United States Trust Company (Washington, DC)

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MUNSEY TAKES OVER A WASHINGTON BANK Operates Five Branches in Different Parts of Capital. Washington, Nov. 21.-Frank A. Mun. sey announced tonight that the Munsey Trust company had taken over the United States Trust company, a Washington bank capitalized at $1,200,000 which operates five branches in different parts of the city. The announcement followed a meeting of the boards of the two companies at the close of a day of mild excitement in capital financial circles. Rumors concerning the United States Trust company early in the day started runs on two of its branches that continued until the closing hour. At that time all depositors applying had been paid and the bank officials announced that they would have no difficulty in meeting the situation, No definite details of the merger are given,

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MUNSEY TAKES OVER BANK Action Follows Run on Washington Institution. Washington, Nov. 21.-Frank A. Munsey announced to-night that the Munsey Trust Company had taken over the United States Trust Company, a Washington bank, capitalized at $1,200,000, which operates five branches in different parts of the city. Rumors concerning the United States Trust Company early in the day started runs on two of its branches that continued until the closing hour. At that time all depositors applying had been paid. and the bank officials announced that they would have no difficulty in meeting the situation. Mr. Munsey said the United States Trust Company would become a part of the Munsey system, which would guarantee deposits.

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S. Trust Co. Washington, With Its 86. 500,000 Obligations. MERGER TO BE EFFECTED Moving Spirit in Concern. Former Texan. Had Meteoric Rise AN Financier. WASHINGTON Nov 21 A runstarted and the United States Trust Company As on branches here this afternoon the announcement was a that Frank A. over late its result five to-night taken Munsey's made trust company of this city has its $6. threatened institution with and 500.000 the of obligations to depositors all its assets. The prompt action by Mr Munsey and in financiers who acted with saved him the local about the merger has seribringing United States Trust Company from temous embarrassment. If not from porary suspension. few Lawrence O. Murray. until 8 months ago Comptroller of the Currency. Trust president of the United States who is and Eldridge E. Jordan. a meteoric rise as a has Company. had moving banker spirit In Washington. has been the behind the trust company. of morning at the opening States To-morrow depositors of the United the business Company will And flung from house Trust walls of the main banking signs side and its various branches cambric announcing the overnight change. Munsey Trust Company is a $2. The corporation organized last and spring news. 000.000 the New York magazine approxiowner. Its deposits States $1,700,000. The paper by mately capital United are of $1.250.Company has A $6,000.Trust 000 and deposits of more than 000. U. 5. Trust Co. Loses Identity. the terms of the transfer is taken the Under States Trust Company merged and United a going concern and Munsey obliterated over as as to Identity in the Company. terms of the merger will include young The elimination of Mr. Jordan. the career the whose almost romantic about in Washington's Texan, financial world began twelve or thirteen years ago. Jordan came to Washington as a and with some engaged Mr. in the real estate success. business His salesman, and energy soon won the respect people pertinacy of the biggest financial branch of of the some capital. Then he began to out. 1904 he married Miss Martha Jordan ManIn Ellicott City. Md Mrs. a wealthy woman year of their was ley of not marriage Within Mrs. $75,000. Jor- less than a from an uncle about with dan prompt to pool her winter was In the She inherited of her husband. interests conthose 1905-1906 Mr. Jordan acquired of of the Traders National Bank trol Washington, of a small and conservative concern. Jordan extended the Traders Na- the Mr. Bank. broadly diversifying tional of business which it handled. He to class his holdings of bank stock United extended a minority interest in the estabinclude Trust Company. which was Senator States about a year later, with its lished Nathan B. Scott of West Virginia as president. little later Mr. Jordan acquired Trust comA control of the United States out plete Senator Scott was forced NaCompany. Then the Traders its of liquidated branch building became the business tional the Bank presidency. voluntarily first and of United States Trust Company later Mr. Jordan's com: in A up a savings the little swallowed another trust bank savings pany street. and later Seventh bank in the north end of Washington One of Jordan's First Mistakes the United States Trust Dupont ComRecently obtained a plot of ground at handsome pany There they erected a first Circle. branch bank. This was one of the mistakes of Mr. Jordan's career. property had been included in the The as worth $115.000. The of the Currency company that it bank's Comptroller assets the trust value recently must from write warned off about $50.000 of this its list of understood assets. that the trust other comIt is had become overextended in pany estate properties. An examination been by real examiner is said to have a Federal immediate cause of the run. The exthe consulted other Washington United bankaminer regard to certain of the trouble ers States in company's assets and the started. run began shortly after noon hour and of increased The steadily until the closing time be a limitless Overextension to what credit at one Mr. is given Jorseemed cause of the downfall. as the contest with Senator Scott resulted dan's formation of the Continental Trust in Company. the of which Senator Scott to-day is president. his retirement from the office of O Comptroller Upon of the Currency Lawrence of the was elected president Murray States Trust Company. He is its 111 nominal United president to-day. but owing man- to health has not assumed the active agement of the corporation. Jordan, while relinquishing remained his Mr office as president, has head of the of nominal as active institution. Jordan was urged for chairman Mr. committee at the Wilson bankbut the blocked the ers Inauguration, the here Inaugural appointment. conservative The United States Trust Company last by scheme January inaugurated an extensive which the Christ- demas savings were invited to take out bank positors with the understanding that they a books would deposit for fifty weeks a dollar remain week, the principal and interest to

