The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-14
President Throws Down Gaunt-
let to Senate in Selecting
Comptroller.
LONG FIGHT PREDICTED
Investigation Is Likely Into
Charge Of Favoritism to
Munsey Trust Co.


Comptroller Of the Currency he would be
ex off,cio a member Of tho Federal Re-
serve Board with the Secretary Of the
Treasury.
The nomination Of Mr.. williams created
no surprise. II has been known for sew
eral months that he was bending every
effort to get the appointment.
II can be said on authority that Presi.
dent Wilson was reluctant to name Mr.
williams for Comptroller. but that Secre-
tary McAdoo was insistent. The appoint
ment may be ascribed solely to the in
fuence Of Secretary McAdoo. for Mr.. WILL
Jams was without influential, political or
financial Endorsement.
Has Reen Active Lately.
Several months ago. after Lawrence o.
Murray resigned. and Thomas r. Kane.
Deputy Comptroller. became acting Comp
troller. Assistant Secretary Williams prac-
tically assumed control OF the office. lie
participated actively In the work OF closing
the First Second National Bank OF Pitts
burg and also gave directions respecting
the personnel OF the Comptrollers office.
He was primarily responsible for the
order which excluded from the offices a
young woman who had been employed for
years by the National City Bank OF New
York to get and forward information TO
the bank.
For years the Secretary OF the Treasury
had permitted this young woman to have
a desk In one corner of room as a mat
ter of convenience In her work. The same
courtesy had been extended to representa-
tives OF the press. various bond concerns
and compiers OF material for bankers
publications and other financial publca-
tons. Assistant Secretary Williams took
the view that the National City Bank
enjoyed privilege over other financial
institutions and elected the young woman.
Appointment Once DENIED.
About the time these activities OF Mr..
williams were II, their height informa-
ton came TO the Washington correspond
ent OF THE SuS that Assistant Secretary
Williams expected to be appointed Comp
troller and that the President had pur-
posely refrained from filling the ONCE i'm
mediately following the resignation Of
Comptroller Murray until after the cur
rency bill was passed and tho salary OF the
ONCE Increased. This news created con-
siderable interest In Washington and
Secretary McAdoo called in the newspaper
correspondents and denied explicitly that
there was any intention Of appointing Mr..
Williams.
In sending I'd the Senate the name OF
Mr.. Williams to be Comptroller President
Wilson has thrown down the gauntlet TO
. ha lat. hnrx L..
went South that there was opposition TO
the appointment and that he would have
difficulty In having the nomination con-
firmed
Just before the holiday recess Senator'S
who usually represent tho Administration
view In the Senate were active in seek
/ ing to allay IN" threatened opposition.
Yesterday these activities were resumed.
Senator swanson OF Virginia and Senator
James OF Kentucky exerted their utmost
persuasive powers 10 try to remove OPP
position. but the indications are that the
| nomination will he held up for some time.
one OF the most prominent Republican
Senators said to-day that he probably
would introduce II resolution to investi-
gate the action Of the Secretary OF the
| Treasury in connection with the absorb
| ton by the Munsey Trust Company OF
the United States Trust Company IN
Washington "A few weeks ago. He ex-
planned that the reasons for Withholding
the resolution when there was so much
discussion In the newspapers IN regard &c
the AFFAIR no longer existed.
Charge Of Favoritism.
| At that time several senators expressed
| the fear that 20 start an investigated
would be TO Increase alarm among de
positorB and start "A general run on fnan
cial institutions. The charge in the Nun
, sey case was that Assistant Secretar,
Williams placed 100000 OF public fund.-
at the disposal of the Munscy Trust Com.
pany. Of which his brother T. Lancaster
| Williams. is Il director. to assist that In
stitution and meet "A possible run follow
ing the announcement that IL had taker
over tho United States Trust Company.
| Various official statements put out from
the Treasury Department Al the tim,
eulosizing Frank \. Munsey and referrin,
to the financial strength Of his trust com
pany were looked on by local bankers a,
favoritism TO one institution in which
brother OF the Assistant Secretary OF III,
Treasury was AN active agency and at III,
same time reflected unjustly on other loca
banking institutions.
EuIoHy In Munscy's Paper.
The Washington Times, published b,
Frank A. Munsey. printed eulogy o
John Shelton Williams this afternoon II
Which lot OF personal information A.
to Mr. Williamss early successes In fnan
cial affairs Ia given with IA wealth OF de
tail that indicates the writer had acces
to family records
Mr.. williams Is portrayed as younI
st. George Of finance wrestling with tn
Wall Street dragon over railroad contro
In tho South The article narrates per
sonal interviews between Mr.. William
and President Csssatt Of the Pennsylvania
Railroad and tells OF encounters between
Mr.. williams and Thomas r. Ryan an
j. J.. Morgan. In all Of which Mr.. VIII
Jams gets credit for clever work.
This article intimates that Wall Stree
Is still cherishing resentment against MI
williams and that the hght In the Senat
is really to be "A contest between fnancia
interests in New York and the man VIII
!, has been 1ghting Wall Street for years.