Rensselaer Semi-Weekly Republican, Volume 36, Number 66, Rensselaer, Jasper County, 8 April 1904 — OHIO BANK IN CRASH. [ARTICLE]

OHIO BANK IN CRASH.

Federal Trust Co. of Cleveland Assigns— Boston Institution Closes Its Doors. Uneasiness caused by the strange disappearance of George F. C’lewell, its secretary and treasurer, and rymors that he had embezzled a large amount, forced the assignment •of the Federal Trust Company in Cleveland. News of the failure caused a panic among the depositors of the Pearl Street Savings and Loan Company, and a run was begun on that bank. The prominent institutions downtown, however, rushed coin and currency to the assistance of the bank, and when the clamoring crowd of depositors were admitted they found the counters piled high with silver dollars and smaller coins. The sight of the great piles of wealth was magical, and the crowd melted away. The Federal Trust Company assigned to the Guardian Trust Company. The action is said to have been taken as a result of the disappearance of Clew’ell and reports that a shortage had been found in the funds of the concern.

The company's total assets will be about $3,000,000. It has a capital stock of $1,500,000, a surplus fund of $50,000 and about $140,000 undivided profits. According to its last report it had $2,188,862 in loans and discounts, $45,300 In real estate loans, and owned $729,000 stocks, bonds and mortgages. An agreement practically was reached between the directors of the Federal Trust Company and the Guardian Trust Company several days providing for the merging of the turn concerns. The disappearance of Clewell, however, precipitated matters, and the directors decided that an assignment probably would avoid a run on the bank and protect all Interests.

Unable to provide for the unusual demands of its depositors, the Union Trust Company of Boston closed its doors. The liabilities of the company are placed at $l;600,000, with nominal assets of about the same amount For some time past depositors have been making heavy withdrawals, and the management of the bank was finable to realize on securities quickly enough to meet these demands. The Union Trust Company was incorporated in 1888. It was capitalized at SIOO,OOO, and its president is former Congressman William E. Barrett.