Evening star., 1915-05-17
Attorney for Riggs Bank
Brands Statements in Affi-
davits "DeIiberate Lies"
CONTROLLER "NULLIFIED"
THE LAW, HE DECLARES
vitriolicly Excoriates Federal
Officials for "Willful Misstate-
ments" Contained in Briefs Filed.

vitriolic excoriation of John Shelton
Williams controller of the currency:
Secretary McAdoo, and of statements
and allegations contained in the brief
and the answers filed by the Treasury
Depa artment in the suit for injunction
filed by the Riggs bank against Sec
retary McAdoo, Controller Williams
and Treasurer Burke marked the open
ing address of Frank j. Hogan of
counsel for the bank. before Justice
Mccoy in the District Supreme Court
this morning.
The terms deliberate attempt to de
ceive,' 'wilful misstatement'' and de
liberate lie" were applied by Mr.. Hogan
to certain statements contained in the
answer of the Treasury officials. the at
torney for the bank citing page, para
graph and line of the briefs and an
swers and comparing them with what
he asserted to be true statements of the
facts involved
A formidable array OF counsel repre-
sented the opposing sides when court
convened this morning. Mr.. Hogan
for the bank. being assisted by former
Senator Joseph Bailey and r. Ross
Perry. while the Treasury officials were
chief counsel. with Louis D. Brandeis.
Jesse c. Adkins, Charles Warren. as
sistant Attorney General. and John E.
Laskey, United States attorney.
At the opening of court Justice Nc
Coy said two days would be allowed for
the hearing, but urged counsel to com
plete in one day If possible. IT was not
believed. however. that so little time
would be sufficient.
Motion to Dismiss Bill Overruled.
The usual motion to dismiss the bill
of the bank was made and overruled.
following which Attorney Hogan asked
leave to ile four affidavits having d.
rect bearing on points contained in the
answers filed by the Treasury officials.
One Of the affidavits was that of
Charles c. Glover. president of the
Riggs Bank: two were by Joshua
Evans, jr, and one by Miss Lotta NJ
Taylor.
In Miss Taylor's afndavit she spe
cifically denies that she has been ex-
PEELED from the Treasury building,
where she wa. employed to perform
certain duties for the National City
Bank of New York
In his opening statement Attorney
Hogan called attention by voluminons
citations to the laws governing the
conduct OF national banks, especially
those portions Of the law regarding
banks. calls for special statements. to-
gether with the time limit for making
such statements and penalties for fail
ure or refusal to make them.
He asserted that Controller Williams
OH numerous occasions had 'usurped the
prerogative of legislation, and declared
that ne had amended and changed the
plain letter of the law as regards the
assessment of penalties, setting time
limits for the making of special reports.
and had then sought to escape RESPONSE
bility for such acts by revoking such pen
altes. This. asserted Attorney Hogan.
was done without shadow of warrant Of
law.
Legal Reserve Exceeded, He States.
Commenting on a statement Of the
Treasury officials in regard to the con-
dition of thf Riggs banks legal re-
serve for a specified period. Mr.. Hogan
made the startling assertion that no
more damnable half-truth had ever
been devised for the purpose of de-
ceiving the court and misleading the
public" He purported to show. by
complete statement of the banks re-
serve for the period covered in the
statement of the Treasury officials. that
the average for the period was higher
than is required by law, while the
statement of the Treasury officials. by
omitting certain days on which the re-
serve was far above that required by
law, had forced an average consid-
erably lower.
Mr. Hogan's Inost startling denuncia
tion came just before court took the
noon recess. He 1ar been spea king of
the employment of Miss Taylor in the
office. Of the controller, where she re-
ported on national bank matters to the
National City Bank of New York. Such
employment, he declared. was provided
for by law, and was in no manner to
be construed as improper.
Calling attention to a paragraph in
the answer of Controller Williams, in
which it was stated that. after Ger
tain date Miss Taylor was no longer
employed in the Treasury department,
Mr. Hogan asserted that the statement
was a .deliberate he
peneatiny the words, Mr.. Hogan de-
ella red that at the time the statement
was made Miss Taylor was employed
In the Treasury department that she
had been continuously so employed: :
that she was in the office of the con-
troller of the currency, as she had
right TO be under the law. and that
John SHELTON Williams knew that she
was there.
Statement "a Deliberate Lie.''
Turning to Mr.. Untermeyer. Attorney
Hogan said:
make a note OF that. Mr.. Tntermeyer:
note that ! said that statement was
deliberate lie"
Mr. Tntermeyer replied. 81 am noting
il. Mr.. Hogan-regretfully noting it."
In the main, Mr.. Hogan's statement was
devoted to an analysis of national bank
ing la ws and to specific instances in which
he asserted that in desire to hamper
and embarrass the Riggs bank the law
had been ignored, nullified, "amended"
and "distorted" to suit the purposes of
Controller Williams. His opening address
occupied almost the entire morning and
was not completed when the court re-
| cessed at II 80 o'clock.
Counsel in Spirited Tilt.
A spirited tilt between counsel
ensued when former Senator Bailey
sought to flnd out whether printed
volume of correspondence between
the bank and the Treasury Depart
ment was to be considered as evidence
Mr.. Bailey wished to be allowed to re-
fer by agreement to portions of the
contents of the booklet. Mr.. Inter
meyer objected.
| "Why." said Mr.. Bailey. "You had
| this printed and gave 1t publicity
MIR. Untermeyer was on his feet in n
1iffy. He denied that the government
was giving any publicity to the case
Il am glad he said. that this Sc
h como from the forum Or publicity
(Coutinued on Ninth PHye