8359. Economy Savings Bank (Baltimore, MD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
December 22, 1900
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
c82f53a5

Response Measures

Full suspension

Other: Receiver appointed; bank closed and receiver furnished bond.

Description

Articles (Dec 22–25, 1900) report depositors crowding the bank (500–600), the bank suspending because its cash was deposited in the American National Bank (failure of that correspondent), and a receiver (Daniel L. Brinton) appointed on Dec 24. OCR variants of president name appear (Hartman/Hortman). Bond amount reported as $25,000 in some papers but most report $250,000; I follow the majority. Sequence: run and depositor agitation -> suspension -> receivership/closure.

Events (3)

1. December 22, 1900 Run
Cause
Correspondent
Cause Details
Depositors rushed the bank after the failure/embarrassment of the American National Bank, in which the Economy had its cash funds deposited.
Measures
Directors issued statement asking depositors to be patient; no special liquidity measures reported beyond statements.
Newspaper Excerpt
A large crowd of these stood about the doors of the bank during the day. At one time the crowd numbered between 500 and 600, and necessitated a dispersing by the police.
Source
newspapers
2. December 22, 1900 Suspension
Cause
Correspondent
Cause Details
Suspension of payments because the bank's cash funds were tied up at the American National Bank whose failure/embarrassment left Economy unable to realize funds.
Newspaper Excerpt
Owing to the fact that our cash funds are deposited in the American National Bank, we have been compelled to suspend payment.
Source
newspapers
3. December 24, 1900 Receivership
Newspaper Excerpt
Judge Stockbridge ... appointed Daniel L. Brinton receiver for the Economy Savings Bank, which closed its doors on Saturday. Mr. Brinton furnished bond in $250,000.
Source
newspapers

Newspaper Articles (17)

Article from The Savannah Morning News, December 23, 1900

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THE BALTIMORE BANKS. Economy Savings Bank Also Closed Its Doors Yesterday. Baltimore, Dec. 22.-In financial circles little surprise was expressed to-day that the American National Bank of this city had suspended. It Is said that the Baltfmore Clearing House Association has pactically carried the institution since last December. Upon the report of a recent examination into its affairs, it was decided by the association yesterday to notify the Controller of Currency of its condition. The Associated Banks of Baltimore have advanced the embarrassed inscitution $30,000. which, It is said, is well secured. During the administration of ex-Mayor Malster, who was then a director of the bank. the American National was one of the city's depositories, the municipality at one time having $600,000 on deposit with 11. Upon assuming office In succession to Mr. Malster, Mayor Hughes withdrew the $200,000 due the city, The directors of the bank held a meeting to-day. but declined to make a statement for publication. This is the first failure of a national bank in Beltimore since the national banking law wgnt into effect. As a direct result of the embarrassment of the American National Bank the Economy Savings Bank, which occupies offices in the eame building. and whose directorate is largely drawn from the ialter's stockholders, also failed to open its doors this morning. The directors made the following statement: "Owing to the fact that our cash funds are deposited in the American National Bank, we have been compelled to suspend payment. We expect as soon as its offairs are straightened out, to pay our depositors in full, and hope that they will only suffer e slight inconvenience from a possible shortness of Christmas money." The depositors are for the most part Russian Hebrews, and a large crowd of these stood about the doors of the bank during the day. At one time the crowd numbered between 500 and 600, and necessitated a dispersing by the police.


