The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-03-02
Williams !! Reply to
|M ~ ,s1AA>X,I> ) +
Shows Why Pennsylvania Con-
pressman Is Anxious to Have
Office Abolished.

U1flCe Abolished.
Comptroller of the Currency. John
Shelton williams, has written TO Rep
resentative McFadden. OF Pennsyl-
vania, in reply to the speech delivered
in the house by Mr.. McFadden on
February 18TH attacking the Comp
1oller's Office as unnecessary and SUE
costing investigation Of the present
Comptroiier's administration and con-
duct Mr.. Williams says he published
in the newspapers the day the speech
appeared a challange to hasten the
proposed investigation and to trace
TO their sources alleged rumors re-
cited by Mr.. McFadden of misuse of
the powers of the office lie con-
inues:
After your receipt of this. but
chrec days of the present session will
remain. In eleven working days OF
The house you have failed TO present
evidence In support of your injurious
accusations or innuendoes against me.
or to press your suggestions of inves-
ugation. You know on February
18th that my reappofntment to be
Comptroller 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 conducting hearings on my fitness
or unfitness to be comptroller, and
hearing evidence on charges that
might be presented before 1t against
me. You knew that here was an in
vestigation ready to your hand in ac-
tive progress You knew that the
Senate Committee, with full power to
compel attendance of witnesses and
production of papers, offered oppor-
tunity to anybody In the United States
with a grievance or accusation against
my official conduct ,r personal char
acter to present Ii. Because you had.
| directly and by indirection, deliber-
ateiy and publicly made statements
seriously accusing another man, per-
sonal honor demanded that you AT
least attempt to prove the truth Of
your assertions or retract them. You
have done neither. Both as public
official and citizen. your oath and
bounden duty required that IL you
knew of reasons why man holding
a public position of large Importance
was unfit, you should present, or have
presented. those reasons before the
body engaged In deciding the confir-
nation or rejection OF that man. You
have stood mute and inactive until
aow when tAe close OF the session is
near.
You have done nothing to vtndi
cate your own assertions and tnsinua-
tons declared publicly TO be untrue,
or to prevent the senate from con-
frmsng the appointee whose fitness
you said you had reason TO DOUBT
You are In the position Of having
taken a shot at me from safe ambush
and skuIking away too hastily TO
know what injury you had done or
TO allow the object of your ain op-
oortnniu for detsnse. radresa or -
Mr.. Williams then asserts that Mr.
McFAdden. ns cashier and president
of \ bank In Pennsylvania, has been
under rebuEe and criticism OF the
treasury department for over twenty
years and through I'VE comptroller
ships, and by fifteen different bank
examiners, and that only the constant
Interference of the comptroller's Of
Ace has preserved the institution safe.
The comptroller calls attention to
the fact that the capital of the bank
IN Pennsylvaia. of which Representa-
tive McFadden has been continuously
cashier or president. shows no change
In thu past ten years, but has re-
manned at 100000, while Its surplus
and undivided profits have shruuk APP
proximately Is per cent, while the
surplus and profits of all other ma
tiona banks in the country have in
creased So per cent It's deposits
past FIVE years, while deposits OF all
other national banks have about dou-
tled In the same period.
Since 1908 the banks dividends
have been twice reduced; the losses
which have been charged of in this
period have amounted to moro than
half OF the banks present capital.
and although Mr.. McFadden only APP
pears to own thirty-seven shares OF
. b. ~. ftny re~ t4a nys
which the last report shows the bank
TO be lending amounts to more than
The banks entire capital ard surplus.
After the examination az the bank
in the spring OF 1918, the deputy
comptroller Of the currency. in a let
ter to the board OF directors. used the
following language in determined
effort to preserve and protect the in
tereets of the bank and it's depositors:
The bank continues to violate the
Law. and this feature, together with
other unsatisfactory conditions. seems
largely due to lack OF proper man
agement The examiner is OF the
opinion that the bank will not OBJ
serve the law or regulations OF this
office as long as President McF'adden
Is the managing director, because the
other directors seem to take no per-
son2l or active interest In ttaa- bank
ana permit president MCF adQen TO
use the bank for his personal inter
ests, without due regard for safe and
sound banking.
This condition WIFI not be permit
ted longer to continue All of the
directors, and not alone the president,
should give their attnetion to the af-
fairs Of tho bank, which the law and
their oati,s require. ard If President
McFadden is not inclined to observe
the instructions of this office and the
law. no should be required to resign.
and the board should elect some one
else as president who wili.'
Comptroller Williams argues that.
as he has been unjustly assailed. he
has the right to show what he believes
to be the causes and motives underly-
ing the attack, and concludes:
These facts, stated briefly as pos
sihle. explain perfectly why Repre-
sentative McFadder would like TO see
the comptroller's office abolished"
PALMER'S REPORT SHOWS
RECEIPTS EXCEED EXPENSES
Washington. March LIN a volum-
inous report TO congress on the trans
lotions of the alien property custo-
dams Office, A Mitchell Palmer makes
the claim that the receipts of his office