New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-01
TRUST COMPANIES FAIL,
Cleveland Concern Assigns and Bos-
ton Company Closes Doors.

rr.r.,sns March g-The Federal Trust Com
pxny to-day made assignment 10 the Guardian
Trust Company. There is = shortage OF about S2o'-
900 IN the accounts OF the Federal company. and its
.ssssr,ept &c said TO have been made the result
Of the disappearance OF prominent official OF the
coaoern- The deed OF assignment was signed by J.
c. Gnchrsst, president. and 6. J. Bailey, assistant
secretary OF The Federal Trust Company. officials
s bosh the trust companies declare positively that
no oepositor viii lose a penny as result OF the
assignment
ygl1.ie no statement has been fled a yet by the
Ec~rsI company 81 is understood that Ii viii turn
cvr about xoo0ooo IN deposits 10 the assignee. Its
sstal assets viii be about s. 10000 1t has capital
.tock OF Ssoo.eo0, g surplus fund Of $4,000. and
about $4,000 undivided profits. According TO its
last repor It had s2lSs,ss2 IN loans and discounts
ana s4s 800 estate loans and owned $3.50 in
stocks, bonds and mortgages. The last statement
showed individual deposits OF S5sS.S2s but the off,
Gals say that the deposits were about E-oeoooo at
the close OF business last night
An agreement ratified recently by the stock
holders OF the Federal Trust Company and the
Guardian Trust Company, providing for the merg-
ing OF the Two concerns on April L The disap-
pearance Of the Official Ct the Federal company,
however, precipaisted matters and the directors
decided that an assignment would probably avoid
a run and protect all interests. A petition was
fled in Common Pleas Court to-day to subject
the stockholders OF the Federal Trust Company
10 their statutory liabilities.
President J. c. Gilchrist CT the Federal Trust
Company made the following statement TINS even
ing:
The turning over OF the Federal Trust Company
was along The line Of proposed consolidation
which was take place on April ! But tie alb
sence OF Officers from the city since
Saturday last csuscd feeling OF alarm IN certain
quarters that probably would have resulted in a
run on the bank before that date. As ali the sig
natures Of the stockholders Of the Federal COM
PAM had not been secured. its directors could not
Guarantee tire Guardian Trust Company, that It
would be unanimous. The Guardian company was
willing carry its consolidation agreement,
but il order make IL safe for them 10 90 so
they advised the assignment OF the Federal com
pany, with the understanding that the agreement
Tor the consolida ton be carried out.
The Guardian company had already exam
fned the securities Of the Federal company, and
finding the securities and assets of the bank IN
good shape they willing to pay the oeposltors
IN The latter bank in fun ana at once. and tins
plan carried out
As a result Of sensational reports circulated in
connection with the assignment Of the Federal
Trust Company. a started on the Pearl
Street Savings and Loan Company's bank in the
South End The bank is largely patrOniZed by for
eigrers. and for hour excited men and
women crowded its Offices in quest of their money.
Big downtown banks promptly rushed large sums
OF money TO the Pearl Street Sank mostly in sill
yer coin, which piled up high on the counters
effect OF this was almost instantaneous, and the
crowd OF depositors quickly melted away. and the
run over The bank is declared 10 be perfectly