Omaha daily bee., 1915-04-14
TREASURY CHIEFS
ACCUSED OF PLOT
McAdoo and Williams Are harged
with Conspiracy by the Riggs
National Bank.
NJUNcTIoNs ARE DEMANDED

WASHINGTON. April 13.-Secre-
tary McAdoo of the Treasury depart
ment and Comptroller Of the Cur
rency John Shelton williams were
made defendants today in proceed
ings begun in the District of Column
bia supreme court by the Riggs Ma
tional bank of Washington, which
alleges that these officials have COM
bined and conspired to wreck that
institution.
Temporary and permanent injunc-
tions to halt the alleged conspiracy
and to prevent the comptroller from
making what the bank charges are
unlawful demands for special reports
Of various kinds are sought from the
court.
wants Curb on Burke.
One portion of the prayer seeks to
restrain John Burke, treasurer of the
United States from payment into the
treasury of 5000. declared to be due to
the bank as interest on 100000 Of
United States bonds deposited with the
comptroller against its note circulation.
This interest was withheld to cover penal
ties Of $780, a day for failure of the bank
to make certain reports. Once paid into
the treasury, only an act of congress
could get the 5000 out. and Justice Nc
Coy late today granted a temporary in
junction on this phase Of the cases.
The justice then set April 16 as the day
for answer by the defendants to show
cause why permanent injunctions should
not be issued.
The banks bill OF complaint covers
eighty-six type written pages and con-
tains thirty-seven specific allegations
designed to show that the comptroller
has adopted unusual and legally ques-
tionable tactics in dealing with the in
stitution.
Very Curious to Know.
1t recites that evidence Of an unusual
desire fer information concerning the
bank was shown by Mr.. Williams shortly
after he assumed the office of comptroller.
more than year ago. and has continued
ever since. Prior to that time. in De-
cennber, 1919 It says Mr.. McAdoo charged
officers Of the bank with responsibility
for publications. regarding the official
conduct of the defendant williams. as
assistant secretary OF the treasury. When
the bill asserts. Secretary McAdoo cursed
Milton e. Allies, a vice president of the
bank, and said to c. c. Glover, its presi-
dent:
''Adr. Glover. you know what this means
to the Riggs National bank"
Meaning thereby" the bin adds that
from that time on the power Of the
Treasury department would be ag-
greesively used for the ruination and
destruction Of the plaintiff bank in order
to satisfy the personal malice and ill-will
of said defendants Williams and McAdoo
ard shortly afterward the said defendants
Williams and McAdoo began series Of
persecution against the plaintiff bank for
the purpose of impairing or destroying.
tits said. business thereby prostituting
their high public office and violating their
oath in order to vent their personal vim
dictiveness.
Refuses to Explain.
Mr.. McAdoo later wrote to Mr.. Glover,
the complaint states, declining to explain
why such action should be taken, and
announcing at the same time his inten-
ton Of withdrawing all government
funds from that bank. Subsequently, it
is alleged, government deposits amount
ing to over 81, 10000 were withdrawn
from the, bank, including Panama canal
deposits amounting at one time to s1.15s,-
Ee
These Withdrawals were brought about
by Secretary McAdoo. 1t is charged, at a
time when the European war and the
business depression in the United States
had made banks husband their resources.
and lin q, deliberate attempt to wreck
the plaintiff bank, in the execution of
the conspiracy existing between him
and the defendant Williams for that pur-
pose"
Further complaint is made that Mr..
Williams as treasurer of the Red Cross
society had the funds it kept on deposit
with the Riggs bank removed to other
Many Reports Sought.
For almost a year, the bill AYERS, the
comptroller has bombarded the Riggs
National with demands for special re-
PORTS of many--sorts. exceeding the in
quisitorial and visitatorial powers vested
IN him. The bank declares that 1t has
made an effort to comply with these de-
hands, has worked it's clerks early and
ate to do so, but that requests for a
little time have been met with refusals
and in some instances with a reminder
that failure 10 make reports asked by a
comptroller involves a penalty of 800 for
zach day after a report is demanded and
sot rendered. Exact figures as to pen
Ilties the comptroller may hold the bank
has incurred in this connection. the bill
Itates, are not clear. but it estimates
hat At must be at least $4,000
In making some of these demands, the
hank alleges that Mr. Williams has vio-
ated the fourth and fifth amendments to
lhe constitution, prohibiting unreasonable
Iearohes and seizures and forcing any
me 70 be a witness AGAINST himself