Evening journal., 1922-01-21
AFFAIRS
OF ELKTON BANK
Continued From First Page)

dent Of the bank is also president.
This company which has a plant
near Bay View, furnishes electric
current to Elkton, North East and
other towns and was reported to have
been sold some days ago TO the Sus-
quehanna Power Company.
There have been rumors of efforts
Of this bank to merge with either the
Elkton Banking Trust Company or
the National Bank of Elkton but it
is now said that such plan will not
likely materialize.
President Warburton at the time
the bank was closed yesterday, IS
sued the following statement:
1.-The Second National Bank Of
Elkton, on account Of run made
upon 1t, closed its doors at o'clock
this afternoon. on account OF some
slow investments and while negotia-
tions were pending for a consolida-
ton with another bank in the town,
rumors were circulated which
caused the run.
"The assets are ample to secure
the depositors and the bank will be
recognized and opened again for
business"
II has been known that the banks
affairs have been under investiga-
ton for several days.
The original investigation was
conducted by Joseph A. Genau, an
agent for the Department Of Justice
instead OF by a national bank eN-
aminer. Normally such inquir rs
4 ha .
ury Department, but It Is understood
( that Mr.. Genau was sent to Elkton
at the request OF one of the national
/ bank examiners.
What Mr.. Genau discovered has
not been announced. He left Elkton
I during yesterday and reported to his
chiefs in Washington. They. how
/ ever, declined to comment in any
way upon his activities or the reason
for the entrance OF the Department
! of Justice into the case
Charles A. Stewart. national bank
examiner, however, arrived last
evening, few hours after Mr..
Genau's return to Washington. Chief
: Examiner W. J. schechter is due to
arrive today, when he will take
charge OF all affairs in the bank.
I Neither here nor in Washington was
there any forecast OF probable ac-
tion. either as to the time when the
bank will reopen or the condition
which will be disclosed. It is as
sumed that the examination OF the
books will require several days.
The run, according to W. T. War
burton, president OF the bank. was
due to the circulation OF malicious.
reports of insolvency. owing to GER
tain holdings Of bonds by the insti-
tuition OF the Gilpin Falls Light and
Power Company, OF which Mr.. War
burton Is also president.
Washington advices say that the
Comptroller Of the Currency had or
dered the bank TO dispose Of the
$4,000 OF bonds OF the light and
power company held by the bank.
! Reorganization OF the bank will
take place according TO Mr.. War.
i burton.
IT is perfectly true" said Mr.
: Warburton, that we hold bonds OF
the Gilpin Company. but there wa,
nothing in this which should have
caused the banks creditors any un.
easiness. We had arranged to hold
a meeting tomorrow with officials
Of another bank in EllSton looking
to a merger OF the two institutions.
Malicious gossip however. got
about concerning the Gilpin con-
Germ, which resulted in the run.
To protect the banks best inter
ests we we're compelled to close our
doors. Should the merger as pro.
posed not goo through we have in
mind a reorganization which will
protect every interest OF the bank
and no depositor need feel alarmed
The assets OF the institution ar,
ample TO meet all emergencies d
we are given the opportunity 10 ad
= just conditions"
The run went on quietly. as few
b had heard 1t before the bank closed
, The directors OF the Second Ma.
! tonal Bank were William T. War
b burton, Russell J. Reed. Oliver c
b Giles. John Lungron and c. II
johnson. Mr.. Warburton was pres
dent. Mr. Giles vice-president. an,
q Mr.. Johnson cashier.
81 The report OF the condition OF tn
hank at the close OF business. De
p cember 81. last follows:
r Resources
Loans and discount, S254.s44.32
n notes and bills redlscounted. s2I4.
d 953.75; overdrafts unsecured. 81.
2 1884: United States bonds deposit
= ed TO secure circulation. s12.50O; al
e other United States government Sc
n curities, St7.50O; other bonds, stocki
e securities. S146.44O: banking hous
3 and fixtures. s14.796.22: lawful re
serve with Federal Reserve Bank
5,535.46; cash In vault and no
amount due from national bank
S1O.99776; checks on other bank
81 .026.1S; checks on banks locate
, outside Of city. $52s.1O; redemptio
\ fund with United States Treasurer
4 s625.
L Liabilities
Capital stock paid In, $50, 900; sur
plus fund. $4,000; undivided proau
sl1,6S9.S2: circulating notes out
standing. S12,500; amount due Fed
IA erai Reserve Bank. S6597 n,
- amounts due TO banks, bankers an
10 trust companies In the United State
y $1,000; certified checks outstanding
"A S53.21: cashiers checks on own ban
N outstanding. SIS; individual depo
"a its subject to check, S145.111.92: cei
= tifcates OF deposit due in ess tha
10 80 days, $63.S33.20: dividends uf
il paid. S1,27S.5O; certificates OF d,
IA post other than Tor money borrow
IA ed, SS2,632.55 bills payable 9th,
than with Federal Reserve BAN