Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-31
Federal Trust Go. Of Cleve-
land Assigns Today.
TT HURT STOCK MARKET
UNION TRUST COMPANY OF Bos-
TON ALSO CLOSES ITS DOORS.
Difficulties Of Latter Firm Due to
Heavy Withdrawals Of Deposits-No
Opposition to Receiver.

CLEVELAND, March 31.-The Federal
Trust Company today made an assignment
to the Guardian Trust Company. The ac-
tion is stated to have been taken a
result of the disappearance of prominent
official Of the Federal Trust Company. Re-
ports are in circulation that shortage
has been found in the funds of the con-
Germ.
While no statement has been filed as
yet by the Federal Company, it is under
stood it will turn over about 81, 100000 in
deposits to the assignee.
Its total assets will be about $1,000 900.
The Federal Trust Company has capital
stock of 81 100000. 1t has surplus fund
of $4,000 and about $4,000 undivided
profits.
According to its last report it had s21Ss.-
a62; in loans and discounts. $500; in real
estate loans, owned ST29OOO stocks bonds
and mortgages.
Its last statement showed individual de-
posits of 1,593, ,32S, but officials state the
deposits were about $1,OO0,O00 at the close
of business last night.
An agreement was practically reached be-
tween the directors of the Federal Trust
Company and the Guardian Trust Company
several days ago, providing for the merg-
ing of the two concerns. The disappearance
of the official of the Federal company, how
ever precipitated matters and the directors
avoid run the bank and protect all
interests.
Boston Trust Co. Closes Its Doors.
BOSTON, March 31.-The Union Trust
Company closed it's doors. The Union
Trust Company was incorporated in 1888
with a capital of 100000. The president is
former Representative William E. Barrett.
Mr.. Barrett also is well-known Boston
publisher. Frederick B. Roberts is treas
urer, and the directors are William Il. Bar
rett, Charles H. Adams, c. F. Donnoiley,
James w. Dumphy, g. Edward Smith and
Galen E. Stone.
The liabilities of the company are placed
at 81, ,600,0O0, with nominal assets of about
the same amount. The difficulties of the
concern are attributed to heavy withdraw
ais by depositors and the inability of the
management to realize quickly on securities
In order to. provide for the unusual de-
mands.
At the office of the savings bank commits
sfoners IT was stated that the company had
been temporarily enjoined by the supreme
court, and that the application for per-
manent Injunction was returnable tomor-
row, when the court will be asked to ap-
point receiver
The directors Of the company state that
no opposition will be made to receiver
ship and that the company will go out OF
business They state positively that de-
positors will lose nothing.
TRENTON, N. J.. March 31.-A petition
of involuntary bankruptcy against the
United States Fireproofing Company of
Lisbon, Ohio. was filed here today in the
United States district court.
An order to show cause was made return
able on April 4. These proceedings follow
the recent appointment of a receiver for
the company
The deed of assignment to the Guardian
Trtyc cic noA hxyT Il nhric
ident and G. ]. Bailey, assistant secretary,
of the Federal Trust Company.
Depositors Will Lose No Money.
Offcials of both the trust companies de-
clare positively that no depositor will lose
a penny as result of the assignment 1t
is also stated that the shortage in the ac-
counts of the Federal Trust Company will
probably not exceed $2O,O0O In view OF the
sensational rumors, however, and the possi-.
bility Of a run, 1t was deemed wise to make
an immediate assignment The two con-
Germs were under an agreement recently
ratified by the stockholders, to be merged
on April 1.
Mosher of the Guardian Trust Company. to
which the Federal Trust Company assigned
made the following statement today:
Open New Accounts
1.-THE depositors of the FEDERAL Trust
Company are presenting their books for
verification and assigning their deposits
through the Guardian Trust Company. who
are issuing their own pass books for the
full amount of deposits and interest.
The officials of the Guardian Trust COM
pany have verified the investment and col
laterals, securing the loans of the Federal
Trust Company, and find them on hand in
accordance with their books. The investi-
cation made satisfies the Guardian Trust
Company and they will assume i'm full the
obligations of the Federal Trust Company"
Absorption of Trust Company.
CLEVELAND, March 31.--It is announced
that an agreement has been reached where
by the Citizens Savings and Trust Com
papy will absorb the Prudential Trust Com
pany. The Prudential Trust Company is
capitalized at $600,eo0, with 81 800 900 in de-
posits.
The consolidation will result in giving the
Citizens Savings and Trust Company de-
posits aggregating $50, 0,0o0 in its banking
department and resources of <s6. 500.O00 ex-
elusive of it's trust department. which car-
ries about $1,000 600.