The Washington times., 1915-05-15
Treasury Officials
Reply in Riggs Case

falsehoods aV you know them 10 oe
untrie'
MIR. Allies then, addressing Mr.. Will
liams, said: 'Mr. Williams, when YOU
were appointed Assistant Secretary
eight months ago ! rejoiced. but ] have
regretted II ever since. You are prcJu-
diced against me because | was elected
II director of The Seabo8rd Air Line
He intimated that Mr.. Williams was
artagonistic to him and was tying to
.injure him. To this Mr.. Williams re-
Piled That is absolutely untrue.
;oward Mr. Mr.. Williams and began 10 say
things reflecting upon the department,
and l interposed, and said: Gentlemen.
there must be no controversy OF this
character here. | will not permit 1t
Mr. Allies would not be deferred. Eow-
ever, and continued in an offensive man.
ner to address Mr.. Williams. when j
said: Mr.. Allies, | will be ID If ! VIII
permit this in my office, and II you
persist in 1t l shall have TO order you
out
Il remained sitting when ! SAID this
and at no time advanced in rcnacing
or other manner toward Mr.. Allies.
then arose from my chair; everybody
else arose at the same time, and said
to Mr.. Glover: MIR. Glover, am clad
to acqut you OF any part in these rub-
lications. | wish you would stay as
would like to talk to you little fur-
ther about this matter.
Parted In Friendly Manner.
Mr.. Glover remained. Mr.. Allies and
Mr.. Flather left the room from the ante
room where my private secretary. Mr..
Cooksey, has his desk. and Mr. Williams
and Mr.. Elliott departed by the side
door. Mr.. Glover and | continued the
converse tion in an entirely friendly man
about the effect of these publications:
and said that / felt sure that If he could
control them they would not continue.
I also stated to him that he could read
lily understand that II confidence in the
local situation was again disturbed 1t
would be a serious matter for all the
banks in Washington Possibly 1t Is
from this statement that Mr.. Glover
gathered the impression or drew the in
ference that | had said
Mr.. Glover, you know what this
means to the Riggs Bank"
81 said no such thing and nothing In
substance to that effect. or that could
be construed into the meaning that he
Mr.. Glover agreed with me fully about
the matter, and reassured me that Meth
er he nor any Of the officers of the
Riggs Bank were encouraging the Tri-
bune to continue these attacks.
He then talked about the work he
had done In upbuilding Washington,
made some allusion u RS alteration
with Congressman Sims. and then lett
We parted In a thoroughly friendly
manner | have not seen Mr.. Glover
fifteen minutes after Mr.. Allies. Mr.
Flather. MIR. Williams. and Mr.. Elliott
had gone. :.
Immediately after his departure I
sent for Mr.. Williams. and also for Mr.
Cooksey. told them the subject of my
conversation with Mr. Glover. and saiI
that I thought he would uac his efforts
to prevent further public eetions in the
Tribune that would cause alarm about
the financial situation In Washington.
Authorized Depositary.
AT the time | became Secretary Of
the Treasury. plaintiff bank was an
authorized United States depositary for
regular deposit Of 100000 In and
after December, 1913, when this trust
company incident occurred. the same
authorization and the game deposits con-
tinued 1t was not until June, 1917
seven months thereafter--that de-
termined to withdraw this $l0o, 900 de-
post for the reasons hereinafter eX-
planned. At this time December 1879
the plaintiff also held a very consider
able balance of tax funds Of the District
of Columbia. which was also allowed to
remain In the bank. That incident had
Withdrawal Of this deposit harbored
Glover or Mr.. Allies on account of it. I
had entirely dismissed 1T from my
Secretary McAdoo in the bill then
takes up the charges that there was un-
fairness in his redistribution of the de-
posts OF tax money from the District
among the Washington banks. 1t has
been maintained by the Riggs National
time I've custom had been to deposit
this money In the local banks in the
proportion Of the individual deposits
held by the banks. Secretary McAdoo
IN MS answer denies this. pointing ont
that In 1905 four banks We're depositaries
or all the tax money, the Riggs Ma
tional getting s1,62O,0CO, the National
Metropolitan, $3.50 900; the American Ma
tional $4,000, and the Central National.
$405,O00. At that time there were thir.
teen national banks, and the Riggs re-
celVed about two-thirds OF the deposits
OF tax money. though It had only about
one-third of the individual deposits held
oy national banks. the bill AYERS.
Order Came Last May.
In May. 1914. Secretary McAdoo saws.
in the answer, he ordered that no more
deposits of the tax funds should be
made In the Riggs Bank. Thereupon
PRESIDENT Glover wrote him asking his
reasons, and Mr.. McAdoo replied that
they were, first, that your bank does
relatively small commercial business,
and l think that deposits OF Government
FUNDS Will be of greater benefit to the
commercial interests OF the community
II placed In other national banks. And,
second, ! do not think it in the public
interest to keep Government funds on
deposit In your bank. 1t Is nv purpose
70 withdraw all Government funds from
the Riggs National"
Secretary McAdoo declares in the hill
MS decision was not made in the execu-
tion OF a threat or due to animosltv,
and he adds that the bank had no right
10 claim any part OF thsse funds.
Number Increased.
Concerning the withdrawal of Gen.
eral Government funds from the Riggs
National. Secretary McAdoo said in the
answer that when he came to the
Treasury about one-eighth OF the na.
tional banks OF the country were Gov
ernnent depositares and that II wa
commonly charged that favored reu
banks in the financial centers had en-.
Joyed the benefits of such deposits. He
theTeupon increased the number of such
depositaries and made a wider distribu.
lion OF Government funds. it is assert
ed in the bill.
In connection with this division of the
case, the Secretary presents in the
papers an exhibit showing the ayera ge
deposits with the riggs Bank from lg).
TO 1914. inclusive. For 1905, according to
hA