY the
non-success Of these efforts
Henry J. Bowdoin. first vice-presdent Of the
same company. has been i'll for several weeks
and is still confined 10 his home. He had
planned to sail for Europe next week.
A conference Of leading bankers was held last
night TO consider the affairs of the Maryland
Trust Company. Several stated that the banks
were all secure and that they hoped and be-
leved the trouble would go no further. Alexan-
der Brown. senior member Of the banking house
Of Alexander Brown 4 Sons. formerly director
Of the Maryland Trust Company. who severed
his connection with the institution three years
ago, thus defined the situation:
II all depends upon how the people Of Balti-
more act If they do not lose their heads, me
trouble will blow over in time and nobody VIII
be hurt but il they become panicstrichen the
consequences will be serious. This IS a time 20
use calm judgment. The embarrassment OF the
Maryland Trust Company is due principally 20
the advances it has made on account OF the
Vera Cruz and Pacific Railroad Of Mexico Inc
house Of Alexander Brown & Sons made loan
10 the Maryland Trust Company some time ago
against first mortgage bonds as collateral ana
has no reason TO worry over the loan
President Ramsay Of the National Mechanics
,,ank said that the local banking situation was
rong. but he was not prepared TO make a
:aatement concerning other financial circles as
The result Of the developments anlongHthe trust
companies
John s. Cuttings & Co. bankers. filed the ap-
plicstion for receiver for the Maryland COM
pany. The court appointed Allan McLane. third
nice-president Of the company, the receiver
George Gunther. = depositor Of SS2,793 in the
Union Trust Company. asked for the receiver
for il. Miles Waite. If. first vice-president ot
the concern. was made the receiver Mr.. Nc
lane gave bond in the sum Of 100000 and
MT White gave bond in the sum Of SLoeh"eo
TIE MARYLAND Conpany's last statement. is
sued on June so. showed: Capital stock, S2l23.-
600: surplus. 81 437. 500: undivided profits
ss-T. q9s Sc and demand and time deposits, So
TT3s771s The Union Trust Company on
March 81 last had: Capital stock. SLeHeoo'
surplus. s25ooo0; undivided profits, S159iS1 -.
and DEPOSITS 81 935 SEQ Baltimore City has
invested with the Maryland company $4,000.
received from the sale Of the Western Mary
land Railroad 10 the Goulds. This. however is
protected by surety companies.
Nj McLane issued the following statement in
regard 10 the affairs Of the Maryland company:
Almost she whole cause Of the embarrassment
of the company is the fact that II has loaned
70 the Vera cruz and Pacific Railroad Com
D,sny. in Mexico. very large sum Of money, IS
security for which il holds on deposit the en-
tire issue Of first mortgage bonds 80 oeooe0
preferred stock CS5e0NooO and common stock
S5oeo0e0 Of that road. and that owing ~
the unfavorable condition Of tho money mar
bet il has been una bic 10 effect ? satisfactory
loan upon these securities
7 was learned that the total amount ad-
vanoed to the railroad company Was about ST.,
100000
Considerable New-York capital IS in the
Union company. which failed directly because
~ run or its banking department. about
to-day But the real troubles Of the company
had their origin in the organization OF the
Southern and Western Railway in Virginia. IN
which 2 capitalization Of about S11eooo0o was
contemplated. The Union company was the
fiscal agent for the Virginia enterprise. as the
Maryland company was the fiscal agent for the
Mexican Railway.
Though the tuo failures came so close to-
gether it can be stated on uoquestoned au-
thority that there Was no connection whatever
between the two The Maryland Trust Com
psny and tho Union Trust Company were not
Jointly interested in any enterprise. so that the
suspension q one had no direct bearing on the
other. II may also he stated that neither COM
psny managed trust estates II is declared to-
night that the companies viii undoubtedly
nay dollar for dollar 10 deoositors, and that
the stockholders VIII also be protected. 40
statement Of Liabilities and assets has yet been
issued by The receiver Of either institution.
There have been other financial troubles in
Baltimore within recent period. involving,
first. The cry Trust and Banking Company, and
considerably the Hammond Ice Company and
then William J. Middendorf d Co. and John /.
Williams & Sons OF Richmond. Va but it is
not believed that they were in any manner the
fsrerunnners OF to-day's suspensions. J. ".
Niddendorf. speaking for his firm and tho VIII
ismses ssid to-day:
The difficulties Of the Maryland Trust Com
pany have 10 relationship 10 ours That in
StitUtion has never been identified with Sea-
hoard interests, or does IL own. or has u ever
owned. far our knowledge goes q share
- Seaboord stock. &either my firm nor Mr..
Nvfliiams's = dollar 10 the MARYLAND Trust
company. nor does that company owe Us any
Thing
N,