Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-05-15
M'CADOO-WILLIAMS
DENY ALL CHARGES
File Answer TO Suit Brought BY Riggs
National Bank, Charging conspir-
aey to Wreck Observation-Disclosures
Makes Counter Charges.

Washington. May 15-Secretary Nc
Adoo and Comptroller Williams fled IN
the district court today an answer in
the injunction suit brought by the Riggs
National Bank, charging them with
a conspiracy to wreck the institution.
Their answer is a sweeping denial OF
all charges.
Both officials presented long ani-
.davits that they did not combine nor
conspire to injure the bank; that their
actions. which were set forth as
ground for the bank charge. were tax
en- in exercise Of proper discretion ana
because OF conditions and Incidents In
connection with it's management OF the
property.
Secretary McAdoo in his AFFIDAVIT
makes this counter charge:
"I charge and aver the fact to be
that my inclusion in this suit Is due to
ulterior and improper motives and re-
sorted to solely for the purpose OF
thereby uttering and publishing gross
ly false and libelous statements under
the protection of judicial forms. and
free from the legal accountability that
would otherwise be involved"
Mr.. Williams In his sworn statement
saws the examination Of the Riggs bank
disclosed violation Of the national
bank act. that it was not so much a
commercial bank as one which lent so
much money on stock collateral. used
in stock ventures; that some Of its Of
flcers made false statements under
oats: that dummy loans sometimes
we're made; that some officers were
transactions
and that other things were done beyond
Its powers.
John Burke, the third defendant.
submitted an affidavit, relating to the
detention by him Of $4,000 interest on
government bonds OF the Riggs bank,
deposited with the treasury to secure
its note circulation.
Mr.. Burke said he acted in accord
ance with law.
A number Of tables and other statis-
tical data were submitted with the an
swers. One gives list of loans by
the bank to former secretaries OF the
treasury, assistant treasurers and ma
tional bank examiners. The names Of
Leslie NJ. Shaw, William B. Rodgeley,
L. A. Coolidge and others. appear in
the list.
secretary MC!tuOO III ah-
swer that he has nothing to do with
the penalties assessed by Comptroller
Williams, which s,ie bank seeks to en-
join. and says he knows but two rea-
sons why the bank should be hostile to
him. One was that he refused one OF
it's agents desk in the comptroller S
office, and the other is that he charged
interests on government deposits.
Comptroller Williams, in great de-
tail. denies that he has consplred to
;njure the bank, and charges that II
had violated the law and been guilty
"of improper practices" in stock brok-
erage transactions, excessive loans
stock investments and other transac-
tions.
Messrs. McAdoo and Williams. and
NJ. C. Elliott give their version OF
conference in McAdoo's office at the
conclusion Of which the bank alleges
McAdoo said to President Glover OF
the Riggs bank:
.Mr. Glover, you know what this
means to the bank"
The bank averred that to be threat
and In effect promise that was full
filed later by withdrawal Of govern
ment deposits.
McAdoo AYERS he made no such
statement.
Tho affidavits which are the answer
lare designed In part to show the rela-
tion between the Riggs National and
the National City Bank Of New York.