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Absorbs the Other Corporation and Adds to Its Resources. U. S. TREASURY DEPOSITS A MILLION DOLLARS Munsey Trust Guarantees Payment of All Deposits in the Absorbed Institution. As a result of negotiations conducted in this city last night, the Munsey Trust Company has absorbed the United States Trust Company, both institutions of this city. This absorption has solved a difficult situation which, during the past few days, has caused great anxiety in Washington in consequence of the danger of possible closure by orders of the Treasury Department confronting the United States Trust Company. The taking over of the United States Trust Company by the Munsey Trust Company guarantees all depositors in the former institution that their deposits are secure and prevents any serious disturbance at this time in the local financial field. As a result, when the United States Trust Company and its branches opened at 9 o'clock this morning they were branches of the Munsey Trust Company, and they had been enriched overnight by one million dollars in cash from the Treasury Department, sent through arrangements with a number of national banks of the city. In consequence of rumors of the difficulties with which the United States Trust Company was confronted, culminating acutely in reports of imminent failure circulated yesterday, that institution was subjected yesterday afternoon and this morning to slight "runs" at the central bank and some of the several branches, lines forming outside of the buildings. All depositors who gained entrance before the closing hours into the bank buildings were paid in full, and as the fact of the absorption of the United States Trust Company by the Munsey Trust Company became known today. and especially when it was disclosed that the Treasury of the United States had advanced to the Munsey Trust Company. for the purpose of meeting immediate demands for deposits, the sum of $1,000,000, confidence was restored to a great extent, and the waiting lines of depositors diminished. No Real Panic. There was at no time during the two periods of the "runs" on the central bank and its branches any real panic excitement, and many of the waiting depositors dropped out of the lines upon ascertaining that the solvency of the institution was assured so far as they were concerned. The aid given by the United States was necessarily effected through the medium of the national banks An this city, as it is impossible under the law for the Treasury to deposit funds directly with trust companies. The trouble in this case does not in the least degree disturb the other local financial institutions. which are unaffected by the difficulties which have beset the United States Trust Company. By the arrangement between the Munsey Trust Company and the United States Trust Company, the former takes possession of all the assets and deposits of the latter. assuming full relations with the depositors, and undertaking to liquidate the assets of the United States Trust Company. The absorption of the United States Trust Company has been effected with the full knowledge and approval of the Treasury Department, officials of which have been anxious during the past few days to see some plan worked out whereby the closure of the company because of the alleged impairment of its capital could be prevented. The aid given to the extent of a million dollars in currency this morning is ample evidence that the arrangement Is satisfactory to the government and that there is ample confidence in the solvency of the Institution which has undertaken to manage the liquidation of the United States Trust Company.

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GUARANTEE OBLIGATIONS Munsey Interests Ahsorb I uited States Trust Company. (Special to The Times-Dispatch I Washington November 21.-Representatives of Frank A. Munsey, publisher and banker. announced late tonight that the Munsey interests had absorbed the United States Trust Company. of this city, guaranteeing all outstanding obligations and liabilities. During the day the trust company had been subjected to a run of depositors, following runors in local banking circles regarding the bank's credit.

