Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-04-13

Williams aA treasurer OF the Red
Cross society had the funds on de-
posit with the Riggs bank removed
TO other institutions.
For almost a year. the bin AYERS,
the comptroller has bomharded the
Riggs National with demands for spe-
cial reports of many SORTS exceeding
the inquisitorinl and visitatorlal pow
ers vested in him. The bank declares
that II has made an effort to comply
with these demands has worked its
clerks early and late 10 do so, but
that requests for little time have
been met with rofusals and In some
instances with reminder that fail
ure to make reports asked BY comp
troller involves a penalty OF si00 for
each day after a report Is demanded
and not rendered. Exact figures as
to penalties the comptroller may
hold the bank has incurred, the blll
states, are not clear, but Il estimates
that II must be at least $4,000.
Exactions unconstitutional
In making some OF these demands.
the bank alleges that Mr. Williams
has violated the fourth and fifth
amendments to the constitution. pro
hibiing unreasonable g~&sehes and
seizures, and forcing any one to be
q witness against himself.
In February lust, according 10 the
bill, Mr.. williams wrote to tho bank
asking II It's officers had destroyed
any OF It's records. ON March 80. It
further sets forth, he demanded
complete history OF loans OF the Riggs
bank to It's present officers and gave
notice that fer failure TO comply, with
like request made on January 22. II
was assessed penalty Of $4,000. Tho
next day formal demand for pay
ment Of this fine made by two bank
examiners was refused On April /.
a quarterly mstalment Of the interest
on the $1,000, 600 of 2 per cents held
by the Riggs--in tho oomptrollerH
custody TO secure lts clrculatlon--came
due. The comptroller. the complaint
sets forth, 'wrongfully and nnlaw-
fully ordered the treasurer of the
United States to withhold the pay
ment of this interest.
Lands Hard ON McAdoo.
~ this connection, the bill alleges
that Mr.. MeAdoo "had usurped tho
powers Of the treasurer
The bill asks that Mr. williams be
'nloined from reeoking the Riggs dos
rs a dopositary for the re-
lerVes Of other National banks or ro-
using TO approve II as such deposit
ary An Injunction TO restrain Mr..
dcAdoo from usurplng the powers"
# the treasurer OF the United Statos
lso s asked.
The court also is asked 10 find the
eotions OF the revised statutes deal
ng with the examination OF banks,
old II they must be construed az
hey have and are being construed
nd enforced" by the defendants.
The banks officers tonight gave
ut statement outlining at length
helr view of the events of the last
ehr which led up to the proceedings
! touay, along tine lines vf tie rwofi.
lalements In the bill OF complaint.
statement by Controller
controller Williams issued this
-aloment tonight.
u have not seen the bill filed by
ne oomplainanis but have read tho
Atracts furnished the press
Ihe recent Investigations Of tho
ltaira Of the Riggs National bank
isclosed Irregularities and unlawful
racticcs on the part Of certain Off
ers Of sufficient gravity to morit
ieir reference to the department OF
lstico and that department engaged
10 services Of Louis n. Brandeis OF
oston some weeks ago as special
iunsel IN he ease, and It Is consist
IT with the attitude of these 0ffi-
'rs 60 attempt unwarranted and un-
ue statements 20 place thcmBelves
ld the bank in position Of mar
fdom at the hands of the admins.
alton.
~ is not the practice OF this de-
srtment to discuss in the public
'ess the affairs Of any national bank
g association, but since the officers
question have had the temerity To
bmit this matter to the courts this
lice Is prepared to show a condi-
IN of affairs in the management OF
is institution which fully warranted
e action taken by this office. The
nix is solvent The interests Of the
positors have been safeguarded by
G actions of the controllers office.
4 II the methods and practices com
aimed Of had been permitted to con-
lue the results would have been
rious. The evidence VIII abundant