Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-21
DENIES He GAINED
DARLINGTON SALE

He Had No Interest in
Purchase by U. S.
HEARING IS ENLIvENED
Indignant denial that he had prof
tied in any way through the sale
of the Arlington building to the gov
eminent last year was made by John
Shelton Williams. controller of the
currency, today at the hearing before
the Senate committee on banking and
currency, which is investigating his
fitness for reappointment.
The controller said that late in 1917
he had gone with his brother-in-law,
Lewis c. Williams. and a member OF
the contracting firm Of Winston &
Of the Treasury McAdoo, where he
had introduced the firm member to
the Secretary, but the controller
added that he had taken no further
interest in the mission of the Wis.,
itors, which was to consult the secre-
tary as to the probable purchase of
the Arlington by the government.
The committee spent the entire morn
ing in listening to the reply of the
controller to charges made Saturday
before the House committee on rules,
where Representative McFadden of
Williams had ueade a personal profit
out of the Arlington transaction.
The hearing was enlivened by an
argument between Senators Gronna
of North Dakota and Fletcher OF
Florida, during which the former in
sisted on going into the whole matter
of the purchase of the building. while
the testimony to what interest, if any,
the controller had in it. +
Statement Is Submitted.
At the beginning of the hearing to-
day Mr.. Williams submitted a state
ment showing that the law firm of
Williams & Mullen of Richmond, Va.
of which his brother in law is a mem
Der. had been attorneys for Winston
& Co. since 1914, but had never had
any vested interest in the firm or in
the Arlington building.
Tells of Mr.. Winston's Call.
Zone of the members of the firm of
Winston & Co., do not recall
just which one, called at my ONCE in
the Treasury building during the latter
part of 1917" said Mr.. Williams, "ac-
companied by my brother-in-law.
had talk with them as / would with
any one having matter to lay before
the Secretary of the Treasury. They
wished to discuss the probable pur-
chase of the Arlington building by the
government, and they did satisfy me
that the proposition had some meritori-
Gus advantage.
II went with them to the office OF
the Secretary and introduced Mr.. Win
ston to Mr. McAdoo. The Secretary
already was acquainted with my
brother. We had been trying for a
long time to get more office space for
the Treasury, and my own division
was very much cramped."
did you move any of your ONCE
force into the Arlington building after
it had been acquired? asked Senator
mo. sir. We have NO space In that
building" replied the controller, and
then added ST did no more in this
matter than I would do for any re-
sponsible business acquaintance who
wished to meet the Secretary of the
Treasury to present q matter which.
on its face, appeared to me to be a
sound proposition"
Mr.. Williams Is Caustic.
At the start Of the hearing today
Mr.. Williams was very oaustic in his
references to Representative AcFad-
den, and reminded the committee that
he asked them both by telephone and
by letter to get the House member
to bring his charges before the COM
mittee.
\
that the committee would like to hear
him." said Chairman Mclean, but
understand he has some other ap-
pointment today. This committee
under the circumstances will be glad
to hear anything you have TO say in
Fadden has made"
In Support Of Denial.
To support his denial of any inter-
est in the sale of the Arlington build
ing, or any profit therefrom, as al
legged by Representative MvFadden,
Mr.. Williams then read into the rec
ord a copy of letter written by
Secretary McAdoo to Senator Phelan,
government acquiring the Arlington
building. He then read q memoran-
dunn of services rendered by the firm
of Williams & Mullen, attorneys to
tnc ATllHB ton Corporation ana Ar
lington Building, Incorporated. These
corporations, it was later said, were
owned or controlled by Winston & Co.
For their legal services Williams l.
Mullen received the sum OF $25,5o0,
their memorandum prepared for Mr..
Williams reading as follows:
This (Arlington) property was
purchased by Winston & Company in
February. 1914, at public auction and
Williams & Mullen were employed as
attorneys to organize the Arlington
Corporation, superintend the trans
fer Of the property and the prepara-
ton Of contracts and mortgages I'D
to the time OF the transfer OF the
property of the Arlington Corporation
to Arlington Building, Incorporated,
and the dissolution Of the CORPORA
ton. The firm also prepared the min
utes and the deed CONVEYING to Ar
lington Building. Incorporated. and
attended to the liquidation Of the
company's assets.
Negotiation OF Contracts.
I'm August. 1917. this firm orran;x.h
the Arlington Building. Incorrorated
with one million dollars capital for the
purpose of taking over the lot of the
Arlington Corporation and erecting q
building thereon Tor the Nsvy Depert-
|ment Of the Unitsd States, ana looked