The Washington times., 1915-06-14
Supplemental Brief Alleges In.
consistency in PIeadlngs Of
McAdoo, Burke, Williams.
$4,000 CHARGE is ATTACKED
Declares Court Has Right to Is
sue Restraining Order, as No
Basis of Merit Is Noted.

Inconsistency in the pleadings OF the
Government officials named In the in
function suit of the Riggs National
Bank against Secretary McAdoo, Treas
urer Burke. and Comptroller Williams
II charged in a supplemental brief filed
by the banks attorneys. former Senator
Bailey and Frank ]. Hogan, in the Dis
trict Supreme Court.
The brief Is in answer to supplement
tary claims of the Government officers
that the 5000 fine assessed against the
Riggs institution by the Comptroller
went automatically into the United
States Treasury and that the bank has
no redress except in the Court Of
Claims.
What Bank Alleges
The bank AYERS that the answer OF
Treasurer Burke in the suit was that it
was his intention to withhold the
5000 unless restrained by the court. 1t
Is contended by the bank that ap-
parently this 5000 was not covered into
the Treasury prior to the institution
Of the suit and that no such action
could have been taken thereafter with
out sanction Of the court.
The brief of the bank, says in part:
The bill alleges that 1t Is the inten-
ton of the defendants to pay the said
interest into the Treasury Of the United
States The motion to dismiss con-
cedes this to be true, and under 1t the
defendants cannot set UP as a ract that
the money has already been paid into
the unappropriated funds in the Treas
4f y,,it tAl Ctofn
1.-THE bill AYERS as a fact that the de-
fendant McAdoo had usurped the power
and authority OF the Treasurer OF the
United States, and had himself as
for interest due from the United States
on it's bonds. The motion to dismiss
comedies this to be true.
Charges Coercion.
'The bill. after having. in substance.
charged that the IS. 900 interest money
due the bank. but retained by the Sec
retary of the Treasury. would be COW
cred into the Treasury. unless the
: defendants are enjoined by this court.
further charged that the defendant
Burke will be coerced by his code
&endants into doing their bidding in
the premises unless an Injunction is
sues.
"The motion to discuss admits the
truth of this charge, as II must nee
essarily be taken to admit the truth
Of all the facts alleged in the bill.
IN passing on defendants motion to
dismiss, to assume that payment of
the 5000 referred to was withheld by
the Secretary of the Treasury, and
under the. control of the defendant
Burke. and has not been covered into
the Treasury.
''If the plaintiff bank before April l.
1915. incurred penalties imposed by law
for failure to perform a duty required
by law within a time specified by law,
and the Comptroller legally assessed the
total of these penalties then accrued
and upon that assessment legally or
dered the retention of a sufficient sum
of interest moneys due the platntif
bank to cover the penalties SO imposed
and assessed. then the bank Is without
cause of action in this suit, its bill
must be dismissed for want Of facts
OF the money in the Treasury is an ut
terly immaterial consideration.
"Vain and Futile"
IT. on the other hand. the bank wa,
not on April /, 1915, lawfully subject t
the penalties which the Comptroller at
tempted to assess, then his action, al
: disclosed by his letters of March 30
1915, to the bank and to the Treasurer
was illegal and utterly void. and hi!
demand on the bank for payment O.
the alleged penalties, and his order t.
the Treasurer to retain an amount O
interest money equal to the alleged
penalties. were alike vain and fulfill
. "They amount to naught; they could
accomplish nothing; they imposed NJ
: liability on the bank; they constituted
no foundation for any lawful actor
6ynnae.I By the Treasurer; they could operate NJ
from appropriated to inappropriate
act can accomplish anything, It Is un
sessment of penalty could deprive tn
bank of its money.
80. in the last analysis. there is NJ
additional phase to that which th'
court must determine. If the penalt,
was lawfully imposed and assessed, tn
bank has no remedy: If the penalty wa
not imposed by law. and assessed II
strict, strict compliance with law, then II; tn
amounts to naught and is impotent t,
change the legal status of the interes
money involved as part Of this controv
ersy. or to affect the banks title there
in and right thereto.
Alleges No Merit.
1--WE respectfully submit that ther
is no merit in the contention that. be
cause the money wrongfully withhel
by the Secretary or the treasury on IN
unlawfully issued order of the Comp
troller. is in the vaults of the Treas
ury. that this court is without tn
power to issue its writ restraining 1t
further retention, and commanding 1t
forthwith payment, or that this plain
tiff Is without remedy here.
The plaintiff bank has on depos
with the Treasury of the United State
$l,o0O. 600 of Government bonds. Tn
letter of April l. 1915, written by direc
ton of the Secretary of the Treasury
refers to these bonds as with tn
trust for your bank. The trust is a
applicable to the interest thereon a
to the principal thereof,
"By the terms of the bonds and b