New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-17
Treasury Department Of
ferS to Rehabilitate
u. S. Trust Co.
RETURN OF S6,OOO,OOO
DEPOSITS REQUESTED
Other Steps Taken to ExOnerate
John Shelton Williams,
Assistant Secretary.
From The Tribune Bureau. !

Washington. Dec. 16.-Following the
criticism which has been visited upon
the Treasury Department as the result
Of The Tribune's exposure Of IFS part
in the merger of the United States
Trust Company and the Munsey Trust
Company and realizing that unless
something could he done to offset that
exposure. the ambition Of Assistant
Secretary John Shelton Williams 10
become a member of the Federal Re-
serve Board was hopeless. the Treas
ury Department undertook to-day to
undo its work.
Advances were made to the Munsey
Trust Company To relinquish It's pos
session of the assets and deposits OF
the United States Trust Company, and
there was much discussion Of feas-
ible method of reorganizng and resus-
citating that company. a course which.
II is believed. would serve 10 dispel the
bitterness of the stockholders OF the
trust company who are convinced that
their interests were sacrificed I'm or
der to convey their S6.0OO.Doo deposits
to the Munsey Trust Company,
through the connivance OF the Assist
ant Secretary Of the Treasury.
II was pointed out 10 the represent
atives Of the Munsey Trust Company
that IL had already received extensive
advertising as result Of its part In
the transaction; that the deposits OF
the United States Trust Company in it's
hands were rapidly dwindlng. and that
IL would serve Ia abate the Indignation
Of the United States Trust Company
stockholders and 10 quiet criticism II
the deposits were returned 10 the com
pany and II were permitted 10 continue
in business under new management
II was further pointed out that tho
ONLY thing which the Munsey Trust
Company had put up in return FOR
these deposits and the deposit OF
81 100000 OF government funds was
the assets - the United states Trust
Company. so that the Munsey Trust
Company could not possibly lose any
thing as n result of the return 10 the
stockholders Of the United states Trust
Company Of their assets and the good
will Of the bank which they formerly
owned and probably still own.
The government. as the result OF tho
action Of one Of the national banks. 10
still without It's guarantee Of the mill
ion dollars deposited In the Munsey
Trust Company. The attorneys for the
national banks have been working on
form Of guarantee for some time. and
finally formulated one. only 10 have
IL pointed out by counsel for one OF
them. and one OF the ablest attorneys
in the national capital that there was
no provision for the payment Of the
interest required by the government
by the Munsey Trust Company and no
stipulation as 10 when the Sl~o,oD
should be returned by that company.
IT is assumed that these difficulties
will be Strengthened out In the not
distant future. but in the meantime the
stockholders Of the United States Trust
Company are earnestly hoping that
something will come Of the efforts Of
the Treasury Department TO restore
that institution To It's former standing
aly
other steps, having for their purpose
the cxoneration--to use polite term
of Assistant Secretary John SHELTON
williams, have been undertaken, but
thus far have met with little encour-
agemcnt.