The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-12-06
INTEREST AROUSED
IN ATTACKS upon
SHELTON WILLIAMS
Newsboy Arrested for Crying
Published Story but is Re-
leased by Police Justice When
Brought to Court.
Article in New York Tribune
Which Secretary McAdoo
Denies, Cause of Comment.
Asks if Relationship Had
Amy Influence.

WASHINGTON. Dec. 5.--Cons siderable
interest has been aroused in Washing.
! ton during the past day or two by de-
Veiopments from The recent absorption
of the United States Trust company by
( the Munsey Trust company and the
matter has reached the stage even Of
Police court procedure. On Wednesday
morning the New York Tribune printed
Ii Washington dispatch giving it's YER
sion of the late fancial happenings IN
Washington, Ia such terms as 10 draw
from officials of the treasury Depart
fnent dentals of alleged or suggested
| faVorttlsm In the transaction.
Following this. yesterday a newsboy
was arrested while engaged in selling
: copies OF the New York Tribune and
crying aloud a sensational statement Of
1 its contents with reference to the bank
! deal The Police court prosecuting of
: flcials ignored the charge against the
| boy and proceedings, 1t is understood.
| are to be taken in his behalf against
| those instrumental in his arrest who
are accused at the same time of phys
| icaily assaulting him.
Secretary McAdoo, as told in these
dispatches yesterday. fully sustains all
that was done by Assistant Secretary
! Williams, WHO was in charge of the de-
tails of the work leading up to the abb
sorption of one banking institution by
another Mr.. MeAdoo, it is stated. 10
perfectly willing that there should be
an investigation.
| The Tribune story.
The article which was published In
the New York Tribune Wednesday
morning, and which has caused tina
| troubles now being considered by ttss
/ Police court and has evoked the STAGE
ment Just issued by Secretary McAdou,
set forth frst that there was prob
ability OF an investigation by congress
| of the facts connected with the aa-
sorption by the Munsey Trust company
OF the United States Trust company
1t raised the question whether the
| transaction had been facilitated by the
| relationship between John Shelton W III
| liams. assistant secretary of the treas
ury, and X. Lancaster Williams, d.
rector of the Munsey Trust company,
who are brothers. 1t asked whether
! the assistant secretary had Inundated
a national bank examiner and prac-
| ticaliy overruled the acting controller
I of the treasury, who had recommended
/ the closing of the United States Trust
company on the ground for an impair-
ment Of It's capital.
/ This Tribune stated the circumstances
/ preceding the absorption OF the USited
States Trust company by the Munsey
! company. following an examination Of
the affairs of the former corporation
by Bank Examiner Goodhart, of the
/ treasury. meeting of local bankers
and the acting controller was held and
il was proposed that the former take
over the assets of the affected com-
pany and guarantee the depositors
Means for supplying currency from the
treasury TO meet the emergency were
discussed.
Withdrawal of Funds.
/ The examiner reported a large i'm.
pairment. The Tribunes article states
hat hA ms lsiS "a Sanr
tary williams overruled the acting con-
troller and criticised the examiner.
| Then came the quiet withdrawal OF
deposits by those who had learned OF
the condition of the bank, followed
quickly by a short aA.ernoon run.
That evening "the eleven members
Of the clearing house were still pre-
pared to take steps to protect the de-
1 positors." when Frank A. Munsey ap.
peared in Washington. and at 10 r.
NJ. 1t was announced by Stuart Olivier.
on behalf of MIR. Munsey. that Mum
sey Trust company has acquired tho
assets and deposits of the United
States Trust company. guaranteeing to
return to the stock holders anything
left after paying off the deposators.' =
/ Between / and A. M, the Tribune
story continues, the local bankers
were called into session and informed
that the United States treasury would
which to meet the demands OF the de-
positors of the United States Trust
company, the same to be charged to
the eleven national banks of the Dis
trict of Columbia, and also that
Frank Munsey would deposit with thu
| Munsey Trust company cash to the
amount of 100000.
Says Munsey Refused to Make Good
That afternoon, says the Tribune
story, Mr.. Munsey refused to make
good the pledge of his representative
that he would deposit with his trust
company $500, 900 cash, saying that his
representative had had no authority
to pledge him to any such arrange-
ment."
ITO secure the $1,000. 900 govern-
ment deposit the Munsey Trust cona-
pany deposited. says the Tribune
story, with the treasurer 70 the United \
/ States paper selected from the assets
of the United States Trust company.
while r. Lancaster Williams. brother
of Assistant Secretary Williams and =
director of the Munsey Trust CONS
pany. delivered to the eleven national
banks of the District written guMkes
antees against loss through their
standing sponsor for the si,000,000 ~ q
government funds deposited with the
Munsey Trust company, althouEh
these guarantees, OF course. added
nothing to such security as the nA&
tional banks, as depositors In the Mum
sey Trust company already Possesses
THE net result of the transacti0ny
according to those in position IN a
speak with authority. Is that the Muss~S
sey Trust company hsa acquired The
deposits of the United States TruA&
company. amounting to between 49,
600. 900 and s5.000.ee0. and the xon{
will OF its customers without the exkSa
penditure OF dollar, securing
"a ne an Sn far as the government MfNs
concerned, with the assets 0k m g
IYuftad States Truaf eofn pa n.y. ~ yyse5Y