The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-12-11

shouIdered the responsibilities restoring
confidence to bank depositors generally.
United states Took No Chances.
The government took no changes in the
matter and the eleven national banks
took no chances in the matter. The gov
| eminent put up the money-not the bank
ers-and the government had 81, 100000 of
United States Trust Company securities
as collateral to secure the loan.
Moreover, I furnished to each of the
eleven banks a signed statement, as the
president OF the Munsey Trust Company.
! agreeing to return the money whenever
the Treasury Department called it. and
as well as guaranteeing the collateral
pledged with the government.
It is well to bring out clear and to en-
phasize the fact that the only chances
taken in the whole AFFAIR were taken by
the Munsey Trust Company and myself.
No other man obligated himself to the
extent OF one penny or offered to do SO.
The Munsey Trust Company not only
guaranteed the depositors OF the United
States Trust Company against loss, but
offered to restore to good standing the
accounts OF savings depositors who had
through fear, withdrawn their money.
This meant a saving of $4,000 in interest
to those depositors. and a corresponding
cost to the company.
Asks Banking Probe.
There has been a good deal of news
paper and other talk about an investi-
CATION by Congress OF the absorption Of
the United States Trust Company and
he A.
sonally, / should like very much to have
this investigation. but a mere investiga-
ton of this transaction Is not exactly
what Washington needs.
The needs Of Washington would best
be served by a move on the part Of
Congress to standardize banking In the
National Capital. and put II on the
soundost and firmest basis in the world.
II there is any place in America more
entitled to have sound, safe banking
than another. it is the home Of the ma
tional government.
Such a move by Congress could be
broad enough TO cover any investigation
of the absorption OF the United States
Trust Company as well as to cover any
other acts or transactions reaching into
the past as far as II might be found
desirable to go.
This statement is not made to reflect
unfavorably on any one or to gain glory
for the Munsey Trust Company. II Is
made because 1t is due and because it
presents some very clarifying facts
facts that the Washington public have a
right to know.
Nobody who has anything worth while
to do in this world has any time for
chickering's or i'll feeling. certainly have
none, and in so far as 1t can do so. the
Munsey Trust Company will prove a help
TO this community
Douglas Makes Statement.
Charles A. Douglas, attorney for the
Continental Trust Company, last night
gave out the following statement:
Referring to the newspaper notoriety
in regard to the matter of the acquisi-
ton Of the United States Trust Com
pany by the Munsey Trust Company.
and in view of certain criticisms Of the
Treasury Department, I feel 1t my duty
to make the following statement:
Negotiations were conducted from the
early morning until $50 in the evening of
November q by the officers OF the Con-
tinental Trust Company, looking toward
taking over the United States Trust
Company. Being counsel of the Cont
mental Trust Company, / was connected
with the negotiations from their begin
ming to their conclusion.
early IN the negotiations a committee
composed Of Messrs. Scott. Merriam, and
CaIliher, was appointed to confer with
the Treasury Department to ascertain
what assistance might be expected II
needed, and Assistant Secretary Williams
was seen. and he encouraged the pur-
chase. offering to assist to the extent OF
81. 10000. The negotiations, however.
came to an end about $50 in the evening
without result. and Immediately there
after were taken up with Mr.. Munsey,
who concluded them before midnight.
ct have every reason to believe that the
department., through Mr.. Williams, stood
ready to assist not only the Continental
Trust Company, but any other OF the
larger banking institutions which might
have undertaken to take over the United
States Trust Company under the circum-
stances.
The committee, after comforting with
Mr.. Williams, reported back to the board
the facts as stated, and certainly the
failure Of these negotiations TO material
ize were not due to any lack OF co-opera-
ton on the part Of the Treasury Depart
ment.
'I make this statement unsolicited,
simply in the interest OF the truth Of the
matter I am not acquainted with Mr..
williams"