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S. TRUST CO. CONTINUED FROM PAGE ONE. whispered around, and naturally repeated by depositors; who were warned. while the withdrawal of bids for the stock of the trust company further advertised the strained situation. Since Tuesday there have been mcre or less withdrawals of deposits. R. W. Goodhart, national bank examiner, representing the Treasury Department, said: "The Munsey Trust Company has absorbed the United States Trust Company, with all its branches, with the full knowledge and consent of the Treasury Department. The examiner desires to inform all depositors that deposits with the United States Trust Company are absolutely safe, and that they should feel no apprehension whatsoever. The crisis is past, and depositors may now relieve their minds of any anxiety." Eldridge E. Jordan, who was chairman of the board of directors and the owner of the controlling interest in the corporation, said to The Herald: "Any personal sacrifice that I have been called upon to sustain in the negotiations for the transfer of the control of the United States Trust Company to the Munsey Trust Company counts as nothing compared with the great satisfaction that I have in knowing that the interests of the depositors of the bank will be cared for and protected, and in the further knowledge that a disaster has been spared to Washington." Confidence in Change. S. J. Henry, vice president and treasurer of the United States Trust Company, said: "It is a source of satisfaction, after several days of hard pressure and without much hope eventually, for there was no help for us from any one, that Mr. Jordan has been able, through his personal efforts, with the aid of Mr. Frank A. Munsey, to protect the interests of our army of depositors. I bespeak the fullest confidence in the new ownership, and I can see no reason why another dollar of deposits shall be withdrawn. I am especially glad for our five or six regiments of Christmas savers, and I know that the merchants of Washington will appreciate this happy outcome, however much it may hurt the shareholders and officers of the United States Trust Company. The negotiations which led to the closure of this important and vital financial deal were commenced yesterday It had been reported around that several other financiers and fiscal corporations had in mind the purchase of the control. Mr. Munsey's representatives sent for him yesterday morning and he arrived at 5 o'clock yesterday afternoon, coming straight from New York. At the conference held at the Shoreham there were present Frank A. Munsey, Stuart Ollivier, and Lancaster Williams, of Baltimore: Wilton J. Lambert, attorney for the Munsey Trust Company; Richard W. Goodheart, bank examiner; former National Bank Examiner Hann, Tucker K. Sands, and J. Skelton Williams, Assistant Secretary of the Treasury. The assets of the United States Trust Company were carefully examined, and Mr. Munsey was soon convinced that there was an opportunity for the large expansion of the Munsey Trust Company, and also for doing a kindly act for the people of Washington. Congratulated by Bankers. After the negotiations were closed last night a large number of bankers, as stated before. dropped in to consult and congratulate Mr. Munsey, and to extend their friendly offices, and also to congratulate Mr. Jordan and his associates on having found a way out of their troubles without loss to those who reposed confidence in them. Frank A. Munsey, president of the Munsey Trust Company, issued the following statement late last night: "I arrived from New York at 4:30 this afternoon on a hurry call, having been summoned after my representatives had been in a night-and-day conference in the hope of being of service to the depositors of the United States Trust Company and the banking and financial community of Washington as well. I immediately went into conference, and as a result at 10 o'clock tonight we reached an agreement with authorized representatives of the board of the United States Trust Company by which the Munsey Company takes over bodily and entire the United States Trust Company This means that the Munsey Trust Company guarantees all the deposits of the United States Trust Company, and pledges all of its resources to this end. Our $2,000,000 capital means a $4,000,000 capital stock liability, and, of course, we have all the assets of the United States Trust Company, which will easily amount to more than the total deposit line of that company With the entire assets of the United States Trust Company and the assets and capital stock liability of the Munsey Trust Company, there should be an instantaneous cessation of all unrest. "Deposits with the United States Trust are now as safe as if they were with the government. I might add that the Treasury Department has co-operated in every way and has offered to provide all needed currency for any and all emergencies. Serious Washington Crisis. "I have done this thing to be of real service to Washington in a crisis. By averting what might have been a serious financial disaster, I take it that my work has been a real service. In turn ask the heartiest co-operation of everyone, whether they are depositors with the United States Trust or not. I have thrown all my resources into the breach and the least Washingtonians can do is to give me their willing, hearty and enthusiastic co-operation." Organized in 1907. The United States Trust Company was organized under the laws of the District of Columbia March 18, 1907, on the very eve of the panic, and during the balance of 1907 and for the next year it met with hard sailing. but managed to make some advance in the favor of business men and the public. Eldridge E. Jordan became interested in it some three years ago, and assumed the presidency, with Charles W. Warren as vice president.

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SEND $1,000,000 TO END RUN National Banks and Treasury Come to Aid of U. S. Trust Company. Washington, Nov. 24.-Huge motor trucks carried $1,000,000 in bills of small denomination from the treasury to the branches of the United States Trust company in expectation of further demands from depositors. This money was sent out by John Skelton Williams, assistant secretary of the treasury, who sat up all night examining securities offered by the national banks of the city. As the treasury can lend money only to national banks, these institutions applied for the funds and turned them over to the trust company. The delivery, however, was direct.

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MUNSEY ABSORBS BANKS AND STOPS A RUN ON THEM Washington, D. C., Nov. 22.-Frank A. Munsey anounced last night that the Munsey Trust company had taken over the United States Trust company, & Washington bank, capitalized at $100, 000, which operates five banks in dif. ferent parts of the city. The announce. ment followed & meeting of the board: of the two companies at the close of 2 day of mild excitement in financial cir. cles here.

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MUNSEY ABSORBS BANKS AND STOPS A RUN ON THEM Washington, D. C., Nov 22.-Frank A. Munsey anounced last night that the Munsey Trust company had taken over the United States Trust company, & Washington bank, capitalized at $100, 000, which operates five banks in dif. ferent parts of the city. The announce. ment followed a meeting of the board: of the two companies at the close of 2 day of mild excitement in financial cir. cles here.

