Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-03-02
WILLIAMS REVEALS
CAUSE OF CHARGES
MADEB BY MI ADDEN
Flags Pennsylvania Repre-
sentative for Failure to
Support Claims.
SAYS HE BORROWED SUM
EQUAL TO BANKS CAPITAL
Institution Criticized for Twenty
Years by Fifteen Differ
cnt Examiners.
AuSdANAGENiENT is ASSERTED
Deputy Comptroller Urged Dismissal
OF McFuddcn us President Be-
cause OF Neglect.
SAYS HE BORROWED SUM
EQUAL TO BANKS CAPITAL
,nsMANAGEMENT is ASSERTED
Especial to The Timcs-Digpatch.

Williams has written TO Represents
tive McFaddcn. OF Pennsylvania in
reply TO the speech delivered in the
House by Mr.. McFaddcn on February
10, attacking tho comptrolicr's Office
Az unnecessary, and suggesting inves a
tigation of the present comptroller's
administration and conduct. Mr.. Will
liame says he published In the news
papers the day the speech appeared
challenge TO hasten the proposed in
Ses.iEation and to trace 10 their
NcFadden OF misuse Of the powers OF
the office. He continues:
After your receipt of this but three
days of the presen, session will re-
main. In eleven working days OF the
House you have failed to present evil
dence. In airport OF your injurious
cusations or nnuendoes against me
or TO prcss your suggestions OF invcs-
ttSation. You knew on February IL
that my rnappointment 10 be Comp
trolicr OF the Currency had just been
sent TO the Senate for action. You
knew. from wide publication In the
newspapers, that the Senate Banking
and Currency Committee was conduct
ing hearings on my fitness or unii.ness
10 be comptroller and hearing evidence
on charges tina, might be presented
here was AN investigation ready TO
your hand in active progress. You
knew. that tho Senate committee. with
luIl pO"CT 10 CO1npcl attcnQGnce
witnesses and production OF papers.
offered opportunity to anybody in the
United Staes with grievance or ac-
cusation aGans. my official conduct or
personal character TO present IL.
HAS FAILED 'ro ACCEPT
CHALLENGE FOR PROBE
rBecaugc you had, directly and by
indtrection, deliberately and publicly
made statements seriously accusing
another man. personal honor demanded
that you at least attempt 10 prove the
truth OF your assertions or rctact
them. You have done neither. Both
az a public official and q citizen your
oath and bounden duty required that
il you knew OF reasons why man
holding Il public position of large i'm
portancc was unfit you should present.
or have presented. those reasons be-
fore the body engaged in deciding the
confirmation or rejection Of that man.
until now, when the close OF the ses-
sion is near.
You have done nothing to .vindicate
your own assertions ard insinuations.
declared publicly to be untrue, or 10
prevent tho Senate from confirming
the appointec whose fitness you said
the position of having taken a shot at
mo from safe ambush and skulking
away too hastily TO know what injury
you had done or to allow. the, object
of your aim opportunity for defense.
redress or reply"
Mr.. Williams then asserts that Mr..
McFaddcn, as cashier and president Of
a Tank in Pennsylvania, has been un-
der rebuke and criticism of the Treas
ury Department for over twenty years
and through five comprehensive and
by fifteen different bank examiners.
and that only the constant interference
Of the conlptrollcr's Office has preserved
tho institution safe.
AIcFADDEN's BANK FAILS
TO SHOW IMPROVEMENT
The comptroller calls attention to
fact that capitaI hank
in Pennsylvania. OF which Represen-
tative McFadden has been continu-
ously cashier or president shows no
change in the past ten years. but has
remained at 100000, while its surplus
and undivided profits have shrunk ap-
proximately rs per cent, while the sur.
plus and profits of all other national
banks in the country have increased
So per cent. Its deposits show virtu-
ally no Improvement in the past five
years, while deposits of all other ma
tional banks have about doubled in
the same period.
Since 1905 the banks dividends have
have already been charged off in this
period have amounted to more than
half OF tho bank present capital, and
although MIR. McFaddcn only appears
70 own thirty-seven shares Of the
banks capital stock. the money which
the last report shows the bank to be
lending to himself his family and his
amounts to moro than the banks en-
tire capital and surplus.
After the examination OF the bank
in the spring of 1918 the Deputy Comp
troller of the Currency, III a letter. TO
the board of directors, used the fol-
lowing language in a determines eff
fort to preserve and protect the inter-
csts of the bank and its depositors:
THE bank continues to violate the
law. and this feature, together with
other unsatisfactory conditions, seems
largely due TO lack Of proper manage
mcnt. The examiner Is of the opinion
that the bank will not observe the
long as President McFadden Is the
managing director. because tho other
directors seem to take no personal or
active interest in the bank and permit
for his personal interests without due
regard for safe and sound banking.
MeFADDEN'S RESIGNATION
URGED By DEPARTMENT
This condition will not be permit
ted longer to continue. All of the
directors, and not alone the president.
should give their attention to the af-
fairs of the bank which the law and
their oaths require. and If President
McFadden is not inclined to observe
the instructions Of this office and the
lazy, he should BIO required to resign
and the board should elect some one
else as president who will"
Comptroller Williams argues that as
lie has been unjustly assailed, he has
the right to show what he believes TO
no the causes and motives underlying
THO attack. and concludes:
slbie, explain perfectly why Rcprescn-
|. tative McFadden would like to SEQ the
FComptrollers Office abolished. The
E whole record shows that you acted In
exact accord with your career as
i banker when. as a ropreser,tatIve Of the