Contemporary articles (Oct 19, 1903) report heavy withdrawals/run and immediate failure/suspension with a receiver appointed (Allan McLane). Cause traces to heavy investments in Mexican railway (undigested securities) and failure to place a $2,000,000 loan—bank-specific adverse information. The company remained in receivership and then resumed business Dec 19, 1905 under reorganization.
Events (4)
1.October 19, 1903Receivership
Newspaper Excerpt
Allan McLane was today appointed receiver for the Maryland Trust company. Mr. McLane gave bond for $2,000,000.
Source
newspapers
2.October 19, 1903Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals triggered by the company's large holdings of illiquid Mexican railway securities, failed attempt to float a $2,000,000 loan in London; described as 'undigested securities' and heavy withdrawals.
Measures
Bank closed its doors; guards posted; receiver (Allan McLane) was appointed and bond posted.
Newspaper Excerpt
The filing of the first applications for receivers for the embarrassed companies was followed by petitions... The day began with the announcement of the failure of the Maryland Trust company...it had sustained heavy withdrawals of deposits
Source
newspapers
3.October 19, 1903Suspension
Cause
Bank Specific Adverse Info
Cause Details
Appointment of a receiver following insolvency concerns tied to illiquid Mexican railway investments and inability to obtain a bridging loan.
Newspaper Excerpt
Allan McLane was today appointed receiver for the Maryland Trust company...Closes its doors.
Source
newspapers
4.December 19, 1905Reopening
Newspaper Excerpt
The Maryland Trust Company today resumed business with a balance of assets over liabilities of more than $750,000 after having been in the hands of a receiver since October 19, 1903.
Source
newspapers
Newspaper Articles (25)
1.October 19, 1903Deseret Evening NewsSalt Lake City, UT
Click image to open full size in new tab
Article Text
BULL OPERATORS DISCOURAGED. Market Was Flooded With Liquidating Sales From All Quarters. PRICES YIELDED EVERYWHERE. Nothing Showed Strength and the Bears Had Everything Their Own Way. New York Oct. 19.-The London market today was depressed by renewed apprehension over the far eastern outlook and the financial situation. Opening prices in the stock market there fell back sharply in response and there were large blocks of many leading stocks thrown upon the market. Declines of 1 to 1% were recorded by Pennsylvania, New York Central, Baltimore & Ohio, Southern Pacific, Rock Island, Canadian Pacific, Union Pacific, Atchison, Amalgamated. United States Steel preferred, American Car and Tennuessee Coal. Confirmation of the rumored embarrassment of the Maryland Trust company of Baltimore led to a flood of liquidating sales from all quarters, under which prices yielded further. A dozen or more stocks sold 2 points below Saturday's close, including Amalgamated Copper, American Car preferred. Smelting preferred, Republic Steel preferrd, Locomotiv preferred Tennesse Coal, Sugar, Pennsylvania, Canadian Pacific, Union Pacific, Southrn Railway preferred and Missouri Pacific. Selling of Baltimore & Ohio and United States Steel was particularly heavy and they fell 2 points. The market showed no strength at any other point and the readiness with which stocks gave way under the attack discouraged the bull operators. Pressure slackened for a time but the rally was 80 spiritiess that bear selling was renewed against it. The selling was less in the second hour, but only slight rallies in prices resulted. American Car with a recovery of a point led the upward reaction. Rock Island fell 2, Delaware & Hudson 214, St. Louis-Southwestern preferrd 2½ and Southern Railway preferred 3. There was an isolated rise of 3 points in Railway Steel Spring preferred. United States Steel second 58 declined 1½. Otherwise bonds were little affected up to noon by the weakness in stocks. A few stocks rallied in the neighborhood of a point, notably Sugar and United States:Steel preferred. Otherwise prices were not essentially changed from the noon level and business was very dull. General Electric lost 3. Selling was resumed with vigor again when the announcement of another trust company suspension was made-that of the Union Trust company of Baltimore. Leading stocks sold lower than in the morning break and there was particular pressure against the southern stocks. Union Pacifie and Baltimore & Ohio sold at 69% and 72% respectively, and Atchison St. Paul, Southern Pacific, New York Central. Reading. Illinois Central Kansas City & Texas preferred and Brooklyn Transit were added to the list of stocks which showed losses of 2 points or more. Steel preferred dropped 2% and Amalgamated 2½. At 2 clock the market was still on the down grade. Westinghouse Electric fell 8 points. The failure of the Maryland Trust company of Baltimore caused a weak stock market today. Liquidation was general. but the decline in Baltimore and Southern Railway preferred was attributed directly to selling induced by the failure. These stocks, United States Steel preferred and Amalgamated Copper were notably weak, but losses of 1½ to over 2 points were quite general during the first hour. The industrials were conspicuous in the decline also. Selling by foreign houses owing to the renewed uneasiness over the far eastern situation and the financiel conditions in London aggravated the weakness.
