The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-15

But Democratic Senators were unwilling
to call Mr.. Ryan. The mere suggestion
reused a storm of protest. led by Senator
Shafroth of Colorado. Three or four of
the Democratic members of the committee
said they would attach no Importance 10
anything that Mr.. Ryan might say.
FINALLY Senator Reed moved that the
committee make n favorable report on
the nomination OF Mr.. Williams Repub-
lcan members insisted that there ought
to be an investigation OF the Nunsey deal
Thereupon Senator Reed suggested that
the committee take n recess and that the
chairman meanwhile notify Mr.. Williams
and the local bankers. including the
president of the Washington Clearing
House that the committee would hear
them on the Munsey Trust Company
deal
Mr.. Williams responded promptly to
the invitation. W. ]. Father OF the Riggs
National Bank. who was chairman OF a
committee OF the Clearing House Asso-
citation. and william r. Merriam. direc-
tor or the census, who is identified with
the Continental Trust Company in Wash
tngton, and Vice President Warden of
the same company also appeared.
For more than two hours MIR. Will
Jams explained the Munsey Trust Com
pany deal. submitting correspondence and
documents to show that no favorltism was
shown He said that the United States
Trust Company had been investigated six
months before the Munsey deal by a
bank examiner. who reported an impair
ment OF capital, that the company re-
ce!ved six months in which to wipe out
the Impairment but that Mt the end OF the
six months instead of an Improvement
II was found that there was even greater
impairment. amounting practically to a
million dollars.
He said that the local bankers were
then notified to be prepared to extend
the necessary aid to the trust company
and prevent general run. Mr.. Williams
submitted correspondence which tended
TO prove that the National Bank OF Wash
ington had negotiated for the acquisition
OF the United States Trust Company and
had finally decided not TO take It over
These negotiations were carried on with
out the knowledge Of the Treasury De-
partment.
More Negotiations Fail.
Later, when the condition OF the United
States Trust Company was found to be
critical, there was some correspondence
with the Continental Trust Company look
Ing to taking over the business. These
negotiations failed. although the corre-
spondence tended to show that the Treas
ury Department stood ready to extend
financial aid by way of making deposits
with the local national banks for use
of the Continental Trust Company In
meeting possible run.
Mr.. Merriam and Mr.. Warden verified
Mr.. Williams's statements on this point.
Mr.. Williams had not concluded his state
ment when the committee took "A recess
until 10 80 o'clock tomorrow morning.
The consideration OF the case was behind
closed DOORS
1t is the opinion that the nomination
will be favorably reported and confirmed
after some delay. Chairman owen be-
leves there will be little delay.
Regardless of the action of the Senate
on this nomination 1t appeared probable
that there would be an investigation of
the Munsey Trust Company deal. Lead
ing Republican Senators were busy col
iecting information on the Munsey deal
and II was admitted that a resolution of
investigation was being considered.
The Senators opposed to the nomination
of Mr.. Williams say that they were at
a disadvantage because the local bankers
apparently are In awe Of Mr.. Williams
and the power that he will WELD as
Comptroller of the Currency.
Local banks hold deposits Of public
funds and particularly OF the local rev.
enues OF the District OF Columbia These
funds are In the control OF the Treasury
Department and the deposits may he
taken away at any time.