The Washington times., 1913-07-10
EXPECT MURRAY TO
REPLY TO N 'AD00
Believed Former Comptroller
Will Answer Criticism in
Pittsburgh Bank Case.

Friends of Lawrence o. Murray, FORM
| er Comptroller OF the Currency, are
| waiting with impatience his return to
| Washington. when they expect him to
reply TO the statement of Secretary of
the Treasury McAdoo that the failure of
| the First-Second National Bank of Pitts
| burgh is "a bequest of the last Admin
| istra ton"
At the Treasury Department today
there was open criticism of Mr.. Murray
for having permitted the consolidation
Of the First and Second National Banks
of Pittsburgh. One of these banks 1t is
! admitted. was small and strong, the
other larger but a good deal weaker.
| The two together have smashed and
| the Government is now overhauling the
| debris.
Mr.. Murray. the record shows, kept a
vigilant eye on the bank after he had
permitted the consolidation. He COM
PEELED the First-Second to write a mil
lion dollars worth of bonds off its list
OF assets, and thereby aBgered greatly
his former intimate friend, Oscar o.
Telling, vice president of the First
Second Bank, and former Treasury en-
ploye. Telling, who stepped from
s, 600 job here 10 a S25 900 place at Pitts
burgh. was clerk in the mint at Denver
the Comptroller's office.
Tawney May Be President.
Mr.. Murray made Telling chief Of di-
vision reports, and as such he went to
Pittsburgh ard became acquainted with
James S. and w. S. Kuhn. When Mr..
Murray declined the presidency of the
bank they made Telling vice president.
Telling had not been in his new place
very long when Murray ordered the mil
lion dollars written off. II is said that
Telling grew violently angry at his for
mer superior at that time, and that the
breach has never been healed.
Mr.. Murray is now somewhere in New
York State visiting friends, and is ex-
offices of the United States Trust Com
pany, of which Mr.. Murray is now presi-
| dent, Elbridge 7. Jordan. former presi-
| dent and now chairman of the executive
board. said today:
Mr.. Murray may have something to
say. At all events, he will wish to
speak for himself, and not to have
| others speak for him."
1t was announced today at the Treas
ury Department that Charles o. Tawney,
National of McKeesport, probably wiE
be elected president when the directors
get the resignation of James S. Kuhn.
| which is expected. Reopening of this
bank is contingent upon kuhn's resign
ing, it is stated at the Treasury.
Federal Inquiry Delayed.
The Governments concern with the
First-Second Rank now is a double one.
Criminal prosecutions will be under
taken, and simultaneously the Govern
ment will try to force restitution Of the
money loaned the Kuhn subsidiary COM
! panies.
Following a change of plans in tine
| Treasury Department. the Department
vestigators 10 Pittsburgh. Secretary
McAdoo today determined to await the
report of National Bank Examiner
| Samuel H. Ham before reporting to the
Department of Justice This report
probably will be received Monday.
Wrisley Brown is expected to be
named BY the Department OF Justice as
the chief investigator of the affairs of
| the insolvent bank when the Attorney
Generals department takes hold of the
| situation with a view to starting crimi-
nal prosecutions. Mr.. Brown has been
eminently successful In undertaking the
legal clearing up OF complicated bank
ing situations.
Attorney General McReynolds today
declared that while not informed in de-
tail of the practices of the men who
owned the bank yet that in the nature
of bank failures generally. some time
might be expected 10 elapse a1ter the
Department of Justice takes hold be-
fore any legal action is started.
Worked Two Years.
Mr. McReynolds called to mind the
failure of the Walsh bank in Chicago.
where a Government investigator work
ed two years before the badly tangled
records were made clear enough to feel
sure that a violation of the law as
well as bad banking had occurred.
Bank Examiner Ham is now in Pitts
burgh. and he is expected to leave there
Saturday for his home in Baltimore
This will enable him to report TO Acting
Comptroller Kane Monday or next Tues
day. According to present plans, the
Attorney General and the United States
district attorney in Pittsburgh will be
furnished copies OF this report.