HEARRUMORSOFWAR And London at Once Proceeds to Sell Americans-Move Felt Here. Failure of Maryland and Union Trust Companies Adds to Bulls' Discomfiture. New York, Oct. 19.-The London market to-day was depressed by renewed apprehension over the far eastern outlook and the financial situation. Opening prices on the stock market there fell back sharply in response and there were large blocks of many leading stocks thrown upon the market. Declines of 1 to 1% were recorded by Pennsylvania, New York Central, Baltimore & Ohio, Southern Pacific, Rock Island, Canadian Pacific, Union Pacific, Atchison, Southern Railway preferred, Amalgamated, United States Steel preferred, American Car and Tennessee Coal. Confirmation of the rumored embarrassment of the Maryland Trust company of Baltimore led to a flood of liquidating sales from all quarters under which prices yielded further. A dozen or more stocks sold 2 points below Saturday's close, including Amalgamated, American Car preferred, Smelting preferred, Republic Steel preferred. Locomotive preferred, Tennessee Coal, Sugar, Pennsylvania, Canadian Pacific, Union Pacific, Southern Railway preferred and Missouri Pacific. Selling of Baltimore & Ohio and United States Steel preferred was particularly heavy and the stocks fell 2½ and 2½ respectively. American Car dropped 3. The market showed no resiliency at any point, and the readiness with which stocks gave way under attack discouraged bull operators. Pressure slackened for a time, but the rally was SO spiritless that bear selling was renewed again. The selling was less in the second hour, but only slight rallies in prices resulted. American Car, with a recovery of a point, led the slight upward reaction. Rock Island fell 2, Delaware & Hudson 21/4. St. Louis Southwestern preferred 2½ and Southern Railway preferred 3. There was an isolated rise of 3 points in Railway Steel Spring preferred. United States Steel second 5s declined 1½. Otherwise bonds were little affected up to noon by the weakness in stocks. A few stocks rallied in the neighborhood of a point, notably Sugar and United States Steel preferred. Otherwise prices were not essentially changed from the noon level and business was very dull. General Electric lost 3. Selling was resumed with vigor again when the announcement of another Trust company suspension was made, that of the Union Trust company of Baltimore. Leading stocks sold lower than in the morning and there was particular pressure against the southern stocks. Union Pacific and Baltimore & Ohio sold at 691/2 and 72Z respectively and Atchison, St. Paul, Southern Pacific, New York Central, Reading, Illinois Central, Kansas & Texas preferred, and Brooklyn Transit were added to the list of stocks which showed losses of 2 points or more. Steel pfd dropped 23/4 and Amalgamated 27/8. At 2 o'clock the market was still on the down grade. Westinghouse Electric fell 8 points. To-day's second violent selling movement carried losses in a number of lead-
3.October 19, 1903The Topeka State JournalTopeka, KS
Click image to open full size in new tab
Article Text
IN THE HANDS OF A RECEIVER Big Maryland Trust Company in Financial Difficulties. Tried to Float a Loan for $2,000,000 and Failed. DEPOSITS $5,873,817. Concern Was Capitalized for $2,125,000. Last Year It Paid a Dividend of 18 Per Cent. CLOSES ITS DOORS. Union Trust Co. Is Forced to Suspend Operations. The Receivership Maryland Started a Run. Baltimore, Oct. 19.-Allan McLane was today appointed receiver for the Maryland Trust company. Mr. McLane gave bond for $2,000,000. The receiver was appointed on application of John S. Gittings & Co., bankers of this city. The officials of the Maryland Trust company are preparing a detailed statement of the failure of that company which they will make public later in the day. It is understood that the embarrassment is due chiefly to an effort to finance the Vera Cruz & Pacific ralroad. New York, Oct. 19.-The Maryland Trust company was capitalized at $2,125,000, and in a recent report the surplus was said to be $2,437,500, and undivided profits $587,632. The deposits were $5,873,817. The company made an effort last week to float a loan of $2,000,000 in London. In 1902, the company paid 18 per cent dividend.
