The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-04-17

quest made IN January %, it was as.
sesed a penalty of 5000.
The next day a formal demand fol
payment Of this fine made by two
bank examiners was refused. Or
April l a quarter installment of tn,
interest on the 1000, 900 of 2 pei
cents. held by the Riggs-in the comp.
troller's custody to secure it's cir.
culation-came due. The comptroller
the complaint sets forth, "wrongfully
and unlawfully" ordered the treasurer
or the United Sttaes to withhold the
payment of the interest.
In this connection the bill alleges
that MIR. McAdoo has ''usurped" the
power Of the treasurer.
The bill asks that Mr.. Williams be
enJoined from revoking the Riggs
designation as a depository for the
reserves of other national banks or
refusing to approve it as such deposit
tory. An injunction to restrain Mr..
McAdoo from usurping the powers
OF h treasurer Of the United States
also is asked. The court also is asked
to find the sections of the revised stat
utes dealing with the examinations of
banks unconstitutional and void IF
they must be construed as they have
been and are being construed and en-
forced by the defendants.
The banks officers tonight gave out
a statement outlining at length their
view Of the events Of the last year
which led up TO the proceedings of
today along the lines Of the sworn
statement in the bill of complaint.
Comptroller Williams issued this
statement tonight:
II have no seen the bill filed by
the compliments. but have read the
extracts furnished the press.
The recent Investigations of the
affairs Of the Riggs National bank
disclosed Irregularities and unlawful
practices on the part of certain off,
GERS of sufficient importance to merit
their reference to the department of
justice and that department engaged
the services OF Louis d. Brandeis Of
Boston some weeks G as special
counsel in the case, and it is con-
sistent with the attitude Of those Of
ficers to attempt by unwarranted and
untrue statements to place themselves
and the bank in a position Of mar
tyrdom at the hands of the admins
tration.
at is not the practice of this de-
partment 70 discuss in the public press
the affairs of any national banking
association, but since the officers in
queltion have had the temer.5y TO
this matter 10 the court, this
office is prepared to show a condition
of affairs in the management Of this
institution which fully warranted the
action taken b ythis office. The bank
is solvent. The interests of the de-
positors have been safeguarded by the
action taken by this Office. The bank
If the methods and practices com
p.ained OF had been permitted to con-
tinue the results would have been Sc
rious. The evidenue will abundant
ly show that it has been necessary
for this Office to seek to terminate
the reprehensible practices Of the Of
ficers in question and their misuse of
the powers delegated to them by the
directors.
THE penalty imposed for failure to
make reports. the collection Of which
penalty they seek t have enjoined,
grows o u Of their unwillingness to
disclose the true nature of the trans
actions engaged in.
The whole purpose OF the depart
ment has been to require the bank to
give up the unlawful and dangerous
practices and methods which had
been in vogue for years past and
which had threatened alike the well
fare and security of both shareholders
and depositOrs and to require the
bank to conform to the plain require
ments Of the national bank act and
to the regulations of the comptroller
of the currency.
I'm it's efforts to ascertain the real
truth in regard to the operations and
affairs Of the Riggs National bank.
letters were from time to time d.
rected to the bank from the office of
the comptroller of the currency for
information. These requests for data
In various cases were refused, and on
March 80 the Riggs National bank