Jasper County Democrat, Volume 6, Number 29, Rensselaer, Jasper County, 24 October 1903 — BIG BANKS GO DOWN. [ARTICLE]

BIG BANKS GO DOWN.

BALTIMORE BTARTLED BY TWO SERIOUS FAILURES. 1 "• • Maryland Trust and Union Trust Are Forced ta Suspend -Combined Liabilities of the Two Concerns Will Veach $10,000,000. ~7~ The Baltimore financial world was startled Monday by the suspension of two of the city’s largest financial concerns, with joint liabilities of $10,000,000. The Maryland Trust Company, with a capital stock of $2,125,000 und deposits of over $5,000,000, and the Union Trust Company, whose Capital stock Is $1,000,000, with deposits of about $750,000, went into the hands of receivers by consent. Allan McLnne, third vice president of the Maryland Trust Company, was appointed receiver for that company, with a bond of $2,000,000, and Miles White, one of the vice presidents of the Union Trust Company, was appointed receiver for his company, with a bond of $1,000,000. A number of petitions for coreceivers have been filed in court by stockholders and others interested. Although the two companies had no Interests in common, their suspensions were closely related. .The Maryland Trust Company has about $6,000,000 tied np in the Vera Crus and Pacific Railroad, across the Isthmus of Tehuantepec, in Mexico, which has recently been completed. The unfavorable condition of the market has prevented the company from realizing anything on these securities and it has become pressed for money. The effort was made to negotiate a loan of $2,000,000 in London, but failed, and this precipitated the receivership^ A run on the banking department of the Union Trust Company caused its embarrassment The doors of the Maryland Trust Company had remained closed at 0 o’clock, the opening hour, pursuant to a decision of the executive committee at the close of a meeting

which lasted until 2 o’clock in the morning and very soon afterward the petition for a receiver was filed by John S. Gittings & Co., bankers, who . alleged that they had on deposit the sum of $600.74. The answer of the company was filed at the same time and the receiver appointed immediately. The latter has a large part of its money tied up in the New Belvidere Hotel here, wliich is now nearing completion, but whose bonds are not yet marketable. The company also had out loans aggregating $500,000 it could> not call in and it was soon seen that with the continued withdrawal on the part of depositors the company could only meet them by disposing of its securities at ruinous prices and to avoid this the receivership proceedings were resorted to.