_In the history of feuds public and private, the one
between the Hon. John SkeltonWilliams and the Hon. Louis T. McFadden takes a preeminent place.
}{r. Williams happens to be Comptroller of the Currency of the United
States. Mr. McFadden is president
of the First National Bank of Can?
ton. Perm., representative in the
lower house of Congress from the
14th Dictrict of nnsylvania and
3 member of the riouse Committee
on Banking and Currency.
Xhe perennial right was in
the District Court of the United
State? in this city this week. It
has been on the floor of Conprress,
and will be brought there again.
The P'irst National Rank of Canton
in its bill of complaint?for it is the
bank, ami not Mr. McFadden, which
jppei.rs. formally in court as plain
jjff?charges that Mr. Williams has
nsed public officials under his direc?
tion to help him crush his foe. In
fact, the purpose of the present suit
k to get a permanent restraining
order to prevenl o Controller from
performing alb -. acts which are
??i? to be ruinous to the bank,
judge Charles B. Witmer, before :
whom the case was argued, has con
tinned the temporary injunction of
May 1.
Dispute Has Persisted
for Three Years
It seems too early tn tell the full
taie of the struggle. It began more
than three years ago, and who can
say that it is approaching an end?
Although the time for ultimate judg?
ment has not yet come, an im?
portant contribution to the record
has just become available. It is the
hi'.', of complaint, a document of 174
pape?, which, though ex parte in ori?
gin, contain? a wealth of documen?
tan.' cvidcr.ee and vi1 id detail about
the famous dispute.
After enumerating countless inci?
dents which the plaintiff believe?
show Mr. Williams's hostility to the
bank and its president, the bill pre?
sents the following analysis of what
the Hank regards as the Controller's)
f - ?? alleged actions.
"The pe? t persecution of
complainant," 3ays the bill, in for
:r. "has continued
fir a period of over three years, and
becomes m ppi 3ive and sinister
and n is time goes on. The
?itl' rn ina f fondant to
n? - : estroy the complainant as
a mea : g the said Mc
Faddei I rought to its final
height ? ? tivith of said Mc
Fi erress in the months
of Ff ru .-; a '. Mar . 1919, and
by his .. md 1 * that
upon the reconvening of the next
Congress said McFadden will, in the
performanci f hi public duties,
continue to press the matters, to
led the at
E the House of Representa?
tives, the office of
th Curi-ency, and
'?'? ? ?rpose and intention
of th? t to ' nue to use
and abusi ? . powers of his office
o?erthe complainant for the purpose
of bri: - g . the destruction of
sa:d McFat that his useful?
ness and prest . member of
Congre- ? me to an end before
be is able t( press these matters fur
tber upon the attention of the House
of Re] - and it is the in?
tention of the defendant, in violation
?f the power? and duties of his office,
te continue to make public confiden?
tial information acquired by theuse of
toe great inquisitorial powers of his
?ace, for the purpose of distracting
public attei tion from himself and in
order to make it appear that said
McFadden is attacking him for mo?
tives other than his. public duty as
lnjerobei ongress.
the pursuit of his
?nlawfi (proper and mali
. the defendant is
Ferent as to the fate of
'?', complainant, its depositors and
?tockholders and is willing that they
a i, provided only that
".ion of said McFadden is
pliahed, and that unless the
? receives the protection
re is great and im
- - that the defendant
? ie, by the abtue of th?
office, to injure the
reputation of the com
J''' ? ' ' ' a will cause to the corn?
ea nant, it? depositors and it?
?oeichoidert! irreparable I
i?*prt* Controller
AM Violated Lau
? The complainant further averi
?**'? the aforesaid actions of tbi
?ridant'hr< fe?"-nt8 an'1 Bubor
j****?i in demanding special re
N?a and information from th?
?gqpUmatit and it? officer? in ex
PJ*| of th? powers conferred upor
:? bylaw and in violation of th?
?jPr**? -prohibition? of the statut?
??th? Vnite? Stetes and in threat
*^RS? to aese*? r^nalt?ea a^ain?
?? complainant in the ?vont o
*?n-<ompl?anc* with hi? unlawfu
f^a*nd?, and in disclosing to th?
2?i*-?s competitor? of the com
?ffcwaat and the pernonai enemic
?V
of its officers confidential and of?
ficial information with respect to
the private business and affairs of
the complainant, and in disclosing
private, confidential and official in?
formation with respect to the busi?
ness and affairs of the complainant
to other bank3 and bankers and
members of Congress and repre?
sentatives of the press and the pub?
lic generally, and in inciting litiga?
tion against the complainant and its
officers, and in publishing and dis?
seminating to the depositors and
stockholders and to the public gen?
erally information with respect to
the affairs of and business of the
complainant, and to cause panic
among its depositors and the with?
drawal of funds on deposit with it,
and in attempting to compel com?
plainant and its officers to be wit?
nesses against themselves in any
proceedings intended to be insti?
tuted against them for any alleged
offence, penalty or forfeiture, are
in gross and flagrant violation of
the complainant's property rights
and of the rights vested in it by
the Constitution and laws of the
United States, in that the said ac?
tions by the defendant and his
agents and subordinates subject the
complainant to the deprivation of
its property without due process of
law, compel the complainant and its
officers to be witnesses against
themselves, and subject the com
plainant to unreasonable search anri
seizure, contrary to the Fourth and
Fifth amendments of the Constitu?
tion of the United States, and sub?
ject the complainant and its off!
cers to visitorial and inquisitoria
powers in violation of the specific
provisions of the laws of the Unitec
States, and the complainant has n<
remedy or redress and is unable tc
prevent the continuation of the saic
unlawful acts except through th(
intervention of this court.
