Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-04-16
#istsllaneous Reaains.
BANK FIGHT IN WASHINGTON
Financial Institution Alleges Perse.
cution.

cution.
Washington, April 13.-Develop-
ments today indicated that the gov
eminent intends to do its utmost to
back up Secretary McAdoo Of the
treasury, and Comptroller Of the Cur
rency Williams, in the legal fight pre-
cipitated by the Riggs National bank,
| complainant in equity proceedings to
| enjoin these officials from alleged at
tempts to drive that institution out Of
business through systematic and long
continued persecution.
Attorney General Gregory ANNOUNCE
ed tonight that the department OF
justice had employed Louis D. Bran
deis Of Boston, to defend Messrs. Will
liams and McAdoo in the injunction
proceedings. He declared his depart
ment and the treasury were cooper
ating in these proceedings. 1t be-
came known also that Jesse c. Adkins,
former assistant attorney general,
also had been retained in the case.
officials declined to say whether the
government at this time contemplates
any affirmative proceedings in addi-
ton to the defense of Mr.. McAdoo
and Mr.. Williams in the injunction
case. 1t was denied, however, that
the bureau of investigation had UNI
dertaken any investigation of the af-
fairs Of the Riggs bank.
Lawyers in the case gave atten-
ton today to the question Of whether
the comptroller had exceeded his
powers in certain acts of which the
bank complains and it vas maintain
ed that for the sake Of precedent, one
would be sufficient to insure a strong
defense by the government. 1t was
recalled that while the courts have
declined to interfere with the ordi-
nary exercise of the executive func-
tons by an officer of the government,
the supreme court has decided that
where an excess Of such power is dis
closed an injunction may be OBJ
tanned.
That the present case may go to
the supreme court seemed entirely
probable, for both sides apparently are
preparing to fight to the end.
The bank tonight gave out a state
ment reviewing charges made by Mr..
Williams last night. 1t called atten-
ton to Mr.. Williams announcement
that investigation Of the bank had dis
closed irregularities and that the de-
partment Of justice had engaged the
services of Louis D. Brandeis some
weeks ago as special counsel in the
case. The statement recited that at
noon today Attorney General Gregory
stated thai Mr.. Brandeis had not been
engaged by the department of justice
and that the statement that he had
been retained was incorrect at the
time it was made.
Mr.. Gregory's own statement in re-
gard to the employment Of Mr.. Bran
deis, given out before that Of the
bank. follows:
THE department Of justice has m
ployed Mr.. Brandeis as special coun-
sci to assist in the defense Of the In
junction proceedings brought by the
Riggs National bank. Up to the fill
ing of the suit yesterday the depart
ment of justice had given no official
consideration to the controversy be-
tween the treasury department and
the Riggs National bank but knew in
~ rooaol thot thic nviSta1 and
might result in some character Of liti-
CATION. The department Of justice
and the treasury department are in
accord and heartily cooperating in
this case"
The bank, in it's statement, de-
clares that Mr.. Williams takes credit
to himself for the fact that the bank
is solvent, when in fact he caused the
withdrawal of hundreds Of thousands
Of dollars during the summer and
fall Of 1914, lat a time when finan-
cial conditions were exceedingly un-
certain in this country, because of the
great wal in Europe"
The statement answers Mr.. Will
liams' charge made in letters to the
bank tina it loaned large sums to wo-
men for speculation purposes, by say
ing that Washington has probably
more women than any city Of it's size
in the world who have fortunes and
adds that it's losses through loans to
such clients have been negligible.
The bank declares that Mr.. Will
liams has no foundation for the al
legation made that it tempted young
men and women to ruin through spec
u~lation.
The fact is says the statement.
that the officers of this bank have
never advised or encouraged any per-
son, man or woman, young or old,
to speculate in stocks or buy stocks
for investment and the comptroller's
"insinuation to the contrary is a gross
.perversion of the truth of which no
officer Of the government ought to
be guilty with respect to any mat
ter, and especially the comptroller Of
the currency be guilty of it for the
purpose VI lHJuIllS d Ddiih III lHe
public estimation"
The statement points u that Of
ficers of the bank who held seats on
the Washington stock exchange vol
UNFAIRLY "a them up in 1914 be-
cause they believed the Federal re-
serve act might forbid an officer Of a
bank acting as a broker on a stock
exchange.