The Washington herald., 1913-12-14
MERRIAM DEFENDS WILLIAMS.

Continental Trust Director Praise
Treasury omciaPs Recent Action.
W. r. Merriam. director Of the Con
tinental Trust Company. yesterday mad,
public the subIoined letter under date Of
December in defense OF the action Of
the Assistant Secretary OF Treasury
relative to the absorption OF the United
States Trust Company by the Munsey
Trust Company.
Hon. John SHELTON williams.
Assistant Secretary Of the Treasury.
Washington. d. c.
Dear Mr.. williams: read the
articles in the New York Tribune Of to-
day and yesterday purporting to be a
statement OF facts in connection with the
acquisition some days ago Of the United
States Trust Company, of Washington.
by the Munsey Trust Company, also OF
this city.
The article is misleading. intending to
reflect upon the officials OF the Treasury
Department and is evidently inspired by
a desire to question the good faith and
the integrity OF the officers OF the gov
eminent who endeavored to render q
signal service to the banking interests
VI d5 NGl " It's
THE writer. who Is interested In the
Continental Trust Company, of this city,
was one of the committee Of three of the
board of directors of that institution
selected to visit you on Friday. Mo-
yember q. The committee consisted Of
Nathan B. Scott, president OF the Con-
tinental Trust Company; Mr.. Galliher.
president Of the American National Bank,
and the writer was deputed by the board
of directors to learn the views and
wishes Of your department regarding
possible merger of the United States
Trust Company and also to ascertain the
Department looking to aid to the United
States Trust Company in the way of
advancing funds In case the situation
became sufficiently serious to warrant
substantial assistance.
You advised US that under the law,
the Treasury could deposit no govern
ment funds in trust companies. but that
in case of necessity 1t could and would
deposit United States funds to a large
amount in certain national banks named
by us. provided always that the securi-
ties offered were entirely satisfactory to
the proper authorities. You manifested
an earnest desire to do anything within
your power to ward on a possible dis
aster to the banking interests Of the city
and evinced desire that prompt action
might be taken.
You also expressed the hope that there
might be competition among the bank
ing institutions of the city looking to
the acquisition by purchase or merger
Of the United States Trust Company, by
or with solvent bank or trust company
In order that the stockholders as well as
the depositors Of the United States
Trust Company might receive the fullest
benefits
Continental Trust Company of the United
States Trust Company was under con-
sideration all day Friday. the 21st. and
also last Friday evening. but as no
plan could be evolved satisfactory to all
concerned the representatives, of the
United States Trust Company were left
% deal with Mr.. Munsey, who. II was
understood, was ready to assume the
liabilities and take over the assets of the
United States Trust Company, and pro-
ride the necessary funds to meet any
demands by the depositors when the
'ank and its branches were opened or
morning.
II learned later that the clearing |
iouse banks of this city. acting In unison, |
'nered to receive deposits from the gov
rnment to the extent of 100000 pro-
ated among the national banks, and to |
ave the funds paid directly to the Nun |
ey Trust Company, as soon as satisfac- |
ory securities were deposited in the |
lands of the Treasurer Of the United |
'tates. also learned from one Of your |
ids that the arrangements was carried |
ut exactly as agreed upon by the bank |
rs themselves.
Il think the officials Of the Treasury |
Department are entitled to the highest |
for the prompt and |
ficient manner in which they handled ,
very grave situation and one, which |
f'allowed to proceed further, might have |
involved every banking institution In the |
ity, and might have spread to other |
tiles and towns throughout the country. |
yours very truly,