The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-12
MISUSE OF POWERS
LAID TO WILLIAMS
Withholding Deposits Because
of Personal Animosities Is
Again Charged.
BANK PASSES OBSTACLE
Federal National Helped by
Firm With Boiling Con-
nectiOn.


WASHINGTON. July 11.--Further alle-
cations OF the misuse of tho powers Of
his ONCE to attain the ends Of per-
sonal spite were charged to-day before
tho Senate Banking and Currency Com
mittee against John Shelton Williams.
Comptroller of the Currency. Frank J.
Hogan, of counsel for the Riggs National
Bank, and J. J. Darlington dean of the
Washington bar and senior counsel for
the Riggs bank. both gave evidence.
Mr.. Hogan related a story Of the pr
forts Of Mr. williams to withhold Fed
eral funds from deposit in banks of
which men he considered his enemies
were officials. In the case cited by Ho-
gan II was the attorney himself who
was the object of Mr.. Williams's al
legged wrath. The bank was the Federal
National Bank Of Washington, OF which
Hogan was q director. John A. Poole.
president Of the Federal bank, had been
informed. Mr.. Hogan said. that one Of
the reasons why the institution was
moi made q depositary Of share of
the funds Of the Emergency Fleet Cor
pors ton was because Of Hogans pres
ence on the board being distasteful to
the Comptroller. Hogan offered to re-
sign, which offer was refused.
New York Bank Assists.
Later, Mr. Hogan said. the Federal
National Bank was called up by tele-
phone from the Chatham and Phenix Ma
t'cnal Bank of New York and informed
IL II would make deposit in New York
OF 500, 900 with the Chatham and Phenix
bank. OF which Rolfe Boiling. brother
OF Mrs. Woodrow Wilson. was vice
president, at least 100000 OF the funds
o. the Emergency Fleet Corporation
would be deposited with the Federal Ma
t,oual Bank. John Randolph Boiling. an
other Of the Presidents brothers-in-law
was attached to the disburs,ng office OF
the Emergency Fleet Corporation. II was
suggested. however. shortly after the
proffer Of this exchange of funds that
nothing be said regarding the offer. and
the Federal bank received a large allot-
ment of the Emergency Fleet Corpora
tons deposits.
Mr.. Poole had gone to williams imme-
diately after the proffer of an exchange
Of funds had been made by telephone and
had confronted him with the situation.
The deposit of Emergency Fleet funds
followed within twenty-four hours.
And yet" Hogan continued. Mr..
williams comes here and asks Senators
to embalm their intelligence long enough
to believe his statement that he has
never used his public ONCE to get even
with men who have fallen under his dis
plea sure
Comptroller williams. who was in at
tendance at to-day's hearing, was
aroused to anger by Mr.. Hosan's charge.
He demanded that he be permitted to
testify at once. charging that Mr.. Ho-
Ean's testimony was n gross and malici-
Gus distortion Of facts.
Mr.. Darlington followed Mr.. Hogan.
He told the committee that at the con-
ference in Mr.. Burleson's once. MT.
Williams and Edward .Jeffries had been
present, besides Mr.. Burleson and him
self. He said Mr.. williams had taken
little part in the conversation. but that
after leaving Mr.. Burleson's office he and
Mr.. williams had walked down the
street together. MIR. williams, he said.
had told him he had no hostility toward
the Riggs bank itself, and that II the
Objectionable officers, meaning c. c.
Glover, Milton e. Allies and William
Father, were eliminated, he would Is
sue a statement to the effect that the
bank was solvent
Riggs Deposits Increased.
Mr.. Darlington said he had replied
that the deposits in Riggs bank had In
creased greatly since its controversy had
begun with Comptroller Williams. and
that he did not know how it appeared to
Mr.. Williams. but II seemed pretty
good indication to him that the pank was
considered solvent.
Mr.. Darlington told the committee al
| length about the negotiations leading VI
| to the renewal OF the Riggs Bank char
| ter. He said indictments had beer
brought against Mr.. Glover and othel
| officials OF the bank and that they were
pending at the time.
Efforts were made to hurry along thu
trials because It was understood thai
while the indictments were pending tn,
| application for the charter renewal wouit
not be granted.
He told of the refusal OF the bank di
rectors to agree to eliminate the of
fcers to whom objection was made. HI
spoke also of q visit to New York K
| Samuel Untermyer, who was acting al
counsel for Mr.. Williams.
The Riggs Bank went ahead and got
charter from the State of West Virgins
as q state bank. he said. Mr.. Darlington
testified that finally the charter was re
1 ~
| withdraw its suit against Mr.. William
and Mr.. McAdoo.
In a STATEMENT issued tonight Mr.
Williams said he would make no specin.
reply to the charges and insinuations
made against his administration or tn
office Of Comptroller until allowed Z
testify before the Senate Committee II
his own behalf.
when that opportunity comes, MI
Williams said, II shall rely on writer
evidence and official court records 4
prove directly and squarely that tn
allegations of unjust discrimination, o.
use of my position as Comptroller 4
reward friends or punish enemies. poiiti
cal or personal, or undue hardness Il
requirements from banks are false Tn
evidence shall offer will be convincing
to every honest mind"
uynMAN ppEACHER'S ETINERAI