The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-04-15
RIGGS BANK FIGHTS
FOR ITS EXISTENCE
CONTINUED FROM PAGE ONE.

been made that Seward was to be the
terminus of the government railroad.
was pointed to as significant by
friends OF the Riggs Bank. 1t was
pointed out also that S. F. Congden
who had been acting as assistant pri-
vate secretary to Comptroller Will
Jams. had been selected as cashier Of
the new branch. Commenting on this
Mr.. Williams said yesterday:
81 knew nothing of it until the young
man told me of the offer. and / presume
the gentleman at the head of the insti-
tuition chose him because of his knowI-
edge of the banking law and practice.
"BluT." Says Bank Attorney.
Mr.. Williams refused yesterday to dis
cuss the report that criminal prosecu-
tions against some OF the officers of the
bank Were in contemplation. United
States Attorney for the District of CO.
lumbia. John L. I.askey, who was called
into conference by the Attorney General
yesterday. also refused to discuss the
case. Attorneys for the bank did not
take seriously, they declared, the sugges-
ton of criminal prosecutions One OF
them characterized the report as all
bluff
The big question which is overshad dow
ing all personal controversies between
the Riggs Bank officers and the Treasury
officials is that of the powers of the
Comptroller under the law. The proceed
ings begun by the Riggs Bank officers
will. therefore, test out this general uues-
ton for the banks of the country, and
will determine to what extent officials at
Washington shall be able to pry into
their affairs
In this connection the issue raised by
the Riggs Bank court proceedings is
certain to find its way into Congress
with the converting of the next session.
The matter already has been considered
by some of the Congress leaders quietly
before the adjournment of the last ses-
sion, when a bill was drawn by a prom
inent Eastern Republican providing for
the abolishing of the office of Comptrol-
Ter OF the Currency. 1t was the conten-
ton of this Republican that the creation
of the Federal Reserve Board had made
the ONCE of comptroller superfluous and
that his duties ought to be exercised by
the Federal Reserve Board.
1t is in regard to the Comptroller's
power to call for special reports that
the Riggs Bank and Mr.. Williams have
their chief points OF difference.
Broad Powers Claimed.
|oihptioiiti w has
this section to give him the broadest
kind of powers to pry into the affairs
of national banks. The Riggs Bank
contends that the section confers no
such powers as the Comptroller con-
tends. and that if it does it is in vio-
lation of the Fourth and Fifth amend
ments to the Constitution of the United
states which guarantees citizens
against searches. seizures of papers,
and against depriving them of prop
erty rights without due process of law.
In banking circles here 1t is argued that
no Comptroller of the Currency up to
the present time has ever interpreted the
law to give powers such as Comptroller
Williams has attempted to exercise.
1t Is certain that the administration
will resist with all its power any attempt
to abridge the Comptroller's interpreta-
ton OF his powers under this section.
1t has been suggested on behalf of the
Treasury officials that the courts might
refuse to interfere with the executive
functions of an officer of the government.
but the Supreme Court has decided that
where an excess of power or function
has been disclosed an injunction may be
obtained. lnjunctions have several times
been laid on Cabinet officers.