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-
2.October 19, 1903The Topeka State JournalTopeka, KS
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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.
3.October 19, 1903The Fargo Forum and Daily RepublicanFargo, ND
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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.
4.October 19, 1903Evening Times-RepublicanMarshalltown, IA
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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.
TRUST COMPANY QUITS. Another Baltimore Concern Closes Its Doors. Baltimore, Md., Oct. 19.-The Union Trust Co. closed its doors this afternoon. Miles White, Jr., is appointed receiver. The Union Trust Co. had a paid up capital of $1,000,000, surplus $250,000 and undivided profits 259,000. The Union Trust Co. had on deposit at last statement, $1,935.000; loans were $1.418.000. Gorge W. Blackstone is president of the company. Receiver White said closing was due to a run of depositors in consequence of the failure of the Maryland Trust company. There were no business connections between the companies.
6.October 19, 1903The Evening StatesmanWalla Walla, WA
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ANOTHER FLURRY ON STOCK EXCHANGE The Failure of the Maryland Trust Company of Baltimore the Cause. New oYrk, Oct. 19.-The unexpected suspension of the Maryland Trust Company of Baltimore proved the dominating influence in another unsettlement of the stock market this morning. There were severe and widely distributed declines before the selling had abated. Union Pacific steel preferred and Amalgamate copper, both fell off.
7.October 19, 1903The Daily PioneerBemidji, MN
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BIG TRUST COMP ANIES SUSPEND Baltimore. Md., Oct. 19.-The Maryland Trust company closed its doors this morning. The company holds deposts of over $5,000,000. The Union Trust company, capital one million, was forced to snspend this afternoon.
8.October 19, 1903The Spokane PressSpokane, WA
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BALTIMORE, Oct. 19.-Alf McLay was today appointed receiver of the Maryland Trust company of this city under bonds of $1,000,000. The company is capitalized at $2,000,000 and is
9.October 19, 1903The Spokane PressSpokane, WA
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NEW YORK, Oct. 19.-The unexpected suspension of. the Maryland Trust company of Baltimore has proved an influence in another unsettlement of the stock market this morning. Severe and widely distributed declines were noted before the selling abated. Union Pacific Steel Preferred and Amalgamated Copper all fell off.
10.October 20, 1903Arizona RepublicanPhoenix, AZ
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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
11.October 20, 1903Spirit of JeffersonCharles Town, WV
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Two Baltimore City trust companiesthe Maryland and Union-closed their doors yesterday and went into the hands of receivers.
The doors of the Maryland Trust Co. and the Union Trust Co., both of Baltimore, were closed Monday. Receivers were named for both companies. The suspensions caused great excitement in financial circles.
13.October 21, 1903The Barre Daily TimesBarre, VT
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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.
14.October 22, 1903Iowa County DemocratMineral Point, WI
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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.
15.October 22, 1903The Saint Paul GlobeSaint Paul, MN
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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
16.October 23, 1903Eagle River ReviewEagle River, WI
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Financial Institutions Swamped. The Maryland Trust Company and the Union Trust Company, counted among the strongest financial institutions in Baltimore, have closed their doors and passed into the hands of receivers. Inability to realize on investments is attributed as the cause.
17.October 23, 1903Windham County ReformerBrattleboro, VT
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The Maryland Trust company and the Union Trust company, two of the best known banking houses of Baltimore, Md., went into receivers' hands Monday. The suspensions caused the greatest excitement until favorable assurances were made by the banking interests.
18.October 23, 1903Columbia CourierKennewick, WA
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Trust Company Goes Up. Baltimore, Md., Oct. 21.-The suspension of the Maryland Trust company created intense excitement in flnancial and business circles and many people hurried to the vicinity to verify the news. The excitement was intensified two hours afterward by the announcement that the Union Trust company had also failed. Bankers and financiers, however, combined to allay whatever panicky feeling was made manifest and by assurances that the troubles of the company were only temporary.
19.October 24, 1903Virginia GazetteWilliamsburg, VA
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FINANCIAL CLOUD-BURST Unexpected Failure of Two Prominent Baltimore Concerns. Baltimore, Special.-Monday was a day of marked excitement and subdued anxiety in the financial and business circles of Baltimore, a day full of momentous events and of wild, irresponsible, damaging rumors in those streets and marts given over to monetary transactions. Luckily a dozen reports well calculated to provoke a wholesale run on banks, got no further than the precincts of South and German streets, Baltimore's Wall street district, and did not reach the great army of depositors throughout the city, thus giving ample time for the conservative leaders of business to allay popular apprehension before It reached dangerous proportions. The day began with the failure of the Maryland Trust Company. and except to only an initiated few the news came like a bolt out of a clear sky, spreading consternation in all directions. To these few it was known that the Maryland Trust Company had long been struggling with undigested securities, that it sustained heavy withdrawals of deposits and that finS ally, on Saturday last. It had failed in its supreme effort to bridge over the yawning chasm by negotiating a $2,000,000 loan in London. While the bankers in their offices and brokers in clusters on the street 1 corners, and money dealers generally and business men in the exchanges were still excitedly discussing the collapse of the Maryland Company. there came another bolt from the clear sky in the suspension®of the Union Trust Company. and it was this latter event which happened at a late hour in the day that gave impetus to a varied number of baseless rumors as to other financial institutions which might wel have created a panic, had they beer given currency earlier in the day.
20.October 24, 1903The Coeur D'alene PressCoeur D'alene, ID
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Trust Company Goes Up. Baltimore, Md., Oct. 21-The pension of the Maryland Trust pany created Intense excitement is + nancial and business circles and many people hurried to the vicinity to verify the news. The excitement was Intensified two hours afterward by the so nouncement that the Union Trust pany had also failed. Bankers and s nanciers, however, combined to allay whatever panicky feeling was made manifest and by assurances that the troubles of the company were only ter porary,
21.December 6, 1904Alexandria GazetteAlexandria, VA
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JUDGE DOBLER, in Baltimore, has allowed Allan McLane $111,680 for his serviaes as receiver of the Maryland Trust Company for one year. The expenses of administration were $19,208. A few more such allowances and those to whom the money rightly belongs will get nothing.
22.January 3, 1906New-York TribuneNew York, NY
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BAIL FOR FINANCIER. Grand Jury Presents Officers of Maryland Trust. [By Telegraph to The Tribune.] Baltimore, Jan. 2--A stir was caused in financial circles this afternoon by the grand jury presenting J. Wilcox Brown, ex-president; Henry J. Bowdoin, ex-vice-president, and J. Bernard Scott, ex-treasurer of the Maryland Trust Company, which went into the hands of a receiver two years ago. It was recently reorganized, the Speyers and other New York capitalists financing it. The three former officers are charged with violating a law prohibiting the issuing of "false or fraudulent statements regarding the financial condition of any corporation." The penalty is a fine of not less than $1,000, or imprisonment. Warrants were issued for the arrest of the three men. Mr. Bowdoin, a well known lawyer, was released on $10,000 bail. Brown is at his estate at Afton, Va., and Scott is in Georgia. Mr. Brown is the plaintiff in the proceedings now pending in NewYork for a receiver for the Equitable Life Assurance Society on the ground of fraud.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
