The Washington times., 1913-11-23

u..S.aFRtjSTAfFA|RST
TOPIC OF THE WEEK

| One topic has absorbed all the interest
/ In the financial world Of Washington
for the entire week just closed. and
| that has been in regard to the affairs
of the United States Trust Company.
| Interest developed Monday, when quiet
| inquiries began to be made, had not the
interests controlling the United States
| Trust Company overreached themselves.
These inquiries became louder Tues
lGay, and in some way the visit of the
national bank examiner to the United
States Trust Company leaked out. At
first there were all sorts of reports as
to what his findings had been. and
these reports came from sources which
would seem to give considerable Gre
dence to them, were it not that they
differed so.
about the banks and brokerage houses
friendly to Eldridge Z. Jordan were
after his scalp, and would get 1t II
they. broke the United States Trust
Company to smithereens, and deprived
5S.0 900 depositors of their savings The
motives for this hate were said to be
jealousy of the remarkable speed with
which Mr.. Jordan has won his way to
the front, building up an enormous
savings institution. with more deposi-
tors than any other in the city. in
few years. Some of Mr.. Jordan's real
estate deals are said also to have
caused some of the bad blood. his in
terests conflicting with those Of others.
Begins Reports.
Obviously, the easiest way to ruin
Mr.. Jordan was to ruin the United
States Trust Company, as he held a
lin inf TN hot
the rumors ran. the little syndicate
began the circulation of the reports in
a most quiet way, but this kind of re-
port needs but little impetus to give it
speed.
With the other officers of the trust
company, Mr.. Jordan realized what was
going on, for the rumors were at once |
brought to his attention. Negotiations |
were believed to be under way for the |
one, commanded by one OF his alleged |
enemies, and he was urged to make a |
public statement of some sort to re-
assure the public, and explain away /
the talk about his bank.
To make some action more necessary, |
some of the stockholders in the United |
States Trust Company asked their |
brokers to sell their siock-to take |
anything they could get for it, At |
once there was a quiet agreement on !
the Stock Exchange that none of the |
stock would be bought or sold, since 1t |
could only be at prices which would |
terrify the public and cause an instant
run on the bank.
The reports eliminated late Friday
afternoon in real run at all of The
branches of the United States Trust
Company except the Dupont circle
branch. Considering the fact that there
are 5000 depositors in the United States
Trust Company, this condition was said
by many of the oldest bankers in the
city to have been the worst ever expe-
rienced here.
All Are Worried.
In fact, few men from other cities |
could recall a run which threatened TO |
assume more grave proportions than |
this. More than one person out of |
every six-men, women, and Children !
in Washington have an account with the |
United states Trust Company, whether |
regular account or merely Christ
mas savings fund. All % -nem on
Friday night, practically, were worried /
about their money.
Some of them were frantic-they had
been to the doors of the branch in
and had been too late to get to the pay
ing teller. Some felt sure that the line
had been delayed purposely because
there was not enough money to pay
them all off.
The tense feeling was shown by the
lines which formed early Saturday
morning in front OF the various
branches, excepting again the Dupont
Circle branch. These people got up too
early to read the papers before rush
ing to the bank.
They did not konw what had been
happening over night, and how their
savings were being made as safe and
solid as the Rock of Gibraltar through
the hurried visit to Washington of
Frank A Munsey. and his decision TO
buy the United States Trust Company
for the Munsey Trust Company and to
pledge his personal fortune TO guaran-
tee of its deposits.
Did Not Know Facts.
They did not know of the meeting be-
tween Mr.. Munsey and his friends and
the officers of the United States Trust
Company, lasting until the wee hours
at which the final decision to place the
trust company in his strong hands was
made. while officials of the Treasury |
delighted at the turn af-
fairs had taken, readily sanctioned
what they knew would absolutely save
the situation. They did not know of
the bringing out of the presidents of
all the national banks of the city at
4 o'clocl, in the morning, in clearing
house meeting extraordinary at which
the bankers agreed to put the entire
good faith of the national banks of the
city, every one included, behind the
Munsey Trust Company in its guarantee
of the deposits of the United States |
Trust Company.