Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-03
State Examiner Takes Over
Frederick Institution and
II Branches; Deposits of
$14,000,O0O Involved.
DIRECTORS TAKE ACTION
AS RESOURCES SHRINK
State Senator Said to Have Lost
$2,225,00 in Washington Real
Estate Transactions; Faces Trial
in Connection With Pitts Prose-
cution.
Special Dispatch to The Star.

Special Dispatch to The Star.
FREDERICK, Md, September 8
The Central Trust Co. of Mary
land and II branch banks in this
and adjoining counties closed
their doors today, and the affairs
of the institution were taken over
Immediately by George w. Page,
State bank commissioner.
State Senator Emory L. Coblentz,
president Of the bank, issued a
Statement blaming frozen assets
and miserable publicity" received
by himself in connection with the
Federal investigation of the F. H
Smith CO. of Washington, for the
failure of the bank.
Coblentz was one of the princi-
pal witnesses at the trial of three
Smith company officers in Wash
ington last year. He is now under
indictment in the Capital for
aiding in the commission of per-
jury" as a result of his testimony.
He said the publicity attending his
indictment disturbed public con-
f1dence and caused a seepage of
deposits.
Directors Reach Decision.
Decision to close the bank and its
branches was reached at meeting of
the directors yesterday.
The Central Trust Co. holds deposits
of approximately $14,oo0,ooo = about
one-third of the total bank deposits of
Frederick County.
Mr.. Coblentz said the banks assets
would be more than sufficient in
normal times" to meet its obligations.
plan of reorganization was being
considered
Commissioner Page qualified this aft
ernoon as receiver for the bank be-
fore Judges Hammond Urner and Ar
thur D. Willard of the Circuit Court.
Immediately afterWard he announced
he would proceed Immediately to
iiquidate the assets of the bank. He
was unable to say whether the assets
were sufficient to pay of all deposit
ors in full
A complete audit of the trust COM
pany's accounts will not be necessary,
Mr.. Page declared, since he had the
full cooperation of the bank directors.
He said he did not know how long
it would take to settle the accounts.
Mr.. Page blamed the failure on the
fact that the bank had "a very large
commitment in real estate outside Of
Maryland which is illiquid at the pres
ent time
The branch banks which closed are
at Ellicott City, Emmittsburg, Middle
town. Monrovia. Myersville, Poolesville,
Smithsburg, Sykesville, Thurmont,
Union Bridge and Walkersville.
OF these branches. the most recent
additions are the Washington Trust
Co. of Ellicott City. the Valley Savings
Bank of Middletown. the Poolesville
National, the Walkersville Savings Bank
and the two Smithsburg banks.
Montgomery County had $4,000 on
deposit in the Poolesville branch.
Coblentz's Statement.
The statement by Mr.. Coblentz fol-
lows
THE board of directors of the Cen
trail Trust Co., at a meeting this after
noon, VoIeu 10 place Iiie UdHh III Tie
hands of the bank commissioners in
order that its assets might be con-
served for the benefit of its depositors
and stockholders.
LAS a result of the serious depression
through which the country is passing,
affecting as it does the value of Securi-
ties and real estate, the bank finds itself
with too large a proportion of its assets
in a frozen condition. This is particu-
larry true with reference TO the loans
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