Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-16
SPECIFIC DEN|ALS
|NR|GGS BANK SUIT
Secretary McAdoo and Comp
troller Williams File Answers
in Injunction Proceedings.
NO CONSPIRACY OR MALICE
Action Taken to Indicate There
Is No Present Intention to
Compromise Case.

maj OF charges Of conspiracy and mall
ice against the Riggs National Bank OF
this city was made by Secretary Nc
Adoo and Comptroller Williams of the
Treasury Department, to-day in affi-
davits filed in the Supreme Court of the
District of Columbia in reply to injunc-
tion proceedings brought by the bank
iii which ii was alleged the Treasury
officials had conspired to wreck the
bank.
II specifically deny the charges of
having conspired or combined with the
defendant Williams or any one else to
injure the plaintiffs bank or it's busi-
ness" Mr.. McAdoo declares
II have not conspired in any way to
in5ure or ruin the plaintiff bank or it's
business and IT is not and never has
been my purpose to inflict injury upon
the plaintiff bank" Mr.. Williams as
serts.
All OF my actions have been in the
performance OF my duty in the prem
ises. and In the exercise OF my honest
Judgment and discretion and without
malice. i'll Will or bias against the
plaintiff bank or It's officers"
At another point in his affidavit Mr..
McAdoo says:
II charge and aver the fact to be that
my inclusion In the suit is due to ulte-
rior and improper motives. and was re-
sorted 10 solely for the purpose there
by OF uttering and publishing grossly
false and libelous statements under the
privilege and protection of judicial
forms, and free from the legal account
ability that would otherwise be in
volyed.
NO PRESENT INTENTION
TO COMPROMISE CASE
Filing Of the afiidavits was taken to
indicate that there was no present in
tcntion TO compromise the case. The
governments brief will be filed on
Monday. when oral argument will be
heard on pending motions to dismiss
the banks suit on a plea of lack Of
Jurisdiction and for other reasons Both
affidavits recite alleged facts ascer-
iained by the comptroller's investiga-
tion Of the bank. which are said to
show violations of the national bank
act, and improper practices"
Both bring into the case the name of
the National City Bank OF New York in
an effort to show that hostility which
is declared to have been exhibited by
the Riggs Bank toward the Treasury
officials might have resulted from oc-
currenccs at the department in which
the New York bank figures, after Mr..
McAdoo took office.
Secretary McAdoo declares he knows
Of only two incidents which may have
caused personal hostility toward him
by the bank. One was his order DENY
ing desk room in the comptroller's
Office TO a woman, who. his affidavit
says. made certain reports on the con-
dition of national banks to the Riggs
National and the National City Bank
of New York. The other reason. his
affidavit sets forth. may have been his
decision to charge national banks
which carry government money per
cent interest on such deposits At that
time. he says, the National City had
100000 of such funds. the Riggs $780,
600. and the National City, refusing TO
pay such interest, surrendered its ac-'
count
McADoO KNEW NOTHING OF
IMPOSITION OF PENALTIES
McAdoo declares that he was con-
fined 10 his home from an opera ton
until after the beginning OF the suit
and that he knew nothing of the i'm
position of penalties against the bank
or the refusal to have 1t a depositary
On one occasion. however the secre-
tary said. when Mr.. Williams sug-
gested the employment of counsel to
advise him OF his rights in trying to
learn the condition of the bank. Will
liams Informed him of his power un-
der the law to impose penalties for
persistent refusal to comply with de-
mandS. He advised Mr.. Williams, Mr.
McAdoo said to use his discretion in
enforcing the right of the government
TO obtain information to which 1t was
entitled. OF the banks complaint that
certain government deposits were
withdrawn. that the bank was not
permitted to receive deposits from
other national banks. and that nu-
mcrous special reports were called for
under penalty of fines. Mr. McAdoo as-
serted that he withdrew government
funds from the bank because he be-
lievcd they should go to bank doing
n larger commercial business. and be-
cause Of the comptroller's report Of
the banks condition.
Summing up his investigation of the
bank. Comptroller Williams asserted
that he had learned the bank was
lending it's money on real estate. and
also was lending on commission the
money or others on such security as
that, it had conducted a stockbroker-
age business and had bought and sold
securities, both for itself and on com
mission for others. This stockhrolter-
age business. Mr.. Williams said, had
been carried on at first in the name
of the bank and afterwards In the
name of IL firm composed OF stock
holders of the bank; hut later the
business was carried on in the name of
the bank. and finally in the name of
officers of the bank. hut. except during
the existence of the firm, all profits
eXcep' some specified went to the bank
itself. The plan of doing business
IN the name of the officers. Mr.. Will
lians said. was mere device II
evade the law. In using its funds TO
lCAutinu rCnnth Do