Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
Feeling Prevails That DepositOrs viii
Not Lose

Not Lose.
With the exact financial status of the
| Southern Maryland Trust Co. still I'M
| determined pending the completion OF
an examination of the books by the
| Maryland Banking Commission, the i'm
preston prevailed in Prince Georges
County financial circles last night that
, there would be no loss to depositors, ana
| the reopening of the doors OF the bank
within few days loomed as posi-
bility.
The banks of the trust company at
| Seat Pleasant and Upper Marlboro were
{ ordered closed by the State Banking
Commission Friday afternoon. Samuel
| ]. Henry. indicted president of the F. H.
Smith Co.. was until recently president
| of the banks, and some securities OF
| the F. H. Smith Co. were found in the
| Seat Pleasant Bank, the examiner
| stated. Henry resigned from the bank
| following his indictment. and the va
cancy thus caused was filled by w. j.
! HAYWARD, former vice president and
/ general manager of the Chesapeake
Beach Railroad.
Second Official to Resign.
! Henry was the second official of the
| institution to resign within a fortnight,
| Hubert T. Plaster, vice president and
secretary, having resigned on Novem-
| Der 30. During that period the Prince
Georges County commissioners had or
dered county funds deposited in the
bank removed. This action was taken
| following the withdrawal of a deposit
bond by bonding company.
The possibility of the banks being
reopened hinges on negotiations known
| to be in progress. 1t was reported at
Seat Pleasant last night that several
directors of the Southern Maryland
Trust Co have made overtures with a
view to guaranteeing deposits and hav-
| ing their banks taken over by the East
/ ern Shore Trust Co. The latter con-
! Germ has total resources of approx
mately $4,000, 900. and is one of the
largest State banking organizations out
institutions would not deny this rumor
! DepositOrS to Be Paid.
Allen MacCullen. Washington attor-
ney, who was called to assist in
Strengthening out the affairs of the
! banks shortly after the resignation OF
Mr.. Plaster, last night issued formal
/ statement, declaring that all depoSitors
would be paid in full.
Mr.. MacCullen'S statement, given to
! The Star In response to a request, fol-
lows: Upon the resignation of Mr.
Plaster on November 80. the directors
requested me temporarily to assume
charge Of the Seat Pleasant and Marl-
.boro banks, for the purpose of straight
ening out the affairs of the banks. In
| the short while that / was there
made a rather careful survey of the as
sets and liabilities of the bank and am
satisfied, and have SO stated to the bank
| commissioner, that the bank, in so far
as depositurs and creditors are con-
| cerned, is absolutely solvent.
In my opinion, there are more than
! sufficient good assets in the bank tC
pay every depositor in full," Mr.. Mac
| Cullen concluded.
! Receiver to Be Qualified.
Commissioner Page is expected tC
qualify formally as receiver for the
banks in Circuit Court a. Marlboro to-
morrow. Under the Maryland law, he
automatically becomes recei - when a
bank is closed, but will go through the
formality of qualifying in Prince
Georges County.
Deputy Commissioner John D. Hos
| pelhorn was in charge of the institu-
tions yesterday, directing the work OF
the examiners and answering the quer-
| les of persons who visited the Seat
| Pleasant Bank before the doors were
| locked at noon.
| During the morning hours the bank
made change as an accommodation tc
merchants of the community, and this
lead to an erroneous rumor that 1t was
cashing checks.
| At Seat Pleasant, where the larger OF
| the two banks is located, there was lit
tie apprehension among depositors as to
| the safety of their money. The general
| tenor of opinion of the great majority
of the citizens seems to be that the
| bank is fundamentally sound, and even
| if it were not the directors are men OF
| such caliber and financial standing that
| they would be certain to stand behind
| the institution so as to prevent any loss
to depositors.
No excitement was apparent yesterday
when the news of the banks closing
the bank internationally all during the
day either to deposit money or cash
checks, only to find that the bank was
no longer doing business. without eX-
ception, they accepted the situation
| TRANQUILITY with an air that seemed to
reflect confidence that their money was
safe.
One of these was William Hines,
principal of the Maryland Park High
School, who came to deposit 500 of
the schools funds. He said there was
already $3.50 belonging to the school in
the bank, but he was not worried for
Some of the poorer people suffered
considerable inconvenience by the
banks closing. One depositor came to
draw money to buy groceries for the
week end. I've only nickel in my
pocket" he ruefully said: Il guess I'll
have to buy smoked fish and drink
water to last me till Monday. It's too
late to go to Washington for money
A storekeeper, who is also depositor
in the bank, summarized the view OF
the town This is a small community,
he said. I'VE all know the directors and
have confidence in them. We know
they are financially responsible and will
make good any loss, so why should we
worry?"
| Mrs. Mary Carmody. widow of the
| founder of the trust company and at
present the ma iority stockholder, was
| confident that the two banks will soon
open their doors again.
| There was even more serenity at
Marlboro, although the closing of the
bank Their, which had been quite pros
porous. caused mild sensation through
out the county. Many persons of prom
inence, business houses and organiza-
lions we're Inconvenience by the clos
ing. There was an intermittent stream
of depositors calling all day to talk with
| William H. Brooke. cashier, who is
known to most of the patrons of the
bank by his first name.
Some reaction was felt by other banks
of the town. but most apprehensive
depositors we're treasured Of the staunch
position of those institutions after talk
ing with their officials.
County Policeman Frank Prince and
Deputy Sheriff l.. E. Dutrow were sta
toned at Seat Pleasant as a precau-
tionary measure last night.
officers of the bank before recent
personnel changes were: S. J. Henry
president: Hubert T. Plaster, vice presi-
dent and secretary w. S. Collins, vice