Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-04-21

ten H. Allies was elected a member OF
the board in his place.
When Mr.. Williams became assis-
tant secretary of the treasury the Of
flee II the comptroller Of the cur
rency and other strictly financial bu-
reaus of the department were placed
In his charge. lie found that an em-
plOyc of the Riggs National bank, "a
woman, had been given desk room
IN the comptrOller's office where She
went over the reports Of national
banks as they were supplied the de-
partment in response to the calls for
condition by the comptroller The
data gathered by the woman emplOye
OF the bank was filed Ia the bank.
Mr.. Williams Immediately ordered
that this favor To- the bank should nc
! longer be shown H.
SIM later, IN December. 1918.
! Washington was threatened with "A
/ financial disturbance when the Unit
( ed states Trust company got into diff
/ ficultles. This was avoided when
/ Frank A. Munsey, who was the CON
trolling spirit Of The Munsey Trust
company of this city offered to take
over the assets of the United States
trust company pay the creditors.
and thus relieve the situation. In or
der 10 swing this deal it became nee
esstrv to secure funds from the
United States treasury.
t'ayOritism Charged.
The treasury could not loan money
TO the Munsey Trust company. be-
cause II was not national bank An
arrangement was made. however. by
which SL000,00O was deposited with
/ the Munsey Trust company To the
credit of eleven OF the national banks
IN the city. Ten OF the national banks
borrowed 500 900 each from the reas-
ury and one national bank borrowed
100000 To secure this loan TO the
national banks assets Of the United
states Trust company placed in the
hands Of the Munsey Trust company
were turned over to the treasury de
partment. The valuation on these as
sets was 100000, 600 This loan was
70. I'D by Mr. williams.
When this deal was consummated,
the New York Tribune printed several
dispatches from Washington alleging
that Mr. Williams had shown gross
favoritism in thus placing money in
the vaults of the Munsey Trust COM
pany
Put Up to Mr.. Allies.
That Mr. Williams believed Mr.
Allies had retaliated is shown by the
following extract from the Williams
statement issued afterS the Riggs
bank suit had been filed.
The statement made by the bank
as TO. the interview at the treasury In
December 1913, in connection with
the unwarranted and malicious attack
IN New York newspaper upon GER
tain treasury officials concerning the
action Of the department in saving a
local trust company from disaster is
misleading and grossly distorted As
La matter of fact at the interview re-
terred 70 the vice president of the
RIGGS National bank confessed that
he had vised or approved as true be-
fore their publication the statements
shown to have been false, published
In the New York papers This admis-
sion was made by Vice President Allies
Of the Riggs bank in the presence
Of the secretary OF the treasury Mr..
Elliott, counsel and myself. President
Glover and Vice President Flatehr of
the Riggs National bank being also
present and 10 was after this admls-
sion that the secretary Of the treas
ury the same day December 4, 1913,
gave out statement to the press in
which he said. THE source of this
publication is known 10 and thor
oughly discredited by this depart
ment"
The statements made With reference
TO his approving the New York Tri-
hune dispatches was denied by Mr.
Allies on the following day.
Agent for 5000 Banks.
When the Riggs National bank in
creased its capital stock from $500,
GOO TO $1,000, GOO il WAS generally un-
derstood that the additional capital
was supplied by the interests that
control the National city bank of New
York. Mr. Allies Was elected a MEM
Der Of the b0ard Of directors and la-
ter became a vice president Of the
bank. He was "a protege of Farnk A.
Nanderlip, president of the National
city bank and was the Mashinston
representative 90 the Vanderbilt insti-
tuition In reaching out for business
The National city bank offered 20
transact free 90 charge. all the reu-
tine business with the treasury de-
'parlment at Washington for any bank