Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-04-13

posed to exclude the Riggs bank from
a share of deposits to cover the DIS
trict Of Columbia tax withorawais,
which deposits by custom are oiViuea
among the national banks OF the as
trict. Mr.. McAdoo later wrote TO Mr
Glover. the complaint states. declining
to explain why such action should DC
taken and announcing at the same
time his intention of withdrawing all
government funds from that bank.
subsequently. it is alleged, government
deposits, amounting to over s1,2ooo oo
were withdrawn from the bank, IN
Guiding Panama canal deposits
amounting at one time to s1,15S,4's'
"Dcliberate Attempt"
These Withdrawals were brought about
by Secretary McAdoo, it is charged, at
a time when the business depression In
the United States hand made banks hus-
band their resources and lin deliber-
ate attempt to wreck the plaintiff bank,
in the execution of the conspiracy exist
ing between him and the defendant Will
liams for that purpose"
Further complaint is made that Mr..
Williams, as treasurer of the Red Cross
Society. had the funds which it kept on
deposit with the Riggs Bank removed
to other institutions.
For almost year. the bill AYERS, the
comptroller has bon1barded the Riggs
National Bank with demands for special
reports Of many sorts exceeding the in
quisitorial and visitatorial powers vested
in him. The bank declares that it has
made an effort to comply with these de-
mands, has worked it's clerks early and
late to do so, but that requests for a lit
tie time have been met with refusals
and in some instances with reminder
that failure to make reports asked by
a comptroller involve a penalty of s100
for each day after a report is demanded
and not rendered.
Exact figures as to penalties to which
the comptroller may hold the bank in this
connection. the bill states, is not clear,
but it estimates that it must be at least
$4,000.
Constitution "VioIated"
In making some of these demands, the
bank alleges, Mr.. Williams has violated
the fourth and fifth amendments to the
Constitution. prohibiting unreasonable
search and seizure and forcing anyone
to be witness against himself.
In February last. according to the bill,
Mr.. Williams wrote to the bank asking
If its officers had destroyed any of its
records. On March 80, it further sets
forth, he demanded a complete history
of loans of the Riggs bank to it's present
officers. and gave notice that for failure
to comply with like request made on
January % it was assessed a penalty OF
$bo00. The next day formal demand
for payment of this fine made by two
bank examiners was refused. On April
quarterly installment of the interest
on the s1.oco,o0O of per cents held by
the Riggs Bank in the comptroller's Gus
tody to securities circulation, came due.
The comptroller. the complaint set;
forth. "wrongfully and unlawfully" Or
dered the treasurer of the United States
10 withhold the payment Of this inter-
est. In this connection the bill alleges
tnat Mr.. McAdoo had usurped'' the
powers of the treasurer
The bill asks that Mr.. Williams he en-
joined from revoking the Riggs desir-
national as depository for the reserves
OF other national banks or refusing to an
prove 1t as such depostary. An injunc-
ton to restrain Mr.. McAdoo from
usurping the powers of the treasurer of
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 unconstitutIonal
ma void IF they must be construed as
they have been and are being construed
and enforced" by the defendants.