4.October 19, 1903The Washington TimesWashington, DC
Click image to open full size in new tab
Article Text
be seen by newspaper men. At the bank it was impossible to gain admittance, or to obtain satisfactory answers to any questions. Two guards were stationed at the door, which was kept closed and barred. It was said that J. Wilcox Brown, president of the company, was not at the bank, and the guards said they did not know where he was or whether he would be down town today. NEW YORK, Oct. 19.-The failure of the Maryland Trust Company, of Baltimore, had a disturbing effect on the stock market, which is sensitive these days. Baltimore and Ohio was chiefly affected, losing 2 per cent. In banking circles here it is believed that the Maryland Trust Company is the institution which was alluded to a few days ago by a London newspaper as trying to borrow $2,000,000 on about $10,000,000 worth of railroad securities, The company, it is said. invested too heavily in railroad construction in Mexico, financing one of the most important lines there. It is also said that the Maryland Company and the International Bank and Trust Company. of Mexico, which went into voluntary liquidation Saturday, were interested in the same enterprises to some extent. BALTIMORE, Oct. 19. - The Union Trust Company has been placed in the hands of a receiver.
5.October 19, 1903The Fargo Forum and Daily RepublicanFargo, ND
Click image to open full size in new tab
Article Text
ANOTHER FAILURE. Baltimore, Oct. 19.-Following the announcement of the failure of the Maryland Trust Co., announcement was made of the failure of the Union Trust Co., caused by a run on it by depositors in consequence of the Maryland failure. Miles White was appointed receiver with $2,000,000 bonds.
6.October 19, 1903Evening Times-RepublicanMarshalltown, IA
Click image to open full size in new tab
Article Text
STOCK MARKET Failures at Baltimore Selling in Wall New York, Oct. 19.The the Maryland Trust Company timore cause a weak stock today. Liquidation was general the decline in Baltimore and Ohio and Southern railroad preferred was attributed directly to selling induced by the failure. Those stocks, United States Steel preferred, and Amalgamated copper notably weak and losses of 1 1/2 to over 2 points were quite general during the first hour. Industrials were conspicuous in the decline also. Selling by foreign houses, owing to renewed uneasiness over the far eastern situation and financial conditions in London aggravated the weakness. Selling was resumed with vigor again when the announcement was made that the Union Trust Company of Baltimore had suspended. Leading stocks sold lower than in the morning break and there was particular pressure against southern stocks.
7.October 20, 1903Arizona RepublicanPhoenix, AZ
Click image to open full size in new tab
Article Text
There Was a Financial Crash in Baltimore GAME WITHOUT WARNING Two Trust Companies Overladen With Securities Go to the Wall. Great Anxiety in Financial Circles for the Future. Baltimore, Md.. Oct. 19.-This has been a day of marked excitement and subdued anxiety in the financial and business circles of Baltimore. Luckily a dozen reports well calculated to start a wholesale run on the banks did not reach the great army of depositors throughout the city, thus giving ample time for conservative leaders of business to allay popular apprehension before it reached dangerous proportions. The day began with the announcement of the failure of the Maryland Trust company, and except to a few the news came as a bolt out of the sky, spreading consternation in all directions. To these few it was known that the trust company had long been struggling with "undigested securities," that it had sustained heavy withdrawais of deposits and that, finally, on Satruday last it had failed in its efforts to negotiate a $2,000,000 loan in London. The suspension of the Union Trust company which happened at a late hour in the day, gave an impetus to many baseless rumors as to other financial institutions, which might well have created a panic had they been given currency early in the day. It was agreed among leaders and so given out that there is nothing alarming in the general financial situation in this city and that the mere fact that temporary difficulties overtook one or two concerns is no reason why the other institutions should be regarded with suspicion. One of the most prominent bankers in Baltimere said: "It all depends on how the people of Baltimore act. If they don't lose their heads the trouble will blow over in time and nobody will be hurt; but if they become panic stricken the consequences will be serious. This is a time for calm judgment." Allan McLane, third vice president of the Maryland Trust company, was appointed to take charge of the affairs of that company. Miles White, jr., first vice president of the Union Trust company, was appointed receiver of that institution. Mr. McLane gave bond in the sum of $2,000,000 and Mr. White gave bond in the sum of $1,000.000. The last statement of the Maryland Trust company. issued on June 30, 1903, showed a capital stock of $2,125,000, a surplus of 2,437,500 and undivided profits of $677,998.86. The company has demand and time deposits amounting to $5,773,817.15. The Union Trust company had deposits amounting to nearly $2,000,000. The filing of the first applications for
8.October 20, 1903Daily Kennebec JournalAugusta, ME
Click image to open full size in new tab
Article Text
sale of those securities were it not for the fact that I find it has a large line of demand deposits subject to withdrawal on call and that during the past week two large withdrawals were made upon it. This rendered it absolutely necessary for the conduct of the business upon an honorable basis to obtain a temporary loan upon certain of the investments owned by the company.
