New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-09
Stockholders Must Approve.

StOCknOlucFS musN PNpp'
II is pointed out by counsel Tor the
national bankers that a board OF di-
rcctors cannot wipe out Of existence
banking corporation. that they have no
legal power To take such step. The
United states Trust Company cannot,
therefore. cease 10 exist until the
stockholders have approved the action
Of their directors and the stockholders
of the United States Trust Company
will not meet until January.
\ page advertisement, which MunseN
has caused t. he printed In the news
papers 81 Washington, and which bears
his signature. has ocCasioned indigna-
ton and anxiety on the part OF the
national bankers. who are asking each
other 10 what bank does Munsey REFER
and is he contemplating the absorption
NJ any other Washington banks. Fur
tbermore. it is declared by those in
financial circles that Mr.. Munsey' by
his signed statement, has done more
IN create distrust OF Washington banks
than any other factor In this unfortu-
nate mixup.
Indeed there are banks in this SIty
which have in capital and guarantee as
littIo as 81 To about so Of deposltOrs
money-some contrast between this ana
the Munsey Trust Company" says MI.
Munsey in his signed advertisement.
Such a declaration is a menace 10
the banking integrity of the commH-
nifty. according To the bankers. who in
sist that they have no knowledge ol
any bank i'm such dangerous condition.
They dare not deny the accuracy of
Mr.. Munsey's statement however. ne
cause under the law national bank cN-
aminers investigate the affairs OF other
than national banks and report their
condition TO the Controller OF the cur
rency. who under the present policy
Of the Treasury Department, appears 10
report his findings TO Assistant Secre-
tary John SHELTON Williams, and II IS
not known what facilities Mr. Munsey
may have enjoyed which warranted MS
assertion.
II is pointed out that no national
bank could be in this dire condition
without violating the law, and, pre-
sumably, being closed by the Controller
Of the Currency. The statement must
therefore. it is pointed out, refer TO
l.
tuition.
The national bankers Of Washington
became indignant to-day when they
saw i'm Mr. Munseys Washington paper
dispatch. reprinted from THE New
York World" which they regard as an
unfair account of the transaction
which led To the absorption OF the
United States Trust Company by the
Munsey Trust Company, as misrcpre-
senting the position and motives of the
Washington bankers. and winch ac-
count they believe To have been largely
inspired by Assistant Secretary Will
Jams or some other high official or the
Treasury Department The EFFORTS OF
the Treasury Department TO make IL
appear that the dissatisfaction or the
bankers is due to single set or group
are llDSl w wv
who say that every action taken by
them has been taken by the Clearing
House. consisting Of eleven national
banks. and for which they are all alike
responsible. There was discussion
among the bankers to-day as to the
adyisability Of making some form OF
protest TO Secretary McAdoo
The chief desire OF the bankers Is
thar the independence and integrity OF
the office of Controller Of the Currency
! shall be maintained, and many of them
believe that this is the proper time for
Congress to give the matter serious
consider lion in order that. should II
bo -ound that the course OF Assistant
Secretary Williams in overruling the
| Controller vas not illegal, such add =
,ions may b, made 10 the pending cur
rency bill as shall make such proceed
] ure Enthusiastically illegal In the iu'ure'