The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-11-22
Takes Over L. 8. Trust Co. of
Washington, With Its S6.-
100000 Obligations.
MERGER TO BE EFFECTED
Moving Spirit IN Concern.
Former Texan. Had MeteOric
Rise az Financier.

It's nVe branches mere tnis afternoon. AS
result the announcement was made
late tonight that Frank A. Munsey's
,ius. company Of this city has taken over
the threatened institution with its s6.-
500. 600 Of Obligations TO depositors and
oil it's assets.
The prompt action by Mr.. Munsey and
local financiers who acted with him in
bringing about the merger has saved the
United states Trust Company from seri-
Gus embarrassment. n not from tenn
porary suspension.
Lawrence o. Murray. until fen
months ago Comptroller Of the Currency.
is president Of the United States Trust
Company. and Eldridge f. Jordan. vino
has had a meteoric rise as banker In
Washington. has been the moving spirit
behind the trust company.
Tomorrow morning at the opening OF
business depositors Of the United states
Trust Company will md hung from the
side walls Of the main banking house
and its various branches cambric signs
announcing the overnight change.
The Munsey Trust Company Is &s.-
0o0, 900 corporation organized last spring
by the New York magazine and news
paper owner. Its deposits are approxi-
mately $1,70o.0OO. The United States
Trust Company has a capital Of $l.25o.-
600 and deposits Of more than $4,000.
600.
4. 8. Tract Co. Loses Ideatity.
Under the terms Of the transfer the
United States Trust Company Is taken
over as a going concern and merged and
obliterated as to identity in the Munsey
Company.
The terms of the merger will include
the elimination of Mr.. Jordan. the young
Texan. whose almost romantic career In
Washington's financial world began about
twelve or thirteen years ago.
Mr. Jordan came to Washington and
engaged in the real estate business as .
.aIesman. with some success. His
pertinacy and energy soon won the respect
OF some Of the biggest financial people
OF the capital. Then he began to branch
out.
In Is0t he married Miss Martha Man
ley OF Ellcott city. Md, Mrs. Jordan
was not "A wealthy woman Within less
than "a year OF their marriage Mrs. Jor-
dan inherited from an uncle about &1o,0Oo
She was prompt to pool her interests with
those of her husband. In the winter
Of l9O5-19O6 Mr. Jordan acquired con-
troll of the Traders National Bank OF
Washington, q small and conservative
concern.
Mr. Jordan extended the Traders Ma
"a rNif al hs
class of business which II handled. He
extended his holdings OF bank stock to
include minority interest in the United
States Trust Company. which was estab-
lished about q year later, with Senator
Nathan Il. Scott Of West Virginia as It's
president.
A little later Mr. Jordan acquired COM
plete control Of the United States Trust
Company. Senator Scott was forced out
Of the presidency. Then the Traders Ma
tional Bank liquidated voluntarily and its
business building became the first branch
of the United States Trust Company.
A little later Mr.. Jordan's trust com;
pany swallowed up savings bank In
Seventh street. and later another savings
bank in the north end OF Washington.
one Of JOrdan's first Mistakes.
Recently the United States Trust Com
pany obtained plot Of ground at Dupont
Gree. There they erected handsome
branch bank This was one OF the first
mistakes of Mr.. Jordan's career
The property had been included in the
hanks assets as worth $ll5,O00. The
Comptroller Of the Currency recently
warned the trust company that II must
write off about $50, 900 Of this value from
its list Of assets.
1t Is understood that the trust COM
pany had become overextended in other
real estate properties. An examination by
a Federal examiner Is said to have been
the immediate cause OF the run. The ex-
aminer consulted other Washington bank
ers in regard 10 certain OF the United
States companys assets and the trouble
started.
The run began shortly after noon and
increased steadily until the closing hour
Oyerextension Of what at one time
seemed to be a limitless credit is given
as the cause o: the downfall Mr.. Jor-
dams contest with Senator Scott resulted
In the formation OF the Continental Trust
Company, Of which Senator Scott to-day
Is president.
Upon his retirement from the office Of
Comptroller of the Currency Lawrence o.
Murray was elected president OF the
United states Trust Company. He IL its
nominal president to-day. but owing to III
health has not assumed the active man
agement OF the corporation.
Nh Jordan. whife relinquishing his
nominal office as president. has remained
as active head of the institution.
Mr.. Jordan was urged for chairman Of
the inaugural committee at the Wilson
inauguration. but the conservative bank
ers here blocked the appointment
The United States Trust Company last
January inaugurated an extensive Christ
mas savings scheme by which the de-
positors were invited to take out bank
books with the understanding that they
would deposit for ffty weeks dollar a
week. the principal and interest to remain