New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-11

but would pay nothing Tor the ueposits
of the company. This was the oner
which was accepted.
my decision to step into the preach
| rested on an offer from the Treasury
Department OF a million dollar loan 10
the United States Trust Company II
the Munsey Trust Company effected
purchase Of this bank and would guar
antee its depositors against loss says
Mr.. Munsey thus confirming all that
has been told in these dispatches or
the Treasury Departments making the
advance of the million dollars condi-
tional upon the directors of the United
States Trust Company turning all they
possessed over to the Munsey Trust
Company.
In further affirmation of the part
PLAYED by the Treasury Department,
which in this instance means John
Shelton Williams. Mr.. Munsey says:
II had not sought the loan from the
department or had any negotiations
with il concerning the matter.
Stockholders Want to Know.
Incidentally. the minority stockhold-
ers of the United States Trust Com
pany are demanding a reply to the
question, raised by Mr.. Munsey's
statement: How was 1t that the
Treasury Department had offered
similar loan to the Continental Trust
Company several days before?' ac-
cording to Mr.. Munsey, as several days
before was before the run on the
United States Trust Company had
started
III Assistant Secretary Williams's
statement that the report of the Con-
troller of the Currency was unwar-
ranted was true" say the minority
stockholders. why was he trying to
dispose of our property several days
before Munsey acquired it?'
The proposition OF the Treasury
Department to make this loan with
view 10 saving a critical situation was
not my affair" says Mr.. Munsey. In
further emphasis of his irresponslbility
in the matter. and he adds; Ihe
proposition which came 10 me was that
the government would make this loan
10 the United States Trust Company on
its securities, and that the money
would come through the national
banks"
.fFi, oil DGpfi
said in these dispatches regarding the
pledge Of a deposit OF 100000 by him,
made on his behalf by Stuart Olivier.
who appeared as his personal repre-
sentative. but says that this deposit
was volunteered" by his representa-
tive. a statement at variance with the
assertions OF those who attended the
meeting Of bankers at which, they say.
it was demanded that Mr.. Munsey
make this deposit.
Mr.. Munsey says that mir. Flathcr,
OF the Riggs National Bank made the
suggestion that this sum be deposited
with the American Security and Trust
Company. IAN affiliated institution OF
the Riggs National Bank. but he
neglects To explain that it was because
Nj. Father was chairman of the Clear
ing House that it fell TO him 10 make
the suggestion. and that II was the
unanimous opinion Of the bankers that
the deposit should be made initially in
some bank other than Mr.. Munscy's
own trust company, merely as an eyi-
dence that il was made.
May Plague Assistant Secretary.
The question as TO what ! would do.
which came up after ] had gone 10 my
hotel" SAYS Mr.. Munsey. was entirely
foreign 90 my acceptance of the gov
ernments proposal and could not be
made a part of the transaction
statement. IL is pointed out by the
bankers, which may seriously plague
the Assistant Secretary OF the Treasury
when he has to explain his part In the
transaction To a Congressional inVesti-
eating committee.
Mr.. Munsey lays great stress on the
fact that the Treasury Department has
securities OF the United States Trust
Company amounting to Sl,GDO,OOo, but
makes no comment on the fear Of the
bankers that these may be tied up by
an Injunction sought by any stock
holder OF the United States Trust
Company, or on the discovery among
these securities Of the second mortgage
notes already referred TO in these dis
patches.
Mr.. Munsey adds that he will be pre-
pared to return the government deposit
of 81 100000 whenever it is called for
by the Treasury Department, but the
bankers intimate that they would be
glad OF some assurance that he would
return II when called for by them be-
fore they accept responsibility for II, as
otherwise they must await the call OF
John Shelton Williams and X. Lancas-
l'ter Williams. and meanwhile would be
re sponsible for the amount Mr.. Nun
sey makes no mention Of the question
Of interest on the government deposits.
Following the lead Of the Secretary
Of the Treasury, Mr.. Mursey, proclaim
ing that he would welcome an invest-
cation Of the entire transaction where
/ by he acquired S6,OOO.OoO deposits Of
| the United States Trust Company and
| 81 900 900 Of government funds, asserts