Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1931-09-11
To speed Action Or Frederick
Bank.

The liquidation of the assets of the
Central Trust Company of Maryland will
be proceeded with Immediately and as
rapidly as possible, George W. Page, State
Bank Commissioner. said.
The banks main offices at Frederick
City. Md. and its eleven branches through
out Frederick. Washington. Carroll, Mont
gomery and Howard counties in Western
Maryland. did not open on Thursday Of
of last week, the directorate Wednesday
having voted voluntarily to suspend opera
tons and place the bank in Mr.. Pages
hands. Friday Judges Hammond Urner
and Arthur D. Willard. sitting in Frederick
County Court. named Mr.. Page receiver for
the bank and John S. Newman as his
counsel. in response to receivership petit
ton filed by W. Preston Lane. Attorney
General. and Willis R. Jones. Deputy At
torney General. ..
CLOSING of the bank and it's branches
was deemed advisable by the directors
for the purpose of conserving the assets OF
the institution end for the best interest OF
the depositors," Mr.. Page said. 1.-THE stu
alton in which they found the bank is in
no wise reflection of industrial and agri-
cultural conditions in the counties served
by the bank. 1t was brought about wholly
through the institutions having very
large commitment in Washington real
estate which is frozen and cannot be
realized upon at the present time"
State Senator Emory L. COblentz, OF
Middletown. president Of the Central Trust
Company. in a statement issued after the
directors meeting, had said;
"As result of the serious depression
through which the country is passing
affecting as it does the value Of securities
and real estate, the bank finds itself with
too large proportion of its assets in a
frozen condition. This is particularly true
with reference to the loans of several Dor
rowing companies which have large hold
ings in Washington real estate. where
values have been abnormally depressed"
Mr.. Page said there had been "a gradual
seepage of deposits in recent weeks, but
there was nothing of the sort of thing COM
monty called run"
A third of the Frederick County Board
of Commissioners funds were on deposit
in the bank. John M. Dennis. State Treas
urer, said the Central Trust Company was
depository for little more than $500, 900
of State funds and that the entire sum was
protected by surety bonds. Montgomery
Countys $5O.00U deposit in the bank is
Similarly protected. said ]. Forest Walker,
County Treasurer.
At the same time that Mr. Page and his
deputy, John D. Hospelhorn. took over the
banks main offices, they sent assistants to
take charge of the branches at Ellicott
City. Emmitsburg. Monrovia. Myersville,
Middetown, Poolesville, Smithburg, Sykes
vile, Thurmont, Walkersville and Union
Bridge. Each branch had an auxiliary
board of directors. The parent banks d.
rectOrate comprised:
Mr. Coblentz. DR.. Joseph H. Apple, Law
renee A. Chiswell. William T. Delaplaine.
Frank NJ. Dertzbaugh, Harry L. Ebert. John
A. Enele. Thomas B. Hayward. Abram
Hemp, John C. Leatherman, R. Rush Lewis,
Charles Nice. Matthias. Guy X. Motter. Frank
C. Norwood. Vernon W. Nicodemus. Benja-
min C. Perry, Richard P. Ross. Eli C. REM
Charles F. Seeger. DR.. William M. Smith
Charles Wertheimer and Harry ]. Lebherz
Mr.. Norwood was chairman of the execu
tive board.
The Central Trust Company of Maryland
was organized by Mr.. Coblentz in 1918 as
a State bank to take over the Central
National Bank OF Frederick, which dated
back to 1908 and was the county's Oldest
bank. 1t had expanded rapidly since 1927,
adding five branches during that period.
Mr.. Coblentz. who is 81. had been promi
nent in Western Maryland business and
industry for many years. His financial
interests extended to Washington and
Philadelphia, where he had real estate
holdings. In his statement ne SAID ne nae
placed back of the bank "in various way.
practically all of my personal worth"
A native of Middletown. Nd. educated
in public and private schools. he began hi
business career as erocer's clerk and die
not enter banking until 1887. His rise ir
banking was rapid. While he worked in
that field he studied law and in 1898 wa:
admitted to the bar. Eight years later hi
was made vce-president Of the Frederick
and Middletown Electric Railway Company
and a director of the Central Nationa
Bank. whose president he became in 1908
That same year he organized and became
president of the Peoples Fire Insurance
Company Of Maryland.