The Washington times., 1915-05-22
RIGGS CASE RESTS
WITH JUDGE M'COY
Validity of $4,000 Fine Against
Bank Under Amusement.
Final Decision About July'1.

cutlOn' by treasury O1Hcldis' oue"No
Mccoy, Of the District Supreme Court,
has underadvisement today the valid
ity Of the 5000 fine assessed against
the Riggs National Bank by Comp
troller williams and which precipitat-
ed tho banks action.
At the conclusion OF arguments In
the noted case, Justice Mccoy assert
ed substantially that he found no evil
dence. in the record SO far disclosed.
Of a display OF malice and persecu-
tion by tho Treasury officials. nor did
he indicate his willingness to grant
the prayer Of the bank against the
alleged arbitrary action OF the Sec
retary Of the Treasury in falling to
approve the bank as a reserve agency.
or as a depository of additional public
funds.
The action of the court. however. has
the effect Of continuing. until an opin-
lon is handed down. the temporary re-
straining order forbidding the Comp
troller. the Secretary. and Treasurer
Burke from covering into the Treasury,
because Of the fine assessed. the 5000
in interest money due the bank on its
bonds.
Construed As Victory.
The preliminary statement Of the
court is construed as a partial victory
for the Government. and the counsel at
tor no OfficAra evil
IDENTIFY were pleased.
That tho case will be carried to the
United States Supreme Court regard
less Of the nature Of the full decision in
the court below has been a foregone
conclusion since the arguments were
begun.
tice Mccoy took occasion to say that
the record showed to the. courts mind
persistent violations OF the law on
the part OF the plaintiff bank. Justice
Mccoy. referring to the failure of the
Treasury to designate anew the RIGGS
bank as reserve agency, said that II
seemed to him the Government ofrl-
cials would have been remiss II they
had consented to permit the bank to
act as agent for O new applicant bank,
because, l think, for this purpose OF
this motion. always. now-1 am not
passing on the ultimate merits of the
tent violations of the law
That these violations began before
Mr. Williams encumbency Of office vas
asserted by the court.
The preliminary statement of the
court followed a day OF argument dur
ing which former Senator Bailey con-
cluded his lengthy address in favor OF
the bank. and Louis d. Brandeis. OF
| counsel for the Government. made brief
| reply.
Justice Mccoy said his final decision
touching all the phases of the litiga-
| ton might be expected before July /.
1t also was stated by the court that
there was no evidence that the defend
ants had exercised arbitrary power in
refusing to approve the bank as a re-
| serve agency. as alleged in the bill. A
prayer for an injunction to prevent this
alleged action on the part Of the off,
| cials was denied.
| In statement at the conclusion OF
| the arguments. Justice Mccoy said:
| Il granted a temporary restraining
| order because 1t involved only the IS, 900.
| and there was a contention made that
| IL II were covered into the Treasury II
might require an act Of Congress to get
It out 1t may be that l shall continue
IT on the same ground pending a hear
| Ing; / do not know. But on the other
branch of the case, in regard to grant
| to these deposits or in regard to the re-
serve agency end Of the situation. say
what I said before-that the case, such
as 1t Is. made out by the BILL assuming
that any was made out by the bill for
| the purpose of an injunction. has been
| met overwhelmingly, in my opinion. by
| the proofs which are here In the form
! OF affidavits, and shall deny that relief
| pending the action.
Malice Was Alleged.
II was struck when I first read the
bill by the allegation on page IA OF the
printed bill here which l directed at
| tention to the other day:
| Plaintiff further AYERS that prior
| to December, 1913. the defendants Nc
| Adoo and Williams had, in ways which
| will be fully detailed in the evidence to
be taken in this suit. openly and pub
| licly manifested their personal malice
toward certain of plaintiffs officers
| Il wondered what that meant. and ]
| do not know to this minute what II
| means; but. of course, there Is an alb
| sence, not OF evidence, but of the state
| ment of any ultimate facts that would
| sustain that allegation in the bill; and
| when I came to read this Tribune arti.
Gle which appears there. and the incl
| dent which occurred in Mr.. McAdoo's
| office, wherever 1t was. coupled with
| that, If l were obliged to resort tc
| that, should say that perhaps It was
shown that the malice was the other
| way.
I'm view OF the absence. as I say, Of
any statement here as to backing VI
this general allegation. and coupled
with what Is in there. I do not see how
anybody can fail reasonably to reacf
that conclusion. and that II there were
| bad blood-I do not know as to that
| II there Is anything between the par
ties, there Is nothing here to show
that the two defendants were the ag
| gressors in the matter.
Then, again, do not think II II
necessary here to decide whether ther,
has been any arbitrary exercise o
power. or exercise of arbitrary power
In regard to this question of the reserv,
agency, or any threat of an exercise o
arbitrary power.
Evidence of Violations.
at seems to me, on the record tina
lis made here before me now. that th
government officials would have beeI
remiss If they had consented to per
NIT the bank to act as agent for
new applicant bank, because. | think
for the purposes of this motion, always
Inow-I am not passing on the ultimate
merits of the case-there is evidenc
here of persistent violations Of the law
and that they began, not with Mr.. win
liams' incumbency of the office can,
that has another bearing, perhaps, oI
the question of what animated MI
Williams, but they began before h
came there, and there is evidence tina
they are continuing until this day; an,
even If the comptroller is wrong abou
n,hot Lind of bank Ought To bav