Click image to open full size in new tab
Article Text
PROBE AFFAIRS OF ELKTON BANK Continued From First Page.) Gilpin-Falls Light and Power Company, of which company the president of the bank is also president. This company, which has a plant near Bay View, furnishes electric current to Elkton, North East and other towns and was reported to have been sold some days ago to the Susquehanna Power Company There have been rumors of efforts of this bank to merge with either the Elkton Banking Trust Company or the National Bank of Elkton but it is now said that such a plan will not likely materialize. President Warburton at the time the bank was closed yesterday, issued the following statement: "The Second National Bank of Elkton, on account of a run made upon it, closed its doors at 2 o'clock this afternoon. On account of some slow investments and while negotiations were pending for a consolida tion with another bank in the town, rumors were circulated which caused the run "The assets are ample to secure the depesitors and the bank will be reorganized and opened again for business." It has been known that the bank's affairs have been under investigation for several days The original investigation was conducted by Joseph A. Genau, an agent for the Department of Justice instead of by a national bank examiner Normally such inquiries are handled entirely by the Treasury Department, but it is understood that Mr. Genau was sent to Elkton at the request of one of the national bank examiners. What Mr. Genau discovered has not been announced. He left Elkton during yesterday and reported to his chiefs in Washington They, however, declined to comment in any way upon his activities or the reason for the entrance of the Department of Justice into the case. Charles A. Stewart, national bank examiner, however, arrived last evening, a few hours after Mr. Genau's return to Washington Chief Examiner W J. Schechter is due to arrive today, when he will take charge of all affairs in the bank. Neither here nor in Washington was there any forecast of probable action, either as to the time when the bank will reopen or the condition which will be disclosed. It is assumed that the examination of the books will require several days. The run, according to W. T. Warburton, president of the bank, was due to the circulation of "malicious", reports of insolvency, owing to certain holdings of bonds by the instiI tution of the Gilpin Falls Light and Power Company, of which Mr. Warburton is also president. Washington advices say that the c Comptroller of the Currency had ordered the bank to dispose of the $125,000 of bonds of the light and power company held by the bank. a will Reorganization of the bank n take place according to Mr. Warburton. "It perfectly true," said Mr. Warburton, 'that we hold bonds of the Gilpin Company but there was nothing in this which should have caused the bank's creditors any uneasiness. We had arranged to hold a meeting tomorrow with officials of another bank in Elkton looking to a merger of the two institutions. Malicious gossip, however, about concerning the Gilpin con- got cern, which resulted in the run. "To protect the bank's best ests we were compelled to close inter our doors. Should the merger as proposed not roethrough we have in mind a reorganization which will protect every interest of the bank, and no depositor need feel alarmed. The assets of the institution ample to meet all emergencies we are given the opportunity to adjust conditions." The run went on quietly, as few had heard It before the bank closed The directors of the Second National Bank were William T. Warburton, Russell J. Reed. Oliver C. Giles, John Lungren and C.H. Johnson. Mr. Warburton was presiit dent, Mr. Giles vice-president, and Mr. Johnson cashier. The report of the condition of the e bank at the close of business. December 31, last, follows: r Resources Loans and discount. $254,944.32 n notes and bills rediscounted, $214.d 953.75; overdrafts unsecured. $2.199.54; United States bonds deposit ed to secure circulation, $12,500; all other United States government securities, $17,500; other bonds,stocks securities, $146,440; banking house reand fixtures, $14,796.22 lawful serve with Federal Reserve Bank $5,535.46; cash in vault and net amount due from national banks $10,997.76; checks on other banks $1,026.18; checks on banks located s outside of city, $528.10; redemption fund with United States Treasurer $625. Liabilities Capital stock paid in, $50,000; sur. plus fund, $10,000; undivided profits $11,689.82: circulating notes out standing, $12,500; amount due Fed. net id eral Reserve Bank, $6,597 as amounts due to banks, bankers and he trust companies in the United States 0$5,000; certified checks outstanding ed $53.21; cashier's checks on own bank en outstanding $15; individual depos d its subject to check, $145,111.92; cer Vtificates of deposit due in less than 30 days, $63,833.20; dividends for d bills ng id st ed, than paid. posit $82,632.55; other $1,278.50; than certificates money payable borrow of othe un de with Federal Reserve Bank