"This latter loan was in process of negotiation with prospects of a favorable result, when on Saturday, last, the third vice president, who owing to the illness and absence the past six weeks of the president and first vice president had been compelled to take up the entire management of the company discovered that the obtaining of such a temporary loan, when taken into connection with the proposed loan on the Vera Cruz and Pacific securities, fell far short of enabling the Maryland Trust Co. to continue to conduct business was only putting off the evil day upon the chance of effecting a sale of the Vera Cruz and Pacific road, in order to make itself absolutely solvent.
"In view of this condition of affairs, I went to New York, Saturday night and withdrew the application for the temporary loan, and called together the members of the executive committee who could be reached, to meet me Sunday night, upon my return from New York, at which meeting I laid before them the situation of the company discovered by me for the first time the day previous and told them that in my opinion, we could not run the risk of waiting until Tuesday for action by the directors, at their quarterly meeting, as should large withdrawals take place, Monday, the company would manifestly be unable to meet them and we would have to suspend.
"The committee approved of this view and the same evening, at the same place a conference with representatives of some of the largest and most responsible financial institutions in this city, who had been invited to meet there. I laid before them the entire state of the case. After a protracted conference lasting into, Monday morning, it was unanimously decided by all present with great regret that there was nothing to do but follow the course proposed.
"At this time without a more accurate examination of the books and exact knowledge of the various figures I shall not attempt to give figures to the press, but will do so at the earliest practicable opportunity. In the meantime prompt and earnest efforts will be made to advise with the leading creditors of the company with a view to preparing plans for realizing to the best advantage the various assets."
9.October 20, 1903The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
TWO BALTIMORE BANKS SUSPEND Liabilities in the Neighborhood 0 $11,000,000. MANY WILD RUMORS AFLOAT OTHER INSTITUTIONS MAY BECOME INVOLVED. ALTIMORE, Md., Oct. 19.-This has been a day of marked excitement B and subdued anxiety in the financial and business circles of Baltimore. Luckily a dozen reports well calculated to provoke a wholesale run on banks did not reach the great army of depositors throughout the city, thus giving ample time for conservative leaders of business to allay popular apprehension before it reached dangerous proportions. The day began with the announcement of the failure of the Maryland Trust company, and except to a few the news came as a bolt out of a clear sky, spreading consternation in all directions. To these few it was known that the trust company had long been struggling with 'undigested securities,' that it had sustained heavy withdrawals of deposits and that, finally, on Saturday last, it had failed in its efforts to negotiate a $2,000,000 loan in London. Many Rumors Afloat. The suspension of the Union Trust company which happened at a late hour in the day, gave impetus to many baseless rumors as to other financial institutions. which might well have created a panic had they been given currency early in the day. It was agreed among the leaders. and 50 given out. that there is nothing alarming in the general financial situation in this city, and that the mere fact that temporary difficulties overtook one or two concerns is no reason why other perfectly solvent institutions should be regarded with suspicion. One of the most prominent bankers in Baltimore said: Time to Keep Cool. "It all depends upon how the people of Baltimore act. If they do not lose their heads the trouble will blow over in time and nobody will be hurt: but if they become panic-stricken the consequences will be serious. This is a time to use calm judgment.' Allan McLane. third vice president of the Maryland Trust company was appointed to take charge of the affairs of that company Miles White jr., first vice president of the Union Trust company was appointed receiver of that institution. Mr. McLane gave bond in the sum of $2,000,000 and Mr White gave bond in the sum of $1,000,000. The last statement of the Maryland Trust company, issued on June 30. 1903. showed capital stock of $2,125,000. surplus $2,437,500 and undivided profits of $677,998.86. The company has demand and time deposits amounting to $5.773.817.15. The Union Trust company at the close of business on March 31, 1903. had capital stock of $1,000,000. surplus of $250,000 and undivided profits of $159.687.55. The Union Trust company had deposits amounting to nearly $2,000,000. The filing of the first applications for receivers for the embarrassed companies was followed by petitions for coreceivers for both companies. Liabilities Nearly $11,000,000. The total liabilities of the two companies exceed $10,000,000. The cause of the Maryland Trust company's failure was due. as set forth in the statement of Receiver McLane. to the investment of the assets of the company in Mexican railway securities which could not be marketed The Union Trust company failed because of a run on its banking department, about $150,000 having been withdrawn by depositors today, but the real troubles of the company had their origin in the organization of the South & Western railway in Virginia, in which R. capitalization of about $11,000,000 was contemplated. The Union company was the fiscal agent for the Virginia enterprise, just as the Maryland company was the fiscal agent for the Mexican railway. Though these two failures followed SO closely it can be stated on unquestioned authority that there was no connection whatever between the two. The Maryland Truct company and the Union Trust company were not jointly interested in any enterprise. Neither company managed trust estates. Other Recent Troubles. There have been other financial troubles in Baltimore recently involving the City Trust & Banking company and the Hammond Ice company and William J Middendorf & Co., but it is not believed they were in any manner forerunners of today's suspensions. J. W. Middendorf speaking for his firm. and J. L. Williams & Sons of Richmond, said oday "The difficulties of the Maryland Trust company have no relationship to ours. Neither our firm nor Mr. Williams owes a dollar to the Maryland Trust company, nor does that company owe us anything .. Among the alarming rumors afloat was one to the effect that the municipality of Baltimore had millions of its treasure realized from the Western Maryland railroad involved in today's failures. Investigation proved, however. and the finance commissioners have so announced. that the city has only $300,000 invested with the Mary land Trust company, and that this is secured by three bonding companies of this city.
