Norwich bulletin., 1915-04-13
Bank Charges
a Conspiracy
BY SEc'Y. M'ADoo AND JOHN S
WILLIAMS
COMBINED TO WRECK
Riggs National Bank of Washington
D. c. is Alleged in Proceedings Be-
gun in District Supreme Court.

Washington, April IL. - Secretary
McAdoo of the treasury department
and Comptroller of the Currency John
Shelton Williams vert made defend
ants today in proceedings begun in the
District of Columbia supreme court by
the Riggs National bank of Washing
ton, D. c., which alleges that these Of
f1cials have combined and conspired
to wreck that institution.
Injunctions Are Sought.
Temporary and permanent injunc-
tions to halt the alleged conspiracy and
to prevent the comptroller from max
ing what the bank charges are unlaW-
full demands for special reports of Vari-
Gus kinds are sought from the court.
One portion Of the petition seeks to
restrain John Burke, treasurer of the
United States, from payment into the
treasury of $1,000 declared to be due
the bank as interest on $1,000,O0O of
United States bonds deposited with the
comptroller against it's note circula-
ton. This interest was withheld to
cover penalties of 800 a day for failure
of the bank to make certain reports.
Once paid into the treasury, only an
act of congress could get the 5000 out,
and Justice Mccoy late today granted
temporary injunction on this phase
of the case.
The justice then set April 16 as the
day for answer by the defendants to
show cause why permanent injunct1ons
should not be issued.
The banks bill of complaint covers
Sc typewriter pages and contains 81
specific allegations designed to show
that the comptroller has adopted un-
usual and legally questionable tactics
in dealing with the institution. 1t re-
cites that evidence of an unusual de-
sire for information concerning the
bank was shown by Mr.. Williams
shortly after he assumed the Office of
| comptroller more than a year ago and
has continued ever since. Prior to that
time, in December, 1913, it says, Mr..
| McAdoo charged officers of the bank
with responsibility for publications
| regarding the official conduct Of the de-
Sendant Williams as assistant sec
retary of the treasury. When
the bill asserts. Secretary McAdoo
| cursed Milton E. Allies, vice presi-
dent of the bank, and said to C. C. Glo-
yer, its president
'Mr. Glover. you know what this
| means to the Riggs National bank ?''
Meaning thereby the bill adds,
| that from that time on the power of
| the treasury department would be ag-
gressively used for the ruination and
destruction of the plaintiff bank in or
der to satisfy the personal malice and
| ill-will Of said defendants, Williams
and McAdoo. and shortly afterwards
| the said defendants, Williams and Nc
Adoo, began a series of prosecutions
against the plaintiff bank for the pur-
pose pose OF impairing or DESTROYING its
| their high public office and violating
their oaths in order to vent their per-
sonal vindictiveness against the Off
| GERS of the plaintiff bank"
Tax Withdrawals.
|
ayers, the bank was notified by c. S
| Hamlin, now governor of the federal
reserve board, but then assistant Sec
retary Of the treasury, in charge of the
| fiscal bureau, that Secretary McAdoC
purposed to exclude the Riggs bank
from a share of deposits to cover the
| District of Columbia tax Withdrawals
which deposits by custom are divided
among the national banks of the dis
| trict.
McAdoo Refused to Explain.
McAdoo later wrote to Mr.. Glover
| the complaint states, declining to eX-
| plain why such action should be taken
and announcing at the same time his
| intention of withdrawing all govern
ment funds from the bank. Subse-
| quently, 1T is alleged, government de-
posits amounting to over $1,200,00t
were withdrawn from the bank, includ-
ing Panama canal deposits amounting
| at OIIS lI1HS " SI,1Oo,tGo.
These Withdrawals were brought
about by Secretary McAdoo, it as
| charged, at a time when the European
| war and the business depression in the
| United States had made banks hus.
band their resources and 'in delib-
crate attempt to wreck the plaintiff
| bank, in the execution of the con-
spiracy existing between him and the
| defendant Williams for that purpose
Further complaint is made that Mr.
| Williams, as treasurer of the Rec
| Cross society, had the funds which Il
kept on deposit with the Riggs banl
removed to other institutions.
Special Reports Demanded.
For almost a year, the bill AYERS, the
National bank with demand for spe,
cial reports of many sorts, exceeding
the inquisitorial and visatorial power:
| vested in him. The bank declare!
that it has made an effort to comply
with these demands, has worked 1t.
clerks early and late to do so, but tina:
requests for a little time have beer
met with refusals and in some in
stances with a reminder that failure
to make reports asked for by q comp
| troller involve a penalty Of 800 fol
each day after a report is demanded
and not rendered. Exact figures as tt
penalties which the comptroller ma!
hold the bank has incurred in thi
connection, the bill states, is not clear
but it estimates that it mus the at leas
$150,000.
In making some of these demands
the bank alleges, Mr.. Williams has VIC
lated the fourth and fifth amendment,
to the constitution, prohibiting unrea
sonable searches and seizures ant
forcing anyone to be a witness agains
himself.
Assessed Penalty of 5000.
In February last, according to tn,
bill, Mr.. Williams wrote to the banl
asking if its officers had destroyed an.
of it's records. On March 80, it furthe
sets forth, he demanded a completl
history of loans of the Riggs bank t,
its present officers, and gave motto
that for failure to comply with a lik
request made on Jan. % 1t was as
sessed a penalty of $4,000. The mex
day formal demand for payment o
this fine made by two bank examiner
was refused. On April 1st a quarterl.
installment Of the interest on tn