Newark evening star and Newark advertiser., 1915-04-13

| COMPTROLLER said that he had placed
| the Riggs Bank case in the hands of
| the department of justice three weeks
| ago, and that Louis ID. Brandeis, OF
| Boston, who achieved national prom1-
| nence in the first railroad rate in
| crease case as counsel for shippers.
| had been engaged as special counsel.
| Mr. Williams said that he would not
! have carried the matter into the
| newspapers bur fortan attempt by this
| Riggs bank to create the impression
| that It mas been made q martyr.
The comptroller alleges that but for
/ his action in limiting certain aetivi-
/ ties on the part of the Riggs bank the
Eresults to the banks depositors would
/ have been serious. He says that the
only purpose of his office has been to
J compel the bank to end unlawtuI
/ practices.
Mr.. Williams contributes extracts
from lei ters sent to the Dank from his
Office He charges the Riggs bank,
/ in one Of these letters, with running
! a brokerage shop, with a private wire
/ TO New York and two private tele-
| phones into local brokerage offices. de
| charges that large sums We're loaned
by the Riggs bank on speculative Sc
curities 20 officers OF the bank and to
i clerks Among collateral held for one
loan of 500, 500 the comptroller lists st.
Louis and san Francisco common and
/ preferred stock, Rock Island common
and preferred, Missouri Pacific. In
spiration Copper, Inter-Continental
Rubber and American Can.
Charges Speculation Was Induced.
The comptroller alleges that the
Riggs bank executed orders for
women, young naan, clerks and others
, int efn
speculation for the sake Of the COM
missions realized by the bank. He
says that nearly $1,O0o,000 was loaned
to women on stocks and other securi-
ties, many of them highly specula-
tive. He cites the case of a man who
paid $4,000 for Rock Island issues, on
which he lost $4,000.
Comptroller williams was asked last
night after his formal statement had
been issued for an explanation of the
charge by the Riggs Bank officials
that, although he had been constantly
finding fault for q year with their
conduct of the bank and had been
asked by the bank to instruct it as
to changes he desired, he had made
no constructive suggestions for i'm
proNement. He was asked also why,
in view of the charges against the
BANK an investigation looking to
prosecutions had not been initiated
until recently.
MY letters show that l was con-
stantly pointing out evidence of mis-
mana cement to the bank, said Mr..
williams THE practices complained
of have extended over a long period,
and our investigation has only recent
he !
dence in the hands of the department
of Justice several weeks ago"
Question of Veracity Arises.
A direct issue of veracity between
the bank and the comptroller in the
matter of the conversation regarding
responsibility for newspaper articles
criticising the comptroller for his part
in the Munsey Trust Company trans
action was called to Mr.. Williamss s
attention. The bank asserted that
President Glover and Vice-President
Allies denied responsibility for the
newspaper publications. Mr.. Will
liamss explanation last night was
this:
"Mr. Elliott, now counsel for the
Federal Reserve Board: Mr.. McAdoo
and l have the same recollection as
to what was said. First Mr.. Allies
denied that he knew anything of the
stories attacking the department g
action in the United States Trust
Company sale Mr. McAdoo said to
him, Please be careful about this
now and handed him a copy of the
paper. Mr.. Allies said he had read
the story, and it was true. And you
told the reporter about 1t, didn't
you?' asked Mr.. McAdoo. Yes, l
did said Mr.. Allies
While the sensational story told
by the bank in its bill of complaint
dates back only TO an incident IN
Secretary McAdoo's office In Deeem-
ber 1913, talk in Washington has EN-
braced earlier events as having had
something to do with the differences
between the Riggs Bank and the
comptroller of the currency
williams and Allies Enemies.
1t has been recalled that when
Comptroller williams, then banker
of Richmond, Va, resigned from the
directorate of the Seaboard Air Line,
controlled by Thomas Fortune Ryan,
he was succeeded by Milton e. Allies,
vice-president of the Riggs National
Bank, who went into the directorate
to represent the Seaboard interests
of the National City Bank, of New
York, which holds stock in the Riggs
Bank. also represented by Vice
President Allies. Mr.. Allies appeared
before the Senate committee on bank
ing and currency in opposition to
the confirmation of Mr.. Williams's
nomination as comptroller of the
currency, and it was suggested by
him in his testimony that he may
have incurred the enmity of Mr..
williams through the fact Of Mr..
Ailes's election to the Seaboard
directorate.
1t is recalled also that the first i'm
portant statement to the press issued
by Mr. McAdoo as secretary of the
treasury was a virtual accusation
that the National City Bank had
attempted to obtain a foothold in
the comptroller of the currency's
office through a young woman who
was employed by the National City
to copy the public reports of national
banks made in response to calls of
the comptroller.
The documents In the case include
many letters from the comptroller OF
the currency to the Riggs Bank ami
the banks responses, making mora
than 500 printed pages, among them
a letter sent by the bank to Comp
troller Williams on March in which
he is accused of "a deliberate pur-
pose TO wreck this bank, if possible
In this letter Comptroller Williams
is charged with favoring another
bank, name not given. while pursuing
the Riggs Bank. The allegation Is
made that Secretary McAdoo said
''it is my purpose to withdraw all
government funds from the Riggs
National Bank" and that, in addi-
ton to carrying out this intention,
he caused the withdrawal of the
Arnarican Rod Cross dapoSitS and +bo