The sun., 1915-05-16
Files Counter Charge That
New York Concern Is
Behind Action.
SAYS AILES AS AGENT
GOT GOVERNMENT AID
Denies Malice and Contends
He OnlyP Stop to
FavOritism.
WILLIAMS REVEALS
LOANS TO OFFICIALS
vanderlip Issues Denial,
but Will Not Discuss
Case Now.

WASHINGTON. May i5.-Secretary Of
the Treasury McAdoo has made an
effort to drag the National City Bank
OF New York into the controversy that
has resulted from the suit OF the
R!ggs National Bank to restrain hin,
and Comptroller Williams from carry.
ing out an alleged conspiracy to wreck
the latter institution Mr.. McAdoos
attempt to involve the National City
in the row became apparent to-day,
when the Government officials filed in
the District Supreme Court answers
to the Riggs bank charges.
In the complaint of the Riggs bank
against Secretary McAdoo and Comp.
troller Williams the big New York
city bank was not involved in any
way. Mr.. McAdoo in his answer,
however. repeatedly couples the Riggs
hank with the National City Bank AMI
reviews transactions in which the
National City figured and which In no
way appeared in the original COM
plant.
He sets forth the large Government
deposits which the National City got
from the Government in the years
when Frank A. vanderlip. now presi.
dent Of that institution. and Milton f
Allies. now vice-president OF the Riggs
National Bank. we're serving as As
s.stant Secretaries Of the Treasury.
Charges Allies Aided Bank.
Mr.. McAdoo charges that Ave days
before Mr.. Allies resigned as Assistant
Secretary he deposited without inter-
est charge s2.900.00o OF Government
funds with the Riggs bank, which de-
post was Immediately transferred to
The National City Bank Of New York.
Mr. Allies himself became vice-pres!-
dent Of the Riggs National upon re-
signing from the Treasury and evev
since, according to Mr.. McAdoo. has
been receiving a salary from the Ma
t!onal City as well as from the Riggs
hank
Although no definite charge Is made,
the McAdoo answer seems to be drawn
With view to creating the impression
:hat the National City people are be-
Lind the Riggs banks attacks. 1t has
been predicted here ever since :he
suit began that the Government off,
Gals eventually would raise the cry OF
standard Oil" in their defence and
the impression here Is that NJ. Nc
Adoo, under the guidance Of Samuel
tntermyer, is moving In that direc-
ton.
Both Secretary McAdoo and Comp
troller Williams deny they have had
any malice toward the Riggs bank
and both of course deny the charges
Of conspiracy to ruin the business OF
that institution.
Counter Charges Made.
The affldavits fied by Secretary Nc
tdoo and Comptroller Williams consist
largely OF counter charges against the
o',lclals of the bank and statements de-
signed TO show that II IN not n At
d"positary for Government funds or for
other national banks. because OF the
character of It's management.
secretary McAdoo seeks to Justify his
withdrawal OF Government deposits from
Inc Riggs bank on the ground that the
liked policy of the Department under
his administration has been to place
Government funds with banks which use
them largely In commercial loans and in
benefiting legitimate business. The Riggs
bank, Mr.. McAdoo contends. based the
most OF its loans upon stock collateral,
'he money being used in speculative
ventures
Comptroller Williams contents him.
self with an elaborate effort to show
ina, me Riggs bank and its officers
s'r" been guilty of acts described as
''ira vires.' Illegal and improper,
's'icc its organization.
Th" ming OF these answers. with their
ntier attacks upon the officers OF the
INgss bank and with their indirect as
p'rslons upon the National City, means
mar the case against the Treasury off,
e!aIs will be fought to the end.
shifts blame TO Williams.
Secretary McAdoo In beginning his an
s'er indicates that the bank case, II Il
mas any case, should be directed solely
eH"lASt Comptroller Williams. lie en-
t.rs upon a discussion OF the issues In
mo suit merely because OF tho wide
publicity that has been given to the
charges
..l charge and aver" said Mr.. McAdoo.
the TACT to he that my inclusion In the
su't IL due to ulierior and improper mo.
ives and was reported 10 solely for the
purpose OF thereby uttering and publish
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