What Injunction
Is Designed to Do
''Wherefore, complainant pray:
that the defendant may answer th<
premises according to law, answe
under oath being hei'eby waived
and that he, his agents and subor
dinates and each of them, includ
ing ail national bank examiners
may, by writ of injunction, to b<
issued out of and under the sea
Gf this honorable court, be enjoinec
as follows:
"1. From calling and continuing
??i cal! for, or attempting to enforce
his call for, the alleged special re?
ports mentioned in the defendant's
letters of Apr.: L?, 1919; April 16,
and April 21, 1919, and in the
letters of Bank Examiners Roberts
and Stauffer, dated April 10, 1919,
respectively, and from assessing or
collecting, or attempting to assess or
collect, penalties against the com?
plainant for failure to file such al?
leged special ? epi rt? ,
From calling for any special
re? :'* "r report ; from the complain
; ? ' "?'_- the private and personal pur?
poses of the defendant or for the de
?? or for the purpose of har
? g or persecuting the com] lj
ont in the manner alleged in the
complaint, or for the purpose of ob?
taining information for public dis?
tribution with a view to injuring, im?
pairing or destroying the reputation
and credit, of the complainant or ;-?
president for allowed offences, or foi
the purpose of instituting prosecu?
tions against complainant or its sait:
president for alleged offenses or foi
the collection of penalties pursuant
to the defendant's plan and purpost
to destroy the reputation, credit aro
business of said Louis T. McFaddeT
and the complainant as alleged in th<
complaint herein, and from callinj
for or attempting to enforce his ca!
for any other special report or re
ports from the complainant when thi
same are not bona fide within th<
meaning and purposes of Section:
5211 and 5212 of the Revised Stat
utes of the United States, ant
reasonably necessary to a full ant
complete knowledge of the com
plainant'? condition and express!;
authorized by said sections, and fron
exercising any visitorial or inquisi
toria! power over complainant or it
officers, except as expressly author
?7.1 d by law.
"3. From disclosing to the officer;
directora, agenta or employes o
i Farmers' National Bank, of Cantor
i'enn., any information with respec
i to the private business and affair
of the complainant or its officers.
"4. From disclosing the privat
business and affairs of the complain
ant or it3 officers to banks, bant
; ers, members of Congress, represei
: tativea of the public press or to th
public generally, for the purpose r
; injuring the complainant or its 'o!
; ficcrs and of impairing or destroj
ing its or their credit and reputr
| tion or for any other purpose o
: cept pursuant to law;
"5. From disclosing to the gtocl
! holders, depositors or creditors <
, th?> complainant, and to the men
bers of the community in which tr
complainant is established, informi
? tion with respect to the affairs an
business of th<- romplainant or i'
officers intended and caioulated t
create alarm or apprehension wit
! respect to the credit and solvency i
; the comp'airmnt or any of its 0
?rr-rn intended or calculated to caui
the withdrawals of deposits from tl
complainant by its depositors;
"f?. From inciting or attempting i
Indue? any person or person? whn
soever to present and pre?? clain
?ifaiast complainant or any of i
officers and from inciting litigation
against it or them;
"7. From demanding, or attempt?
ing to enforce, the compulsory pro?
duction or exposure of the private
books or papers or affairs of the
complainant or its officers for the
: purpose of attempting to subject it
? or them to any penalties or forfeit
; ures or criminal prosecutions or of
' compelling them to be witnesses
against themselves;
"8. From using the powers of the
office or (ontroller of the Currency
over the complainant or its officers
for the private and personal pur
poscs of the defendant, without ref
' erence to the proper duties and func?
tions of the Baid otfice, and in par?
ticular for the purpose of impair?
ing or destroying the credit and
reputation of said Louis T. McFad
den and the complainant, and its and
his property and business in the man
', nor set forth in the complaint;
i i_,_
1
j vice from merchants, attorneys and
i others. The said feeling of alarm,
i apprehension and doubt was inten
! sified by the newspaper publication
given out by the defendant in con?
nection with the letter of March 1.
1919 (Exhibit C), which had been
widely circulated in the press
throughout the entire community,
as well as by the act of the defend?
ant in continuing to circulate from
time to time throughout the month
of March, to stockholders, deposi?
tors and neighboring banks, the
said letter dated March 1, 1919.
Run on Bank
Followed Alarm
"As a result there began what
was in substance and effect a run on
the complainant, and the depositors
began to withdraw their deposits foi
no reason whatsoever except theii
'tended to continue to foster and in
! cite the alarm and apprehension al
I ready existing in the community
and, if possible, by this means to
? ruin the complainant, and being un
; able to ascertain from the said ex
; aminers, although inquiry was re
: peatedly made, when they would
finish their examination and leave
Canton, the complainant's president
was obliged, on April 7, 1919, to call
upon counsel, C. La Rue Munson, of
Williamsport, Penn., for legal advice
1 and assistance.
"On that date Mr. Munson, ac?
companied by said McFadden, inter
' viewed the said bank examiners,
Roberts and Stauffer, and Mr. Mun
l son inquired of the said bank exam?
iners as to the transactions which
said McFadden had had, or in which
I he was interested, to which they ob?
jected. Said McFadden then stated
I then proceeded for a period of about
1 ten days, and although they were
fully aware of the dangerous and
menacing condition resulting from
their presence and activities in Can?
ton.
"Although on April 7, 191P. said
bank examiners had been unable to
call the attention of said McFadden
and his counsel to any irregular or
objectionable transaction, although
requested so to do under the most
pressing circumstances, they, never?
theless, on April 11, IP 19, broadly
charged the complainant and said
McFadden with irregular and unlaw?
ful acts and with resort to evasive
methods and subterfuges in order
to conceal the real character of
transactions-, making claims with
respect to conditions and facts as
to which they could not possibly
"9. From calling or attempting to
enforce any c:.M for any special re?
port or reports from the complain?
ant or any of its officers as to any
i ative to the filing
of thi i suit or to any privileged coni
munical tween the complain
; ? ' o its i fficers and its or their
attorneys relative hereto or for the
pui o '. dei ? ling the same.
' And ? i" complainanl prays that
it may have such relief in the
;..-? n he nature of the cir
tanci of the cause may re
quire and to this court mav seem
? '
High Pnlilic Official
\Vs. Country Bank
The bringing of Mr. Williams,
whose office places him in control
of all the national banks of the
Ui ited State?, in court by the First
National Rank of Canton almost
1 suggests the combat between David
i and Goliath. Canton is a small in?
dus:, rial city of 2,200 population,
? surrounded by a farming commu?
nity. As is the custom in places of
such compactness, the inhabitants
mingle freely together and news
: spreads with great, rapidity.
In calling attention to these con?
ditions the bill of complaint says:
"The extraordinary protracted
; visit of the bank examiners, their
unusual activities at the complain?
ant bank, their constant association
and conferences with the competi?
tors of the complainant, who are
well known in the community to be
inimicable to complainant and its
. president, and their disclosures oJ
the confidential business of the bant
, to them and to others, the questions
' raised by them with respect to th<
: assets of the bank and their en
deavors to stir up litigation in th(
ma::iit-r aforesaid, and their appar
i ent malice and hostility made evi
: dent by them on all possible occa
| sions, became noised throughou
i the town of Canton and the sur
: rounding community, and these mat
: tors became the subject of common
| and discussion among the resident
thereof during the time that th
; said examination was being con
ducted, and the entire communit;
j became alarmed and the depositor
of the complainant became intensel;
apprehensive with respect to th
safety of their deposits.
"Ft became prominently rumore*
j and reported nmong members of th
I community that tho cornplainan
1 was in some serioua difficulty an
that drastic action by the Controlle
of the Currency was imminent, an
the advisability of tho withdrawn
of deposits wa? tho subject of com
mon discussion, with respect t
' which many depositors sought ad
I
alarm and apprehension aroused in
the manner hereinbefore mentioned.
Beginning immediately after the
publication by the defendant of his
letter of March 1, 1919, and up to
the time of the departure of the
said bank examiners from Canton
on the 7th day of April, 1919, there
was withdrawn by depositors from
the complainant the sum of about
S 100,000, and 129 depositors closed
their accounts during said period.
Most of said deposits were with?
drawn dur;:... tl time of and im?
mediately after the said examina?
tion of the complainant. Dunne: all
of this time complainant was abso?
lutely solvent and in thoroughly
sound financial condition, and there
was no possibility of loss to any de?
positor or creditor and no real rea?
son whatsoever for alarm or appre?
hension, except such as was fos?
tered by the wilful, malicious and
destructive conduct: of the defend
1 ant and the said bank examiners.
"During the said time the said
John A. Innes, president of the riva!
: bank?the Farmers' National Bank
--was spreading information to the
effect that large numbers of per
: sons were drawing their deposits
out of the complainant bank and
! depositing same in the Farmers'
? National Bank of Canton, which re
: ports added to the fears and appre?
hensions of members of the eom
: munity, already incited by the ac?
tivities of the defendant and the
i said bank examiners.
"The activities of the defendant
, and the said bank examiners were
directly calculated and intended to
: cause a panic among the depositors
and customers of the complainant
and their wilful and deliberate ef?
fort to 'promote and foster such
panic succeeded to the extent here
; inbefore mentioned, and, had it not
: been for the fact that the complain
j ant enjoys the highest reputation
! throughout the community for hon?
or, soundness and integrity, and had
the members of the said community
\ not had implicit confidence in the
1 management of the complainant
bank, and had the complainant not
? been in sound and strong financial
condition, it would have been un?
able to withstand the consequence
of the acts of the defendant and
his agents.
Mr. McFadden and
The Bank Examiners
"The situation became so acute
\ and the danger to the complainant
i so imminent as a result of the con?
tinuous activities of tho Bald bank
| examiners, and it becamo so evident
1 that the Bald bank examinara in
to the said bank examiners that if
they would inform him of any paper
in the bank which they regarded as
objectionable he would remove it,
and that he desired to remove it.
Said bank examiners refused to
state a single transaction or a single
paper to which they had objection,
claiming that they had not com?
pleted their examination, although
at that time they had been con?
tinuously engaged in an examina?
tion for about ten days.
"Mr, Munson and said McFadden;
stated to saii examiners that the
reason why complainant desired im?
mediately to rectify any matters
which were the subject of criticism.
was that the withdrawals at the
bank were becoming very serious and
that it was necessary to prote<
bank and its depo iti ? Mr. Mun?
son stated to said Roberts that he
and his associates had seriously in?
jured the bank, that they had caused
depositors to become uneasy, that
they had distributed' information
through the town, and that he was
there as counsel to ask what paper
they objected to, stating that they
must have this information if they
had done their duty, and that he de?
sired to know what paper they ob?
jected to, to which said Roberts re?
fused to reply.
Charge Rival With
Soliciting Depositors
"Both Mr. Munson and said Mc?
Fadden stated to said Roberts that
on the previous Saturday, the presi?
dent of the Farmers National Bank
had stood the entire day in front of
the complainant bank soliciting de?
positors; that his attitude and mo?
tives wTere well known; that said
Roberts and his associates had met
with Innes in their room at the
Hotel Packard and discussed the
assets of the complainant bank. Said
', Roberts did not deny any of these
charges and refused to give any
explanation of the connection be?
tween him and John A. Innes. Mr,
Munson and said McFadden pressed
; said Roberts again and again fot
j a statement of the paper at the bank
\ to which they objected, stating thai
! conditions were becoming most seri
i otis on account of the activities oi
? the examiners, and that they desirec
i to protect the interest of tho do
t positors and stockholders of th<
bank and to provide any amount oi
; cash necessary to meet the demand:
of depositors, and said Roberts ant
| the said StaufTer absolutely refus?e
to give any information whatsoever
; claiming that they had not yet com
pleted their report and had not yo
determined what they would objec
to, although tho examination hat
have had any personal knowledge
whatsoever. It was the duty of the
said bank examiners themselves to
specify what paper and what trans?
actions, if any, were found to be
objectionable. Even in the said
letter of April 11, 1919, they did
not point out a single objectionable
transaction on paper. On the con?
trary they called upon said McFad
den, without legal right or author?
ity, to take up and pay notes which
were to be specified and described
by him and not by them, entirely
without reference to the character
of the paper, the collateral by which
it was secured or the financial re?
sponsibility of other persons or
corporations primarily or secon?
darily liable therefor, the mere fact
of his interest, direct or indirect,
proximate or remote, being deemed
to be a sufficient reason for requir?
ing the immediate payment of said
obligations.
"Complainant alleges and charges
that the real reason for the de?
mand contained in said letter was
to cause it and its president finan?
cial embarrassment through the ne?
cessity of . g 'dp such paper.
The pretext n which the demand
was based was that said McFadder
had volunteered to take up sucr
paper, although, as it was wel
known and thoroughly understood
he did not volunteer to take uj
such paper because of the leas
doubt as to its value, but solely foi
the purpose of relieving the banl
of the criticisms of the defendan
and his agents, however arbitrary
in order that the bank might h
freed from the dangerous situatioi
which had been brought about b;
the activities of the defendant an<
his agents, the said bank examiners
Said letter, like many letters there
tofore written, constituted a part o
the scheme of the defendant t
build up a record which he migr
subsequently rely upon and us
against complainant and its pr?s
dent, whether reply was made then
to or not.
"T'pon receipt of this letter coui
sel of the complainant stated on i
behalf that the ?3t of paper calle
for would be gladly furnished. /
a matter of fact, substantially a
of tho said paper had already bee
taken up and paid and said papi
had been paid prior to the tin
when the bank examiners left Ca
ton, so that they were well awa:
of that fact when said letter i
April 11, 1919, was written. Coi
plainant's counsel stated to the su
examinera tho fact that tho sa
paper had been paid and that thai
for? their inquiry could have i
I
relation whatever to the present ;
condition of the bank.
"The said Roberts, nevertheless, ;
insisted that said information should
be furnished, and it was agreed that
the said information should be de- j
livered during the following week.
Complainant's counsel thereupon .
asked the said Roberts to specify
the unsatisfactory conditions re?
ferred to in said letter and to name
the irregular and unlawful acts
which it was therein claimed had,
been committed by the complainant ?
and by said McFadden. stating that
in view of the fact that an answer ;
was called for, it was oniy fair that
these general charges sho\ild be
made specific in order that it might
be possible to make reply thereto.
"The said Roberts, who was
throughout the spokesman for the
said examiners, absolutely refused
to make any specification whatso?
ever or to state any item subject
to criticism or to specify any unlaw?
ful or improper or irregular act
committed by the complainant or
by said McFadden.
McFadden Submitted
List of All Paper
"Thereupon the said Roberts sub?
mitted to said McFadden a list of
all the paper held by the complain?
ant bank on March 27 containing
the name of the maker and indorser
of each paper, a statement of the
amount thereof and the collateral
securing the same and stated that
he desired said McFadden to go
through this list in the presence of
the examiners and to state what he
knew with respect to the financial
condition of the makers and the
indorsers and the character of the
collateral or other security. This
he agreed to do and. for a period of
about six hours of continuous ex?
amination, he made a full, frank
and detailed statement with respect
to each and every note held by the
complainant bank on March 27 con?
tained in the said list furnished by
said bank examiners.
"As he proceeded with said state?
ment said bank examiners checked
the statements made by him with in?
formation which they had before
them with respect to each and every
of said obligations, and made notes
of the statements made by him and
compared the information which he
gave to them with information which
they aiready had, having before
them sheets bound together, each oi
which contained the facts with re
spect to each note or loan. It was
clear from the full and complete lis1
which said examiners handed to him
as well as from their questions anc
the records before them, that the^
had gathered together the mos'
minute, detailed and complete in
formation with respect to each anc
every loan of the complainant, al
of which must have been in ther
possession on April 7, 1919, at whicl
time they have stated that their in
vestigation was not completed, am
upon that ground refused to give th?
information which was then re
quested.
How the Treasury
Officials Worked
"The real purpose and motive o
the said examination, as shown b
the character of the questions pre
pounded and the matters inquire
into, was not to obtain informatio
with respect to the condition of th
bank, but to obtain evidence of in
proper or unlawful conduct on th
part of the complainant and th
said McFadden and of trapping hh
into admissions on the basis of whic
1 the charges made by the defendai
against him might be supported ar
new charges made and prosecute
The said examiners asked practical
no questions with respect to tl
transactions of the complainant e:
? cept those transactions in which sa
McFadden was interested directly <
. indirectly or with which they su
pected that he was identified. Whe
. ever such a transaction was reach?
upon the list which he had befo
him the said Roberts interrupted h
i statement to question him minute
, with respect to the history of ti
transaction, the character and e
! tent of his interest, if any*, t'
character and financial respon
bility of other parties interest
\ therein, and the character and val
: of the collaterals or other securith
: and the trend of his questions w
such as to indicate clearly that th
were directed to the establishmc
of some violation of law. The nu
ner of the said Roberts during st
examination was hostile and insu
. ing, and his questions indicated t
utmost suspicion and constantly
sinuated wrongdoing.
"The said Roberts examined w
minute particularity into the hist<
of the Minnequa Furniture C<
! pany and its reorganization i:
Armenia Furniture Company m
; tioned in the affidavit of Louis
' McFadden, and in this connect
examined from a typewritten mei
; randum containing several pages
previously prepared questions, sh
j ing a premeditated plan with
spect to his inquiry into this t
jeer., and in this inquiry the qi
i tions asked by him related to tri
i actions as far back as th? year 1!
having nothing whatsoever to
with the present condition of th?
bank, and all of these questions were
asked with the full knowledge on the
part of the said Roberts that there
was no paper of the said Minnequa
Furniture Company in the complain?
ant bank at the time of the inquiry?
so that the entire subject was wholly
irrelevant to the purposes of a
proper bank examination. In the
same way said Roberts examined
said McFadden minutely with re?
spect to other transactions which
had been closed, with the plain pur?
pose of establishing some irregular?
ity, impropriety or unlawful act on
his part in connection therewith."
Origin of the
Dispute Described
The genesis of the row between
Mr. McFadden and Mr. Williams, as
it appears to the complainant, is de?
scribed in detail in the bill. "The
defendant," according to the com?
plaint, "has for a period of more
than two years so used and abused
and exceeded the powers conferred
upon him by law as to irreparably
injure and in part to destroy com?
plainant's proper and lawful busi?
ness, and it is his purpose and in?
tention wilfully and maliciously to
continue to inflict irreparable injury
upon it, contrary to law and in vio?
lation of his official duties and pow?
ers and obligations, and by compell?
ing it to submit to his uncontrolled
arbitrary and unlawful demands and
actions and, by the publication of
false and malicious statements with
respect to it and its officers, to vio?
late its rights and to impair and de?
stroy its business credit and reputa?
tion and to bring about its destruc?
tion as a National Banking Associ?
ation.
"That, beginning in the year 1914,
the defendant, without just reason
or cause, has conceived an everin
creasing personal enmity, hatred
and malice against Louis T. McFad?
den, the president of the complain?
ant, which as time has gone on has
increased in intensity and finally
ripened into a determination on the
part of the defendant to bring about
the financial and political ruin of
the said McFadden for his own sel?
fish and personal purposes.
McFadden Started
In Rank as Clerk
"Louis T. McFadden is a citizen
of Pennsylvania and has been in the
complainant's employ as clerk, as?
sistant cafhier, cashier and presi?
dent since 1894. In the spring of
1914 said McFadden, then being
president of the Pennsylvania Bank?
ers' Association, made a public ad?
dress at a convention of said asso?
ciation, in the course of which he
advocated and recommended the
abolition of the office of Controller
of the Currency, contending that,
by reason of the recent enactment
of the Federal Reserve act said of?
fice had become useless and un?
necessary. Said address attracted
considerable public notice and was
quoted and commented upon in the
financial journals and the public
press of the United States, since
which time the reform advocated by
said McFadden has been the sub?
ject of discussion at meetings of
banking associations and among the
bankers of the United States and
among the members of the Congress
of the United States, and said Mc?
Fadden has continued and is pab
licly known to be a leading advo?
cate of the said reform.
"In the fall of 1914 said McPftd
den was elected to be a member o?
the House of Representatives of the
United States from the Fourteenth
Congressional District of Pennsyl
vania and entered the Congress oi
March 4, 1915, since which date h<
has continuously been a member e
the House, representing said dis
trict, and a member of the Com
mittee on Banking and Currenc;
of the House, of which committe
he is now the second member li
seniority. In the course of his pul
lie duties as a member of Con
gress and as a member of said Con
mittee on Banking and Currenc
said McFadden has on many occai
ions opposed recommendations fc
legislation customarily proposed b
the defendant at each session <
Congress, which legislation relate
to the powers of the office of tr
Controller of the Currency and 1
the banking system and currency <
the United States, and on variot
occasions said McFadden has ca
ried his opposition to such propos?
legislation to the floor of the Hous
"The advocacy by the said M
Fadden of the abolition of tl
office of Controller, although tak<
up by him wholly without pt
sonal reference or thought
the defendant, and although su
reform has been indorsed a
approved by many banking as
; dations and bankers and expe
upon such matters, and his oppc
? tion in Congress to measures ad
cated by the defendant constitu'
the beginning of the vindict
I enmity and hatred of the defe
: ant against him and the origi
basis of the determination of the
: fondant to make use of and ab
j his powers over the complainant
I the destruction of the said
Fadden.*'http://chroniclingamerica.loc.gov/lccn/sn83045487/1912-03-01/ed-1/seq-12/
fair use; IN RE: EDUCATION
CONGRESSIONAL RECORD – HOUSE, page 5321
http://home.hiwaay.net/~becraft/JTraficant.pdf
The TRUTH is that Traficant was allowed 5 minutes to speak for purposes of DEBATE ONLY & his remarks were DESIGNED to encourage DEBATE. It’s called RHETORIC & HYPERBOLE. In the REAL speech he was talking about TAXES, the BUDGET & JOBS & he said NOTHING about the things that are attributing to his SUPPOSED “statement”. Here is WHAT he REALLY said.
Mr. Speaker, we are here now in chapter 11.
Members of Congress are official trustees presiding over the greatest reorganization of any bankrupt entity in world history, the U.S. Government.
We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner's report that will lead to our demise.
I am going to support the rule. I am not sure yet if I will support this budget. I want to hear an awful lot more, not being a member of the committee, and I am not going to vote for things I do not understand or do not like, but let there be no mistake. After 12 years of Ronald Reagan and George Bush, we are standing here.
Let me say this to the minority party. Every program that Ronald Reagan wanted in 1981, he got. Reagan got it. There was a Republican Senate majority and there were 70 Democrats in this House that might as well have been Republicans, and we have the program.
The major assumption was very simple. We are going to cut taxes, put money in the pockets of the American people, and when they spend this money our gross national product is going to rise so great that even though we reduced your tax liability on a percentile basis, we will balance the budget, quoting Ronald Reagan, in 1982. It is going to take the fall of our Congress, I think, for that to happen.
Mr. Speaker, let us give this new administration a chance. Democrats gave Ronald Reagan a chance.
But let me give one word of caution here today. America already has race wars, let us be honest about it. We already have gender wars, let us be honest about it. We already have age wars, let us be honest about it.
One thing this Congress had better not get involved in and get trapped into is a class war on money. In America , if you can not earn all that you can, there is something wrong and there is no more a spirit of free enterprise.
I want to say this to the Members. We may talk about taxing the rich, but the rich people have already taken their companies and their jobs out of America . Be careful that the rich people do not take their money out of America, because the government already raises our kids, defends our families, educates our kids, feeds our kids, houses our kids, and the government it doing a very poor job of it. I think mom and dad would be better utilized there once again.
So I am going to listen to the debate. I do not know if I will vote for this budget. Finally, I do not know if the budget makes one damn bit of difference, because we waive it all the time and I do not think we have ever followed it. I think we have an excellent chairman who worked hard. If we are going to have budget, we should follow it. If not, we once again as Members waste both our time and the people's time.
Let me say this just in closing. Today is not the mother of all debates and the mother of all decisions. When that tax package comes, you will have the mother of all votes on the floor.
Let me say this, I am not for voting any more taxes on the backs of the American people, because I believe the tax of 1990 put on right here today, and I am very concerned about the tax package being discussed in this Congress.
I am one Democrat who believes we should stimulate the private sector. We already have more government jobs than factory jobs, and I think that is an indictment of our Congress.
One basic tenet to this Constitution is life, liberty, and the pursuit of happiness, and there can be no life, liberty, or pursuit of happiness in America without job.
I would like to see the mother of all debates center around the jobs bill.”
CONGRESSIONAL RECORD – HOUSE, page 5321
http://home.hiwaay.net/~becraft/JTraficant.pdf
The simple FACT is that the FAKE Traficant “speech” that is widespread on the internet is nothing more that “redemption” CRAP that can be SHOWN to be COMPLETE & UTTER BS IF one actually READS the documents cited in it, asks a few QUESTIONS, does some RESEARCH, THINKS & uses some COMMON SENSE.
FEDERAL RESERVE ACT OF 1913
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf
EMERGENCY BANKING RELIEF ACT OF 1933, 48 Stat. 1
http://tucnak.fsv.cuni.cz/~calda/Documents/1930s/EmergBank_1933.html
JOINT RESOLUTION To assure uniform value to the coins and currencies of the United States
http://home.hiwaay.net/~becraft/HJR192.pdf
For example, HOW could PUBLIC LAW 89-719 have been involved in the United States Government SUPPOSEDLY being “dissolved” by FDR IN 1933 WHEN it is the FEDERAL TAX LIEN ACT OF 1966?
The Federal Tax Lien Act of 1966, P.L. 89-719, C.B. 1966-2, 623, does not refer to a purchase money security interest of mortgage.
http://www.irs.gov/pub/irs-pdf/p785.pdf
HOW could the UNITED NATIONS, the INTERNATIONAL MONETARY FUND (IMF) or the WORLD BANK have been involved in the SUPPOSED “bankruptcy” of the United States in 1933 WHEN they did NOT yet EXIST?
The United Nations is an international organization founded in 1945 after the Second World War by 51 countries committed to maintaining international peace and security, developing friendly relations among nations and promoting social progress, better living standards and human rights.
http://www.un.org/en/aboutun/index.shtml
The IMF was conceived in July 1944, when representatives of 45 countries meeting in the town of Bretton Woods, New Hampshire , in the northeastern United States , agreed on a framework for international economic cooperation, to be established after the Second World War. They believed that such a framework was necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression.
The IMF came into formal existence in December 1945, when its first 29 member countries signed its Articles of Agreement. It began operations on March 1, 1947. Later that year, France became the first country to borrow from the IMF.
http://www.imf.org/external/about/histcoop.htm
The World Bank, established in 1944, is headquartered in Washington , D.C. We have more than 10,000 employees in more than 100 offices worldwide.
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,pagePK:50004410~piPK:36602~theSitePK:29708,00.html
HOW could this ALLEGED “new form of government” have been “instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund” in 1933 WHEN there was NO IMF in 1933? In FACT there is NO “Governor of the International Monetary Fund”, there is a BOARD OF GOVERNORS & the U.S. SECRETARY OF THE TREASURY is OUR “Governor” on the IMF BOARD OF GOVERNORS.
Articles of Agreement of the International Monetary Fund
Article XII - Organization and Management
Section 1. Structure of the Fund
The Fund shall have a Board of Governors, an Executive Board, a Managing Director, and a staff, and a Council if the Board of Governors decides, by an eighty-five percent majority of the total voting power, that the provisions of Schedule D shall be applied.
Section 2. Board of Governors
(h) Governors and Alternates shall serve as such without compensation from the Fund, but the Fund may pay them reasonable expenses incurred in attending meetings.
http://www.imf.org/external/pubs/ft/aa/aa12.htm
Of course the SECRETARY OF THE TREASURY is NOT PAID by the INTERNATIONAL MONETARY FUND since the SECRETARY is OUR REPRESENTATIVE on its BOARD OF GOVERNORS & to do so would be a CONFLICT of INTEREST. Yet sadly, people simply “buy into” a SUPPOSED & ADMITTEDLY incomplete quote from a law that they have NEVER even seen WHEN there is clear EVIDENCE that it is MISLEADING.
Currently, the Secretary of the Treasury earns $191,300 per year. His salary, and those of all Federal Government employees, are paid out of the General Fund of the Treasury.
https://ustreas.gov/education/faq/treasury/officials.shtml#2
And we are SUPPOSED to “believe” that Public Law 94-564, “An Act to provide for amendment of the Bretton Woods Agreements Act, and for other purposes”, that was ENACTED in 1976 is ALLEGEDLY “evidence” of this?
The reforms of the international monetary system which the United States accepts through these amendments are the culmination of years of debate and negotiation following the breakdown of the Bretton Woods par value system in 1971. This new international monetary system recognizes that development of stable underlying economic and financial conditions is in essential prerequisite to the achievement of international monetary stability. At the same time, the new system will provide the increased flexibility, resilience, and reliance on market mechanisms which today's monetary relationships require, replacing the exchange rate rigidity and gold emphasis of the Bretton Woods system.
In the post-World War II era, we have increasingly recognized the importance of a smoothly functioning international monetary system to American jobs, production, and growth and to the maintenance of a prosperous and stable world economy. The attainment of the international economic as well as political and national security objectives of the United States depends in large measure on Our success in maintaining a strong and healthy world economy, and that, in turn, requires a sound, smoothly functioning, and equitable international monetary system. For all these reasons, I am especially pleased to sign into law this act to provide for amendment of the Bretton Woods Agreements Act.
Note: As enacted, H.R. 13955, approved October 19, 1976, is Public Law 94-564 (90 Stat. 2661).
http://www.presidency.ucsb.edu/ws/index.php?pid=6494
HOUSE JOINT RESOLUTION 192 was effectively REPEALED by CONGRESS in 1977.
"Though Congress had passed legislation in 1933 prohibiting enforcement of contractual terms tying contract value to the gold standard, 48 Stat. 112, 113 (1933) (formerly codified at 31 U.S.C. § 463), Congress determined in 1977 that obligations entered into after 1977 would be enforceable. 31 U.S.C. § 5118(d)(2) (1983)." FAY CORP. V. FREDERICK & NELSON SEATTLE, INC., 896 F.2d 1227 (9th Cir. 1990)
http://cases.justia.com/us-court-of-appeals/F2/896/1227/166246/
NO “trust” is created by the issuance of a BIRTH CERTIFICATE.
“In a complaint styled "Action to Quiet Title Equity," plaintiff named himself, under the title "Oreste Lodi, Beneficiary," as defendant. The pleading alleges that defendant Lodi is the beneficiary of a charitable trust, [173 Cal.App.3d 630] the estate of which would revert to plaintiff Lodi , as "Reversioner," upon notice. Plaintiff attached as exhibit A to his complaint a copy of his 1923 New York birth certificate, which he asserts is the "certificate of power of appointment and conveyance" transferring reversioner's estate to the charitable trust. Plaintiff Lodi goes on to allege that for 61 years (i.e., since plaintiff/defendant was born), defendant has controlled the estate, that plaintiff has notified defendant of the termination of the trust by a written "Revocation of all Power" (which apparently seeks to revoke his birth certificate), but that defendant "intentionally persist [sic] to control said estate ...." Plaintiff requested an order that he is absolutely entitled to possession of the estate, and terminating all claims against the estate by any and all persons "claiming" under defendant. fn. 1
As is obvious, the complaint states no cognizable claim for relief. Plaintiff's birth certificate did not create a charitable trust; consequently, there was no trust which could be terminated by notice. “
Lodi v. Lodi (1985) 173 Cal.App.3d 628 (1985)
http://www.lawlink.com/research/CaseLevel3/62490
The FEDERAL RESERVE does NOT “loan” money or “extend” credit to the United States , so there is NO “debt” to pay them. Quite the CONTRARY, its EXPENSES are FUNDED through its operations & it is REQUIRED by LAW to PAY its PROFITS to the U.S. TREASURY. Federal Reserve earned $45 billion in 2009. Wall Street firms aren't the only banks that had a banner year. The Federal Reserve made record profits in 2009, as its unconventional efforts to prop up the economy created a windfall for the government.
The Fed will return about $45 billion to the U.S. Treasury for 2009, according to calculations by The Washington Post based on public documents. That reflects the highest earnings in the 96-year history of the central bank. The Fed, unlike most government agencies, funds itself from its own operations and returns its profits to the Treasury.
As it happens, the Fed's earnings for the year will dwarf those of the large banks, easily topping the expected profits of Bank of America , Goldman Sachs and J.P. Morgan Chase combined. And while the central bank in its most recent financial report had recorded a $3.8 billion decline in the value of loans it made in bailing out the investment bank Bear Stearns and the insurer American International Group, the Fed also logged $4.7 billion in interest payments from those loans. Further losses -- or gains -- on the two bailouts are possible as time goes by. The Fed also charges fees for operating the plumbing of the financial system, such as clearing checks and electronic payments between banks.
From its revenue, the Fed deducts operating expenses, such as employee salaries, then returns to the Treasury almost all of the earnings that remain. The largest previous refund to the Treasury was $34.6 billion, in 2007.
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/11/AR2010011103892.html
In the United States , TITLE to property WAS & STILL IS ALLODIAL in nature. ALLODIUM estates. Signifies an absolute estate of inheritance, in coutradistinction to a feud.
In this country the title to land is essentially allodial, and every tenant in fee simple has an absolute and perfect title, yet in technical language his estate is called an estate in fee simple, and the tenure free and common socage. 3 Kent, Com. 390; Cruise, Prel. Dis. c. 1, 13; 2 Bl. Com. 45. For the etymology of this word, vide 3 Kent Com. 398 note; 2 Bouv. Inst. n. 1692
BOUVIER’S LAW DICTIONARY, 1856 EDITION
http://www.constitution.org/bouv/bouvier_a.htm
TITLE 1 a : the means or right by which one owns or possesses property broadly: the quality of ownership as determined by a body of facts and events
http://research.lawyers.com/glossary/title.html
Having a MORTGAGE means that one does NOT have CLEAR TITLE & truly OWN the property UNTIL it is PAID off & ONLY. In that case, they have an EQUITABLE INTEREST in it, so the BORROWER has the EQUITABLE TITLE & the RIGHT of POSSESSION, WHILE the LENDER retains the LEGAL TITLE.
MORTGAGE - 1 a : a conveyance of title to property that is given to secure an obligation (as a debt) and that is defeated upon payment or performance according to stipulated terms ; b : a lien against property that is granted to secure an obligation (as a debt) and that is extinguished upon payment or performance according to stipulated terms ; c : a loan secured by a mortgage
http://research.lawyers.com/glossary/mortgage.html
CLEAR TITLE: title that exists free of claims or encumbrances on the property broadly
http://research.lawyers.com/glossary/clear-title.html
FUNNY HOW the SUPPOSED “claims”, “arguments” & “evidence” in the FAKE Traficant statement turns out of be COMPLETE & UTTER BS WHEN you go to RESEARCH & VERIFY them. WHAT should that tell us about the “conclusions” that people have DRAWN from it?
GARBAGE - 1 a : food waste b : discarded or useless material, 2 a : trash 1b b : inaccurate or useless data
http://www.merriam-webster.com/dictionary/garbage
Garbage In, Garbage Out (abbreviated to GIGO, coined as a pun on the phrase First-In, First-Out) is a phrase in the field of computer science or information and communication technology. It is used primarily to call attention to the fact that computers will unquestioningly process the most nonsensical of input data (Garbage in) and produce nonsensical output (Garbage out). It was most popular in the early days of computing, but applies even more today, when powerful computers can spew out mountains of erroneous information in a short time. The actual term "Garbage in, Garbage out", coined as a teaching mantra by George Fuechsel, an IBM 305 RAMAC technician/instructor in New York, soon contracted to the acronym "GIGO".[citation needed] Early programmers were required to test virtually each program step and cautioned not to expect that the resulting program would "do the right thing" when given imperfect input. The underlying principle was noted by the inventor of the first programmable device:
“ On two occasions I have been asked,—"Pray, Mr. Babbage, if you put into the machine wrong figures, will the right answers come out?" ... I am not able rightly to apprehend the kind of confusion of ideas that could provoke such a question. ” — Charles Babbage, Passages from the Life of a Philosopher[1]
It is also commonly used to describe failures in human decision making due to faulty, incomplete, or imprecise data.
The term can also be used as an explanation for the poor quality of a digitized audio or video file. Although digitizing can be the first step in cleaning up a signal, it does not, by itself, improve the quality. Defects in the original analog signal will be faithfully recorded, but may be identified and removed by a subsequent step. (See Digital signal processing.) Garbage In, Gospel Out is a more recent expansion of the acronym.
It is a sardonic comment on the tendency to put excessive trust in 'computerized' data, and on the propensity for individuals to blindly accept what the computer says. Because the data goes through the computer, people tend to believe it.
Decision-makers increasingly face computer-generated information and analyses that could be collected and analyzed in no other way. Precisely for that reason, going behind that output is out of the question, even if one has good cause to be suspicious. In short, the computer analysis becomes the gospel.[2][edit]
While the term Garbage In, Garbage Out was coined originally by the Information Technology sector, the same ideology can be applied in any field in which it is difficult to create a good result when given bad input. For example, in translation, it is difficult to convert a source text that is confused, illogical or missing pertinent information into a quality translation. A translator may use the phrase "Garbage in, garbage out" to explain the importance of good source text to a client. As another example, in quality implications, the quality of the materials a manufacturer procures directly affects the quality of the finished product.
And given the FACT that most of the sites & people PROMOTING the FAKE Traficant “speech” are also PROMOTING “redemption”, SHOULDN’T that tell us something about THEM & IT? ESPECIALLY IF we discover that they are PROMOTING other BOGUS “information” about other things such as CITIZENSHIP, TAXES & LAW.
Are they merely DELUSIONAL “Patriot Nut Jobs”, OR are they being MACHIAVELLIAN & SCAMMING people to DELUDE & BRAINWASH them for their own SOCIAL, POLITICAL and/or ECONOMIC REASONS?
DELUSION - 1 : the act of deluding : the state of being deluded, 2 a : something that is falsely or delusively believed or propagated b : a persistent false psychotic belief regarding the self or persons or objects outside the self that is maintained despite indisputable evidence to the contrary; also : the abnormal state marked by such beliefs
http://www.merriam-webster.com/dictionary/delusion
MACHIAVELLIAN 1 : of or relating to Machiavelli or Machiavellianism, 2 : suggesting the principles of conduct laid down by Machiavelli; specifically : marked by cunning, duplicity, or bad faith
http://www.merriam-webster.com/dictionary/Machiavellian
SCAM - a fraudulent or deceptive act or operation
http://www.merriam-webster.com/dictionary/scam?show=0&t=1294866976
BRAINWASH - 1 : a forcible indoctrination to induce someone to give up basic political, social, or religious beliefs and attitudes and to accept contrasting regimented ideas, 2 : persuasion by propaganda or salesmanship
http://www.merriam-webster.com/dictionary/brainwash
And IF people are HONEST with themselves, ISN’T the primary REASON our government & the people are in DEBT is because WE keep SPENDING ourselves into DEBT?
The government SPENDS more than it takes in & so it FINANCES things through the sales of SECURITIES that have to PAID back with INTEREST.
The federal budget deficit narrowed to $1.3 trillion (8.9 percent of GDP) in fiscal year 2010, from $1.4 trillion in fiscal year 2009 (almost 10 percent of GDP). Page 6, TREASURY BULLETIN
http://www.fms.treas.gov/bulletin/b2010_4.pdf
You haven't heard of the Bureau of the Public Debt before? We're a small agency within the Department of the Treasury. Our customers are your neighbors, co-workers, and most likely you, too. You're our customer if you've ever bought any type of Treasury security for yourself or, as millions have done in the case of savings bonds, as a gift for someone else.
Our job is to borrow the money needed to operate the federal government and to account for the resulting debt. In a nutshell, we borrow by selling Treasury bills, notes, and bonds, as well as U.S. Savings Bonds; we pay interest to investors; and, when the time comes to pay back the loans, we redeem investors' securities. Every time we borrow or pay back money, it affects the outstanding debt of the United States .
http://www.publicdebt.treas.gov/
What is the Debt Held by the Public? The Debt Held by the Public is all federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside the United States Government less Federal Financing Bank securities. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.
http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm#DebtOwner
And people go out & BUY houses, cars & other things they can NOT afford on CREDIT which has to be PAID back with INTEREST, instead of SAVING for things. NO ONE put a gun to our heads & forced us to BUY a house that required TWO INCOMES to AFFORD, DID they? Or to BUY a NEW car that DEPRECIATES 25 PERCENT the moment we drive off the lot & requires us to carry FULL COVERAGE insurance. Or to put that 42 inch Plasma TV on our credit card. WE CHOOSE to do it, DIDN’T we.
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Ron Paul 2012! - Saturday, February 5, 2011 at 10:05 AMIf this is made up, then how do you know? Prove it. __How do you expect anyone to believe you? Looks pretty real to me.
Chuck - Tuesday, May 3, 2011 at 08:50 AMI see your hyperbole and feel you are ranting with a high school education. Prove your statements. How do you claim to understand what Traficant was saying as hyperbole to establish debate?
http://coupmedia.org/economy/the-fake-traficant-speach-and-your-american-debt-2801
By PLAVEB
Copyright 2007 Coup Media Group
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