The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-17
Senate Committee Recommends
Confirmation After Hard
Three Day Contest.
BA MIXERS HALT OPPOSITION
Allies Assails Examiner Starpk
and lntimateS williams
Influenced Acts.

a hearing that lasted three days voted
late tonight to make a favorable report
on the nomination. The vote was no,
nanimous
All OF the Democratic Senator'S voted
for favorable report, and Chairman
owen, who was absent. was counted In
favor Of a favorable report by the con.
sent Of his colleagues who were present
Senators Pomerene and Crawford. Demo.
crat and Republican respectively. were
absent. and their votes were not counted.
or the Republicans present. Senators
Weeks and Bristow are believed to hav.
voted against the favorable report. and
1t Is probable that Senators Nelson and
Mclean also voted against Mr.. Williams
After the favorable report was ordered
an ir0nclad agreement was reached tina,
no disclosure will be made by any
Senator as to the alignment In the com.
mittee on the motion TO report the nomina.
tion favorably. The members observed
this agreement strictly.
But II was agreed by all Senators in
terested that the nomination would be
opposition TO Mr.. Williams realizes that
his confirmation il only a question OF
time and that delay would simply EN-
barrass the Administration in putting the
Federal reserve system into operation, in
asmuch as the new Comptroller OF the
Currency will be an important factor in
that system.
Hearings Are Sensational.
The Williams hearings were at times
sensational 1t was evident from the
start that the bankers in Washington
who have been complaining OF the action
Of Mr.. Williams as Assistant Secretary
OF the Treasury In connection with the
Munsey Trust Company deal were unwill-
ing to voice their complaints before the
committee.
Confronted with the certainty that MIR.
Williams would ultimately be confirmed
these bankers apparently stood in fear OF
reprisals in view Of the tremendous power
over them that Is exercised through tbs
Comptrolier's Office.
The situation, according to some men,
bers OF the Banking Committee. was one
Of the most remarkable that ever oc-
CURED In connection with any nomina-
ito considered in the Senate. with a
single exception the bankers Of Washing
ton, who had complained OF the alleged
favoritism shown by John shelton Will
Jams TO the Munsey Trust Company. OF
which his brother. r. Lancaster Williams
Is a director. failed to come forward and
sustain their complaints. Furthermore
SOAuS Oh tHcfl actually testlUeu peIpTt tft
committee or wrote letters to the Treas
ury Department generating Assistap
Secretary Williams from the charge OF
favoritism.
The exception was Milton f. Allies. vice.
president OF the Riggs National Bank
who also represents the National City
Bank OF New York In Washington and Is
the agent here of many national banking
associations. Mr.. Allies was hamperet
some~ha yesterday by the attitude o
Senator Reed and few Democrat,
members, who insisted on invoking the
rules OF evidence to exclude statements
which appeared to be damaging to Mr.
Williams.
Bankers DisappOint~d Allies.
Mr.. Allies expressed his disappointment
over the attitude OF some OF the Washing
| ton bankers. particularly at statements
made before the committee by Charles
Warden. vice-president OF the Continenta
Trust Company. Mr. Allies said he was
, astOnished when he heard Mr. Warder
say to the committee members that As
|! sistant Secretary Williams's conduct ir
| connection with the Munsey deal wa,
entirely fair.
Mr.. Allies then related that Mr.. Warder
| complained to him that the Contnenta
| Trust Company never mad a chance I,
| take over the United States Trust Com
| pany, because Secretary Williams's brother
| was a director I'm the Munsey Trus
| Company. This statement created "A sen
| sation In the committee
LasdatOry Article Explained.
| Asked by Senator Weeks II he coul,
| explain the appearance in Washington
morning newspaper few days ago of I
carefully prepared article extolling JOIN
| -Ie av,h nt tnn M IN .
New York financiers Mr.. Allies replied
that he had every reason to believe thu
| article had been written by a brother o
National Bank Examiner Starek OF tn
New York district. The brother Ia al
employee Of the newspaper that printed
, the story.
The witness said he had every rea
liner Starek was trying to make himsel
agreeable to John SHELTON Williams TO
reasons best known to himself.
| Mr.. Allies said the vice-president of tn
| Mechanics and Metals National Bank o
New York had told him that after JOIN
Shelton Williams became Assistant Sec
| rotary OF the Treasury and assumed tn
direction Of the AFFAIRS Of the Comptrol
ier's office. Bank Examiner Starek wen
| to the vice-president OF the New Yorl
| bank and ordered him to get rid OF an!
stock OF the Seaboard Air Line railroa'
| that the bank was carrying as collateral
| Mr.. Allies asserted his informant told hin
that he refused to meet the demand o
Starek because he regarded the collatera
as good and the order to eliminate II a
a bit Of persecution directed against tn
Seaboard Air Line to injure that com
pany.
There were frequently sharp clashes be
| tween Senator Reed and Mr., Allies Whe
! Mr.. Allies proposed to read to the com
mittee from Frank A. Munsey's Washing
ton Times what purported to he the "of
fcial statement from the Treasury DE
partment, eulogizing the Munsey Trus
Company and pralsing Mr. Munsey 70
taking over the United States Trust Com
pany and saying that the Munsey Trus
Company was the only financial institu
ton In Washington strong enough to dea
with the situation. Senator Reed entere
a violent objection.
Senator Bristow OF Kansas then halle
the proceedings and read a sharp lectur
to the Democratic members Of the com
mittee for their unfairness, and serve
notice on them that unless they Shove
more disposition to give the facts tn
matter would be aired publicly on tn
floor of the Senate.
Munsey Appears before Committee
The only witnesses before the Rankin
Committee to-day we're John SkeNo
Williams and Frank A. Munsey.
MIR. Allies at con.panied Miss little Tay