10.October 20, 1903New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
New-York Daily Tribune
TUESDAY, OCTOBER 20, 1903.
THE NEWS THIS MORNING.
FOREIGN.-A draft of the decision reached by the Alaska Boundary Commission was signed by a majority of the commissioners, Mr. Aylesworth and Sir Louis A. Jetté refusing to adix their names: the award of the tribunal will be read in public to-day.
John Morley, speaking at Manchester, made a spirited attack on the policy of protection, and upheld the measures of Cobden and Bright; Sir Robert Finlay, the Attorney General, spoke in opposition to Mr. Balfour's plans.
A dispatch from Yokohama said that the Russo-Japanese negotiations had again temporarily ceased; a majority of the Russian warships left Port Arthur, and the Japanese squadron sailed from Masanpho.
An indictment against Alonzo Cruzen, Collector of Customs at San Juan, P. R., was made of no effect by the action of the District Attorney.
The freedom of the city of Waterford was bestowed on Andrew Carnegie.
A satisfactory trial of M. Santos-Dumont's new dirigible balloon was held near Paris.
The British battleship Prince George, injured in a collision with the Hannibal, was beached at Ferral.
DOMESTIC.-The Maryland Trust Company and the Union Trust Company, both of Baltimore, went into the hands of receivers; there were also failures of two banks in Wisconsin and one in Washington State and one in California.
President Roosevelt is expected to issue his proclamation to-day calling Congress to meet in extraordinary session on November 9.
The President has directed that men removed from the Philadelphia Mint for political reasons be reinstated.
The Immigration Bureau has discovered evidence of extensive violations of the Contract Labor law, by which hundreds of Welsh miners are being brought to this country.
Eight men were killed and five seriously injured by an accident at the new Wabash Bridge in Pittsburg.
William Carthew was arrested in California charged with embezzling $100,000 from a bank in this city.
CITY.-Stocks were down 1 to 3 points.
"Boss" McLaughlin triumphed over Senator McCarren at the meeting in Brooklyn of the Kings County Democracy General Committee.
W. S. Devery intimated that Charles F. Murphy was receiving protection money from a disorderly house.
Mayor Low was enthusiastically received at four fusion meetings which he addressed on the East Side.
Colonel McClellan spoke at two Democratic meetings in Brooklyn, at one of which Controller Grout told how his bargain was made with Tammany, and at one meeting in Manhattan.
THE WEATHER.-Indications for to-day: Fair, fresh southwest winds. The temperature yesterday: Highest, 58 degrees; lowest, 44.
11.October 20, 1903The Washington TimesWashington, DC
Click image to open full size in new tab
Article Text
LOCAL BANKS NOT HURT BY BALTIMORE CRASH Advantage Strikingly Shown of Conservative Methods in Force in Washington Financial Establishments. Financiers in Washington are congratulating themselves today upon their wisdom in withdrawing what few loans and deposits had been placed in Baltin ore. The crash of the Maryland Trust Company and the Union Trust Company, coming so closely upon the suspension of a large banking firm there, show some of the financial institutions of that city to be in a distressed condition, and the Washington bankers are thankful their business intercourse with Baltimore amounts to practically nothing. None of the local banks has felt the effects of the collapse. What little Washington money had been placed in Baltimore has been withdrawn. One of the big institutions in Washington recalled some time ago loans amounting to $150,000. Conservative banking methods are employed here as in no other city. Railicad and industrial enterprises are not Cnanced, and the collateral is the best. The four local trust companies are the only ones in the country under Government control. The books of these corporations are examined from time to time, and are at the disposal of the Comperoller of the Currency of the United States. A number of inquiries concerning the condition of the broken companies were made from here today. The replies are optimistic, and indicate an adjustment of the difficulties.
