New-York tribune., 1913-12-25
NUNSEY CLINcHES
GRIP ON U. S. TRUST
SCOTS Refusal to Head
Company Ends Hope OF
Rehabilitation.
BOOST WILLIAMS
FOR CONTROLLER
administration Plans First to
Show His Worth in Currency
Reorganization.
.r-on rhe tribune Bureau.l

j no ..'Att' i'N'N'N-
,,irrton. Dec. 24-Negotiations
loo the Treasury slate Of stain and
.. the United states Trust Com
90 business came to an end last
night and all hope Of relieving tile
r,. Dcpartment Of the onus Of
having effected the absorption and also
- hone of the stockholders Of the
rrited states Trust Company that
,,s,r bank might be restored to ousi-
.e.s have been abandoned
rbose negotiations, which have been
tor week. involved an effort TO in
Srce ex-senator Scott. president Of the
.~.,i,sntal Trust Company, TO accept
49, rresjdency Of the United States
~-pst COMPANY under conditions d.
-,-.od IN make for its permanent on
s1rance and prosperity. Mr.. Scott It
In be recalled raised S50o,ooO on mis-
,.rsonal securities and agreed to aecep;
-. rresidency Of the United States
Tr,st Company on November p, the
s.v on which the run on that institu-
ton began.
WHY this offer thus TO rehabiitaie
the tottering institution was not &C
.o,tsd has never been explained 10 the
,.t;sfaction Of the stockholders or 10
that OF others interested in the banking
,i,uatjon in washington. but the i'm
,-ession prevails that Assistant Secre-
,s-v John SHELTON Williams blocked the
.rorts Of those who would have saved
,be stockholders Of the United States
Trust Company from loss, or at least
from so great loss as they must now
suffer.
soon after The Tribune made public
the part played by Williams in the 4o-
so-ptjon of the United States Trust
COMPANY by the Munsey Trust Com
pany. and when it became obvious that
his exposure would seriously initiate
against Wfliams's ambition 10 be1Ene
Controller Of the Currency and 4 mem
ber Of the Federal Reserve Board at
an increased compensation Of $1,000
YEAR. an effort was begun to induce ex-
Senator Scott again 10 raise the needed
carital and 10 resume the presidency of
he United states Company.
This effort pypving unavailing, the
proposition was modified 10 provide for
the writing of of considerable
amount Of the capital Of the United
States Trust Company. but Mr. Scott
has persisteutly declined 10 accept
whatever might be left Of the trust
company. coutcnding that after It had
passed through the hands Of the Nun
SCI Trust Company il was no longer
property for which ne cared 70 assume
the responsibility. The negotiations
continued. however. until last night.
when Mr scott made il so plain that
he would have nothing 10 do with the
tangle into which the affairs OF the
United States Trust Company had been
NbfcI lAc tl' last lOIr VI b'tli Nl''
Treasury officials and the stockholders
was abandoned
According 10 the latest information
obtainable az the Treasury Department
is the purpose Of the President and
The Secretary Of the Treasury TO en-
ploy Assistant Secretary Williams az
chief member Of the organization board
which is 10 set on foot the new fiscal
Plan provided for in the currency BILL
in order that when Congress again con-
venes the assertion may be made that
the government is under such heavy
obligation 10 Mr.. Williams that the dd-
ministration cannot reject his claims 10
De appointed Controller Of the Cur
Fency.