Evening star., 1919-07-14
federal Bank Head Charges
Controller Was Hostile to
Director Hogan.
RED CROSS DEPOSIT
QUICKLY REMOVED
MIR. Williams Takes Stand in His
Own Defense at Senate Com
mittee Hearing.

John Poole. president of the Federal
National Bank. testifying before the
Senate banking and currency commit
tee today. said that John Shelton Will
1iams, controller of the currency. had
refused to approve his application for
the deposit of Emergency Fleet Cor
poration funds in the Federal Bank
because Frank J. Hogan was a mem
her of the banks board of directors.
Mr.. Hogan served as counsel for the
Riggs National Bank in it's contro-
rcrsy with Mr. Williams.
Red Cross Fund Withdrawn.
Mr.. Poole also gave it as his opinion
that a deposit of nearly 100000 which
had been made by the Red Cross in
the Federal National Bank was with
drawn the following day because of
the same reason.
Controller Williams took the stand
when Mr.. Poole had finished and be-
gan his statement in reply to charges
which have been made against him in
the conduct of his office of controller
of the currency. He read to the COM
mittee a memorandum which he said
had been sent in May to 1000 to 1000
directors and officers of banks. etc.
dealing with the character and mo-
tives of opposition before the Senat te
committee to confirmation of the con-
troller of the currency.
Mr.. Williams, in this memorandum,
said that at the hearing on his NOM
ination last Congress only three wit
nesseS appeared against his confirma- :
ton. despite the activities of few
discredited bankers and certain ene-
mics of the administration
Cooper Transactions.
He went at length into the trans
actions of Wade II. Cooper. one of
the witnesses who appeared against
. him. and who is president Of the
United States Savings Bank. and his
brothers, Thomas r. and Lawrence j.
cooper. particularly with regard to
interiacfng loans.
The loans are to W. H. Cooper and
members of his family" said Mr.. Will
liams. land some of the loans are en-
tirely unsecured. Others are collater-
allied by worthless or doubtful securi-
through many banks. which were un-
der the supervision of the controllers
Office. These loans aggregated hun
dreds of thousands of dollars. 1t is
very plain why the Cooper brothers
shrink from the supervision of their
operations by the controllers office
and why they object to restraining
hand"
Mr.. Williams is expected to resume
the witness chair at the committee
hearing tomorrow morning at 10
o'clock. f
Mr.. Poole's Testimony.
Mr.. Poole's appearance before the
Senate committee came as result OF
the testimony given by Frank j
Hogan last week. in which Mr.. Hogan
charged that the Federal National
Bank had been Disseminated against
by the controller of the currency in
the matter of the deposit of public
funds because he. Hogan was a mem
ber of the banks board.
Mr.. Poole testified that he hadl been
informed the Emergency Fleet Cor
poration had large sums of money to
deposit and that he had called on Con-
troller Williams to see if his bank
could not be given share of these
deposits. He said Mr.. Williams had
asked who the directors of the bank
were and that obtaining list he i'm
mediately read aloud Mr.. HCgan's
name Mr.. Poole said that the con-
troller had declared it was useless to
ask for his approval of the deposits
of the Emergency Fleet Corporation
funds as long as Mr.. Hogan, who was
an enemy of the administration. was
a director of the bank
Williams Harsh and Abusive.
Mr.. Poole said that Mr.. Williams
was harsh and abusive in his criti-
cism OF Mr.. Hogan. He was kind
enough to pay me personal tribute
and to speak in high approval of the
bank said Mr.. Poole. Il argued that
his personal feelings in regard to Mr.
Hogan should not prevent the bank
getting a deposit which in the due
course of business il was entitled to
He positively refused his approval
because of the fact that Mr.. Hogan
was a director"
Mr.. Poole testified that notwith-
standing the refusal of Mr.. Villa ms
TO grant his request. the Emergency
Fleet Corporation. division of opera
tions. had opened an account with the
Federal Bank a few days after his
call on Mr.. Williams. Mr.. Poole said
IL was obviously without the approval
OF Mr.. Williams. because when he
oalied upon him second time Mr.
Williams again refused to approve
his request for deposit of Emer-
gency Fleet Corpora ton funds
Mr.. Poole said that he preferred no,
to give names in discussing this mat.
ter. but that he would do so if tn,
committee desired
Controller Williams. who was in tn,
committee room. Immediately asked
that the names be used.
Quotes w. P. Ramsey.
William =. Ramsey, Nr Poole testi
hed. who is connected with the Com
mercial National Bank. called al tn,