The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-20
Grave Danger Ii

~ 10
PILED up in the argument.
Grave Danger IL
IN. strange par. OF II all TO those
WHO heard Mr.. Untermyer's skilful at
,acks seemed 10 be that while assert
Ing that the bank was perfectly solv-
ANT" that the %collaterals on which II
hs loaned money were good. he kept re-
reating that Il was fortunate that the
traction stock turned out to be good.
for II II had been otherwise disaster
might have overtaken the bank.
lie conplimented the officers OF the
bank at one point on the good )udg-
ment they had displayed in choosing
traction stock az a principal collateral,
hut he kept repeating that loans had
been made upon Traction stock as IL
here was something not proved to he
adecuate security for the loan, and then
ne was fatty contradlcted by the banks
attorneys, who challenged him to sub
mi, proof OF what he had asserted.
He had alleged that one loan of $780,
M carried by the bank and secured by
traction stock had been "charGed OF"
n. was corrected by the attorneys for
m, bank. who asserted that the loan
IN question had been secured by a group
~ m~iscella neous stocks, including trac-
ton.
The mos, startling performance or Mr.
vntermyer and one which the bank
attorneys most strongly re ented was
the puttiry lnio evidence of n transcript
from the books OF Lewis Johnson n Co.
local brokers. whose affairs are now IN
The bankruptcy court. OF the STOCK
transactions OF one OF the ofhccrs or
the Riggs bank day by day, covering a
considerable period II was not urged
mat these purchases and sales OF stocks
made by the bank officer in his indi-
v,dual cduaci'y and with his own FUNDS
had any relation 10 thu Riggs bank az
fairs or the matter before the court
Name Dragged In.
The banks officer Is a member OF the
local Stock Exchange n the account
with the bankrupt Arm apparently bore
70 relation to the issue before the court,
IN, Nj I'ntermyer made II a theme
fr commenting on the improperly or
bank OF ers buying and selling stocks.
He admitted that the officer had bought
and sod for investment or otherwl'e
through o.her local brokers and II was
one Of :ne unexplained things or 'nls
case that the Treasury officer should
have sought 20 couple the nam OF the
hank officer with a bankrupt hrm.
Ex-senator bailey protested against
receiving he document Copies had not
been served on the other side, Mr.
Bailey declared that he had not seen the
locumer' before.
re observed that Il was written on
yellow paper. very appropriately
THE transactions II recites are yell
low." retp-ted Mr.. Untsrmyer.
The court decided that a wide latitude
had been given for the Introduction of
rape~s and the yellow document" was
omitted.
The comments Of the trial Judge from
ne bench, which were not very salts
factory :, the bank people yesterday.
we're very much to their comfort to-day.
shortly before the conclusion OF Mr.
'~riermyer1s argument. when ne was
l,.on1Ing the Withholding OF the $4,000
rom the Riggs banks interest due upon
.0nds deposited in the Treasury by the
Comptroller as penalties, the court raised
a question as to whether the penalties
prescribed In the statute applied to
special reports
Mr uu'ermyer appeared t 'rprised and
argued AZ length with the Judge that
they did apply,
Point for the Bank.
The bank attorneys were smiling ana
he Judge seemed unconvinced. The
.Nl iIf u Nfl'lltfllbn 4i INV NiS' " '''
5000 which the Comptroller OF the Cur
'trov h1s sought to withhold, Judge
Mccoy said yesterday that he regarded
mat as presenting "A separate issue from
re other things in the bin and would
'0rsl lev T. independently. II he holds
mat n. Comptroller had no warrant for
Withholding this money as penalty, be-
.ause the penalties prescribed by the act
90 NOT relate 70 failure to make special
reports, the injunction against convert
ING u INTO the Trea~ury would be made
permanent unless the court should adopt
ne contention of Attorney Brandeis that
ne relief in the case canno be given In
equity court and remand the bank TO
ue court Of claims TO recover by suit
'ga!0s, the Government.
In any event the banks officers were
yelling encouraged to-day over the pros
ie't OF establishing that the Comptroller
nad exceeded his authority In withhold
ing the interest due upon their bonds.
Mr.. Bailey will close the argument
10Y the bank tomorrow. He Is ex'
pec'ed to make detailed answer to Mr.
.Atermycr's statement Of the alleged
larts' in the case. The banks at
.ofney's were charging this afternoon
mat the facts IA been distorted b,
mr. Cntermyer and that Mr.. Bailey will
uehons'rate this tomorrow In hi
Ngorous style.
ihroughou. his argument to-day Mr.
.n'ermyer c~omplimcnted Secretary Nc
nooo and Comptroller Williams on theil
nnSal policy anC ther administrativ
lalrness.' lie painted both officers al
SAuent and fair. seeking only to In
e,ulcate the highest ethics OF banking, 4
preak up the practice OF insecure loan
shu 10 place deposits of public fund