Evening star., 1929-12-14
Books of Seat Pleasant and
Upper Marlboro Are Being
Examined by State Depu-
ties.
COUNTY DREW OUT FUNDS
AFTER BOND WITHDRAWAL
Henry Resigned as Head of Trust
Firm After Indictment-Closing
Order Issued to Protect Depos-
itors-Receivership Is to Be
Asked.

The Southern Maryland Trust
Co., of which Samuel j. Henry, in
dicted president of the F. H. Smith
Co., was president until several
days ago, has been ordered closed
by the bank commission of Mary
land. The company operates State
banks at Seat Pleasant and Upper
Marlboro, both of which are closed
today while deputy bank commits
sionerS are making an accounting.
The closing of the banks followed
closely series of events, which in
cluded the resignation of Hubert T.
Plaster, vice president and cashier OF
the Seat Pleasant Bank and president
of the Marlboro branch; the reslgna-
tion of Henry following his indictment
and the withdrawal by the Prnce
Georges County commissioners OF funds
they had placed in the two institutions.
Henry Replaced by Hayward.
Henry was replaced by w. j. Hay
ward, former vice president and gen
eral manager of the Chesapeake Beach
Railway. Allen MacCullen, Washing
ton attorney, filled the place occupied
by Plaster, but was given the title OF
secretary and general manager OF the
Seat Pleasant bank, rather than wee
president and secretary.
Some of the funds of the trust COM
pany are invested in obligations OF the
F. H. Smith Co. it was revealed today
by George w. Page, State bank commits
sioner. who ordered the banking offices
closed at the close of business last night
He said the trust company was trustee
or co-trustee on three items OF smith
company securities issued on properties
of the Smith company.
Mr. Page said the last regular ex-
animation made up to the close OF busl-
ness on November IL revealed frozen
leans which brought about the deple-
ton of the company's reserves. From
November IL up to the time of closing
the trust company was under the con-
troll of special committee of the board
iof directors, operating under the super
vision of this Office" Mr.. Page con-
tinued. 1.-THE board of directors passed
a resolution requesting the bank COM
mission to take over the affairs OF the
institution.
''The actual thing that led to the
: closing of the company was the short
age of reserves to pay current onllga-
tons"
Page said that he intended to ask the
court to qualify him as receiver of the
institution so he could proceed with the
liquidation.
Page said he had not had time to
make an examination of the banks, but
understood there was shortage at the
Seat Pleasant Bank which had been
covered.
Negotiations in Progress.
Whether or not there will be liqui-
dation of the bank will depend on the
outcome of negotiations known to be
in progress which may lead to the TAX
ing over of the Southern Maryland
Trust Co. by some other bank.
The examiner in charge of the Seat
Pleasant bank said today that some Sc
curities of the Smith Co. had been
found in the vaults of the bank. He
also declared that many Christmas saw
ines checks mailed to depositors of the
bank had not been cashed.
The last published statement OF the
bank. made July 10, showed its condi-
ton at the close of business June %
1929, and listed its assets at $l,306,-
30l 80. Capital stock was at 100000
JT|o,ti,,,ad on paoa Q Column Z