12.October 21, 1903The Barre Daily TimesBarre, VT
Click image to open full size in new tab
Article Text
NEW YORK MARKET DOWN. Baltimore Failures Seriously Affect All Stocks. New York, Oct. 20.-The failure 0. the Maryland Trust company of Bal timore caused a weak stock market Liquidation was general, but the de cline in Baltimore and Ohio and South ern railway preferred was attributed directly to selling induced by the fail ure. Those stocks, United States Stee preferred and Amalgamated Copper were notably weak, but losses of 1½ to over 2 points were quite general dur ing the first hour. The industrials were conspicuous in the decline also. Selling was resumed with vigor agair when the announcement of another trust company suspension was madethat of the Union Trust company 0) Baltimore. Leading stocks sold lower than in the morning, and there was particular pressure against the com mon stocks. Union Pacific and Balti more and Ohio sold at 69½ and 72% respectively, and Atchison, St. Paul Southern Pacific, New York Central Reading, Illinois Central, Kansas and Texas preferred and Brooklyn Transit were added to the list of stocks which showed losses of 2 points or more Steel preferred dropped 28/4 and Amal gamated 2½. At 2 o'clock the market was still on the down grade. Westing house Electric fell 8 points.
13.October 22, 1903Iowa County DemocratMineral Point, WI
Click image to open full size in new tab
Article Text
BALTIMORE WORRIES THROUGH PANIC; TWO BIG TRUST COMPANIES FAIL Baltimore, Oct. 20.-Yesterday was a the Union Trust company. Of the many wild rumors following these susday of marked excitement and subjued pections only one assumed definite anxiety in the financial and business shape and that was that at the request circles of Baltimore. The day began of another trust company the clerk ot with the announcement of the failure the circuit court kept his office open of the Maryland Trust company. This an hour later than the accustomed time news spread consternation. It is to accommodate one more applicant for known to a few that the company had receivership. But the applicant did long been struggling with undigested not materialize and the day ended with securities. that it sustained a heavy only two suspensions to its credit, and withdrawal of deposits and that, finalwith assurance that all peril of panic ly. Saturday last, it had failed in its had passed, and that today would note effort to bridge over the trouble by nethe disappearance of every sign and gotiating a $2,000,000 loan in Londo n. portend of further trouble. The leadThe announcement of the collanse of ers declare there is nothing alarming the Maryland company was rollowed in the general financial situation in later in the day by the suspension of this city.
14.October 22, 1903The Saint Paul GlobeSaint Paul, MN
Click image to open full size in new tab
Article Text
FINANCIAL DISTURBANCE AT THE EAST. The duty of the public is not to allow itself to be wrought into any hysterical conditions by the collapse of important financial institutions in the city of Baltimore, which will no doubt be followed by other financial difficulties there and elsewhere. The country has been told again and again that there was no symptom of general financial trouble and no fears of a panic, and this is true if the people as a whole do not lose their heads. We are by no means through with the processes of liquidation yet, and it will be well to keep a cool head and a steady hand until it is complete. There have been warnings in plenty. For five or six years every conservative financial journal or other authority in the country has, day after day, stated the danger to bankers and managers of other financial institutions of loading up with these newly floated securities as collateral. There was the danger, and the only danger, to the general business interests of the country. The private investor would suffer, and so would prosperity in the larger sense, if he bought stocks with his own money at a price two or three times as great as he could sell them for later. But such losses will administer no shock to the general financial system If, on the other hand, banks and trust companies loaned any considerable portion of their funds on paper that afterwards depreciated greatly, or even ceased to have a market value at all, then these unwise concerns must eventually go to the wall. This is what has happened to the Baltimore institutions. The Maryland Trust company admits that it has been "struggling with undigested securities." Its depositors could not be kept ignorant of the fact. They demanded their money. The loans made on these securities, for which there is now no sale, could not be paid, and the company went to pieces. Since its total deposits are nearly $6,000,000, the effect upon the public is bound to be serious. The other company failed because it was the fiscal agent of another inflated railroad scheme, and went down in the same way as soon as its difficulties became public property. It may as well be stated plainly that wherever there are other institutions that have been equally unwise they will be weeded out. Those who would not heed the warnings dinned into their ears for years past must pay the penalty. The time when you could form a stock company on any old basis, issue paper to as many millions as it pleased you and place the stock somewhere to your advantage, either as cash sale or as collateral for cash advances, has gone by. That industry is exactly in the condition of the real estate market in a community that has had a big boom when the boom days are over. The price of folly must be paid. We thoroughly believe that financial Institutions the country over that hold the people's money are in excellent condition. They have seen the inevitable a long distance ahead, have been careful in their loans and are not loaded with worthless paper. It is not a mere effort, therefore, to soothe or to prevent public alarm, but the statement of a substantial fact to say that
15.October 1, 1904New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
SALE OF VERA CRUZ-PACIFIC BONDS. Speyer & Co. Dispose of Their Purchases Receiver Pleased. Baltimore, Sept. 30.-Mr. McLane. receiver of the Maryland Trust Company, Is much pleased at the result of the bidding at the sale of the Vera Cruz and Pacific bonds yesterday for account of the trust company. In discussing the sale he said: Some misconception seems to have arisen as to my reporting the sale to Speyer & Co. at 881/2 and accrued interest. It should be understood that it was very difficult to secure a bid from any responsible banker and have that bid remain open to exception for ten days. A beginning had to be made somewhere, and Mr. Speyer. under these conditions of sale; not only made a higher offer than other bankers seen by me. but he was the only one among them willing to run the gantlet of the order of court requiring cause to be shown why the bid should not be accepted. Had I been able to close the sale with Speyer & Co. promptly in the first instance, they would undoubtedly have named a figure approximating their later bid. Expecting competition, they naturally declined to name their limit at first. My idea from the start in reporting any sale to the court, subject to ratiflcation, was to bring about the very competition which has resulted. The result of the sale, netting as it does over $183,000 more than the first offer. reduces the strain on the assets of the Maryland Trust Company in the receiver's hands and offers additional hope to the stockholders.
