New-York tribune., 1919-07-22
Controller Williams
Flatly Denies That
He Misused Office
Brands as False Story He
Shared $4,000 for Sale
of Hotel; Asserts He Did
Not Discriminate on Bank
New York Tribune
WASHINGTON Bureau

NeW York Tribune
Washington Bureau
WASHINGTON. July 21.-John Skel-
ton Williams, Controller Of the Cur
rency, to-day categorically denied be-
fore the Senate Banking and Currency
Committee every charge brought
against him by Frank j. Hogan, attor-
ney for the Riggs National Bank.
Fadden, Of Pennsylvania, who is seek
ing an investigation Of the Controllers
activities by the House, to produce any
evidence before the Senate committed g
to substantiate his recent charges be-
fore the House Rules Committee.
81 have little respect" he said. "for
man who, when called upon to meet
the man he accuses face to face, fails
to appear in court"
Representative McFadden was de-
tanned before the Rules Committee of
the House, where he sought special
rule to make his investigation resolu-
ton lmmediately in order The com
mittee deferred action until witnesses
to be brought by Mr. McFadden could
be heard in support Of his charges re-
latlng to the purchase by the govern
ment of the Arlington Hotel site.
Denies Sharing Commission
To the charge that he had shared
with his brother-in-law a $4,000 com
mission on the Arlington sale, Mr..
Williams replied that it was unuuali-
tiedly false. He admitted that he had
introduced q representative of Winston
q Co., owners of the unfinished hotel.
accompanied by his brother-in-law, to
the Secretary Of the Treasury.
But it was only what | would have
done for any other responsible person
with proposal SO advantageous to the
government" he added
No commissions were paid to his
brother-ln-law on the sale, Mr.. Will
lams said. The only payments were
for professional services, and he did
not know what they amounted to.
Mr. McFadden said he would press
for the passage of his resolution for an
investigation Of the Controllers ac-
tivities. even though the Senate should
reject his nomination for a new term.
"The Controller must be held ac
countable for his official acts" he said,
"evcn though he goes out of office"
Controller Williams called attention
to that section of Mr.. Hogan's tcsti-
mony in which he said John Poole,
pres ident of the Federal National Bank.
had gone to the American Red Cross
1OT
his bank. Mr.. Hogan charged that the
Federal was unable to get Red Cross
deposits because of the Controllers
discrimination.
The Controller compared Mr.. Hogan's
testimony with that of Mr. Poole, in
which the latter said he had never So
licited deposits of he American Red
Cross; that he could not because he
was an officer of that organization.
Zone of them lied" the Controller
commented.
He produced records of his office
which showed that the Federal National
Bank had five Red Cross accounts. one
Of them opened as early as Novem Der,
1917.
He characterized as a "distortion of
the truth" the versions of the confer
ence Mr.. Poole held with him relating
to Emergency Fleet Corporation funds.
According to Mr.. Poole and Mr.. Hogan,
the Controller had said the bank would
be favored with no government deposits
under his control as long as Mr.. Hogan
continued to be a director.
Says He Reassurcd Bank
"This version" said Mr.. Williams, "is
garbled and distorted. What really did
happen was that Mr.. Poole came to my
office asking how his bank could get
deposits of the Emergency Fleet Cor
poration funds. | assured Mr.. Poole
that his bank always had and always
would receive every fair considera tion
from the Administration. l told Him,
however, that I thought Mr.. Hogan had
been very unfair to the Administration,
that his statements wore altogether un-
warranted Despite this, said, he
might rest assured that he and his
bank always would receive fair treat
ment."