The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-05-15
Serious Irregularities Alleged
by Secretary Of Treasury in
Answer to Banks Suit on
Conspiracy Charge.
DECLARES BANK WAS
BROKERAGE CONCERN
Violated Many National Bank
Laws and Intimated 1t De-
pended for Profits on It's
Political Pull.

Washington. May Secretary
McAdoo and Comptroller williams
filed IN the district supreme court
today an answer to the injunction
suit brought by the Riggs National
bnnk charging them with conspiracy
To wreck the institution.
Their answer il sweeping denial
81 all the hanks charges.
both officials presented long affi-
davits that they did not combine nor
conspire To injure the hank: that
their actions. which were set forth
as ground for the bank charge were
taken In the exercise OF proper dis
erection ana because OF conditions and
Incidents In connection with its man
agement, the propriety and some
times the lawfilness Of which they
questioned.
| Secretary McAdoo in his affidavit
makes this counter charge
~ eharge and AVER the account 10.
be that my inclusion In the suit ~
due TO ulterlor and Improper motives
and resorted To solely Tor the purpose
| OF thereby utterlng and publishing
grossly false and libeious statements
under the privilege and protection Of
judicial forms and free from the legal
accountability that would otherwise
be involved"
Mr. williams In his sworn state
ment says examinations Of the RiEEs
bank by his office disclosed violations
of the national bank act: that Il was
not so much a commercial hank as
one which lent much money on stock
collateral. which was used IN specu-
I I.g AnN ~ lie
GERS aud directors made false stnte-
ments under oath that dummy loans
sometimes were made the proceeds
of which went 10 officers. that some
officers were engaged In real estate
transactions and that other things
were done beyond lts powers.
John Burke. treasurer OF the
United states. the third defendant.
submitted an affidavit relating TO the
I retention by him of 5000 interest
) on government bonds OF the Rlggs
. bank deposited with the treasury "
+ secure fs note circulation. MT
= Burke said he acted Iva accordance
with law.
. A number of tables and other sta
tisticni data were submitted witt the
% answers. one gives u list OF loans bS
% treasury. assistant sccretarics, a for
. mer comptroller of the currency ana
q national bank examiners. The name,
o OF Leslie N. shaw. William B lsidg'
ley. T. A. Coolidge ana others appeal
q IN the list.
Is Secretary McAdoo said in his an
: swer that he has nothing 60 do witt
y the penalties assessed by Comptrollel
Il Williams, which the bank seeks q
euinin and that he knows of onl'
II two reasons which might cause M
q bank To be- hostile. one was that h
,- refused one OF its agents desk II
II the comptrolier's office and the othc
n was that he charged interest ON aoN
y eminent deposits lie Withdrew GOV
,f ernment funds. he says, because h
r. believed they should hc In a ban
n doing more commercial business.
A. Comptroller Williams In great de
= tail. denies that he has conspired |
niure the bnnk and charges that
has violated the law ana eeen "gilt
of Improper practices In stock broh
~ cuse trnfkactions, excess loans, stoc
Investments ana other transactions.
Messrs McAdoo md Williams an
NJ. G. Elliott give their version OF
conference In McAdoo's office al On
'h conclusion OF which the bank al
80 legged IN its complaint, McAdoo sal
n To President Glover OF the RIGS
oi bank.
ln MIR. Glover. YOU know what IN
u means 10 the Riggs National bank
The bank aVerred that to he
n threat and promise that WAS ia
" filled later by withdrawal OF govern
en ment deposits.
az McAdoO AYERS he made no suc
Dn remark hut warned Glover that q
then delicate financial situation hel
De might be made worse and that all "
national banks Ia the city would "a
Ter In consequence
The afndavits which arc the al
rs swer are addressed IN part % the =
~ latlon between the Rises Nation
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