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Secretary McAdoo Brands as False Publications in New York Papers and Welcomes Investigation. Presence of Lancaster Williams on Board of Directors of Munsey Trust Company is Basis of Stories Criticizing Treasury. WASHINGTON, Dec. 4.-Secretary McAdoo issued a statement today defending the course of his assistant, John Skelton Williams, and other officials of the treasury department, in assisting the Munsey Trust company to absorb the United States Trust company, of this city, when the latter's doors were about to be closed by the comptroller of the currency. This statement was forced from Mr. McAdoo by stories which have been In circulation in Washington ever since the merger took place two weeks ago, and which finally found their way into type. BASIS OF STORIES. The basis of the stories was the presence of R. Lancaster Williams. a brother of Mr. McAdoo's assistant. on the board of directors of the Munsey Trust company during the negotiations. which resulted in the taking over of the embarrassed trust company by the Munsey Institution after John Skelton Williams. for the United States treasury, had agreed to deposit $1,000,000 with the Munsey company. Members of congress have shown a keen interest In the merger, and two or three Republican leaders have gone so far as to consider the advisability of Introducing a resolution calling for an investigation to ascertain all the facts. In his statement Mr. McAdoo characterizes as false the publirations in a New York newspaper concerning the action of the treasury department in the matyer, and says if an investigation of the local banking system by pongress was cont "mplated he would welcome such an investigation. It could not, he said. fail to disclose the complete falsity of the publications in question, and emphasized the wisdom of the department in having saved by its prompt action a large number of Innocent depositors from threatened losses. Cause of Better Feeling. Mr. MaAdoo's statement. together with the stories that have been afloat in Washington for two weeks. have engendered bifter feelings in banking circles. According to the story told by Washington bankers, Richard W. Goodhart, the bank examiner, after an investigation into the United States Trust company's condition, recommended that the institution be taken in charge by the comptroller of the currency unless the clearing house banks would come to its resoue. A little later a run began on the United States Trust company. and then negotiations were opened which resulted in Frank A. Munsey's recently organized trust company taking over all the assets of the United tSates company. and guaranteeing the depositors in full. The announcement was made that the treasury department had agreed to deposit $1,000,000 in Mr. Munsey's company. but before this could be done the national banks belonging to the clearing house association had to stand sponsor for the amount. Mr. Williams could not deposit the money directly with the trust company, because he was forbidden to do 80 by law, but entries were made in the books of the national banks which made them liable for the entire amount.

