Daily Kennebec journal., 1913-12-26
Munsey CIinches Grip on
United States Trusts.
Ex-senator Scott Refuses TO Be-
come Head Of Institution.
Ends ALI Hope Of Wiping Out the
Treasury Slate OF Stain.

washington. Dec. 25.-Negoiations
to wipe the treasury slate OF sta4h az
restore the United States trust
to business came to an end last hisi4''
and all hope of relieving the Ieas
nrv department of the onus OF nav
ing effected the absorption anu ai9O
all hope of the stockholders oil 'ne
United States Trust Co. that theli
hank might be restored to business
have been Abandoned.
These negotiations, which have been
on for a week. involved an EFFORT 10
induce ex-senator Scott, president ol
the Continental Trust Co., to accept
the presidency of the United states
Trnst Co. under conditions designed
to make for its permanent ehoul
anee and prosperity. Mr. Scott
will be recalled, raised S509,oO0 on his
personal securities and agreed 10 ac,
cept the presidency Of the ohteee
states Trust Co. on Nov. u, the day
an which the run on that institution
began.
Wbv this offer thus to rehabilitate
tho tottering institution was not ac-
cepted has never been explained 10
The SatlSI2EllOn VI liiC
to that of others interested in the
banking situation in Washington out
the impression prevails that Asslstah'
Secretary John Shelton Wlllia1ns
blocked the efforts of those who would
have saved the stockholders oil Vhe
United States Trust Co. from loss. ol
at least from so great loss as they
must now suffer.
Soon after the part played by VIII
liams in the absorption of the onlteu
States Trust Co. by the Nun
sew Trust Co, was made public and
when it became obvious that this eA-
posure would seriously initiate against
williams ambition to become con-
troller of the currency and mem
Der of the Federal Reserve Board at
an increased compensation of S7000
year, an effort was begun to lnduce
ex-senator Scott again to raise the
needed capital and to resume the pres
idency of the United States Co.
This effort proving unavailing, the
proposition was modified to provide
for the writing off of a considerable
amount of the capital of the United
States Trust Co, but Mr.. Scott has
IpersistentIy declined TO accept what
ever might be left of the trust com
Epany, contending that after 1T had
passed through the hands of the Mum
lsey Trust Co. it was no longer
property for which he cared to as
sumo the responsibility. The negotia-
tions continued, however. until last
night, when Mr.. Scott made 1t SO plain
that he would have nothing to do with
the tangle into which the affairs OF
the United States Trust Co. had been
woven that the last hope of both the
treasury officials and the stockholders
was abandoned.
According to the latest information
obtainable at the treasury department,
it Is the purpose of the President and
the secretary of the treasury to en-
ploy Assistant Secretary Williams as
chief member of the organization board
which is TO set on foot the new fiscal
plan provided for in the currency BILL
in order that when Congress again
convenes the assertion may be made
that the government is under such
heavy obligation to Mr. Williams that
the administration cannot reject his
claims to be appointed comptroller Of
the currency.
There is reason to believe that it was
prescicnce of this purpose of this adj
ministration which led Senator Weeks
TO say yesterday in debate:
Although we have been assured that
political considerations are not to have
any force in the organization of this
system, at the outset the wiser pro-
visions of the Hitchcock amendment
and the Senate bill placing the task Of
organization in the hands of the Fed
eral Reserve Board are discarded for
the House provision. l believe that this
was the purpose of the administration
leaders back of this measure from
the beginning"
The extent to which politics will fig
ure in the organization of the system
with John Skelton Williams dominat
ers generally. and the prospect occa
sions the utmost regret on all sides So
obvious is the purpose of the Presto. t
and his secretary of the treasury in
employing Williams to direct the or
eani2atien of the system that Repnb-
lican senator's at least the few who
are now in Washington, do not be-
licve the plea of a debt of gratitude
20 that official for his services will have
much effect on the Senate.
Sc far as can be ascertained, the pur-
pose of the President to give Williams
a recess appointment as controller has
been abandoned.