Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-04-01
BOSTON FAILURE.
Union Trust Co. Ordered to
Close Its Doors.
Liabilities Of the Corporation Estimat-
ed at Sl,600,0O0.
Difficulties Attributed to Heavy With.
drawaIs by Depositors.

Boston, March 31.-The Union Trust
90. closed its doors. Thursday. The
Dlhk was closed by order of the say
ing bank commissioners.
me Union Trust Go. was incorporat-
Ell IN 1Sss with a capital of $l0OO00 The
preSldcEt is William i. Barrett. for
merlv member of Congress. Mr.. Bar
rett is we'll known Poston publisher.
Frederick q. Roberts. is treasurer. and
the directors are as follows:
William T. Barrett. Charles TT Al.
ans, G. +. Donnelly. James w. Dun,
ply, G.. Edward Smith. Gaien F. Stone.
Edwin L. Curtis and Sherman l.. Whip
pie.
Director Adams is n member of th,
state prison commission. Mr.. Curtis is
IL former mayor Of Boston, Directors
Donnelly and Whipple are prominent
attorneys. and Director Stone is a
member of the banking firm of Hay
den. Stone e Co.
The directors announced that they
would issue Il statement during the
day. At one time the company carried
deposits of Sl,Sl9.59l but this amount
had been materially decreased OF late.
Tho liabilities of the trust company
are estimated at 81 1900. 900 with nomin-
nj aSSetsS of abJut the same amount
The cOmplny's difficulties are attribut-
ed to heavy withdrawals by deposit
ors and tho inability of the company to
realize quickly on it's securities in or
der to provide for the unusual demand
The directors state that an aDplica-
tion will he made for Il receiver and the
affairs If the company will be wound
up. They state positively that depoS-
itorS will receive 100 cents on the dol
lar.
At the office of the savings bang
commissioners at the state house it was
announced that the commissioner had
| applied to the supreme court for an in
| junction t. restrain the institution
| from receiving or paying money. The
| bank was temporarily enjoined and the
doors closed. The application for a
permanent injunction is returnable
| Friday forenoon when the court will be
requested to appoint o receiver The
commissioner noticed some time ago
| that Withdrawals We're becoming heavy,
and as matters did not mend and in
view OF the unsatisfactory nature of
| the securities it was determined. Thurs
'ii't' IL NOuiu Dt liittus iSsiDlc W
business to go on.
The company moved into new quar-
ters last year and had made prepara-
lions to extend it's business but it is
sailed that some of it's ventures, in
Guiding street railway financing did
not prove as successful as it was hoped
for.
A meeting Of the directors OF the
trust company was held Wednesday
night when it was voted to go into IL
quotation. settle the affairs of the COM
Dany and go out of existence. Steps
then were taken to join with the saw
ings bank commissioners in the liquid
atinS proceeds. Confidence was ex-
pressed by the directors that all tho
9epositCrs would be paid in full and
that the only losses would be upon the
stockholders.
The charter rights OF the company
came into the possession of the stock
holders six years ago. Since then the
institution has made n speciality of
paying four Ter cent. interest on GER
tificates of deposits. n rate higher than
is the custom.
About II years ago the Union Trust Co.
then under different management, got
into financial difficulties. and Samuel w
Mccall. present congressman was ap-
pointed temporary receiver William =.
Barrett assumed the Indebtedness and
continued the companyS business.