The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-19
M'FADDEN ATTACKS
]. WILLIAMS AGAIN
Doubts Validity Of Comptrol-
ler's Vote in Federal Re-
serve Board.
HE PRODS GOV. HARDING
Wants to Know by What Au-
thority Glass's Appointee
Has Right to Seat.


WASHINGTON, March 1s.--The validity
OF any acts Of the Federal Reserve
Board in which the presence of John
Shelton Williams. Comptroller of the
Currency. was necessary to make up
quorum, or where his vote decided a
question on a division. Is called into
question by Representative L. T. Nc
Fadden (Pa) in a letter addressed to
Gov. William P. G. Harding of the board
and made public by Mr.. McFadden to-
day.
The letter calling attention to the
question which has been raised of the
authority Of Secretary Glass to name
Comptroller Williams to the vacancy
created by the failure OF the President
to name him as a recess appointee Incl
dentally gives rise to the thought that
several serious and important decisions
may be validated by any subsequent &C.
ton clearly establishing the legality OF
Mr.. Williamss continuance in ONCE.
1t seems probable that Mr.. Williams
will have to be counted to establish the
presence OF a quorum of the board when
1t meets next Thursday In conference
with the twelve governors OF Federal re-
serve banks. OF the board OF seven one
vacancy already exists one member is
now in Europe, and Secretary Glass
plans to leave late tonight for a trip
through the South and West. with three
absentees It would be necessary to count
Mr.. Williams to establish the presence
Of quorum for the transaction of bust
ness
Railroad financing.
1t IS pointed out that in all probable
ity the questions OF financing the rail-
roads. pending legislation to that end.
VIII be taken up at this meeting, as well
as questions involving the fotation OF the
the $1,000. 100000 note issue recently
authorized by Congress.
II the quo warranto proceedings
which Mr.. McFadden declares he will
institute in a local court should dis
qualify Mr.. Williams, several important
questions would have to be reopened,
with the possibility of serious conse-
quences.
In his letter to Gov. Harding, Mr..
McFadden calls attention to his pre-
vious correspondence with Secretary
Glass and his contention that there is
no authority in law for Mr.. Williamss
continuance In office and continues:
II am sending you this letter and this
correspondence so that as Governor OF
the Federal Reserve Board you may be
formally apprised Of these concrete
contentious: That John Shelton Will
iams Is not legally a member of the
Federal Reserve Board by reason Of the
fact that he is no longer Comptroller Of
the Currency, and that by virtue OF this
fact there is now a vacancy on The Fed
eral Reserve Board.
"Apropos OF this situation, as I view
II, I consider il my duty respectfully to
call your attention to the fact that your
board is daily considering matters Of
vital moment in financing governmental
requirements, no small part of which is
that made necessary by the inability OF
Congress in the closing days of the last
session. to provide finances for the rail-
roads, and it Is essential to The public
welfare that the validity of the board s
acts should be beyond question.
Doubtful validity.
"In this connection I have been In
formed that several members Of your
board are or have been absent from the
city OF Washington. II tho said John
Shelton williams's presence had been
necessary to make a quorum or his vote
was necessary to decide any of those
important questions this fact would raise
a doubt as to the validity OF such acts
of the board or other matters that may
come before the board for consideration
and final determination.
For example, conference of the
board with the governors of the Federal
reserve banks is scheduled to take place
In Washington on the goth instant,
at which decisions Of great consequence
may be reached. and these might law
fully be disregarded by reason of the
participation of Mr.. Williams.
"Realizing the grave importance from
I, eta IF al
beg you to advise me whether or not
John Shelton Williams has been acting
as a member of the Federal Reserve
Board since March 8; whether or not
he has attended any meeting or meet
ings Of the board and whether or not
his presence was required to make a
quorum and whether or not his vote was
necessary to decide any question which
came before the board for decision, and
II so by what authority OF law he was
permitted to sit ms a member of the
board since March g."