Article from New-York Tribune, December 23, 1900

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ANOTHER BALTIMORE BANK GOES DOWN ECONOMY SAVINGS INSTITUTION INVOLVED IN FAILURE OF AMERICAN BANK. Ealtimore, Dec. 23 (Special).-The failure of the American National Bank, of this city, carried down other institutions with it. The Economy Savings Bank, which occupied quarters in the same building. closed its doors to-day. Russian Hebrews and other poor persons are the depositors. Over six hundred of them crowded about the doors of the bank to-day. Some were crying. others cursing. and at one time the crowd became so threatening that a squad of police was summoned to disperse them. The directors issued this statement: "Owing to the fact that our cash funds are deposited in the American National Bank. we have been compelled to suspend payment. We expect as soon as its affairs are straightened out to pay our depositors in full, and hope that they will only suffer a slight inconvenience from a possible shortness of Christmas money." Rumors concerning other institutions in the building elicited a statement that neither the Old Town Building Association nor St. Vincent de Paul's Building Association would be affected, but it is not definitely known yet what may be involved in the American Bank failure. It is believed that the Economy Bank's failure was partly caused by loans to the American Bank. Stockholders in the American Bank are directors in the Economy Bank. It is feared the depositors will lose heavily. The total amount of deposits is about $350,000, mostly in small accounts of people who cannot afford to lose their little savings. The failure of the American Bank also appears to be worse than first reported Receiver Aldrich and National Examiner Griffith were busy examining the accounts to-day. Through the good judgment of Mayor Hayes, Baltimore City escaped being involved to the extent of half a million in the American Bank failure. In the administration of his immediate predecessor. Mayor William T. Malster, who was a director in the American Bank, it was the city's depository, and at one time the city had on deposit $600,000. Mr. Malster was president of the Columbian Iron Works, which went into receivers' hands this time last year. City Finance Commissioner Ramsay, at the time the city was a heavy depositor, sent a protest to Mayor Malster. in which he said: "As a business man, I consider the continuance of this large sum of money in a bank which, to say the least. is under suspicion by the Government is not to be justified. And, as one of the Finance Commissioners of the city of Baltimore, I respectfully but firmly protest against the making of any further deposits of the city's money in the American National Bank. and advise that a bond be required from it that will Indemnify the city against any possible loss by reason of having a large amount of money there.' When Hayes became Mayor he at first demanded that the whole amount be immediately withdrawn. The Finance Commissioners and others were called into conference. in which there was warm talk. finally ending in a decision to deposit no more money in the American National Bank as it would cease to be a city depository at the end of the year. The bankers made the plea that no National bank had ever failed in Baltimore. and they proposed to carry the bank along. Each man then pledged himself to protect the city to a certain amount. the total reaching all of the city's money in the bank. This was accepted. and the city's money was quietly but steadily withdrawn.


Article from The Times, December 23, 1900

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ANOTHER BANK CLOSED. Depositors Had to Be Dispersed by the Police. (By Associated Press.) BALTIMORE, Dec. 22.-As a direct result of the embarrassment of the American National Bank, the Economy Saving Bank, which occupies offices in the same building. and whose directorate is largely drawn from the latter's stockholders, also failed to open its doors this morning. The directors make the following statement: "Owing to the fact that our cash funds are deposited in the American National Bank, we have been compelled to suspend payment. We expect as soon as its affairs are straightened out, to pay our depositors in full, and hope that they will only suffer a slight inconvenience from a possible shortness of Christmas money." A large crowd gathered about the doors of the bank during the day. At one time the crowd numbered between 500 and 600 and necessitated a dispersal by the police.


Article from The Times, December 23, 1900

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LOANS POORLY SECURED The Baltimore Bank Failure Due to Bad Management. The Stockholders to Be Asked to Vote Upon an Assessment of 25 Per Cent-A Savings Institution Sus. pends on Account of Cash Being Tied Up in the American National. BALTIMORE, Dec, 22.-The failure of the American National Bank of this city occasioned no surprise in financial circles, the institution having been regarded as shaky for some time. Bad management is alleged to be the cause of the bank's present embarrassment. It is estimated that one-half of the capital stock of $200,000 has been impaired by reason of loans made on paper without sufficient collateral. Under the national banking laws the stockholders are responsible for a bank's indebtedness to any amount double the face value of stock held in their name. Acting under this authority the directors have called a special meeting of the stockholders for January 22 to vote upon a call of the Comptroller for an assessment of 25 per cent upon the stock, also to consider a proposition to increase the capital stock from $200,000 to $300,000. The Economy Savings Bank, which conducts its business in the basement of the American National Bank building, and whose directorate is largely drawn from the latter's stockholders, also failed to open its doors this morning. The directors held a meeting of several hours' duration about noon. At its conclusion D. L. Brinton, of the directorate, made the following statement: "Owing to the fact that our cash funds are deposited in the American National Bank, we have been compelled to suspend payment. We expect as soon as its affairs are straightened out to pay our depositors in full, and hope that they will only suffer a slight inconvenience from a possible shortness of Christmas money." In reply to a question Mr. Brinton said be could not tell for how long a period the suspension would be forced, nor how the suspension would affect the savings bank. The directors will meet again on Monday. The depositors are for the most part Russian Hebrews, and large crowds of these stood about the doors of the bank during the day. At one time the crowd numbered between 500 and 600, and


