Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-05-21
Bailey Of Texas Threatens to
Withdraw When Reproved
for Impertinence Toward
Court at Opening of Speech,
UNTERMYER CLASHES
WITH OPPOSING COUNSEL
Former Sentor Declares New
York Lawyer Deliberately
Distorted Facts While Rep
resentlng Treasury Officials,

icy MORNING JOURNAL SPECIAL LEASED wlRsl
Washington, May 20.--Argument
became contentious and bitter today
In the case of the Riggs National bank
against the secretary of the treasury,
comptroller of the currency and the
treasurer as former Senator Bailey
presented to Justice Mccoy the bank s
opposition to the motion to dismiss
the temporary injunction granted
against the treasury officials.
Mr.. Bailey's argument began with a
clash between himself and Justice
Mccoy which led to the lawyers
threatening to withdraw from the
case after rebuke from the bench
Later as Mr.. Bailey continued. he was
interrupted time after time by Sam
uel Cntermyer of counsel for the de-
fcndants. who disputed his interpre-
tation Of the facts. The interruption
on several occasions precipitated
rather heated exchanges.
Denounces Newspaper Report.
Before the argument started. the
atmosphere had been charged with
tension by a denunciation from the
bench of newspaper report of yes
terday's proceedings which Justice
Mccoy characterized as incorrect and
deliberate If not malicious.
Mr.. Bailey. after declaring that Mr.,
Untermyer yesterday had 'mis-stated
practically every fact involved in the
case proceeded to reply in detail to
Mr.. Untermyer's argument. Ee oc-
cupied the entire day in his discussion
and will conclude his argument on the
law of the case tomorrow
Justice Mccoy let It be known dur
ing the day that he probably would
take the case under advisement for
some time.
After several interruptions by Mr..
Untermyer Mr.. Bailey protested. and
he was supported by bis associate,
Frank j, Hogan.
The court cautioned Mr.. Untermy-
er not to interrupt and Mr.. Bailey
continued. He disputed Mr.. Inter
myers analysis of the real estate and
stock transactions of officers of the
bank.
Explains Real Estate Business.
IF this bank traded in real estate,
or stocks and bends he said. ''its ac-
ton would plainly have been ultra
wires, AMI under the law it would
have been subject not to the fine
sought to be imposed by the control
Ter. but 80 forfeiture of its charter.
The bank did no such business But
the officers In their individual ca
pacities did handle real estate and
stock loans
There was nothing illegal about
these transactions Mr.. Bailey con-
tended, and he asserted that they
were handled for the accommodation
of customers Of the bank. He said
officers of the bank, in the utmost !
fni t ~ nrt
eral to secure notes upon which the !
bank made loans. These loans, he |
said, supplied the funds used in the !
real estate and stock transactions.
Regarding Loans to Officers.
"This was the officers money he |
added, borrowed from the bank, and |
amply secured by collateral. One So !
called dummy loan for $SG.000 upon /
which stress is laid, was supported by |
$4,000 of easily marketable, sound
securities
"The management of this bank is |
second to none in the United States,
the attorney declared emphatically. |
In the nineteen years of its history /
us national bank, SO cautious have |
the officers been IN their loans that |
only $10S,000 has been written off as
loss, and of that amount 100000 has |
been recovered. This shows a loss |
of about one-fiftieth of one per cent |
of the banks business.
Certainly ii is a tribute to the .
caution of the men who have handled /
the millions of loans made by the |
bank"
Justice Mccoy suggested that, a
bank being a public institution, the /
power must be lodged somewhere to
authorize o close official supervision. /
That power, Mr. Bailey replied /
was conferred ON the comptroller, not |
through the authorization for special
reports, but through the authorization |
for the appointment of bank examin- !
ers to examine any and all of a banks |
affairs. -~ss !
Bailey Grows Wrathy. |
When the clash came between |
counsel and judge, Senator Bailey
was arguing for the admissibility OF /
an affidavit disclaiming relations be- !
tween the bank and Lewis johnson g. /
Co., bankrupt stock broker. Justice
Mccoy interrupted to say he had al
ready ruled it would be admitted and
that further argument only took I
time.
Your honor has taken more time
than l intended to take for what in
tended TO say replied Mr. Bailey.
Your remarks are highly inn
proper" returned the justice. please
understand that distinctly. ] do not
care for any more discussion. An
other remark of that kind and some
other counsel will argue this case
Mr.. Bailey tossed his papers to the
table and turning away, replied;
= L. hat n