New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-06
Tries to Divert Attention
by Talk of a Bank"
Investigation.
u. S. TREASURY NOT
YET UNIDENTIFIED
Assaulted NeWsboy Wins Victory
and Sales of Tribune Go
On Increasing.
From Tte Tribune Bureau J

sensational disclosures made 10y The
Tribune Of the part played by the
United States Treasury in the absorp-
tion Of the United States Trust Com
pany 10y the Munsey Trust Company:
Continued failure Of the Treasury to
procure from the national banks Of
Washington guarantees against loss Of
the 81 .WO,OOO Of government funds de-
posted with the Munsey Trust Com
pany by John SHELTON Williams, As
sistant Secretary.
Discovery Of second mortgage notes
on which Assistant Secretary Williams
advanced this money.
Reluctance of the Clearing House
banks 10 subscribe 10 applications for
funds to move the crops" which have
been diverted TO another purpose.
Renewed efforts 10 induce Frank A..
Munsey to make good the promise OF
his representative that he would de-
posit SJO0,0OO in his own trust COM
pany.
Increased belief that Assistant Sec
retary Williams has violated the law
in his usurpation Of the prerogatives
Of the Controller Of the Currency.
Failure Of an array OF counsel TO
procure an information" against Phil
ip Milstone the boy assaulted 10y Frank
a. Munsey's employees.
Issuance OF warrants Tor the arrest
on charge OF assault of Munsey's en-
ployes. Swidler and Peters.
Belated publication in the Washing
ton newspapers of the facts hitherto
made public only in The Tribune.
McAdoo's Denial Vain.
Secretary McAdoo's sweeping but un-
convincing denial Of The Tribuno's "N-
elusive dispatches regarding the part
played by the Treasury Department IN
the Munsey Trust Company's absorp-
tion OF the United States Trust Com
pany instead of serving TO clear up the
situation has served only 10 aggravate
the misgivings with which Washington
bankers and financiers regard the stu
alton. Mr.. McAdoo's reference TO "an
investigation Of the local banking sys-
TEN" has angered some OF the bankers
and has operated TO discrodit the re-
maindcr of his statement.
This reference is regarded as disin-
genuous. because. as was pointed out IN
The Tribune this morning, there never
has been any suggestion of an invesu-
cation Of the local bank situation, the
only investigation contemplated being
an inquiry into the operations Of that
part Of the Treasury Department pre-
sided over by John SHELTON Williams
for the purpose, first. Of determining
whether Williams showed undue par
tiality TO the Munsey Trust Company.
and. second. with view 10 deciding
whether Williams's usurpation Of
power over the office of the Controller
of the Currency was In violation Of the
law.
II is contended that Secretary Nc
Adoo, while avowing in words that he
would welcome an Investigation, is
actually seeking TO alarm the business
community and to arouse the bankers
to opposition 10 such an investigation
by suggesting that it be made into the
local banking situation, instead Of into
the conduct Of bureau Of his depart
ment. against which alone the charges
have been preferred. and is, therefore.
covertly working TO fend off an investi-
cation by Congress.
Call II "False Pretences.'
I'm the vernacular of the street. Mr.
McAdoo was evidently trying to throw
n scare" into the banking community,
according to those competent to weigh
his words and to perceive their full
significance.
The effort Of Secretary McAdoo to
reflect in his official statement on the
administration of his predecessor is
also said to be disingenuous. and at
tention is called to the fact that while
condemning what he was pleased to
term "innuendo" in The Tribune's dis
patches, he INDUCES in innuendo in his
reference TO the source" Of these pub
ucations source which he pretends
IN know and to discredit, although
after issuing his statement he made
strenuous efforts TO elicit from the
correspondent OF The Tribune the iden-
! tity of that source
Efforts of Assistant Secretary Will
Jams to procure from the national
hanks of the District their guarantees
( Of the government against loss OF the
81 900 900 which Williams personally
deposited with the Munsey Trust Com
many. although theoretically 1t passed
| through the national banks, met with
no success to-day, chiefly because Will
Jams has demanded that the bankers
apply for the funds on what they term
false pretences"-i. e.. for the pur-
nose of moving the crops" and also
because an examination Of the securi-
ties of the United States Trust Com
/ pany. which were furnished by the
Munsey Trust partially to secure the
! 81. 900 900, reveals the fact that among
them are second mortgage notes.
| Furthermore. the bankers are still
seeking TO induce Frank A. Munsey to