Article from The Sun, December 23, 1900

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BALTIMORE BANK WRECKS, the ECONOMY SAVINGS GOES DOWN WITH THE AMERICAN NATIONAL. The Institutions Were Allied and the National Bank Had the Savings Bank's Money-The City's Money Drawn From the American National by Mayor Hayes's Request. BALTIMORE, Dec. 22.-The failure of the American National Bank of this city occasioned no surprise in financial circles. the Institution having been regarded as shaky for some time. Bad management is alleged to be the cause of the bank's present embarrassment It is estimated that one-half of the capital stock of $200,000 has been impaired by reason of loans made on paper without sufficient collateral. Under the National Banking laws the stockholders are responsible for a bank's indebtedness to an amount double the face value of stock held in their name. Acting under this authority the directors have called a special meeting of the stockholders for Jan. 22, to vote upon a call of the Comptroller for an assessment of 25 per cent. upon the stock, also to consider a proposition to Increase the capital stock from $200,000 to $300,000 The Economy Savings Bank, which conducts its business in the basement of the American National Bank building, and whose directorate is largely drawn from the latter's stockholders, also failed to open its doors this morning. The directors held a meeting of several hours' duration. At its conclusion D. I Brinton made the following statement "Owing to the fact that our cash funds are deposited in the American National Bank, we have been compelled to suspend payment We expect, as soon as its affairs are straightened out, to pay our depositors in full, and hope that they will only suffer a slight inconvenience from a possible shortness of Christmas money. In reply to a question, Mr. Brinton said he could not tell for how long a period the national bank suspension would be forced, nor how the suspension would affect the savings bank. When asked if a receivership would be forced upon it. he said he could not forecast how the thing would turn out. The directors will meet again on Monday The depositors are for the most part Russian Hebrews and large crowds of these stood about the doors of the bank during the day. At one time the crowd numbered between 500 and 600 and was dispersed by the police. There was no disorder and the men discussed the situation in groups The Clearing House Association has been carrying the American National Bank practically ever since December a year ago. Vice-President Ramsay of the Clearing House Association said that the associated banks of Baltimore had done everything in their power to save it, but an examination recently made showed that it would be une iss to continue lending money to that institution. Mr. Ramsay also said that in his opinion the depositors would lose nothing. Deposits in the American National Bank reached their maximum in 1890, when they amounted to nearly $850,000. Since then they have dwindled ranidly. and on Oct. 25, when the last statement of the institution's condition was submitted, in compliance to the call of the Comptroller. the deposits amounted to only $388,209 During the Administration of v-Mayor Malsier the American National


Article from The Wheeling Daily Intelligencer, December 25, 1900

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A Receiver Appointed. BALTIMORE, Md., Dec. 24.-Judge Stockbridge, in circuit court No. 2, appointed Daniel L. Brinton, receiver for the Economy Savings Bank, which closed its doors on Saturday. Mr. Brinton furnished bond In $250.000. While believing that its assets are amply sufficient to pay all its depositors in full, the board of directors authorized the president, George Hortman, to give his consent to the appointment of a recelver. President Hortman says the bank has 3,063 depositors. The deposits amount to $343,000.


Article from The Times, December 25, 1900

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UNABLE TO PAY. Economy Savings Bank, Baltimore, in Receiver's Hands. (By Associated Press.) BALTIMORE, Dec. 24.-Judge Stockbridge to-day appointed Daniel L. Brinton receiver for the Economy Savings Bank, which closed its doors on, Saturday. Mr. Brinton furnished bond in $25,000. The bank officers say they are unable to pay the claims. President Hartman says the bank has 3,063 depositors, with deposits amounting to $343,000.


