The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-01
CIEVElAND'S FEDERAL
TRUST COMPANY FAILS
Prominent Official Disappears and
an Assignment Is Made
Assets 100000.
RUN ON A SMALL BANK

CLEVELAND, o.. March 31-The Federal
Trust Company to-day made an assignment
TO the Guardian Trust Company. The ac-
ton Is stated TO have been taken as a re-
suit or the disappearance OF a prominent
oniclai or the Federal Trust Company. Re
rorts are in circuIat ton that a shortage has
been found in the funds of the concern
While no statement has been filed as yet
by the Federal Company, il is understood
II Will turn over about 81 100000 in deposits
10 the assignee. It's total assets will be
about 100000. The Federal Trust Com
pany has a capital stock of 81, 10000 1t has
surplus fund of $4,000 and about $4,000
undivided profits. 1t had S2.1Ss. 1862 in loans
and discounts. $500 real-estate loans and
owned $4,000 worth of stocks, bonds and
mortgages Its last statement showed in
dividual deposits of s1.59S.s2s. but officials
state the deposits about 100000 at
the close of business last night The deed
o. assignment to the Guardian Trust was
signed by c. ]. Gilchrist, president. and
o. e. Bailey, assistant secretary of the Fed
eral Trust Company.
Officials of both of the trust companies
declare positively that no depositor will
lose penny a result of the assignment.
1t Is also stated that the shortage in the
accounts of the Federal Trust Company
i will not exceed $4,000. In view of sensa-
tional rumors. however. and the POSSIBLE
ity OF run. il was deemed wise to make
an immediate assignment. The two con-
Germs We're under an agreement recently
ratined by the stockholders to be merged
President j. C. Gilchrist, of the Federal
trust Company. made the following state
ment this evening to the Associated Press
.ssraf inc
over of the Federal Trust Company to the
Guardian Trust Company was along the
lines OF a proposed constellation. which
was 10 have taken place April l. But the
eDsence of one of our officers from the city
since Saturday last caused a feeling OF
alarm in certain quarters that probably
would have resulted in run on the bank
before that date. AS all the signatures OF
the stockholders of the Federal Company
had not been secured the directors Of the
latter concern could not guarantee the
Guardian Trust Company that it would be
unanimous The Guardian Company was
willing TO carry ont its consolidation agree
them to do so they advised the assignment
of the Federal Company with the under
standing that the agreement for the con-
solidation be carried out. The Guardian
Company had already examined the securi-
ties of the Federal Company and finding
ne hn th ana asses ,, Gr '1e DanA I'm IN
depostors In the latter bank in full at
once and this plan was carried out
AS result OF sensational reports circu-
lated In connection with the assignment OF
the Federal Trust Company a was
started to-day on the Pearl-street Savings
and Loan COmpany's bank. The bank is
largely patronized by foreigners. and for
hour excited and women
crowded its Offices In quest of their money
Big downtown banks promptly rushed
large sums OF money to the Pearl-street
bank. mostly in silver coin, which was piled
up high on the counters in full view of the
people crowding the place. The effect of
this was almost instantaneous, and the
crowd of depositors quickly left and the run
over. The bank is declared to be per-
fectly solvent.