Evening star., 1913-11-22
Absorbs the Other Corpora
ton and Adds to Its
Resources.
u. S. TREASURY DEPOSITS
A MILLION DOLLARS
Munsey Trust Guarantees Payment
of All Deposits in the Alb
sorbed Institution.

As result of negotiations conducted in
this city last night the Munsey Trus
Company has absorbed the United States
Trust Company, both institutions of this
city. This absorption has solved diff
cult situation which, during the past few
days. has caused great anxiety in Wash
ington In consequence of the danger OF
possible closure by orders of the Treas
ury Department confronting the United
States Trust Company. The taking over
of the United States Trust Company by
the Munsey Trust Company guarantees
all depositors in the former institution
that their deposits are secure and pre-
vents any serious disturbance at this
time in the local financial field.
AS a result. when the United State
Trust Company and its branches opened
at 0 O'Clock this morning they wer
branches of the Munsey Trust Company
and they had been enriched overnight b,
one million dollars III cash from tn,
Treasury Department. sent through ar
rangements with number of nationa
banks of the city.
In consequence of rumors of the diff
ficulties with which the United States
Trust Company was confronted, cul
m1nating acutely in reports of i'm
minent failure circulated yesterday, tha1
institution was subjected yesterday
afternoon and this morning to slight
''runs" at the central bank and some OF
the several branches, lines forming out
side of the buildings All depositors
who gained entrance before the closing
hours into the bank buildings were paid
In full. and as the fact of the ABSORB
tion OF the United States Trust Com
pany by the Munsey Trust Company
became known today. and especially wher
lis.l - = -.
United States had advanced to the
Munsey Trust Company for the pur-
pose of meeting immediate demands fol
deposits, the sum OF $1,000, 600, conf
and the waiting lines Of depositors
diminished.
No Real Panic.
There was at no time during the two
periods of the runs on the central
bank and its branches any real panic
excitement. and many of the waiting
depositors dropped out of the lines upon
ascertaining that the solvency of the
institution was assured SO far as they
were concerned.
The aid given by the United States
was necessarily effected through the
medium Of the national banks in this
city, as It Is impossible under the law
Tor the Treasury to deposit FUNDS df
rectly with trust companies.
The trouble in this case does not in the
least degree disturb the other local finan-
cial institutions, which are unaffected
by the difficulties which have beset the
United States Trust Company.
By the arrangement between the Nun
sey Trust Company and the United State.
Trust Company. the former takes posses
sion of all the assets and deposits of thu
latter. assuming full relations with tn,
depositors. and undertaking to liqu.date
the assets of the United States Trus
Company.
The absorption Of the United State.
Trust Company has been effected with tn,
full knowledge and approval Of the Treas
ury Department. officials of which hav,
been anxious during the past few days tt
see some plan worked out whereby TIL
closure of the company because of the al
legged impairment of its capital could b.
prevented. The aid given to the extent O
"a million dollars in currency this mornin,
is ample evidence that the arrangement 4
satisfactory to the government and tina
there Is ample confidence in the solvenc
of the Institution which has undertakes
TO manage the liquidation of the Unitet
States Trust Company.