16.December 19, 1905Evening Times-RepublicanMarshalltown, IA
Click image to open full size in new tab
Article Text
TRUST COMPANY RESUMES. Maryland Institution Reopens After Being Closed Two Years. Baltimore, Md., Dec. 19.-The Maryland Trust Company today resumed business with a balance of assets over liabilities of more than $750,000 after having been in the hands of a receiver since October 19, 1903, when its doors were closed. The principal business transaction today was the payment to creditors of an amount in the neighborhood of $1,700,000. The first account opened today was with an elderly woman who had been one of the creditors of the institution. New York capital is largely interested in the reorganized company.
17.December 22, 1905Milford ChronicleMilford, DE
Click image to open full size in new tab
Article Text
Maryland Trust Company Resumes. Baltimore, Md., Dec. 19.-The Maryland Trust company resumed business, with a balance of assets over liabilities of more thai $750,000, after having been in the hands of a receiver since October 19, 1903, when its doors were closed. The principal business transacted was the payment to creditors of an amount in the neighborhood of $1,700,000. The first account opened Avas with an elderly lady who had been one of the creditors of the institution. New York capital is largely interested in the reorganized company.
18.December 23, 1905Richmond PlanetRichmond, VA
Click image to open full size in new tab
Article Text
Maryland Trust Company Resumes. Baltimore, Md., Dec. 19.-The Maryland Trust company resumed business, with a balance of assets over liabilities of more thai $750,000, after having been in the hands of a receiver since October 19, 1903, when its doors were closed. The principal business transacted was the payment to creditors of an amount in the neighborhood of $1,700,000. The first account opened was with an elderly lady who had been one of the creditors of the institution. New York capital is largely interested in the reorganized company.
# Henry J. Bowdoin Arrested.
BALTIMORE, Jan. 3. - The grand jury which has been investigating the affairs of the Maryland Trust company under the old regime returned presentments against three of the former officials, and one of them. Henry J. Bowdoin, who was the vice president and in active charge at the time of suspension, has been arrested.
20.January 3, 1906The Providence NewsProvidence, RI
Click image to open full size in new tab
Article Text
# FORMER MARYLAND TRUST CO.
# OFFICIALS UNDER INDICTMENT
Baltimore, Jan. 3. -The grand jury, which has been investigating the affairs of the Maryland Trust company under the old regime, yesterday returned presentments against three of the former officials. One of them, Henry J. Bowdoin, who was the vice president, and in active charge at the time of suspension, was arrested on a capias from the criminal court and released under a bond of $10,000. The other two have not been arrested, and their names are withheld by the state's attorney's office.
It is stated unofficially, however, that they are J. Wilcox Brown, formerly president of the company and now residing at Afton, Va., and J. Bernard Scott, formerly the company's treasurer, and now, it is said, a resident of Georgia.
The presentments charge violation of the law prohibiting the issuing of "false or fraudulent statements regarding the financial condition of any corporation." No specific offence is cited and the Maryland Trust company is not named.
21.January 5, 1906The Havre HeraldHavre, MT
Click image to open full size in new tab
Article Text
# INDICTED BY GRAND JURY.
True Bills Found Against Former Officials of a Trust Company.
