The Sentinel=record., 1915-05-22


 Washington, May 21.-At the con clusion of five days of argument, Jus tice Mccoy of the district supreme court took under advisement today the motion of the government to dis miss the suit brought by the Riggs National Bank to enjoin Secretary McAdoo, Comptroller of the Currency Williams and Treasurer Burke from alleged unlawful persecution of the bank.
 Relief sought by the plaintiff pend ing litigation was denied by the court except as to the payment into the treasury of 5000 interest on bonds due the bank and withheld to cover penalties imposed by the comp. troller for failure to furnish certain reports. A temporary restraint against the payment of this money into the treasury was granted at the outset of the proceedings and the court later will pass upon questions of continuing it.
 Justice Mccoy indicated he would endeayor to dispose of the case be- fore July 1. In denying the prayer for an injunction pending litigation he said there was nothing in the rec ord now which showed the govern ment officials has exercised arbi- trary power or power arbitrarily in the refusal to select the Riggs bank as a reserve agency.
 Tt seems to me on the record as it stands that the government off cials would be remiss in their duties in selecting it." said the justice "The evidence here is of persistent violations of the law and those vio. lations did not begin when Mr. Will Hams came into office and they have continued to this day"
 As a judge in passing on banking questions, Justice Mccoy added it might not be out Of place for him to say that the policy of not hayin, deposits in stock exchange banks as compared with commercial banks was a good one and that congress had adopted the same view in the federal reserve act.
 The court also considered the 1 charge that Secretary McAdoo showed malice in an interview in his office 1 with Riggs bank officials. The jus tice said it appeared the malice was rather on the other side"
 At the opening of the days ses- sion Samuel Untermyer of govern | ment counsel presented a bookkeep CTS affidavit that there were six | thousand stock tran actions shown | on the books of Lewis Johnson x Company, stock brokers, in the name | of the Riggs bank,
 Mir. Untermyer, who made the con cluding argument for the government | after former Senator Bailey had clos ed for the bank, declared that it ap- peared two officers of the bank were getting personal benefit from such transactions for which the Riggs bank furnished the security.
 DO you know said Justice Me Coy, whether there is anything to show that Johnson X Company it the market had gone wrong, could have held anybody responsible but the bank?'
 The attorney declared the stock brokers could have recovered only from the bank
 T think that the record as now made up.' commented the justice, shows that the Riggs bank was deal ing with Lewis Johnson x Company in a legal sense, whatever interest may have been behind the dealing"
 "Yes and to say that such is scan ialous is to express it mildly add ed Mir. UnteTmyer.
 Mir Untermyer turned to a further criticism of the account kept in the name of Flather X FlatAer.
 q have seen nothing in this rec ord of any attempt at an explanation of the existence of such an account" said Justice Niece.
 MT. Untermyer began answering an argument by Mir. Bailey that the law defining the powers of the comptrol- ar of the currency as construed ny he government was unconstitutional but was stopped by an announcement -hat the court was not in doubt on the point.