New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-14
Attorney General Engages
Brandeis to Defend
Treasury Heads.
GREGORY DIFFERS
WITH CONTROLLER
Rank Issues New Statement De-
rouncing Williams and De-
Tending Its Acts.
From Ire Tribune Bureau

kat amounted 20 a question OF Verac-
-, between Attorney General Gregory
- lain SHELTON Williams, Controller
- the Currency, over one Of the de-
..n. involved in the suit Of the Riggs
v..onsl Bank against Controller
w;,,,srs and Secretary McAdoo.
This question was at what time
ro,is n Brandeis was retained by the
D.,.-.ner. Of Justice 70 prosecute the
a;,-ecrlarities and unlawful practices
.u.gsd against the Riggs Bank by Con-
roller Williams. In his statement
..;,.o8 IN The Tribune to-day, Mr.
WILLIAMS said Mr.. Brandcis had been
stained bv the Department Of Justice
a.oue weeks ago" following con-
,rl.a-;or between the TWO departments
A. the White House, after the Caol-
20, meeting to-day. Attorney General
c,sgorv declared Mr. Brandels had
-, beer engaged by the Department
- Jpstice. but probably would be, as
,r,cial attorney for the department.
Nh Gregory's attention was called
,..s- N The fact that this was fat
,or,ra6ict.on Of Controller Williams's
,,.tsment. and he was asked whether
ts wished 10 let it stand. After con
tsrr;re with Mr. Brandeis half an hour
Nv Gregory dictated the following
statement:
oTbe Department Of Justice has en-
,ioved Mr.. Brandcis as special counsel
- assist in the defence Of the injunc-
.ion proceedings brought by the Riggs
National Bank. Up to the filing Of the
.oi, Yesterday, the Department Of JUS
.;,s had not had before it for official
consideration the controversies between
the Treasury Department and the Riggs
National Bank, but knew in general
way that .bese-ekfster+-a-nd might re
sDlt in some character Of litigation
Controller Williams insisted that
this vas due merely TO "mlsunder-
standing" but after ne had talked by
'nbste with Nr. Gregory the Depart
mert Of Justice issued another state
ment saying only:
"Tbe Department Of Justice and the
Treasury Department are IN accord and
heartily cooperating in this SUIT
Brandeis Silent and Busy.
The only man who could stralghten
out the difficulty was Mr.. Brandels. VINO
smilinglv refused 10 answer any ques-
tcns. lie waved his hand toward the
Attorney Generals Office and remarked:
'Ee will give YOU all the facts. / refer
you 10 the Attorney General.
Whenever Mr. Brandeis was put on
the case. he was very busy on it to-day.
There was scarcely an hour in the day
that he was not in conference either
with Attorney General Gregory, Con
troller Williams or one Of the special
attorneys assigned to the case.
Nominal charge Of the case was taken
BIZ Charles Warren, one Of the depart
ment attorneys, whose specially is
bank cases Mr. Brlndcis will be IN
command Of the administration forces
He will he assisted also by Jesse {.
Adkins. who was connected with the
New Haven Railroad investigation and
with the case against the American
Can COMPANY. I'm addition 20 these,
United States Attorney John f. Lasky
was told 20 cooperate with the attOr-
neys for the administration.
1t was pointed out tonight that Mr.
Brandeis hardly could have been en-
p yed on the injunction case until
yesterday, because there was no m
junction case until yesterday. The
language of the Attorney General was
regarded. however. as too sweeping to
permit such an easy explaining away
Of the difference between him and the
Controller
Bana Denouuces Williams.
The statement issued by Controller
Williams was denounced as malicious
and as containing unfair insnuauons'
as well as out-and-out falsehoods, in a
statement issued tonight at the o .ce
Of ex-senator Joseph W. Bailey, coun-
sci for the Riggs Bank.
One Of the most caustic references
IN the statement is on the Controllers
criticism of The collateral behind Ger
tain loans OF the bank. In this the
bank admits that il has as part of ,he
collateral for loan bonds of the
Georgia & Florida Railroad Company
OF little or no market value, Of which
load he Controller Williams was for
merly the president. and which bonds
he was instrumental in marketing"
The statement Of the bank, IN part,
follows:
"The Controller characterizes as
hmerty' the course Of the bank IN
tppeallng 10 q court Of justice for pro
lection against this unlawful exercise
o. his authority which is typical OF
ne entire personal and official attitude
Of Mr.. Williams.
The Controller declares that the
oank is solvent, but he attempts to
take credit for this satisfactory condl-
uon OF the bank and for the safeguard
,ns Of its depositors by saying that If
we methods and practices complained
VI mad been permitted TO continue the
results would have been serious. All
ms he says in the face Of the with
GrS"sl Of hundreds Of thousands Of
collars Of public and other deposits
eueeted by and through him duri 6 the
sumner and autumn Of 1914, at time
When financial conditions were exceed
I9gly uncertain in this country because
me great war in Europe.
he claims this credit in face Of the
.act that, although early in the contro-
seNy ne was requested, first by the
directors Of the bank and then by the
attorney OF the bank, 10 specify the
Naeuces o. which he objected, lie per
FS~nuy refused or failed to & 90.
Loans to Women.
Inc Controller complains that the
Ssn Ssns IS loaning more than million
Ssrs TO women. and adds that much
" Is on highly speculative stocks.
Continued on page s. column 2