The midland journal. (Rising Sun, Md.) 1885-1947, 1922-02-24
AFFAIRS OF CLOSED BANK
TANGLED.
Federal Officials Take Charge OF
Second National Bank OF
Elkton.

Second National Bank OF
ElktOn. .
The Elkton correspondent furnish
es the following to the Baltimore
American, relative to the affairs OF
the Second National Bank.
'Closed by order of the Comp
troller of the Currency. Signed, H.
Gordon Finney. receiver" was post
ed on the door of the Second Ma
tional Bank of EIkton, on Saturday.
This notice replaced the following,
which appeared on the same door
for three weeks: "This bank closed
by order of board of directors. Sign
ed. Charles A. Stewart, examiner"
Thus the affairs of the institution
will hereafter be absolutely in the
hands of Federal officers. 1t means
that the investigation which has
been in progress since the day fol-
lowing the closing of the doors of
the institution, conducted by Char
les A. Stewart. examiner, and Joseph
Gevea of the Department OF Justice,
has practically been completed.
These officials, however, have per-
sistently refused to make any state
ment in regard to what has been
disclosed by their investigation.
No less than 100 persons have
been summoned to verify their tran
sactions with the institution. The
books of the bank showed that they
had notes discounted there since
1918. In many cases the parties
denied absolutely that they ever
had a note discounted at the insti-
tuition. None of the notes have
ever been found. The other notes
held by the bank and which for some
time past have been carried as
assets, termed as 'tslow invest
ments," amount to about 500, 900.
1t is generally understood that a
very small percentage of this paper
will ever be collected. Besides, it
is alleged, that some of the parties
never realized anything from the
notes. The question has not yet
been satisfactorily explained who
got the benefit Of this bad paper.
Probably the only person who
could explain satisfactorily is Wil-
liam T. Warburton, the president,
who is critically ill, with slight
prospects for recovery. The hope
entertained by the banks depositors
that it would be reorganized and re-
opened for business has vanished.
The question now persistently asked
by the depositors is: How much of
our money will we get back?" The
answer to this question can be an
swered only after the sale of the
$12I0O0 bonds Of the Gilpin Falls
Electric Company and notes held by
the institution turned into cash.
Superintendent of Schools Hugh
w. Caldwell stated the School Board
had sent out checks to all the teach
ers for their months salary, not
withstanding that about $4,000 OF
the school funds are tied up in the
closed bank. The board made other
arrangements for the teachers pay
he said.
George Benson, the County Treas
urer, stated the county had about
$1S.400 in the bank when 1t quit
business. OF that amount $4,000
belonged to the sinking fund for re-
demption Of county bonds, and s3,-
400 was to the credit of the check
ing account. Up TOT few months
ago the county and school funds
were kept in another local bank,
but, according to law, the bank of
fering the highest rate of interest on
checking accounts must be made the
depository of the county, State and
school funds.
Last fall the Second National
Bank bid for the funds at ,5h per
cent, and 1t was awarded the de-
posit. The bank in return was re-
CURED to give the county a bond
for the funds, but the county treas
urer has never been able to procure
1t. Notwithstanding he has made re-
peated efforts to do 80.