Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-15
WILLIAMS CHARGES
LOAN |NTERLAC|NG'
BY COOPERS' BANKS
Had deep Mistrust of This
I Coterie. of Men," He Tells
Senators.
BANKS SOLVENT BECAUSE
OF CONTROLLER, HE SAYS
Discusses Transactions of 1nstitu-
lions in This City and in
the South.

Resuming his testimony before the
Senate banking and currency commit
tee today, John Shelton Williams. con-
troller of the currency, discussed in
detail transactions of banks in this
city and in the south controlled by
Wade H. Cooper and his brothers,
Thomas f. Cooper and L. J. Cooper.
Mr.. Cooper has opposed the confirma-
ton of Mr.. Williams nomination to
succeed himself as controller of the
currency.
Charges Loan Interlacing.
Mr.. Williams charged that there had
been an interlacing of loans for the
benefit of Coopers and their relations,
and that these loans had not been Sc
cured by proper collateral.
Il had a deep mistrust of this coterie
of men," said Mr.. Williams. Il felt
that they were trying to impose on
local banks and the shareholders of
banks in the south.
Questioned by Senators.
Mr. Williams was closely questioned
by members of the Senate committee
in regard to his charges against the
dunn. read to the committee yesterday
by Mr.. Williams. in which these
charges against the Coopers were
made and which was sent out to some
1000 or 1000 directors and stock
holders of banks by the controller in
May. Senator Mclean, chairman of
the committee, asked.
What was your purpose in sending
out this memorandum to 1000 per-
sons%'
"Circulated False Statements"
Mr.. Williams replied that he had
found that Wade Cooper was circu-
lating false statements" regarding
the conduct of the controllers office.
and that he sent the memorandum to
Offset these statements and to show
what the controllers Office was really
doing to protect the banks of the
country.
prevent deposits being made in the
Cooper banks?" asked Senator Mclean.
Mr.. Williams said that when such
practices as had been going on in
the Cooper banks were continuing
and getting worse the stockholders
and the public should be informed as
to them.
Both the Cooper banks here are
running today, are thew not, and are
Solvent asked Senator Mclean.
troliers Office was the answer Of
Mr.. Williams.
Regrets Conclusion.
You were not thinking of protect
ing your Office. then" said Senator
Mclean, but merely of safeguarding
of stockholders of the banks and the
public"
Il am sorry you reached any con-
clusion that was attempting to
guard my Office" replied Mr.. Williams.
IT thought that / should bring before
the public a true statement of these
matters and of the conduct of the
controllers Office"
In reply to question by Senator
Henderson. Mr.. Williams testified that
the memorandum had been sent first
to the directors of the Cooper Bank
and then to the stockholders here and
then to other bank officers. II felt the
controllers office should be put right
before the bank" said Mr.. Williams.
senator Freiinghuysen of New Jer-
sey. asked why the controller had not
sent out copies of the hearing before
the Senate banking and currency
committee during the last session of
Congress instea of extracts from these
hearings and his comments thereon.
Mr.. Williams replied that he thought
1t much better and more effective to
give the high points in the testimony.
That statement of mine gives no.
where an unfair impression" said Mr..
williams. There is no part of it I
am not prepared to substantiate. 1 am
prepared also to show that Mr..
Coopar's testimony before this COM
mittee was grossly false"
That's your own opinion" suggest
cd Senator Mclean.
Mr.. williams insisted. however, that
ha could prove his point by evidence