Article from The Morning Astorian, December 25, 1900

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BANK RECEIVER APPOINTED. BALTIMORE, Dec. 24.-Judge Stockbridge today appointed Daniel L. Brinton receiver for the Economy Savings Bank. which closed its doors Saturday.


Article from Wheeling Register, December 25, 1900

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RECEIVER APPOINTED For the Economy Savings Bank. of Baltimore. BALTIMORE. Md., December 24.Judge Stockbridge in the Circuit Court No. 2 appointed Daniel L. Brinton, receiver for the Economy Savings Bank, which closed its doors on Saturday. Mr. Brinton furnished bond in $250,000. In its answer to a bill of complaint filed by depositors officials of this bank made a statement admitting the justness of the claim that it was unable to pay to depositors the amounts due them. but denies that it is insolvent and aileged that the failure of the American National Bank, of it which it was a heávy depositor, has rendered it unable to realize on the money it had there. For this reason the bank officials say it is unable to pay claims. While believing that its assets are amply sufficient to pay all its depositors in full, the board of directors authorized the president, George Hortman. to give his consent to the appointment of a receiver. President Hartman says the bank has 3,063 depositors. The deposits amount to $343,000. Until the affairs of the American National are straightened out, it is impossible to state the condition of the savings bank.


Article from The Semi-Weekly Messenger, December 25, 1900

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THE FIRST BANK FAILURE In Baltimore Since the Enactment o the National Banking Act Baltimore, Md., December 22.-In financial circles little surprise was expressed today that the American National bank of this city had suspended. It is said that the Baltimore Clearing House Association had practically carried the institution since last December. Upon the report of a recent examination into its affairs it was decided by the association yesterday to notify the comptroller of the currency of its condition. The associated banks of Baltimore have advanced the embarrassed institution $30,000 which, it is said, is well secured. During the administration of former Mayor Malster, who was then a director of the bank, the American National was one of the city's depositories, the municipality at one time having $600,000 on deposit with it. Upon assuming office in succession to Mr. Malster, Mayor Hayes withdrew the $200,000 due the city. The directors of the bank held a meeting today, but declined to make a statement for publication. This is the first failure of a national bank in Baltimore since the national banking law went into effect. As a direct result of the embarrassment of the American national bank of this city, the Economy savings bank, which occupies offices in the same building and whose directorate is largely drawn from the latter's stockholders, also failed to open its doors this morning. The directors made the following statement: "Owing to the fact that our cash funds are deposited in the American national bank, we have been compelled to suspend payment. We expect as soon as its affairs are straghtened out, to pay our depositors in full, and hope


