New-York tribune., 1919-07-12
Officials Charge He and
Mrs. Wilson's Brothers
Used Their Influence
to Transfer Accounts
Denial Made by Williams
Controller of Currency Says
That the Testimony Is
'SFalse and Malicious''
Neto York Tribune
Washington Bureau


Washington Bureau
WASHINGTON, July 11.-Postmas
ter General Burleson and two brothers
OF Mrs. Woodrow Wilson figured in
testimony to-day before the Senate
Banking and Currency Committee on
the fitness of John Shelton Williams
to be Controller of the Currency.
>. j. Darlington, attorney for Charles
Z. Glover, president of the Riggs Ma
tional Bank. charged that Postmaster
General Burleson attempted to secure
the designations of the bank officials
and the withdrawal of their suit
against the Controller of the Currency
and Secretary of the Treasury McAdoo
IN exchange for a renewal OF the
banks charter.
roFl Frank J. Hogan charged that the
Federal National Bank Of WASHINGTON.
OF which he was director, was offered
a $ooo,o0O deposit of the funds of the
Emergency Fleet Corporation. of which
John Randolph Boiling, brother of
Mrs. Woodrow Wilson, was disburs
ing, officer. if it would deposit 100000
with the Phoenix National Bank of
New York, of which Rolfe Boiling, an
other brother, was vice-president
OF the. Commercial National Bank of
this city, which, Hogan said, was
"pet" of Controller Williams.
Mr.. Hogan was attempting to show
that Controller Williams had "pros-
tltuted his high public office to the ends
OF his personal hostilities" He al
legged the Federal National Bank was
dlscriminated against by the Controller
because he-an attorney for the Riggs
National Bank in it's suit against Mr..
Williams and Mr.. McAdoo-was q men,
Der of its board of directors.
Big Deposit Withdrawn
He said John Poole, president Of the
bank, when he learned the Red Cross
had large funds to deposit in local
banks, had gone to Mr.. Williams to seek
the deposit of some of these funds in
his institution. Mr.. Williams indi
Gated, he said, that if Mr.. Hogan would
resign as a director, large deposits
would be made.
MIR. Hogan said he offered his resig-
nation to the executive committee
rather than have the bank incur the
Controllers displeasure, but that the
committee unanimously refused to ac-
cept the resignation. Thereafter the
officials of the Red Gross, without con-
sultng Mr.. Williams, deposited s450.-
900 in the Federal National Bank.
"Twenty-four hours thereafter the
whole of this deposit was withdrawn"
he added.
On another occasion, Mr. Hogan said,
Mr. Poole sought deposits of funds
of the Emergency Fleet Corporation
without success.
ceived a message from the Phoenix Ma
tional Bank, of which Rolfe Boiling
was vice president, that if we would
deposit 100000 of our funds with the
Phoenix bank they felt sure that a
100000 deposit of the Fleet Corpora
tion's funds in the Federal could be
arranged.
"Mr. Poole went straight to John
Shelton Williams and, looking him
straight in the eye, told him Of this
offer. Twenty-four hours later the
Federal National Bank received very
large deposit of the Fleet Corporations
funds, with the request that the
Phoenix National Bank offer be not
thereafter referred to-"
False, Says Williams
Mr.. Williams rose dramatcaur at
the conclusion of Mr.. Hogan's tcsti-
mony.
"Mr Chairman" he addressed Sena-
tor Mclean, 81 must be given an OBJ
portunity to refute the utterly false
and malicious statements of the last
witness"
Senator Mclean assured him he
would be given an opportunity in due
course.
Mr.. Darlington told the committee
he had been called on March 25, 1916,
to the office of a prominent official
Cabinet officer-whose identity he
later revealed to be that Of Postmaster
General Burleson. At that time the
charter Of the Riggs National Bank
was about to expire. The perjury in
had not yet been brought, although
there was talk of them. He said:
II found Mr.. Williams there, al
though he did not enter into the dis
cussion. Mr.. Burleson said he wished
to use his good Offices to bring about
a reconciliation between the bank and
the controller. He told me the char
ter Of the bank would be renewed on
three conditions. The first was that
the banks suit against Mr.. McAdoo and
Mr.. Williams, charging misconduct and
conspiracy, should be withdrawn; |.
second, that the bank should forward
had received copies of it's charges
against Mr.. Williams, and the third,
that Mr.. Flather, Mr.. Glover and Mr..
Allies should resign as officials of the
bank.
Offer Declined
HE wished the agreement in writing,
signed by officials of the institution, by
the following Monday. If the docu-
ment were forthcoming, not only would
the charter be renewed, but the con-
troller would issue statement assert
ing the banks solvency and restoring
confidence in it,"
After consulting officials of the bank,
Mr.. Darlington said, he thanked Mr..
Burleson for his good Offices and de-
clined the offer. Thereafter quite a
number Of public men, including sew
eral Senators, made similar offers of
m ediation, he added
Later he was informed that if he
would go to New York to see Mr.. Sam
uel Untermyer, counsel for Mr.. Will
Jams, the renewal Of the charter might
be arranged.
Mr. IInte ermver,s nronnsitinn nccord