New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-14

The truth Is that the 81, 100000 loaned
10 women was secured by excellent col
lateral. with value of about $1,000
600. He has ventured TO criticise but
one loan of that class, and that the
bank promptly reduced on its books by
charging off a portion Of IT, although
the Controller did not so direct, ana
the collateral behind this loan to-day
is worth 80 per cent more than the
amount of the loan which is carried on
the books.
"The Controller does himself no
credit by criticizing this bank because
il has loaned TO women. We can see
no reason why woman OF sufhclent
credit should not receive accommoda-
tions at this bank; and the fact that
such a large sum Of money IS loaned
10 women is due TO condition pc.
culiar TO the city Of Washington, OF
which the Controller cannot possibly
he ignorant, for we have heretofore
advised him of il. There Is, perhaps,
no CITY of its size in the world where
there are so many women with 1oG-
tunes ranging from a moderate COM
petence to the millions, who, both in
law and in morals, have right TO
transact their own business and make
their own contracts. They seldom re-
ouire a loan without rendering ample
collateral, and this bank is not only
glad to accommodate them, but 1t
cheerfullv testifies that its losses on
loans to women have been negligible.
Another example of the Controllers
efforts 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 q charge is utterly unfounded.
"A malicious representation in the
Controllers statement 10 the public is
his reference to a loan to the cashier.
In order TO create a general suspicion
that the officers of the bank have been
in the habit OF borrowing money on
speculative collateral Mr.. Williams Sc
lects one loan made to Henry II.
Flather, cashier. and enumerates GER
tain stocks, which he describes as
Speculative The unfsirness of his in
situations will become apparent when
we explain that, in addition 10 the
stocks named by the Controller, the
loan was secured by other collateral.
which he does not list, having a ready
market value Of more than S57, 900
Loans Well Secured.
Likewise he criticises a loan 10
Vice President Father, because among
the collateral by which that loan was
secured were as shares of Greene
Ca1anea Copper stock, etc The Con-
trollcr omits 10 state that this loan was
also secured by other collateral as fol-
lows: IS shares American Telephone
Telegraph stock. 1870 shares Ian
ston Monotype stock. lis shares Ameri-
can Security and Trust Company stock
and lS5 shares Washington Railway &
Electric Company preferred stock.
IF the Controller had been pursuing
his Investigations into the character OF
collateral along other lines than those
by which loans 20 officers were secured
he might have discovered in the col
lateral TO a particular loan, otherwise
well and adequately secured. $4,000
Georgia & Florida Railroad Company
bonds Of little or no market value, OF
which road he was formerly the presi-
dent and which bonds he was instru-
mental IN marketing.
The brokerage business conducted
by certain officers OF the bank in their
Individual capacity, they holding seats
on the Washington Stock Exchange,
was discontinued By these officers early
IN the summer Of 1914.
There was no provision Of the ma.
tioual bank act forbidding an officer OF
q bank 70 act as broker on stock
exchange but section OF the Federal
Reserve act possibly makes this course
one of doubtful legality, and il was IN
anticipation Of the putting OF that act
into full force and effect. which was
done or November is, 1914, that Off
GERS Of the bank prior 20 July Is. 1914
discontinued the buying and selling Of
securities as brokers. il should be
borne in mind that the Washington
stock Exchange has among = mem
bcrship. and has had for many years,
many bank officers and directors. and
that prior 10 the going into effect OF