Article from Daily Kennebec Journal, December 25, 1900

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Boston, while they were absent. Sloan vas accompanied by a second-hand urniture dealer, to whom he sold the contents of the flat, valued at $500, for 40. Sloan is said to have confessed nd to be willing to return to Boston. Michael Jones, a motorman on the and car of the Boston Elevated Railroad, received injuries in Somerville, Sunday night, which resulted in his leath a short time after. The car had ust left the stable and in taking a witch at the corner went in the wrong lirection. Jones brought the car to such a sudden stop that he was thrown ver the dash board, and striking the round, he fractured his skull. He was inconscious until his death. He was 37 ears of age and married. A three-masted barge was sighted shore on Shovelful Shoal off Chatham, it daylight, Monday morning, and hrough the mist could be distinguished wo other barges either grounded on the shoal or riding at anchor close. Their identity could not be made out rom here., The vessels were seen by he crow of the Monomoy life saving sation and the men left for the shoal o assist the crews of the vessels. The barges evidently parted from a tug luring the heavy southwesterly blow, Sunday night. Three months ago a party of Mormon students began a three years' trip into South America to search for traces of the last survivors of the Nephites, beieved by the Mormons to have been the first people of this country. Benamin Gluff, president of the Brigham Young Academy in Provo, Utah, who is n charge of the expedition, in a letter o a friend at Phoenix, Ariz., states that many prehistoric ruins have been examined by the party and evidences unearthed which tend to uphold the Mormon traditions. Joseph Douglass shot and fatally injured Frank Parish and Charles Doyle. Monday, at Crawfordsville. Ind. The men went to the rear door of Dougass' house. and failing to get a response, kicked it open. Douglass confronted them and fired through a winlow with a shot gun, tearing Parish's face off. A second shot was poured ino Doyle's back at a distance of 15 feet. It is said there had been some trouble on account of Parish's attenions to Douglass' wife for some time. Doyle was a soldier of San Juan hill. D. D. Muirs, receiver of the Merhants' National Bank of Rutland, Vt., will pay a dividend of 25 per cent. to lepositors in a few days. Receiver Muir has already paid depositors 50 ber cent. and as he has a large amount of assets it is thought the losses to the tockholders will not be as heavy as it vas at first feared. The Merchants' Bank was wrecked last summer hrough the operations of Cashier Musey who made a loan of $145,000 in vioation of the national bank laws and vithout the knowledge of the directors. Mussey is serving a term in prison. Judge Stockbridge at Baltimore, Monday, appointed Daniel L. Brinton receiver for the Economy Savings Bank, which closed its doors, Saturday. in its answer to a bill of complaint iled by depositors, officials of the bank, oday, made answer admitting the justess of and correctness of the claim hat it was unable to pay to depositors the amounts due them. but denies that t is insolvent and alleges that the aiure of the American National of which it was a heavy depositor has endered it unable to realize on the noney it had there. The bank has 3065 lepositors and deposits amount to aggie Noel, 18 years old. who lived with her sister, Mrs. Charles Beattie. n a lonely spot about three miles west of Pueblo, Col., was abducted. Sunlay afternoon. and it is feared has been murdered. On Sunday Mrs. Beat-


Article from Evening Star, December 25, 1900

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DEPOSITORS AND DEPOSITS. Condition of the Closed Baltimore Savings Bank. At Baltimore yesterday Judge Stockbridge, in circuit court No. 2, appointed Daniel L. Brinton receiver for the Economic Savings Bank, which closed its doors on Saturday. Mr. Brinton furnished bond in $250,000. In their answer to a bill of complaint filed by depositors, the officials of the bank yesterday admitted the justness of and correctness of the claim that it was unable to pay to depositors the amounts due them, but denying that it is insolvent, and alleging that the failure of the American National Bank, in which it was a heavy depositor, had rendered it unable to realize on the money it had there. For this reason, the bank officials say, it is unable to pay claims. While believing that its assets are amply sufficient to pay all its depositors in full, the board of directors authorized the president, Dr. George A. Hartman, to give his consent to the appointment of a receiver. President Hartman says the bank has 3,063 depositors. The deposits amount to $343,000. Until the affairs of the American National are straightened out it is impossible to state the condition of the savings bank.


Article from The Savannah Morning News, December 25, 1900

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BRINTON MADE RECEIVER. Court Puts Him in Charge of Economy Savings Bank. Baltimore, Dec. 24-Judge Stockbridge, in Circuit Court No. 2, to-day appointed Daniel L. Brinton receiver of the Economy Savings Bank, which closed its doors on Saturday. Mr. Brinton furnished bond in $250,000. In its answer to a bill of complaint, filed by depositors, officials of the bank to-day admit the justness and correctness of the claim, that It was unable to pay to depositors the amounts due them. They deny that It was insolvent, and allege that the failure of the American National Bank, of which it was a heavy depositor, has rendered it unable to realize on the money It had there. For this reason the bank officials say It is unable to pay claims. President Hartman says the bank has 3,063 depositors. Deposits amount to $343,000.


Article from Marietta Daily Leader, December 25, 1900

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Receiver Appointed. By Associated Press. Baltimore, Md., Dec. 24.-Judge Stockbridge today appointed Daniel L. Brinton receiver for the Economy Savings Bank, which closed its doors on Saturday. Brinton furnished bond in $250,000.


