The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-04-21
CHARGE CONSPIRACY
BANK SEEKS IDJUNCTlON TO stop
R'ADOG's WRATH
OFFICERS GET SUPPORT

EFlCERS GeT SUppURl
Riggs National Bank Of Washington
Alleges McAdoo and Williams At
tempted to Use Their Position to
Take Out Spleen-Government
Takes Stand Behind Officials.
Secretary of the Treasury McAdoo
and Comptroller Of the Currency
Williams have been made defendants
in proceedings begun in the District
Court of Columbia Supreme Court by
the Riggs National Bank Of Washing
ton, which alleges that these officials
have combined and conspired to
wreck the bank.
Temporary and permanent injunc-
tions to halt the alleged conspiracy
and to prevent the comptroller from
making what the bank charges are
unlawful demands for special reports
Of various kinds are sought from the
Court.
One portion of the prayer seeks to
restrain John Burke, treasurer of the
United States, from payment into the
treasury Of $4,000 declared to be due
the bank as interest on S1,000,000 of
United States bonds deposited with
the comptroller against its note cir
culation.
This interest was withheld to cover
penalties of s10o a day for the banks
failure to make certain reports. Once
paid into the treasury, only an act Of
congress could get the $4,000 out,
and Justice Mccoy Monday granted a
temporary injunction on this phase
of the case.
The justice set April Is as the Gay
Z for answer by the defendants to show
cause why permanent injunctions
should not be issued.
The banks bill of complaint con-
tains thirty-seyen specific allegations
designed to show that the comptroller
has adopted unusual and legally Ques-
tionahle tactics in dealing with the
institution. It recites that evidence
OF ~ unusual desire for information
concerning the bank was shown by
Mr.. Williams shortly after he assum-
ed the Office Of comptroller more than
a year ago, and has continued ever
since. Prior to that time, in Decem-
Der, 1913, it says, Mr.. McAdoo charg-
ed officers Of the bank with responsi-
bil;ty for publications concerning a
local financial deal involving two
trust companies. When this charge
was denied, the bill asserts. Secre-
tary NcAdoo cursed Milton E. Allies,
a yice-president of the bank, and said
to c.. C Glover, its president:
Mr.. Glover, you know what this
means to the Riggs National Bank. :"
Meaning thereby" the bill adds,
.ttthat from that time on the power OF
the treasury department would be ag-
gressively used for the ruination and
destruction Of the plaintiff bank in
order to satisfy the personal malice
and Ill viii Of said defendants, Will
Hams and McAdoo, and shortly after
wards; the said defendants, Williams
and McAdoo, began a series of per-
secuticns against the plaintiff bank
for the purpose of impairing or de-
stroying its said business, thereby
prostirutirg their high public Office
and violating their oaths in order to
vent their personal vindictiveness on
the officers Of the plaintiff bank"
a few months later, the bill sets
forth, the plaintiff bank was notified
by C.. S. Hamlin, row governor Of the
federal reserve board, but then as
sistant secretary OF the treasury IN
charge OF the fiscal bureau, that Sec
retayy McAdoo purposed to exclude
the Riggs Bank from share Of de-
posits to cover the District Of Colum-
: bia tax Withdrawals, which deposits
BY custom are divided among the ma
tionaI banks Of the district.
Mr.. McAdoo later wrote to Mr..
Glover, the complainant states, de-
ciining to explain why such action
should be taken, and adding at the
same time his intention Of withdraw
: ing all government funds from that
bank. Subsequently, it is alleged,
government deposits amounting to
more than s1,200,o0o were with
drawn from the bank, including Pan
ANA canal deposits amounting at one
time to s1,158,479.
These Withdrawals were brought
Ssabot by Secretary McAdoo, it is
charged, at a time when the Euro
pean war and the business depression
In the United States had made banks
: husband their resources and "in a
deliberate attempt to wreck the plain
z tiff benk in the execution of the con-
spiracy existing between him and the
defendant, Williams, for that pur-
pose"
Comptroller Williams issued this
statement: "I have not seen the bill
fled by the complainants, but have
( read the extracts furnished the press
"The recent Investigations ofsthe
affairs Of the Riggs National Bank
disclosed irregularities and unlawful
practices on the part of certain Off
GERS os-sufhcient Importance to merit
their reference to the department Of
justice, and that department engaged
the services of Louis D. Brandeis of
Boston some weeks ago, as special
counsel in the case, and it is consist
ent with the attitude Of those officers
to attempt by unwarranted state
ments> to place themselves and the
bank in a position Of martyrdom at
the hands of the administration.
"It is not the practice Of this de-
: partment to discuss in the public
press the affairs of any national bank
ing association, but since the officers
in question have had the temerity to
submit this matter to the court this
Office l. prepared to show condition
of affairs in the management Of this
institution which fully warranted the
action taken by this Office. The bank
is solvent. The interests of the de-
positors have been safeguarded by the
actions of the comptroller's Office, but
Il the methods and practices COM
pIaired Of had been permitted to con-
tirue the results would have been
serious. The evidence will abundant
II show that it has been necessary
e. I1;e oHSco fo cooty RI torpnj0aSp fh o