The Washington times., 1915-05-11
Formal Answers Today Expect
ed to Present Entire Defense
OF Treasury Officials.
McADOO CLAIMS INNOCENCE
Secretary Declares He Was Not
Responsible for Fine and De-
MES He Has Jurisdiction.

Possibilities Of a further continuance
OF the hearing of the Injunction suit
brought by Riggs National Bank against
Secretary of tho Treasury McAdoo
Comptroller of the Currency Williams
and Treasurer Burke. developed today
as a result of motions filed by the three
defendants to dismiss the bill.
Hearing on the rule against the de-
fendants requiring them to show cause
why they should not be enjoined is
set for tomorrow before Justice Mccoy
in Equity Court No. l. but inasmuch as
the jurisdiction OF the court has been
attacked in the motion to dismiss tho
suit extended arguments may be heard
by the court
1t is expected that formal answers
to the rule to show cause will be filed
late today. The answers may cover the
bill itself and present the entire defense
OF the Treasury officials.
Ready To Proceed.
Attorney Frank J. Hogan and former
Senator Bailey. counsel for the bank,
assert they are prepared to proceed
without further delay. They say they
are ready to argue at once the motion
to dismiss
In the motion to dismiss and the sup
porting afrdaVits. Mr.. McAdoo dis
claims responsibility for the fine as
sessed against the bank by Comptrol-
ler Williams and denies that he has
any jurisdiction with respect to the an.
proval of depositary banks. claiming
that such authority Is vested in the
Comptroller. while Treasurer Burke
AYERS that h" took only such action
as WAS demanded by law.
IL Is evident that Mr.. Williams Will
the effort in the petition being clear to
make the controversy rcvolVe solely
about the office of the Comptroller OF
the Currency.
The first four reasons set UP in the
motion to dismiss are the same as TO
each Of the three defendants They are
as follows:
Four Reasons.
'first-1t Is manifest. upon the face
Of the bill OF complaint. that this de-
fendant has no individual interest in
the controversy or suit. and that the
relief sought against him is in his OFF,
cal capacity only. as a representative
OF the United States, which alone is to
be affected by any decree herein against
this defendant. wherefore the said suit
as is manifest upon the face Of the bill
OF complaint ts essentially and sub
stanuially a suit against the United
States beyond the Jurisdiction OF the
court
'Second-lt Is manifest, upon the face
OF IN" bill: that the suit involves the
property OF the United States. is a suit
against the United States. and tho
United States Is not made a party. and
cannot be made a party, without its
consent.
"Third-It appears IN and by the bill
OF complaint that the plaintiff has
plain. adequate and complete remedy at
law. II 1t has any right, because any
right the plaintiff has as against this
defendant. Is set out in its bill of COM
plant. is cOgniZable exclusively at la W
"Fourth-The plaintiff in and by its
bill OF complaint, states no cause Of
action cognizable in court of equity
Has Sole Discretion.
1t is urged by Comptroller Williams
that his duties are laid down by statute
and that he has sole discretion and
courts. He says
'SiXth-The action to enjoin this de-
fendant from refusing to approve the
plaint!ff bank as a dcpositary for the
funds of national banks is prematurely
begun. in that It appears upon the face
Of the complaint that. this defendant
has not refused such approval. and that
he has not as yet exercised or been
called upon to exercise the discretion
vested in him in that respect.
"Seventh-ln so far as the complal
seeks TO enjoin this defendant from
hereafter calling for special reports and
against assessing penalties upon the
failure to make such reports, no cause
Of action is stated. in that it does not
appear that any further special reports
have been, or are to be. called for, or
that any penalties have been imposed
or are threa tened to be imposed with re-
spect to such special reports
Secretary MCAdoo supports the Comp
trollers contention as follows:
"t1tth-Ihe complaint fails to state
any cause of action against this defend
ant, in that he is not concerned with
and has no power. authority or turis-
diction, with respect to the doing OF any
OF the acts sought to be enjofned.
"(s) He has no power or Jurisdiction
with respect to the imposition or as
sessment OF the penalties under sections
| b21l and 52l3 of the Revised Statutes of
the United States. against which relief
is sought.
"Cb) He has no power or jurisdiction
with respect to the approval OF deposi-
tarV banks. or Of reserve cities. all of
such acts being within the sole jurisdiC-
tion and discretion of the Comptroller of
the Currency