Article from Alma Record, December 28, 1900

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Receiver for n Bank. Baltinore, Md., Dec. 25. - Judge Stockbridge has appointed Daniel L. Brinton receiver for the Economy savings bank, which closed its doors on Saturday. Mr. Brinton furnished bond in $250,000. In its answer to a bill of complaint filed by depositors the bank denies that it is insolvent and alleges that the failure of the American national bank, in which it was a heavy depositor, has rendered a receivership necessary.


Article from The Democratic Advocate, December 29, 1900

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Bank Failures in Baltimore. Following the failure of the American Na tional Bank of Baltimore came close after the passing into the hands of a receiver of the Economy Savings Bank. A few days later followed the suspension of the Old To 0 Bank, and State Treasurer Vandiver is having the affairs of some of the trust and other get-rich-quick companies investigated. If ports are correct many people are being fleeced by some of this latter class. It is very likely that some of the trust companies and banks of Baltimore, doing business according to law, are not any too safe. For several years companies of a semi-banking character have been rapidly organized, with capital and surplus that would have been re. garded ten years ago as fabulous. The air was filled with "prosperity" and rich harvests were expected from investments in stocks and bonds. There was almost a whirlwind of speculation and venture, which conservative people knew could not be maintained. The competition for loans and investments was so fierce that due care has not been taken in making them. The failures already reported are bound to cause monetary inconvenience. Depositors whose money is locked up may become embarrassed thereby, and it is probable that other banks or financial institutions may also be inconvenienced. The press of Baltimore, or a part of it, half apologize for the closed banks by attributing their failures to bad management. How else could a bank fail, except that it be robbed ? And what excuse is there for bad management? There can be none, except that officers lose their heads and rush pell-mell after investments and loans in the insane belief that times are good, everybody is prospering and they must hustle to keep up withthe procession. The cry of "prosperity" by the McKinleyites and organs for the past three or four years is responsible for this financial whirlwind, and all conservative people will be glad, indeed, if the failures stop where they are. They will not be much surprised if financial conditions became worse, dividends are passed or reduced and stocks take a drop in consequence. Much of the flaunted prosperity has been on paper-a thing in the air, with no basis.


Article from Evening Journal, December 31, 1900

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BANK FAILURE AFFECTS DENTON Community Has Had Recordbreaking Matrimonial Run Special to the Evening Journal. Denton, Md., Dec. 29.-The recent bank failures in Baltimore, which have caused so much consternation in that city, are reaching individuls in this county. The failure of the American National Bank carried with it the Economy Savings Bank, which was a heavy depositor in the American. and both were compelled to close their doors. The American is now in the hands of the Comptroller of the Curroney and it is said that the cashier of one of the banks of this town, who is a stockholder, has been drafted on for an assessment of 25 por cent. on his stock. Charles V. Clark. a well-to-do farmer, died suddenly yesterday at a store in Williston, four miles from here. He was sitting on a counter smoking a cigar when the fell backward, his cigar dropping from his mouth. Friends rushed to his aid. but he did not show the slightest signs of life afterward. He left several children, all of them grown, and was about seventy years of age. This week has been a record-breaker in the matrimonial line in this county. The clerk of the court has issued twelve licenses to marry and several couples living near the line of Queen Anne's county have secured licenses from that county. In addition to the Kerr-Burchard and of other weddings, recently the marriage of George M. Towers and Miss Mollie E. West was the leading social event at Harmony M. E. Church. Rev. T. F. Beauchamp officiated and Miss Bertha L. West, of Baltimore, played the wedding march. are The young couple the popular honeymoon in the community an after will reside near their old homes. Suit has been brought in the Circuit court here by James R. Price against the Baltimore, Chespeake and Atlantic Railway Company, now controlled by the Pennsylvania Railroad Company, for $10,0000 damages. The declaration states that the plaintiff was a passenger on the defendant's railroad between Hurlock's and Salisbury, and while being such, on acount of the and unskilled conduct of dereceived negligence fendant, plaintiff painful lose valua- injuries an was compelled to ble time from his business. Hon. Alof ond Former fred the plaintiff Constable, Elkton, Judge represents George M. Russum, an attorney for the Pennsylvania Company, resides here, and will aid in defending the suit. The mext term of the Caroline court will be held in April.