Evening star., 1915-04-14


of the great war in Europe.
And he claims this credit in face of
the fact that, although early In the
controversy he was requested, first by
the directors of the bank. and then by
the attorney of the bank, to specify the
practices to which he objected, he per-
Sistently refused or failed to do so, re-
spending to such formal request by
the board of directors, Your artless in
quiry is understood and appreciated,
and making no response whatever to
the request of the attorney of the bank.
transmitted through the national bank
examiner.
Explains Woman Loans.
The controller complains that the
bank is loaning more than $1.000.00o
to women. and adds that much of 1t
Is highly speculative stocks. The
truth is that the S1.000.0O0 loaned to
women was secured by excellent col
lateral. with value of about $2.000.0O0.
Descending into particulars, we will
sa. that, notwithstanding the fact that
fog nine months the controller has
been searching this bank for subjects
Of criticism and of possible legal
action, and although he has in more
thsn one communication referred to
ese loans to women. he has ven-
tuted to criticise but one loan of that
class. and that the bank promptly re-
dLced on its books by charging off a
pof llOn Oh IT, altHOuGn Lhe COntTOIler
did not SO direct and the collateral
behind this loan today is worth so per
cent more than the amount at which
the loan is carried on the books:
credit. and his department no credit.
by criticising this bank because it has
loaned to women.
Defends Loans to Women.
We can see no reason why a woman
of sufficient credit or with ample credit
should not receive accommodations at
this bank, and the fact that such a
large sum of money is loaned to women
is due to condition peculiar to the
city of Washington. of which the con-
troller cannot possibly be ignorant. for
We have heretofore advised him Of it.
There is perhaps no city of its size
in the world where there are so many
women with fortunes ranging from a
moderate competence to the millions
who. both in law and in morals, have a
right to transact their own business
and make their own contracts.
They seldom request a loan without
rendering ample collateral. and this
bank Is not only glad to accommodate
them. but 1t cheerfully testifies that its
losses on loans to women have been
negligible.
Charges Attempt to Mislead.
Another example of the controllers
effort TO mislead the public can be
found in his statement that the stock
brokerage business which certain of
the officers of the bank formerly con-
Quoted in their individual capacities
has tempted young men and women to
ruin in speculation.
THE controller knows, or, at least
ought TO know, that such a charge is
utterly unfounded.
THE controllers unjust and deter
mined effort TO create a false impress
Sion regarding the policy and methods
OF this bank are strikingly illustrated by
his quotation from his letter Of July 22.
1914, of his comments loan to a
Washington business man, and his omis-
sion to accompany those comments by
the reply made by the bank on July 20,
which was as follows:
Your citation OF the case Of Mr..
is characteristic Of your methods through
OCT this entire correspondence. Mr..
wss neither tempted nor persuaded by
any officer OF this bank to buy the stock
in question on the contrary, he was ad-
vised against its purchase. The fact that
LIS purchase turned out badly is a mis-
fortune which he refused to contemplate
ard for which he alone is responsible.
Your malice consists in this, that you are
endeavorinp 10 make the propriety OF the
business conducted in the manner stated
in this correspondence by the officers %
this hank depend upon the result OF an
Iner Of the bank This criterion has
never been applied either In law or NOR
ais. even TO the business of broker. and
II Is apparent that you have for Interior
purposes Of your used Mr.. IS
case not as an illustration. but as a fal-
lacious and misleading argument
Defends Loans to Officers.
"A malicious representation In the
controllers statement to the public IN
y f. e.
In order to create a general sus-
picion that the officers of the bank
have been In the habit of borrowing
money speculative collateral. Mr..
Williams selects one loan made to
Henry II tlather. cashier, and emu
merates certain stocks which he de-
scribes speculative
The unfairness of his tnsinuations
will become apparent when we explain
that In addition to the stocks named
by the coptroller. the loan was secured
by other collateral. which he does not
list. having - ready market value Of
more than $4,000.
Likewise he criticisee a loan to Vice
President Flather because among the
collateral by which that loan was Sc
cured were '41o shares of Green
Cananea copper stock. etc
The controller ornits to state that
this loan was also secured by other
collateral. follows: Seventy-six
shares American Telephone and Tele-
graph stock, 100 shares Lanston Mono
type stock. is shares American Sc
curity and Trust Company stock, 1856
shares Washington Railway and Elec-
trio Company preferred stock
IF the controller had been pursu-
Ing his Investigations into the charac-
ter of collateral along other lines than
those by which loans to officers were
secured, he might have discovefed I'm
the collateral to a particular loan
otherwise well and adequately secured
$1,000 Georgia and Florida Railroad
Company bonds of little or no market
value. of which road he was formerl,
the president and which bonds he wa,
instrumental In marketing.
Denies Encouraging Speculation.
'"The fact is that the onicers of thi.
bank have never advised or encouraged
any person. man or woman. young oi
old. to speculate In stocks or to bu,
stocks for investment, and the con.
trollsr's insinuation to the contrary II
gross perversion of the truth. o!
which no oficer Of the government
ought to be guilty with respect to any
.riattsr. and least OF all should the con.
trollsr Of the currency be guilty Of
It. for the purpose Of injuring banh
In the public estimation.
ThD beekAgAgo bosanaos oonduetst