New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-05-22
Decides Against the Banks
Pleas, Except in a
Single Point.
WITHHOLDS RULING
ON FINE PAYMENT
Justice Sharply Criticises Man
ayers of Concern and Com
mends Controller.
Prom The Tribune Bureau J

Williams, Justice Mccoy ueclueu 'o-uAS
virtually all other points in the pre-
liminary hearing against the bank and
in favor of the Treasury officials.
Despite the protest of Samuel Inter
rver. Justice Mccoy continued the tenn
porary injunction restraining Treas
urer Burke from covering the $4,000
into the United States Treasury
stating that If this were done 1t might
necessitate a long fight in the Court OF
Claims and an appropriation by Con-
gress for the bank to get the money
even if IL finally should win the pend
ing litigation. He said he expected 10
d;.nose of all matters before him PRIOR
to July /.
should Justice Mccoy deny the
banks plea on the $4,000 item, TINS
would be equivalent, it was stated oy
LAWYERS. TO dismissing the banks Dill
of complaint, and would leave the way
omen for an immediate appeal to the
Supreme Court of the United states
Should he grant this plea it would re-
splt in the whole case going to trial on
its merits, giving the bank S attorneys
an opportunity TO prove, II they could
ronsniracy by Williams and McAdoo 10
wreck the bank and all the other
charges Of persecution and mallce'
sFrom the evidence here, sara JUS
tice Mccoy, in ruing on tne ns Low
junction. "persistent violations OF ia"
bv this bank began before Controller
Williams came here, and there IS EVIL
dence that these violations have con
tinued down to this day. Even II the
Controller we're wrong IN ms ldea
ehont whether this was commerclal
or stock exchange bank, | shoulu say
he was quite right in taking out those
government deposits.
LAYS Malice to Bank.
"After reading the charges Of malice
hold nv the Controller and Mr.. McAdoo
against the officials of the Riggs Bank
and after reading the articles IN Inc
Nov York Tribune on which TINS mar
ice is said TO have been partly based,
should think that the malice lay the
Other wav. and was borne by the bank
officials against the Treasury omcers.
The PRAYERS of the bank officials Tor
temporary injunctions until the pres
emit suit can be heard on its merlts'
which were denied by Justice McCOy'
were:
To enioin Williams from calling or
enforcing his call for any special re-
ports when the same are not bona roe
and reasonably necessary 10 full ana
comnlete knowledge of the banks CON
dition. and not such as he is expressly
authorized by Section 52ll 70 call Tor
Enioining McAdoo and Williams from
"'neorfering or intermeddlng' with the
banks property rights, competing the
hank officers to testify against them
selves and compelling them to produce
its officers.
private books or papers Of the bank or
Enioining McAdoo from aiding, as
sisting or abetting Williams in any
manner whatever in any Of the mat
tiers and things complained OF IN this
bill"
Enjoining Williams from revoking
the banks designation as deposltary
for the reserves OF other national
banks, or from refusing TO approve
the Riggs Bank as a reserve bank.
Submission of Reports.
During the argument Of Mr.. Inter
myer to-day in answer 10 ex-senator
Bailoy's point that the officers OF the
bank could not be compelled TO sub
IllL reports kIaA Alltg AtAA hAtA'tN NN-'''-'J
loans because this would lncumlnate
them, Justice Mccoy said:
IL should think the officers would
have % give the information; or, II
that would incriminate them, they
would have 20 resign and let other Off
GERS and directors give the reports re-
quired."
A few minutes later, while Mr.. In
termyer was replying to Mr.. Bailey's
point that only inquiries rs 70 the
condition Of the bank five times year
and as TO dividends were required BY
law 20 be answered. the justice said:
ITO say that under the law the Con-
troller could demand the reports, but
that the person from whom the report
was demanded was not required TO
give them, IS beyond my compreheh-
sion"
Mr. Untermyer declared that before
Controller Williams put his nose IN
the bank, when the examiner first
went there after Mr.. Williams became
Controller, the threat had been made
that the bank officers would have Mr..
Williams in court in five minutes.
Declares Fine Belongs to L. s.
Louis d. Brandeis argued that the
$1,000 assessed as a fine on the bank
was now the property Of the United
States, and therefore the suit could
not be brought, because II was against
the United States. The $4,000 had
never been set aside. he declared.
Frank J. Hogan met this by declar-
ing that the $4,000 was interest on
government bonds which we're the
property Of the bank; that IL was part
Of money appropriated by Congress 70
pay the interest on these bond, and
therefore il was actually the property
Of the bank. being unlawtully with
held unless IL was decided By tho court
that the Controller was within his
rights in imposing the fine. Mr..
Hogan pointed out that a government
clerk whose salary was due could, II
q paymsster withheld payment, get a
rnandamus 20 compel It's payment, in
spite Of the fact that his salary was
part Of the government moneys and
had not been set aside for his pay
menL
To Mr.. Hogan's argument that the
fines the Controller sought % impose
would infict irrcparable damage on the
bank, Justiee Mccoy said he preferred
90 hear argument on whether the
fines were legally imposed. Mr.. Hogan
insisted that taking the time Of all
the officers and employees of the bank.
often until late at night, so as 20
make them neglect their regular ousi-
ness, was an irrepsrable iDjury; and,
even IL IL did not ruin the bank,
should BE considered on It's merits
and not on the actual amount.
There was considerable debate over
the question Of the account In the
brokerage firm Of Lewis Johnson d