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MUNSLI MERGER OF BANK Financier Explains Taking Over of United States Trust Company. NO OFFER OF DEPOSIT Says Needs of City Would Best Be Served by Congressional Action. A. Munsey yesterday issued the the refollowing Frank statement concerning States absorption of the United MunTrust cent Company of this city by the sey Trust Company. of the United States The absorption Company by the Munsey comment Trust Trust caused 8 much Company has here in Washington, and, and discussion nationally, that it seems brief to some extent, that I make a to statement me appropriate of the facts in the matter. Here "I came they to are: Washington November from New 21, reach- York Friday afternoon, a little before 5 o'clock. On a long my ing way here from the Union Station at several saw of the branches line of of depositors the United their States savings Trust Com- This pany, waiting first knowledge to draw I had of a and run on was the the United States Trust the situation. Company Inof any real danger nothing in of the troubles of deed, the I United had known States Trust and Company then merely until the previous the day, bank examiner had learned that the bank impaired found the capital of o'clock that night It was committee perhaps of 7 the board Company of directors when of a the United States Trust of the Munsey the and several Company, of the including men myself, situation met at Trust Shoreham Hotel to talk should be done. over the and determine what Made Two Offers. brief general discussion I of made the After a the committee two propositions United to States Company, directors of the substantially as follows: which were The Munsey Trust will at Trust Proposition No. once 1: take over Company the busiCompany ness of the United depositors States against loss, guaranteeing its its deposits all and pay 5 per cent company for at the end of that are with the the board of directhe six months- United -providing States Trust guarantee Company will tors individually of and Company as a body against loss. the Munsey Trust Without any guarthe on or Proposition part No. 2: of the directors of any the United antee States Trust Munsey Company, Trust Comother guarantee, the take over the business pany will at once Trust Company, of the United States against loss. guaranteeing its depositors it will pay nothing for In this the deposits case, however, of the United States Trust Company. Each of these proposals United provided States Trust that all assets of the of the indebtedness to Company in excess matter of course, revert depositors to the should, stockholders as a of the United States Trust Company took these two to The committee the at board once of directors of It repropositions the United States Trust perhaps Company an hour with turned at the end of board of directors accepted the statement that proposition the No. 2 of the had Munsey Trust Company. No. 1 of 5 per The offer in proposition of the United States cent for the deposits Munsey Trust ComTrust Company, the against loss, was a very pany guaranteed interest-bearing deposits, liberal offer for because of the trouble and the more in so and the responsibility of handling the bank so was critical a situation. Assumed Full Responsibility. This would have yielded quarter the of United a milStates Trust Company assumption that it lion dollars on millions the out of its six and would hold five deposits. It might have as a half millions high as of $300,000, or dropped to $200,000. gone of this fact, the acceptance of direc- of In view 2 by the board proposition United No. States Trust Company of tors of the all about the assets the company, -men who knew while I of my own knowlaccentuated edge knew nothing of had assumed for the the Munsey responsibility Trust Company and myself individually. for the taking over /were of the The United negotiations States friction Trust Company or bargaining brief and without were perfectly satisor factory dickering. to the They directors of the United States Trust Company. into the breach My decision to step from the Treasury Derested on an offer million-dollar loan to the partment of a Company if the United States Company Trust effected a purchase Munsey of Trust this bank and loss. would guarantee its depositors against offer of the Treasury DeI accepted the faith and acted upon partment in good sought the loan from the department it. I had not or had any negotiations with it concerning the matter. Offered to Other Banks. Treasury Department had before made to a The several days I similar the Continental proposal Trust other Company, bank. and, think, to at least Continental one Trust Comthe and The loan to other the bank was to be made on Company to pany the United States Trust as proposed to me If its I securities took over precisely ther United States Trust to by the me shown Company. There was, therefore, Treasury no favoritism Departdone for the Munsey, ment, and Trust nothing Company was to do that for the any depart- other bank ment in was Washington, not ready and, indeed, had proposed doing. The Treasury Department securities of had the an United exact knowledge States Trust of Company, the SO did not make its offer in the dark. of the Treasury But the proposition make this loan with a Department to was of saving a critical situation, help view affair. If no such offer of not the my United States Trust Company had to to me, I certainly should not have, the single-handed come and alone, obligated inMunsey Trust Company and myself dividually to the extent of guaranteeing of an of deposits in the midst $6,500,000 and Insistent run on the United States excited Trust Company, with its six banks and its 55,000 depositors to deal with. Moral Force Was Factor. a good offices was The moral force of big the factor government's in quietrestoring confidence ing the alarm and of the United States to the depositors as well as to depositors in Trust many Company other Washington banking into the loan United stitutions. The details of the States plan for Trust making Com- a me. The proposipany did not concern me was that the govtion that came to loan to the ernment would make this M States Trust Company on would its g securities, United and that the money

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S. TRUST Scott's Refusal to Head Company Ends Hope of Rehabilitation. BOOST WILLIAMS FOR CONTROLLER Administration Plans First to Show His Worth in Currency Reorganization. [From The Tribune Bureau.] Washington, Dec. 24-Negotiations to wipe the Treasury slate of stain and restore the United States Trust Company to business came to an end last night, and all hope of relieving the Treasury Department of the onus of having effected the absorption and also all hope of the stockholders of the United States Trust Company that their bank might be restored to business have been abandoned. These negotiations, which have been for a week. involved an effort to inon ex-Senator Scott. president of the Trust Continental duce Company, United to accept States presidency of the under deTrust the Company permanent conditions signed to make for its enand prosperity. it raised on his durance will be recalled, $500,000 Mr. Scott, personal securities and agreed to accept the presidency of the United States Trust Company on November 21. the day on which the run on that institution began. Why this offer thus to rehabilitate the tottering institution was not achas never been of the or 10 cepted satisfaction stockholders explained to the interested in the banking in Washington, situation that of others Assistant but the Secre- imprevails that Skelton pression tary John Williams blocked saved the efforts of those who would have of the the stockholders United States least Trust Company from loss. or at from so great a loss as they must now suffer. Soon after The Tribune made public the by part played Williams in the Trust ubsorption of the United States by the Company Munsey obvious Trust Com- that pany, and when it became this would exposure ambition seriously militate become against Williams's to Controller of the Currency and a member of the Federal Reserve Board at a effort was begun to year, an increased an compensation of induce $7.000 exSenator Scott again to raise the needed capital and to resume the presidency of the United States Company. effort roving unavailing the was modified to proposition This provide for off of a the of amount the writing of capital considerable the United States Trust Company but Mr. Scott has persistently declined to accept whatever might be left of the trust company contending that after it had passed through the hands of the Munlonger sey Trust Company it was no a property for which he cared to assume the responsibility The negotiations continued however. until last night. when Mr. Scott made it so plain that he would have nothing to do with the tangle into which the affairs of the United States Trust Company had been woven that the last hope of both the Treasury officials and the stockholders was abandoned According to the latest information obtainable at the Treasury Department it is the purpose of the President and the Secretary of the Treasury to emplay Assistant Secretary Williams as chief member of the organization board which is to set on foot the new fiscal plan provided for in the currency bill, in order that when Congress again convenes the assertion may be made that the government is under such heavy obligation to Mr. Williams that the administration cannot reject his claims to be appointed Controller of the Currency.

