The Washington herald., 1914-01-16
allies CRITICISEs
Williams ACTS
oosr,xuEp Taox PAGE ONE

an interesting disclosure. Mr.. Wilhams
told the committee he did not issue the
sfsfement, that Il did not come from tne
Treasury Department, and that he had
not seen n until he read II in the news
paper.
Mr.. 0livier's Explanaffsn.
AT this point Stuart Olivier. who Ii
employed IN the Nunsey Trust Company.
of Baltimore. asked permission to explain
10 the committee the origin OF this state
ment, laudatory of Mr.. Munsey. Mr..
Olivier said he wrote the statement HIM
self, and that the editors Of MT. Mum
sey's Washington newspaper had made
the mistake of assuming that It was an
oficiai statement from the Treasury De-
partment, and had published It as such.
He explained he was In his ONCE In the
Munsey Building with the negotiations
fer the transfer of the affairs OF the
United States Trust Company, and that
while thus engaged one Of Mr.. Munsey's
reporters called on him with . request
that he write an editorial for the news
paper on the situation. He explained he
dictated the statement. expecting IT would
be used as an editorial, but was surprised
when II was published as an off1cial state
ment from the Treasury Department.
The incident was closed by John Skel-
ton Williams, who explained that he
never had known Milton z. Allies except
by name, until he came to Washington
as Assistant Secretary Of the Treasury.
He remarked with q smile that since then
he had come to know Mr.. Allies pleas
antly."
AIl-day session.
The Banking COMMITTEES began a hear
ing at 10 o'clock yesterday morning on
the Munsey deal. and continued. except
for a recess for lunch. until o'clock in
the evening. They expect to get through
today. and take action on the Williams
nomination.
Among the witnesses yesterday were
W. r. Merriam and Charles Warden.
Of the Continental Trust Company. who
acquitted the Treasury Department OF
favoritism to the Munsey Trust Com
pany. They explained that the Continen-
tai Trust Company had carried on nego-
tiations for taking over the affairs OF
the United States Trust Company. but
that the terms were not satisfactory and
negotiations were dropped by the Conti-
mental Company.
Former Senator Nathan r. Scott. presi-
dent of the Continental Trust Company.
who made a statement some time ago
that he was ready to put his own private
fortune behind the United Sta-Ls Trust
Company, without aid from the Treasury
Department, was not called as q witness.
Charles A. Douglas. attorney for the
Continental Trust Company. confirmed
what Messrs. Merriam and Warden had
said about the fairness with which As
sistant Secretary Williams treated the
local bankers.
oae Of the interesting disclosures made
before the committee was the fact that
Frank A. Munsey has brought to Wash
ington and deposited in the Munsey Trust
Company. since that company acquired
the United States Trust Company. little
more than 81. 100000. Mr.. Oliver. who car
ried on the negotiations for Mr.. Munsey,
testified that he had pledged Mr.. Munsey
to give 1900 as a deposit to aid the
Munsey Trust Company. provided the
Treasury Department would deposit a
million Of public funds to help protect
the local situation. But he confirmed
what Mr.. Munsey has said heretofore
that he had pledged his chief. without
authority from the latter, and that Mr.
Munsey repudiated the pledge later.
Ground of Complaint.
W. J. Flather. OF the Riggs National
Bank, who Is active for the clearing
house, testified that the principal ground
of complaint by the local bankers was
that Mr.. Munsey put up no money at
the time he took over the United States
Trust Company, and that he failed to
keep the pledge that had been made by
those representing him in the deal
Mr.. Flather explained that the local
bankers would have made no complaint
on account of being required to assume
the obligation for the repayment OF the
81 900 900 advanced by the Treasury De-
partment for the use of the Munsey Trust
Company. IL Mr.. Aunsey had shown dis
position to carry out the obligation which
his lieutenants in the deal had put upon
him.
r. Lancaster Williams, a director IN
the Munsey Trust Company. and a
brother Of John Shelton Williams, and
who figured actively in the Munsey deal.
was in waiting yesterday ready TO be