Article Text
5 NEW BANKS NOW REPLACE CENTRAL TRUST Institutions Are Opened In Western Maryland From Wreckage of 5-County Institution STOCKHOLDERS TO GET SIX PER CENT Another Sixteen Per Cent Will Be Paid By Defunct Bank On Order of The Court Frederick, Md., Aug. 9-(AP)Five independent banks arose today from the wreckage of the Central Trust Company of Maryland and their doors opened for unrestricted business The openings brought to seven the number of banks that have broken away from the defunct institution. The Western Maryland Trust Company replaced the main office of the Cantral Trust Company here while the Valley State Bank of Middletown, Poolesville Bank, Sykesville State Bank and Walkersville Bank replaced branches in those communities. Previously the mergers of the People's Bank of Smithsburg and the Washington Trust Company of Ellicott City with the Central Trust Company had been dissolved by orders of Circuit Court. Other branches of the defunct institution were located at Monrovia, Maersville, Thurmont, Union Bridge and Emmitsburg. With the opening of the five new Banks, dividends totaling about $600,000 were paid today on deposits in the Central Trust Company, by order of the court. Further dividends may be realized, it was intimated. Dividends totalling five dollars or less are being made to depositors in communities where new banks are not being opened, were paid by check. The other depositors in the former concern were credited with their dividends in the nearest new bank. Some 166 former depositors opposed the recorganization plans for the defunct bank. The court directed that these dissenters be paid their six per cent, today and that the remaining sixteen per cent. due them to close out their accounts be retained by the State Bank Commissioner, who acted as receiver, subject to the Court's further order. The central Trust Company, with its eleven branches in Montgomery, Carroll, Howard and Frederick counties, failed to open their doors for business on Sept. 3. 1931. The decision to close had been reached at meeting of the board of directors the previous afternoon for the purpose of protecting depositors and stackholders. The business depression was blamed for the closing by the bank's president, Emory L. Coblentz. He said the depression had affected the value of securities and real estate, placing a large proportion of the bank's assets in "frozen" condition. counties. He was acquitted in Fredas the "Miserable publicity' concerning Coblentz connection with the investigation of the affairs of a Washington banking concern. He said the connection served to disturb public confidence and cause a seepage of deposits. George W. Page, then State Bank Commissioner, who took over the affairs of the bank as receiver, said the institution's condition "was brought about by the institution's having a very large commitment in real estate outside of Maryland which is illiquid at the present time and cannot be realized upon." Coblentz, with four other officials of the bank, was subsequently indieted on banking charges in Frederick Montgomery, Howard and Carroll today in the family mausoleun in erick. The charges were guashed in Montgomery and a conviction on a Howard county charge was overruled by the Court of Appeals. Indictments are still pending in Howard and Carroll counties.
