Union Trust Company (Lancaster, PA)

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CLEARING HOUSE BACKS TRUST CO.

To the Public: Whereas the member banks of the Lancaster Clearing House Association believe that the Union Trust Company is solvent and that its assets are more than sufficient to pay its depositors in full; Therefore, be it resolved that the Lancaster Clearing House Association and the banks composing same pledge their aid to the Union Trust Company to the end that it pay all its obligations to depositors, and that this resolution be announced to the public of Lancaster city and county. In today by the chàirman of the Clearing House Association with the department banking at Harrisburg the information obtained that the Union Trust Company is in good solvent sound condition, its capital unimpaired, and that there is no good reason for any of its depositors to withdraw any of their money on deposit. Signed Farmers Trust Company Fulton National Bank Conestoga National Bank Company Peoples Trust Company Union Trust Company Guaranty Trust Company

John C. Carter, chairman Chester Jackson, secretary Lancaster Clearing House

Association

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START RUN ON LANCASTERBANK

LANCASTER, March 8.-A run was started the Union Trust Company of this city this and Lancaster banks rushed to the assistance of the institution too stop the clamor of depositors for their money.

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RUN ON BANK IN LANCASTER

Pa., March slight run on the Union Trust comthis was started by small depositors shortly before noon Monday and continued until the afternoon. The bank officials declare there is no basis for rumors that the bank is insolvent. institution is in excellent financial condition," the treasurer declared.

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LANCASTER

Officials Of Union Trust Company Call On Federal Reserve For Aid

BELIEVE RUN IS CHECKED

Lancaster, Mar. the Union company that the fidence their ability Hess, repthe and the institation, another from the federal bank in Philadelphia tonight assurance be when the bank opens tomorrow. The Lancaster Trust company, the largest house this city, reported to use the condition among the Toseveral passed resoluexpressing their confidence in the the institution and placed windows the center

Guarantees Money Andrew director, circuamong the crowd afternoon $50,000 cash his pocket assuring depositors clamoring to get Inside their funds When from his plant arrived cash their certificates of deposit Rote back guarpay cent they lost. The started after that Hoffman, had become spread LanHoffman tonight that he would be to handle his debts and insisted that of Hoffnotes are among assets

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ATTORNEY FOR BANK DECLARES ASSETS CLEAN, "RUN" UNJUSTIFIED

Officials of the Union Trust Company through their attorney issued the following statement at noon: The run on the Union Trust is over! "It was unjustified and without cause. The Company has ever since the opening day been more than able to pay all depositors in full. The loans to the directors are far below the amount allowed by law. The assets are clean. The last sale of stocks was $2301/4 per share, and that price was justified by the books. The par value is $100 per share. There is no financial institution in the state that is in sounder financial condition. The State Banking Examiner as late as midnight on March 8 stated that the Company was in first class condition. We are ready to meet all demands on us. Our receipts on March 8 were almost equal to our payments. (Signed) JOHN GROFF. Attorney for Union Trust Company

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EARLY EDITION EFFECTIVE AID

S. S. S. Store Calms Union Trust Depositors With PlaCo. Helps.

Officials asd employes of the firm of Sayres, Scheld and Sweeton helped stop "run" upon the Union Trust Company Monday. The who asisted In the work found early edition of the Lancaster New Era an effective means of reaching the depositors. Early Monday morning when the first rumors began filter through business circles. president store went the and investigation the Convinced was splendid Mr. the receipts of his store in bank. the the bank assumed store they knew the institution warned become Store mingled with the crowd and assured depositors store perectly to behind Trust company The New the solvent. The page copy this edition was placed the store much Many the store the titude. the bank had found good many the declared they willing to the and left their deposits One woman money from and asked the store to place his vault. He expressed willingness grant request, but induced woman to return the money the Piersol Company, adjoining the the also to the fact that the firm had the sound financial condition the

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Union Trust Run is Over; State Approves Reports; Depositors Get $152,000

$600,000 Available To Meet Any Demands Made This Morning; Doors Kept Open Until M.; Exaggerated Rumors Cause Trouble; City Banks Aid

Many Make Re-deposits Soon After Withdrawing Money; Most of Cash Taken Out is From Small Accounts and Christmas Funds; Clearing House is Co-operating

Conditions at the Union Trust company were found excellent by an official of the State Department of Banking who investigated the run on the local institution early yesterday afternoon. M. H. Soule, department examiner, declared last night that depositors have no cause worry and that the Union Trust will have sufficient reserve funds, in excess of $600,000, to meet demands when the bank this morning. all opens The run, starting at noon because of rumors connecting the institution with alleged financial difficulties of its president, M. R. Hoffman, Maytown, was virtually ended at 4 o'clock. Doors were kept open until 6 o'clock for a few stragglers.

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Plenty of Funds At Union Trust

Despite yesterday on the Union Trust company, the keep hand demand was sufmeet depositors' needs. There than the morning. the afternoon thus but slight inroad funds. With funds obtained from neighbor the $150,000 come from there display when the opens Soule, examiner from the State Department spent several the tution and left for Harrisburg certain that himself these and the Trust has opinion that the "Union Trust perfectly meet obligations."

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CASH HALTS RUN

When depositors in the Union Trust Company at Lancaster, started a run on the bank, word was telephoned to Philadelphia and banking houses there rushed $150,000 in currency to the bank by special messengers in fast cars. The arrival of the cash. piled up on the counters, quickly halted the run and calm was restored. Incidentally, confidence was also restored in the institution.

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RUN ON BANK WITHSTOOD Lancaster, Pa., March 14.-(A. P.) -The Union Trust Company of this city, transacted business as usual after a slight run on the Institution Monday. Rumors that the institution was in unsound financial condition spread rapidly and many depositors withdrew their funds. Officials declared that the deposits on the day of the run were nearly equal to the withdrawals.