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WILLIAMS CONFIRMED Made Comptroller of Currency and Member of Reserve Board Washington, Jan. 20.-The nomination of John S. Williams, now assistant secretary of the treasury, to be comptroller of the currency, and, as such, ex-officio member of the federal reserve bank board, was confirmed by the senate in executive session last evening. The only opposition to the confirmation of Williams was voiced by Senators Bristow of Kansas and Smith of Michigan. Senator Bristow reviewed the action of Williams in depositiong funds with the Munsey Trust company when It took over the United States Trust company in this city to avert a panic.

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TRUST COMPANY MAY REORGANIZE United States Stockholders Considering Resumption of Business Following Sales. N. Y. PRICES IMPROVE H. B. F. Macfarland Writes Secretary McAdoo in Behalf of Capital as Federal Reserve City. By W. STEALEY. K was dircles yesCHECK the terday are in that a States Trust and United revivifying the institution, brought It favor is believed of that this will be acout. The success which through has attended the Munsey the sale of property leads to the belief that it Trust Company while before the real will not be a great disposed of, leaving estate the Fifteenth holdings and are H streets office only remaining. two /companies are said satisfac- to be working The in harmony and be That made for the H streets. tory retention arrangements of the deposits can at Fifteenth and The plan as tentatively reorganization, discussed reduc- yesterday involves capital and a the retention of the tion United of States Trust Company name. Wall Street Tone Better. The New York Stock Exchange yesterwith fractional gains. Ohio day Exceptions closed were Chesapeake and and New Haven. 645-6, a gain of nearly Steel closed at closed at 163 3-4, and a Union point; Pacific Reading 157 7-8. Copper and Can and steel both showed strength. the copper Returns were from unexpectedly good. trades of Chesapeake and Ohio The due weakness to the fact that the Circuit Columbus Court was handed down a decision at coal ordering had dissolution of the soft trust Hocking Valley, Chesapeake given and Ohio. sixty and Lake Shore railroads dispose are of their holddays in in Sunday which Creek to Coal Company commis- upon ings of having a receiver or sioner penalty appointed at end of that period to It make was ordered the sale. that either the interest and Chesapeake and Ohio in Kanawha Shore of Michigan be purchased by Lake be at onee or interest of both companies sold absolutely. Local Stock Market. Trading in the Washington Stock Ex- the change yesterday was confined to stock department. shares of Commercial National was Bank Ten stock sold at 185. stock and at a 186. bid made for more of the brought 88 for 25 Railway common 25 shares. Twentyshares five shares and 871-2 of Capital for Traction brought 110. shares of Mergenthaler sold at 2151-8, Eight at 215 1-4. One share of Lanston brought $5 1-2. Macfarland Writes McAdep. The Secretary of the B. Treasury F. Macfarland yesterreceived from H. favor day exceptionally strong letter in an Washington's being selected as one of 0: the Federal reserve cities. letter is as follows "To The the Honorable Secretary D. C. of the Treasury, Washington, of the National Capital "Sir: deeply As a interested citizen official in servant its welfare, as presi- and for ten years Commissioners its of the Disdent of the I desire to add my trict of Columbia, to the petition of hearty indorsement District of Columbia, the Washington. Association for the locaClearing House one of the Federal reserve tion in banks this city provided of for in the Fed eral reserve act. take your time by recapituin lating the detail "I shall not reasons SO well preclearingsented before the by the argument of the Federal rehouse committee but serve bank organization the committee, chief reasons are permit those me arising to say out that of the unique character of the Federal city the loans of the informed that Dis"I am banking institutions in the different amount. in round numbers, trict of to Columbia $65,000,000. and that attention that fact by was the not brought to committee: your that and all clearing-house facts indicating the comparathe other of the banking institively large business their sound chartutions and, therefore, in and admirable administration. to acter PTC important. But it-seems Fedgeneral admitted that the request st for granted G be eral reserve bank here volume cannot of be business on transacted. the basis for of this the is not and. a commercial moreover, cities other (-1 manufacture in the center. proposed Federal reto by you the clearing-house serve district outlined committee, have a greater much larger population as well as wealth neither Philadelphia Baltimore, States, "But other city of the United location nor has any the special reasons which for are the presented of by a the reserve peculiar bank characteristics of the 25 National Capital the reserve bank here "First of all. and immediately 10 world be continuously personal observation of the under the hoard. which. from its actual Federal workings. reserve could to derive improve knowledge the enthat might be applied a bank might also be tire system. Such banks of the system a because madel of to the other very personal supervision that might be given it. bank in Washing"The Federal reserve contact and dealing ton. in direct daily Department, would with the Treasury as a depository of have a special value only because of its public moneys not the supervision of being directly under Treasury, but also the Secretary of the used by the member because it might be other Federal reserve banks, by the Treasury Department banks, and by the valuable services in connection itself, to perform with the transfer of funds to and from Washington. sovereignty, exclusive "The absolute national governand supreme, National of the Capital obviously ment over the reserve bank here engives the proposed possible question tire freedom from any precedents. of conflicting laws or reason that I shall "The only other here of the ammention is the presence of the other nabassadors and ministers all of which will tions of the world. of the new system watch the the closest operation attention in view of unof- its with Other official and novel representatives features. of foreign countries funcficial Washington to study the coming tions of to our government cases must it also would be be onsidered. advantageous In all to these have here a Federal