Baltimore, Jan. 3.-The grand jury which has been investigating the affairs of the Maryland Trust company under the old regime during the day returned presentments against three of the former officials. One of them, Henry J. Bowdoin, who was vice president and in active charge at the time of suspension, was arrested on a capias from the criminal court and released under a bond of $10,000. The other two have not been arrested and until they are taken into custody their names are withheld.
It is stated unofficially however that they are J. Wilcox Brown, formerly president of the company and now residing at Afton, Va., and J. Bernard Scott, formerly the company's treasurer and now, it is said, a resident of Georgia.
The presentments charge violations of the law prohibiting the issuing of "false and fraudulent statements regarding the financial condition of any corporation."
22.January 5, 1906The Stark County DemocratCanton, OH
Click image to open full size in new tab
Article Text
BIG FINANCIERS WERE PLACED ON THE CARPET TO TESTIFY Presentments Grand Jury Finds Against Former Officials of the Maryland Trust Company. Baltimore, Md., Jan. 2-The grand jury has found presentments against three former officers of the Maryland Trust Company serving at the time their company went into the hands of 1 receiver. one of these, Henry I Bowdoin, was arrested this afternoon. Mr. Bowdoin was the vice president of the company at the time of its failure. The presentment is based on alleged negngence in the management of the company's affairs in that department over which he had juriadiction. The greater. secrecy is being maintained as to the identity of the other officials accused. The grand jury has been investigating the affairs of the company for the last month. Prominent financiers, brokers, officials and employes of the company have been ordered before the body to test.fy concerning the management of the company prior to its failure. The Maryland Trust company went into the hands of a receiver on October 19, 1903. The company has been reorganized and a few days ago re. opened its doors with a capital of $1, 000,000.
23.January 10, 1906The Miller SunMiller, SD
Click image to open full size in new tab
Article Text
# ALLEGED FRAUD IN BANKING
Officials of the Old Maryland Trust Company Are Indicted.
The grand jury, which has been investigating the affairs of the Maryland Trust Company under the old regime, at Baltimore Tuesday returned presentments against three of the former officials. One of them, Henry J. Bowdouin, who was the vice president and in charge at the time of the suspension, was arrested on a capias from the criminal court and released under a bond of $10,000. The other two have not been arrested, and until they are taken into custody their names will be withheld.
24.January 13, 1906Evening StarWashington, DC
Click image to open full size in new tab
Article Text
Maryland Trust Won $281,447 Suit.
By a decision of the Maryland court of appeals at Baltimore yesterday the Me-chanics' National Bank of Baltimore loses its suit against the Maryland Trust Com-pany for $281,447, the case arising out of a deal which netted Mr. John B. Ramsay, president of the bank, a commission of $100,000. The deal occurred before the Maryland Trust went into a receiver's hands, and arose out of the absorption by that company of the Guardian Trust Com-pany. According to the opinion of the court Mr. Ramsay was acting as agent for the Maryland Trust, one provision of the deal being that the Maryland Trust was to buy up a large share of its own stock, the money for that purpose to be advanced by the Mechanics' National Bank. The amount thus advanced, with interest, aggregates
25.March 14, 1933The NewsFrederick, MD
Click image to open full size in new tab
Article Text
BALTIMORE BANKS TODAY
National And State Institutions Affected By Order.
PERMISSION GIVEN FORMAL o: all five national banks. one state bank member of the Federal Reserve system and seven state banks in Baltimore on an unrestricted basis tomo:row was announced tonight by banking authorities here. Hugh Leach. manager of the Bait:- the more branch of the Federal Reserve Bank, Richmond. announced permission to re-open had been given the Canton National. First National. N.ttonal Central. National Marine and Western National banks and also the Maryland Trust Company. state bank member. Permission for unrestricted business beginning was given by John J. Ghinger. state bank commissione. to the following state banks in Baltimore Calrert Bank Colonial Trust Company. Equitable Trust Company. F.delit. Trust Company. Mercantile Trust Company. Morris Plan Bank and Real Estate Trust Company Ghinger also said the Safe Deposit and Trust Company and the Conter mtai Trust Company. whose business is no: general banking business but fiductary business. handling trust tates open tomorrow. Commissioner Ghingher late tonight tutions = Baltimore would be permitted to re-open tomorrow on norms: his basis and four mutual savings institum. banks were opened in Baltimore for business before the bank holiday declared. These national three state banks which are members of the Federal Reserve system and 25 state banks. Reopening of state banks in the of Maryland on normal is presented by State and Federal Regulations until Wednesday. it was said Representatives of the county banks will meet at the bank commissioner's office tomorrow morning to Ghingher and Got. on for re-opening Among the financial houses that were to reopen on :00 per same. and Alexancer Brown and Son:
