New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-13
Controller Declares Their
Acts Forced Move
Against Them.
CHARGES IMPROPER
LOANS WERE MADE
Quotes Letters Complaining Of
False Statements Made by
Bank to Treasury.

From The Tribune Bureau.
Washington, April - John SHELTON
Williams. Controller Of the Currency,
issued a statement to-day relative to
the suit for conspiracy brought
against him and Secretary NcAdoo by
the Riggs National Bank.
After telling Of placing the case of
the Riggs Bank in the hands of the
Department of Justice. Mr.. Williams
admitted the bank was solvent, but
said that if the methods and prac-
tees of the bank officers complained
of had been permitted to continue, the
results would have been serious
The Controller declared the whole
purpose of the Treasury Department
had been to force the bank TO give up
unlawful and dangerous practices which
had been in vogue for years and which
had threatened alike depositors and
stockholders. He quoted from one OF
his letters to the bank Directing to
"the practice Of having the president
vice president and cashier of a nation
al bank conduct a brokerage shop, buy
ing and selling wildcat stocks
THE recent Investigations of the af-
fairs of the Riggs National Bank"
Controller Williams's statement says,
disclosed irregularities and unlawful
practices on the part o. certain officers
Of sufficient importance 20 merit their
reference TO the Department Of JUS
tice, and that department engaged the
services of Louis h. Brandeis, of Bos-
ton. some weeks ago as special counsel
in the case. II is consistent with the
attitude Of these officers to attempt by
unwarranted and untrue statements to
place themselves and the bank in a
position of martyrdom at the hands OF
the administration.
at is not the practice of this depart
ment 10 discuss in the public press the
affairs of any national banking associa-
ton. but since the officers in question
have had the temerity TO submit this
matter TO the court. the Office is pre-
pared TO show a condition of affairs IN
the management Of this institution
which fully warranted the action taken
by this Office.
Declares Bank Solvent.
"The bank is solvent. The interests
of the depOsitors have been safeguard
ed by the actions of the Controllers
Office. but if the methods and practices
complained of had been permitted to
continue the results would have been
serious. The evidence will abundantly
show that it has been necessary for
this Office to seek to terminate the rep
rehcnsible practices of the officers IN
question and their misuse of the pow
ers delegated to them by the directors.
"The penalty imposed for failure TO
make reports, the collection OF which
PENALTY they seek to have enJoined,
grows out of their unwlllngness TO
disclose the true nature of the transac-
tions engaged IN
"The whole purpose Of the depart
ment has been to require the bank TO
give up the unlawful ard dangerous
practices and methods which had been
in vogue for years past, and which had
threatened alike the welfare and Sc
curity of both shareholders and de-
positors. and TO require the bank to
conform to the plain requirements of
the national bank act and to the regu-
lations of the Office of the Controller
of the Currency.
ain view of the many false and mis-
leading statements contained in the
announcement by the Riggs National
Bank and the references of the bank
to the letters which it has received
from this office. this office thinks it
proper that the public should be given
further information as TO the true con-