New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-12-30
John Shelton Williams
Says Absorption of U. S.
Trust Saved Banks.
VIEW OF CASE GIVEN
IN ANNUAL REPORT
New York Interests Instigated
Attack on Deal, Currency
Controller Contends.
rE-nn N. Trihune Rursau- !

Washington, Dec. 29.-John SHELTON
Williams, Controller of the Currency.
exonerates himself from all blame and
gives the Munsey Trust Company
clean bill Of health in connection with
the absorption OF the United States
Trust Company. Of Washington, IN his
annual report, submitted TO Congress
to- day.
Mr.. Williams devotes several pages
of his report 20 a history OF this trans
action. the circumstances OF which
were disclosed by The Tribune az the
time. He says that what he charac.
terizes as newspaper attack had
been instigated and promoted by indi-
yiduals connected with local national
hank which was affiliated with q bank
INC interest in New York City" THE
81 100000. he adds, deposited by the
government with the national banks in
Washington. and by them deposited
with the Munsey Trust Company 10
assist in averting the bank failures,
was duly returned"
The Munsey Trust Company was re-
imbursed for call moneys which IL had
advanced to the United States Trust
Company" and. according 10 Mr.. Will
Jams, the transaction has been closed
with credit TO himself, the Treasury
Department and the Munsey Trust
Company. In support Of these conclu-
sions Mr.. Williams quotes verbatim
statements issued by the Secretary OF
the Treasury denying various reports
made at the time OF the absorption OF
/ the United States Trust Company BY
the Munsey Trust Company.
"The announcement was made in the
newspapers on the morning Of Novem-
Der %, 1913" Mr.. Williams says, that
the deposits Of the United States Trust
/ Company were thus assured allayed
/ the threatened panic and restored con-
fdence in the banking community.
About ten days later, on December 3,
1918, a New York newspaper hostile 70
the administration made an attack upon
the Treasury Department and its OH
Gals for the part which the govern
meut had taken-and which rad been
strictly within the law in its effort
10 avert the disaster which. had 70 not
been prevented, would surely have
brought much suffering and loss 20
more than fifty thousand depositors o.
the United States Trust Company as
we'll as to other local interests, and
T WnlCn WOAlu piobabAs nav Wv" +N-
reaching in its evil results.
"Tnformation which reached the de-
partment indicated that this news
paper attack had been instigated and
promoted by individuals connected
with local national bank which was
affiliated with a banking interest IN
New York City, also hostile 10 the
present administration, and which n-
terest. under previous Administrations
had enjoyed special favors and priyl-
leges from the government, parucu-
larry In connection with the Treasury
Department. as existing records aouh'
dainty show.
newspaper referred 20 OF false and
misleading statements in connection
with the transaction. by which bank
failures had been sverted and conn
deuce restored I'm the community, con
tinued for several weeks, but subsided
: with the publication OF the report or
the Senate committee. The Preslaen''
, nomination for Controller or the Cur
rency of the Assistant Secretary o.
. the Treasury, VINO had taken part o.
fcially in preventing the tnfea'eneG
failures in Washington, and VINO hau
] been the Speclal ODleC- o. htN"NN w
the newspaper and banking interests
referred to, was confirmed by me
United States Senate on January -
1914. with but one dissenting vote.
THE S1.O0O.O0O deposited By the gov
eminent with the national banks ~
Washington and by them deposited
, with the Munsey Trust Company 10 as
sist in averting the bank failures was
duly returned TO the government Win
interest at the rate Of per cent per
annum. one-haf being repaid by teo-
ruary 6. 1914, and the entire balance
By April 3. 1914. ~,
: "The Munsey Trust Company win
| the co-operation Of the officers OF the
= United States Trust Company, convert
| ed into money during the ensuing
= months a sufficient amount OF the as
sets of the latter company 20 reimours.s,
. the Munsey Trust Company for 81
moneys which It advanced TO tne
United States Trust Company and US
| depositors; the remaining assets OF me
? United States Trust Company were
conserved, and after paying all claims
dollar for dollar, were Get aside for tne
; benefit OF the stockholders OF ue
United States Trust Company