Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-04-13
Riggs National Bank
Alleges Conspiracy
Continued From Page one.)

partment would be aggressively used
for the ruination and destruction of
the plaintiff bank in order to satisfy
the personal malice and ill-will OF said
defendants, and shortly afterward the
said defendants began a series of per-
secutions against the plaintiff bank for
the purpose Of impalring or destroy
ing it's said business, thereby prostitut-
ing their high public Office and violat-
ing their oaths in order to vent their
personal Vindictiveness against the Of
ficers of the plaintiff bank"
Deposits Withdrawn.
A few months later, the plaintiff
AYERS, the bank was notified by o. S.
Hamlin, now governor Of the federal
y eserVe board, but then assistant sec
retary of the treasury, in charge Of the
fiscal bureau, that Secretary MCAdOO
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.
Mr.. McAdoo later wrote to Mr..
Glover, the complaint states, declin-
ing to explain why such action should
be taken and announcing at the same
time his intention Of Withdrawing all
government funds from the bank. Sub
sequently, II is alleged, government
deposits amounting to over $1,000
600 were withdrawn from the bank,
including Panama canal deposits
amounting at one time to S1,l5S,479.
These Withdrawals were brought
about by Secretary McAdoo, 1t is
charged, at 4 time when the European
war and the business depression in
the United States had made banks
husband their resources and in q de-
lberate attempt 20 wreck the plaintiff
bank, in the execution of the conspir-
acy existing between him and the de-
Cendant, Williams for that purpose"
Withdrew Red Cross Funds.
Further complaint is made that Mr..
Williams. as treasurer of the Red
Cross society, had the funds it kept
ON deposit with the Riggs bank re-
moved 20 other institutions.
For almost a year. the bill AYERS,
the controller has bombarded the
Rigs National bark with demands
for special reports of many sorts, eX-
ceeding the inquisitorial and vista
tCrial powers vested in him. The bank
declares IL has worked its clerks early
and late in an effort 10 comply but
that requests for little time have
been met with Tefusals and in some
instances with a reminder that failure
20 make reports asked by controller
involve \ penalty of 500 for each day
after a report rs demanded and not
rendered. Exact figures as 10 penal
ties the controller may hold the bank
has incurred in this connection, the
| bill states, Is not clear, but II esti-
mates that IL must be at least $780,
goo.
Violates Constitution.
In making some of these demands,
! the bank alleges Mr. Williams has vio-
! lated the fourth and fifth amendments
| TO the constitution. prohibiting unrea-
sunable searches and seizures and
| forcing any one to be a witness against
| himself.
In February last. according to the
| bill. Mr.. Williams wrote TO the bank
asking If It's officers had destroyed
| any Of its records. On March 80, IL
/ further sets forth. he demanded a
complete history Of loans ~ the Riggs
/ bank TO its present officers and gave
notice that for failure TO comply with
| a like request made on January 22 it
was assessed a penalty OF $4,000.
The next day a formal demand for
rayment of this fine made by two
hank examiners was refused. On April
Il n quarterly inStallment OF the In
terest on the Si,0O0,000 OF per cent
| held by the Riggs-in the controllers
custody TO cure its circulation
came due The controller. the com
plaint sets forth "wrongfully and un-
| lawfully" ordered the treasurer Of the
United States to withhold the payment
OF this interest.
In this connection the bill alleges
that MIR. McAdoo 'had usurped the
power OF the treasurer The bill asks
that Mr.. williams be enjoined from
revoking the Riggs bank designation
as q depOsitary of the reserves Of other
national banks or refusing to approve
| IL as such lepositary. An injunction
TO refrain Mr.. McAdoo from usurplng
the powers OF the treasurer II the
| United states. also is asked. The court
also. is asked TO find the sections OF
the revised statutes dealing with the
examination OF banks, unconstitu-
tional and void II they must bs con.
strued as they have been and are be-
ing construed and enforced by the de-
| fondants
Williams Statement.
Comptroller williams Issued this
statement tonight:
Il have no. seen the bill filed by the
Complainants. but have read the ex-
tracts furnished the press.
The recent Investigations Il the af-
fairs. Of the Riggs National bank dis
clos-C Irregularities and unlawful
practice~ on the part of certain Of
ficers offsufficient importance 10 merit
their reference to the department Of