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The capital of the six trust com panies, thirteen national banks and eighteen savings institutions doing business in the District of Columbia, is $17,370,916, divided as follows: Trust companies, $10,000,000; national banks, $6,977,000; savings institutions, $1,393,916. The surplus of all the banks is $12,221,627, of which the trust companies have $4,800,000; the national banks, $5,142,250. and the savings concerns, $278,977. Undivided profits are $2,387,529, distributed $1,152,167 to trust companies, $894,141 to national banks and $341,221 to savings banks. These institutions have invested in banking houses, furniture and fixtures $11,653,140, of which the trust companies furnish $6.594,188 and the national banks, $3,463,900. The total loans of all institutions March 4. from the reports, made to the controller of the currency on that date, were $60,529,593. Trust companies have $9,000,000 invested in bonds, and but $22,000 in stocks, including premium. National banks have $8,543,389 Invested in bonds, a considerable portion of which are governments. Seeking Information. A correspondent asks for information regarding the possible early payment of a dividend to shareholders in the United States Trust Company. The matter is one on which no correct report can be made at this time. Liquidation has been carried out to the extent of paying off all depositors of the Institution, during the period when the conduct of the affairs of the institution was in the hands of the Munsey Trust Company. On the order of the court the remaining assets were-placed in the hands of a receiver, who is making some progress in collections. Millions of Credit. In the conduct of the banking business, there is, naturally, millions of credit. It has been stated, officially, that there are $4,000,000,000 of cash in the United States and that there are nearly $18,000,000,000 of bank deposits. This is an evidence that $14,000,000 of "apparent" deposits are simply credit, based on the actual cash of less than 25 per cent of the amount. The handling of credits is one of the most important functions of the banker, and on his judgment must come the success or failure of the institution with which he is connected. There have been comparatively few failures of banks, due to the crookedness of officials or trusted employes. The majority of failures have been due to poor credits, lessening value of assets, failure of business men, etc. This must be the more apparent because of the large amount of credit extended. Bankers cannot be too careful in the matter of credits. It is natural for them to seek available credit information wherever possible and to endeavor, as local bankers have, to secure the fullest information of an applicant's business conditions, under oath: to secure collateral where possible and to be watchful always. Under the present system in force in some of the larger cities of the employment of a bank examiner by the local clearing house, it is possible also to establish a credit information bureau, where bank officials, in strict confidence, would be able to obtain information of the aggregate indebtedness of general borrowers. Some of the heaviest borrowers in the United States, great corporations, have planned to register all paper made by them with some trust company

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Realty Transfers

Spring road near Sixteenth street northwest-Eldridge E. Jordan and H. Bradley Davidson, trustees, to James H. Baden, lots 1 to 9 Pleasant Plains, $25,000.

1256 Irving street northwest-Tucker K. Sands, receiver of United States Trust Company, to James H. Baden, lot 30, block 22, Columbia Heights, $1 (stamps $1.50).

Fourteenth street Terrace-Edward R. Lake et ux. to Lynchburg Investment Corporation, lot 8, square 2715, $10. Nellie T. Hoss to same, lot 9, square 2715, $10. Lynchburg Investment Corporation to Thomas E. Jarreli, lots 8 and 9, square 2715, $10.

North Brightwood-James L. Karrick et ux. to Henry B. Hall, lots 2 to 7, square 3155, $1.

H street southwest, between Four-and-a-half and Sixth streets-John Shugrue et ux. to Harry V. Lansdale, part original lots 31 and 32, square 498, $10.

Lanier Heights-William C. Woodward et ux. to Harry K. Boss, part lot 48, $10 (stamps $2.50).

Kalorama Heights-Louisa D. Lovett to Mary V. Cahill, lot 4, block 20, $100 (stamps $8).

