Evening star., 1915-05-15
SEPARATE RETURNS MADE
BY THE THREE OFFICIALS
Secretary McAdoo Makes Counter.
charge That His Being Named Is
Due to Ulterior Motives.
NO I'LL WILL OR MALICE
Controller Williams and Treasurer
Burke Justify ALI Acts as Exer-
else of Discretion Invested
by Law.

/. William G. McAdoo. Secretary
OF the Treasury: John Skelton
! Williams. controller OF the cur,
rencv, and John Burke. treasurer
oi the United States. filed in the
District Supreme Court today an
answer, in the shape oi affidavits.
to the Injunction suit brought by
the Riggs National Bank chars-
ing them with conspiracy to
wreck the institution. Their an
swer is a sweeping denial OF all
the banks charges
| Mr.. Williams Denies Malice.
! Denying that any of his acts have
| proceeded from Ill will, malice or
, hatred. the controller Of the currency.
| John SHELTON Williams, in his return.
| justities all his acts relative to that
/, Institution the exercise of discre-
| tion vested in his Office by law and
warranted BY original suspicion Of ir-
regular banking methods which inves-
| tigation determined to be unlawful.
! He further declares he has no purpose
to impose penalties upon the Riggs
National Bank other than the penalty
/; of $1,000 already imposed and the sub
ject OF the injunction asked
| The Secretary of the Treasury. Will
| liam G. McAdoo. in his return. sets
| forth that no official act of his is
| sought to be enjoined or reviewed in
the complaint of the Riggs National
Bank. and that he has no power or
suit The fiscal policy of his admin
istration purporting to apply de-
posits of public moneys to the bona
| flde industrial needs of each special
of deposits from the Riggs National
| Bank, on evidence that its funds were
| being disproportionately employed in
stock speculation, with comparatively
! insignificant portion loaned on com
| mercial paper.
| The treasurer of the United States.
John Burke, third defendant party to
| the suit, in his return declares he has
withheld payment to the Riggs Nation
al Bank of the sum Of $4,000 in com
pliance with the lawful direction of the
controller of the currency. He further
declares the Secretary Of the Treasury
| has never usurped, attempted to usurp
or to exercise any power or authority
! vested in the treasurer of the United
States.
| Separate Returns Filed.
! separate returns were filed by the
three defendants Notwithstanding that
motions have been filed for dismissal
Of the proceedings on the ground Of
Jurisdiction. all the allegations. insin
| uations ad conclusions affecting the
controller of the currency and the Sec
NJ ho
detail
| Among the affidavits filed with the re-
turns as exhibits is a transcript of the
account Of the Riggs National Bank from
firm of Lewis johnson Co. made by
| Wesley NJ. Bennett, expert bank account
ant employed by the Department OF JUS
tice Another exhibit gives record of
what are alleged to have been loans made
| by the Riggs National Bank to officials
! and employees of the Treasury Depart
ment and other government employees.
! Controller Williams recites in detail
his investigation of the condition of
| the bank and explains his motives in
Justification of the propriety of his pro-
| csdure. The report of the bank ex
aminer, re declares. made in May. 1914
revealed to him that three -fourths Of
| the banks total loans were upon stocks
and securities and that 1t had been
charged with conducting stock brok-
/ erage and real estate business through
/
Secretary McAdoo and Controller Will
1 liams in their long affidavits declared
| they did not combine or conspire to in
jure the bank. that their actions. which
charge, were taken in the exercise Of
| proper discretion, and because of con-
| ditions in connection with its manage
| ment, the propriety and sometimes the
Iawfulness Of which they questioned.
| Countercharge by Mr.. McAdoo.
| Secretary McAdoo. in his affidavit,
makes this counter charge:
| II charge and aver the fact to be that
my inclusion in the suit is due to ulte-
rior and improper motives and resorted
| to solely for the purpose of thereby
uttering and publishing grossly false
| and libelous statements under the priv
ilege and protection of judicial forms
/ and free from the legal accountability
| mat would otherwise be involved"
Submits transcripts of Accounts.
| wesley NJ Bennett, expert bank ac-
coupntant of the Department of JUS
/ tice, who submitted transcript of the
| account of the Riggs Bank with the
| stock brokerage firm Of Lewis Johnson &
i Co also submitted transcripts of the
' personal accounts with the same firm
i Of w. j. Flather and II. H. Flatffer,
! vice president and cashier of the bank.
i respectiyely, covering the period 1908
| 10 1914. Mr.. Bennett gives an analysis
| Of twelve transactions. representing all
he had had time to study so far, and
| describes several short sales" In the
settlement Of each of these transac-
| tions. Mr. Bennett says. the check for
Il the profit was made to the order of H
1 H. Flather
Secretary McAdoo's Afidavit.
i Secretary McAdoo. in his affidavit, de-
i clares that the complaint states no
cause of action against him, and points
4 out that he has no power or duty with
i respect to and is in no way concerned
lContinned on Eighth Page.A