El Paso herald. (El Paso, Tex.) 1901-1931, 1915-04-13
BANK ASSERTSIT
IS Prosecuted
Temporary Restraining Or
der Against Treasury
Officials Is Issued.

] John Burke, treasurer of the United
O. States, from paying into the treasury
: $4,000 alleged TO be due the Riggs Ma
tional bank Of this city, as interest
( due on 100000 worth of United States
/ bonds. This interest was withheld to
D cover penalties Of 500 a day for failure
{ Of the bank to make certain reports TO
J the treasury department. Once paid
q into the treasury. only an act Of con-
, gress could recover the $4,000. The
4 court set April Is as the date when the
defendants, secretary McAdoo, controller
D. of currency Williams and treasurer
] Burke. should show cause why perma-
nent injuctons should not be issued.
D The Riggs bank has brought suit
against McAdOO and Williams charg-
/ ing them with deliberate attempt to
! wreck the bank, which is one Of the
3 largest in Washington.
says McAdOO Cursed BANKERS.
I The banks bill or complaint covers
! Sc typewriter pages and contains 81
Z specific allegations designed 10 show
/ that the controller has adopted unusual
I and legally questionable tactics in deal
! ing with the institution. It recites
/ that evidence Of an unusual desire for
Information concerning the bank was
! shown by Mr. Williams shortly after
/ he assumed the office of controller
more than year ago, and has con-
/ t5nued ever since Prior to that time
/ 10 December. 1913, il says. Mr.. McAdoo
] charged officers Of the bank with re-
spOnslbllity for publications concerning
a local financial deal involving two
I trust companies When this charge was
denied blythe officials, the bill asserts,
! secretary ! AIcAdOO cursed Milton E.
] Allies, a vice president Of the bank, and
said to c. c. Glover, its president:
Alleged Persecution Began.
fMr. Glover, you know what this
means to the Riggs National bank"
Meaning thereby" the bill adds. that
from that time on the power Of the
{ treasury department would be agrees
sively used for the ruination and de-
struction Of the plaintiff bank in order
TO satisfy the personal malice and i'll
will OF said defendants, Williams and
McAdOO- and shortly afterWard the said
defendants. Williams and McAdoO. be
gan a series Of prosecutions against the
plaintiff bank for the purpose OF i'm
pairing or destroying its said business.
thereby prostituting their high public
office and violating their oaths, IN or
der to vent their personal vindictive-
Z ness against the officers Of the plaintiff
! bank"
a few months later. the plaintiff
AYERS, the bank was notified by c 5.
I Hamlin, now governor of the federal
reserve board, but then assistant sec
retary Of the treasury in charge OF the
; fiscal bureau, that secretary McAdOo
proposed to exclude the Riggs from a
share Of deposits to cover the District
Of Columbia taxes Withdrawals, which
Z
the national banks of the district
Government Funds withdrawn.
Mr.. McAdOo later wrote to Mr. Glover,
the petition states, declining 10 explain
why such action should be taken and
announcing at the same time its inten-
tiOu OF Withdrawing all government
funds from that bank. Subsequently, il
is alleged. government deposits. amount
ing to over $1,000 900, were Withdrawn
from the bank, including Panama canal
deposits amounting at one time 10
S1.15S.479.
These Withdrawals were brought
about by secretary AIcAdOo, IL is charged,
at a time when the European war and
the business depression in the United
States had made banks husband their
resources, and in deliberate attempt
to wreck the plaintiff bank in the exc
cutiOn Of the conspiracy existing be-
tween him and the defendant, VIII
liams, for that purpose"
Red Cross Funds Taken Out.
Further complaint is made that Mr..
Williams, as treasurer Of the Red Cross
society. had the funds Of deposit with
the Riggs bank removed TO other in
situations
For almost a year. the bill AYERS. the
controller has bOmbarded the Riggs Ma
tional with demands for special reports
Of many sorts, exceeding the inQuisi-
tOrial and visitatOrial powers vested in
him The bank declares that ii has
requests and that requests for a little
time have met with refusals and re-
hinder that failure to make reports 10
the controller involves a penalty Of 500
for each day after report is demanded
and not rendered. Exact figures as 10
penalties the controller may hold the
bank has incurred, the bill states, is not
clear. but it estimates that it must be
at least $4,000
In making some Of these demands,
81. oil NTr n=
lated the fourth and fifth amendments
to the constitution, prohibiting unreas-
enable searches and seizures and fore
ing anyone TO be witness against him
self
In February last. according to the
bill. Mr.. Williams wrote TO the bank,
asking il its officers had destroyed any
of its records. On March 80. il further
sets forth, he demanded a complete
history of loans OF the Riggs bank TO
its present officers and gave notice that
for failure to comply with a like re-
quest made on January p, II was as
sessed a penalty OF $4,000. The next
dav a formal demand for payment OF
this fine made by two bank examiners
was refused On April ], quarterly
fustalment Of the interest on the $1,000
600 of . percents held by the RIGGS
in the controllers custody to secure its
circuIation-came due. The controller
the complaint sets forth. "wronSfully
and unlawfuuy'' ordered the treasurer
of the United States TO with I'd the
payment Of this interest
WfIIIams's Defence.
Controller Williams issued this state
ment- The recent Investigations Of
the affairs Of the Riggs National bank
disclosed Irregularities and unlawful
practices on the part OF certain oiIlcers
of sufficient Importance to merit their
reference to the department Of justice,
and that department engaged the ser
vices of Louis L Brandeis- OF Boston,
some weeks ago as special counsel IN
the case and IL is consistent with the
attitude Of these officers to attempt by
unwarranted and untrue statements 10
Mace themselves and the bank in a po-
sition Of martyrdom at the hands OF
the administration
III is not the practice OF this depart
rnent TO discuss in the public press the
affairs Of any national banking asso-
cation. but since the officers in ques-
+ion have had the temerity to submit
ms matter to the court. this office is
1reDared TO show a condition Of affairs
in the management Of this institution