The Washington times., 1915-05-15

General Gregory on February H. and
which 10 designed to relieve Comptrol-
Ter Williams Of the false assertion i'm
puted to him by the Attorney General
on April )8, bears the earmarks Of a
not too ingenious device to relieve his
friend Williams from proven falsehood
respecting tho time when Special Coun-
sci Brandeis was retained.
Williams insistence that the Riggs
Bank has 'persistently conducted the
brokerage and real estate loan business
under one suise or another and falsifed
or delayed or 1uggled its reports to
conceal its illegal operations is an un-
Comptroller Williams' statement
that at the time OF the call OF June.
1913, the Riggs Bank had a shortage
OF reserve exceeding $500. 900 Is a fair
sample OF his labored efforts to create
the bank was short in that portion Of
Its reserve which II is required to
keep in cash just ss32.Sls. but it had
an excess In reserve cities Of $3.50, ,40s,
so that Its actual shortage was $72,-
900. In other words the bank was
thar, l. per cent On the very next
day the shortage Of reserve was turn
ed into an excess. both Of the bank s
cash reserve and Of the amount Of
reserve with approved reserve agents
Not Short Thirty Days.
williams says that the bank was
| continuously short in its reserve and
that IT was the duty OF the Comp
troller. when such shortager were not
made good within thirty days. to ap-
point a receiver and wind up the
banks affairs But he fails to state
that never once was the Riggs Bank
, short in it's reserve thirty days or
anything like that period, and to add
that could he ever have caught IT sc
he would have attempted TO appoint
receiver and wind up the banks af'
fairs
Williams directly accuses Vice Presi'
dent Allies of false swearing in that he
attested in 1912 ETC.. regarding his own
ershir OF the banks stock. Mr.. Allies
did not make oath to the statement tc
which the Comptroller refers. The
stock ledger OF the bank showed a GER
tain number of shares standing in Mr.
Allies name The cashier correctly re-
ported this number of shares to tn.
other directors, properly 'attested' Il
the correctness OF the Transcription
| from the stock ledger. In accordance
with the specific requirements OF tn,
national bank act and the positive direc
ton Of the Comptroller's office.
! Even II 1t were true as Williams say!
| that from 81 to 81 per cent of the loan!
of the Riggs Bank were made on stocks
ara OtneT seTuTltlts IL "oulu ne no re
fection on the bank for the reason tina
II has upward Of sI0,o1o.0O OF loanabl,
| funds that in addition to accommo
dating all demands for commercial loan,
II has always been obliged to go out
| side Of Washington seeking commercial
paper, and frequently has had to buy
bonds to keep its funds employed. viii
liams Is counting on the publics failur,
| to realize how little is the Nationa
Capital commercial city. The bank
| collaterally secured loans have Ions
! been ore OF its chief elements o
strength
Three Dummy" Loans.
After a searching examination Of th'
affairs OF the bank for nearly nine
teen years OF its existence. Williams
| found only three loans which even h
| could characterize as dummy loans
No one OF these was a dummy loan il
the common and honest use Of that tern
because each Of the three loans wa
wholly free from deception or fraud. va
entirely lawful. was amply secured ant
paid the current rate Of interest.
1T seems wiser for the present not fur
ther to attempt TO answer in detail th'
Comptroller's reckless charges ard in
nuendoes because each Of them viii b.
| judicially disproved before the court.
| The bank enters upon this suit Wit
! complete confidence that at its con
c,usion the good name OF the Riggs Ma
Nonal Bank and the enviable reputation
| which Its officers have always cnjOye
wherever they are known, will be purge
OF ever-y imputation which a vengefu
and malicious Comptroller Of the Cur
rency has sought to put upon them.