The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-10-20
One the Maryland, the Other
the Union, Both of
Baltimore.
THE FAILURES DISTINCI
The Total Liabilities Of the Two Companies Ex-
ceed Ten Million DolIars--- Many the
Annoui c.ment Came Like
Thunder Clap.
(By the Associated Press

Baltimore, Md, oct. l9.-InlS mas Deel
a day of marked excitement and subdued
anxiety in the financial and business cir
cles of Baltimore day full of momentous
events and of wild, irresponsible, .damag-
ing rumors in those streets and marts
given over to monetary transactions.
Luckily a dozen reports well calculated 70
provoke a wholesale run on banks got no
further than the precincts of South and
erman streets, Baltimore's Wall Street
district, and did not reach the great army
Of depositors throughout the city, thus
giving ample ime for the conservative
leaders of business to allay popular apprc-
hension before it reached dangerous pro-
portions.
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 bolt out of clear
sky. spreading CONSERVATION in all dlrec-
tions. To these few it was known that
the Maryland Trust Company had long
been struggling with undigested securities,
that it sustained heavy Withdrawals OF
deposits and that. finally, on Saturday
last it had failed in, its supreme effort TO
bridge over the yawning chasm by ne
gotiating a $2,OOO,000 loan in London.
While the bankers in their offices, and
brelters|in- clusters or the street corners.
and money dealers generally and business
men in the exchange We're still excitedly
discussing the collapse of the Maryland
Company, there came another bolt out of
a transparent sky, the suspension of the
Union Trust Company, and it was tins
latter event which happened at a late
hour in the day, that gave impetus to a
varied number of baseless rumorS as TO
other financial institutions, which might
we'll have created a panic had they been
given currency earlier in the day.
One of these rumors, however, assumed
a more definite shape than the others, and
it is well known that at the request of
another trust company the name of which
was freely banded out, the clerk of the
circuit court kept his office open an hour
later than the accustomed time 20 accom-
modate one more applicant for a receiver
ship. But the applicant did not mater
ialize and the day ended with only two
suspensions to its credit and with the
assurance of the cool headed financiers OF
the city tlat all peril of a panic had
passed. and that tomorrow would note the
dissipation of every sign and portend of
further trouble.
A leading banker, perhaps, the most
prominent n Baltimore said:
1T all depends upon how the people OF
altimore act. If they do not lose their
heads, the trouble will blow over IN
time and nobobdy will be hurt; but if
they become panic stricken tie conse-
quences 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 announce its suspension. This wss
followed few hours later by the clo.-
ing of the doors OF the Union Trust Com
pany.
Allan McLane, third vice-president OF
the Maryland Trust Company, was ap-
pointed to take charge Of the affairs OF
that company Miles White Jr., iirst
vice president of the Union Trust Com
pany, was appointed receiver of that in
stitution Mr. McLane gave bonds in tie
sum Of 81, 900 900 and Mr. White gave bond
in the sum of 81 100000.
y
Trust Company, issued on June 80, 1903,
showed capital stock of $2,125, 900, sur
plus $2,437, 500, and undivided profits of
s677, 1856. The company has demanded
time deposits amounting to $5,773,S1715.
The Union Trust Company at the close
oe business on March 81, 1908, has a capi-
tai stock of $1,000,000, surplus of $780,
600 and undivided profits of s159, ,6S7.5 SO.
The Union Trust Company has deposits
amounting to nearly two millions The
filing of the first applications for re-
oeivers for the embarrassed companies
was followed by petitions for co-receivers
for both companies.
The total liabilities of the two com
panies exceed $4,000, 900.
The cause of the Maryland Trust Com.
pany's failure was due to the investment
OF the assessments of the company in
Mexican Railway securities which coul.i
pany failed because of run on its bank
ing department. about s150,000 having
been withdrawn by depositors today, but
the real troubles of the company had
their origin in the Organization of the
SoLsh and Western Railway in Virginia in
which capitalization Of about $11 ,0Oo.-
COO was contemplated. The Union com
pany was the fiscal agent for the v;r-
ginia enterprise just as the Maryland
Company was the fiscal agent for the
Western Railway.
Though these two failures followed so