Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-05-16
ANGRY REPLIES ARE
F0RMALL Y FILED BY
OFFICIALS IN BANK SUIT

Confined From Page Onei
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might be made worse and that all the
national banks Ia the city would SUI
fer I'll consequence.
The affidavits which are the answer |
are addressed ~ part TO the relation
between the riggs National and the
National city bank ~ New YORK.
lHF .ft About Allies salary.
Mr., McAdoo swears that Vice Presi-
dent Allies OF the Riggs National re-
ceived annual salary Of $4,000 from
tho National Cityibank, that -four otn-
ers identified with the RIGGS BANK
received salaries from the National
City, all totalliDg SIS,J40 q year.
Furthes, Mr. McAdoO ewears that |
Mr.. Allies. tive days before he resigned !
~ assistant secretary Of the treasury I
and took the oath as q director OF the
Riggs National bank, deposited s2,-
400, 900 OF government funds In that
institution making O total there OF
1000. 900. which drew no interest,
as was then the custom.
Mr.. McAdoo says that as he Went
20 hospital for an operation carry
last March the imposition OF fines by
Comptroller Williams or that Off
GERS refusal 10 approve the Riggs as
a depository for other national banks,
were not brought TO his attention.
NcAdoo becomes specific.
From It's organization until the
present. the plaintiff bank contlnu-
ously and against the strongest pro-
test OF successive comptrollers made
and maintained and carried large
loans In excess Of the lawful amount,
In 1908. having fifteen such loans az
gfegating over $4,000. 000. There was
no time during which the law was
not being violated IN this respect.
Sometimes the excess loans showed
on the banks books and In other in
stances they were concealed by
dummy notes Of clerks Of the bank.
1.-THE extent to which It's officers
have been borrowing from plalntiff
bank under the cover Of dummies Is
not available to the department ow-
Ing 10 their refusal 20 make the re-
ports on account OF which the pen-
altles Of $1,000 have been assessed
AGAINST the bank the collection OF
which IL sought 10 be enjoined IN
this action The bank for years en-
gagged IN the purchase Of stocks on
It's own account-~purchases which
were ultra vires-and here again II
issued the dummy note Of an employcc
to falsely have II appear that II mad
disposed OF such stocks when In tact
il had not done 80 after having been
directed 80 TO do by the then comp
troller.
Conducted Irregularl,.
"ln addition to many actual vio-
lations OF the law. In numerous ways
the business OF the bank has been
ii. nfftForg
and directors have borrowed heavily
lin MAY, 1918. at one time as much
as x761,G31.43, or approximately one
fourth OF its entire capital stock and
surplus; large loans have been made
to clerks upon the security of stocks,
some of which were hazardous and
speculative and It's officers have en-
gagged in speculation In the stock
market. the bank In the purchase OF
stocks for others has frequently car
ried stocks until the purchasers were
ready TO settle. ana carried such stocks
as the equivalent OF so much cash.
this item amounting at one time to
as much as $4,000. up to le0S the
bank frequently loaned to officials OF
the United states treasury depart
ment having to do with the super
vision OF It's affairs
"The president of the plaintiff
bank, Charles G. Glover has held
that office throughout It's existence.
MS vice president. Milton + Allies,
has been such since April l6, 1908,
for several years prior thereto--dur-
ing which time plaintiff bunk con-
stantly violated the law--he was as
sistant secretary OF the treasury"
The affidavits are accompanied By
tables showing loans made to former
officials Of the treasury department
tending To show proportionately large
government deposits with the Nation
al CITY and Riggs bank IN former
years and setting forth alleged stock
market transactions by corporation OF
iclals Of the RIGGS bank
The table Of loans begins with
| thirteen items TO Leslie M Shaw,
secretary Of the treasury, 10000
| There are sixty-four other items IN
1 the list credited TO Horace A. TAYLOR,
assistant secretary of the treasury,
| lS99-t006 John II. Edwards, assist
ant secretary, l906-Osi Margaret j.,
Edwards "wife Of John II Ed
wards Robert II. Armstrong, assist
ant secretary, l90S-05, Charles II.
/ Keep, assistant secretary la03-O'i
l.. "A. Coolidge, aSSltuhi SNtIttshsf
4 lg0S-Oe; A, Y, Statter, assistant sec
rotary January to April, 1917 VIZ
J liam b. Ridgeway, comptroller Of the
currency. lg0l-OS: Walter +. Albert
sen, national bank examiner, 1901
/ 06. owen r Reeves, national bank
| examiner. lg0G-ll William d Howell
/ assistant secretary 1899. and
/ Oliver L. Spauldlng. assistant secre-
tnry. tS95-l903
Statement by bank.
The bunk issued q statement taking
issue With many Of the allegations in
1.-THE answers. II says that white Mr..
/ Williams swcars that he intends to
exact no more penalties than the one
for $4,000, he originally attempted TO
I impose penalties aggregatng $780,
600. The National city bank. under
! the law II says, does not and could
/ not own a share Of stock In the RIGGS
and that the two are not connected in
any way. With reference TO loans to
Officers 81 the treasury and the comp
troller's office, the banks statement
SAYS that Il loaned also to officials IN
I all other government departments and