341 Thirteenth street southeast-Catherine V. White to S. Duncan Bradley, lots 63 and 65, square 1017, $10 (stamps 50 cents).

West Holmead Manor-William R. Rose et ux, to William H. Baden, lots 122 and 123, square S. of 2827, $10. William H. Baden conveys same property to William R. and Katie W. Rose, $10.

Turner's Improvement-Louis P. Shoemaker, trustee, to Thrift Land Company, lot 11, $1,769.76.

2548 Fourteenth street northwest-Redfield Proctor et ux. to Jesse M. Shreve, lot 33, square 2664, University Park, $10 (stamps $25).

M street northwest, between Fourth and Fifth streets-Josephine E. Prather to Jesse M. Shreve, lots 101, 102, 103, and 107, square 513, $10 (stamps $13.50).

2548 Fourteenth street northwest-Jesse M. Shreve to Josephine E. Prather, lot 53, square 2664, University Park, $10 (stamps $25).

M street northwest, between Fourth and Fifth streets-Jesse M. Shreve to J. Walter Moulden, lots 101, 102, and 103, square 513, $10 (stamps $15). J. Walter Moulden conveys same property to S. Duncan Bradley, $10 (stamps $6).

732 New Jersey avenue northwest-Edward P. Schwartz et al., trustees, to Michael J. Falvey, part lot A, square 563, $1,250.

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EX-PRESIDENT OF D

C. BANK SUED ON NOTE Eldridge E. Jordan, former president of the United States Trust Company, was named defendant in a suit filed today by Tucker K. Sands, receiver for the company, to recover $57,906.43, alleged to be the balance due on a note for $81,601.21 given by Jordan July 10, 1913.

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SUES TO RECOVER $57,906. Tucker Sands Acts for Defunct U. S. Trust Company. Tucker K. Sands. receiver of the defunct United States Trust Co., today filed suit in the District Supreme Court against Eldridge E. Jordan, former president of the company, to recover a balance of $57,906.43. The suit is based on a note for $81,601.21 given by Mr. Jordan July 10. 1913, on which a credit of $23,694.78 has been indorsed.

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Sues Trust Company Head

Tucker K. Sands, receiver for the bankrupt United States Trust Company of this city, filed suit yesterday in the District Supreme Court to recover $57,906.43 from Eldridge E. Jordan, former president of the trust company. Sands claims that this amount is still due on notes aggregating $81,601.21 signed by Jordan, the difference, $23,694.78, having been paid.

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LEGAL NOTICES.

WILLIAM G. JOHNSON, Attorney.

IN THE SUPREME COURT OF THE DIS- trict of Columbia.—In re dissolution of United States Trust Company, a corporation. -Equity No. 33086.—This cause has been re- ferred to the auditor, on motion of William K. Quinter, receiver of the United States Trust Company, with directions to state the account of Tucker K. Sands, heretofore acting as re- ceiver of said corporation, to recommend to the court proper allowances to said Tucker K. Sands and to his counsel, for services rendered, and to further report to the court as to the disposition made of the assets of the United States Trust Company and the present claim- ants to any net assets arising out of said re- ceivership, notice is hereby given that I will proceed with said reference on Wednesday, the 15th day of September, 1920, at 10 o'clock a.m., at the auditor's rooms in the United States Court House, Washington, D. C. HER- BERT L. DAVIS, Auditor. jy30,au6.13

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the Almost appointment of Tucker K. Sands as receiver of the remaining assets of the United States Trust Co., the Chevy Chase and Great Falls Land Co. beg,an to be heard of. Later an offer was made to exchange stock of the land company for United States Trust Co. shares, on the basis of $40 a share for the latter. Some 400 shareholders accepted the offer. Now. after nearly 11 years, the auditor of the court reports that Receiver Sands is liable to shareholders and directors of the former United States Trust Co. for $50,645; that he has paid himself $25,000 in fees which are disallowed, and that a fidelity bond of $100,000 furnished by Mr. Sands more than covers his liability. The auditor, Herbert L. Davis, also reports that the second receiver, W. K. Quinter, who succeeded Mr. Sands in 1920, had succeeded in collecting $35,000, which Mr. Sands had been unable to collect. There are still $150.000 of unpaid notes. part of the assets of the trust company, still outstanding. It is also stated that stockholders will probably receive about $40 a share for their stock. Satisfied As to Safety. Frank Munsey advertised that he would not have guaranteed the depositors of the United States Trust Co. but that a very careful investigation had shown that there were abundant assets to make good the deposits. Today. nearly 11 years after the exciting incidents related, with the good fellowship existing between bankers, sponsored by the active District Bankers Association with its aggressive official roster, it is doubtful if a bank run would be permitted to go into a second or third day, without steps to cope with emergencies. This was the subject assigned to Arthur Reynolds, president of the Continental Commercial National