New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-15
Efforts 10 Rush His Con
hrmatiOn as Controller
ThWarted.
SUMMONED BEFORE
SENATORS FOR QUIZ
Repeats Story of Transaction
Given Out by Treasury
Department.
LErom ri. rrIhune Bureau- !

Washington. Jan 14.-EGorts Of the
administration members Of the Bank
ing and Currency Committee TO jam
through the Senate with AL possible
dispatch the nomination Of John Skcl-
ton Williams TO be Controller of the
Currency and member Of the Federal
Reserve Board were defeated to-day by
the demands Of Senators for an eX-
PLANTATION Of the transactions by Wh'cn
the Munsey Trust Company absorbed
the United States Trust Company
when the latter was on the verge OF
dissolution.
Assistant Secretary Williams and W.
J. Flather. president Of the Washington
Clearing House, were summoned before
the committee 10 explain the details or
the Munsey Trust Company deal Will
Jams appeared with NJ G. Elliott, OF me
Treasur Department, who was there
10 fortify his testimony with respect 10
the legality of the transaction. VIII
Jams presented his side OF the case with
careful reference 10 typewriter
statement obviously prepared for the
occasion. Flathcr had not been called
10 the stand when the committee ad-
journed for the day. Consideration or
the case will he resumed to-morroT
morning.
Williams Tells His Story
The story told by Williams was sub
stantially the same as that given cut
by the Treasury Department when at
tention was directed to its part in the
Munsey Trust Company deal by The
Tribune. He said that the bank exam
iners had reported as far back AS six
months before the run on the United
States Trust Company that the capital
Of the company had been impaired to
the extent of $1,OOO,OOO, and that at
that time the National Bank Of Wash
ington refused TO take over the de-
posts. Six months later, he said, the
capital was still further impaired and,
rumors cf the transactions with the
National Bank Of Washington having
been circulatci, misgivings as to the
condition of the trust company became
general.
About this time, according 10 Will
iamss story, Che offer was made to The
Continental Trust Company 10 take
over the assets of the United States
Trust Connany and guarantee the de-
posits. but Sae Continental Trust Com
pany rejected it. At this point MIR.
Munsey stepped in and the Munsey
Trust Company assumed the liabilities
and took over the assets Of the United
States Trust Company.
To Correct Williams.
In the course of Williams testi-
mony, F'lather said that he wished an
opportunity 10 correct statements made
by Mr.. Williams. He will be allowed
an opportunity TO do this tomorrow,
when Williams has completed his ac-
count of the transactions upon which
Senators are now seeking light.
Despite the opposition that confront
ed Willamss nomination to-day, it is
assumed by Senators on both sides OF
the chamber that IL will be confirmed.
Those who are opposing his appoint
ment are handicapped by the fact that
bankers who have asserted that they
are the victims of unfairness at the
hands Of the Treasury Department are
unwilling to appear before the Banking
and Currency Committee TO state their
cases.
When the committee convened to-day
Senator Reed moved that the nomina-
tion be confirmed. This motion was
seconded by Senator Shafroth, but be-
fore action could be taken several Sen
ators. among them Messrs. Weeks and
Bristow. insisted that some eXplana-
tion he given about the United States
Trust deal. Senator Reed then moved
that Williams and the President OF
the Washington Clearing House Asso-
citation he summoned before the COM
mittee.