Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-04-14
1t Stands Squarely Behind
McAdoo and Williams
in Legal Battle.
BRANDEIS is EMPLOYED
TO LEAD THEIR DEFENSE
Department of Justice Denies
Any Investigation of Riggs
National Bank.
AT ISSUE WITH WILLIAMS
Bank Reviews Charges and Accuses
Comptroller of "Gross Perver-
sion Of Truth"

WASHINGTON. April 13-Develop-
ments to-day indicated that tho govern
ment intends to do its utmost to back
Secretary william G. McAdoo. OF the
Treasury. and Comptroller Of tho Cur
rency John Shelton williams in the
legal fight precipitated by the Riggs
National Bank, complainant In equity
proceedings to enjoin these officials
from alleged attempts to drive that in
stitution out OF business through sys-
tematic and long-contInued persecu.
ton.
Attorney-General Gregory announced
tonight that the Department OF Jus
tice had employed Louis d. Brandeis, OF
Boston. to defend Williams and McAdoo
In the injunction proceedings. He de-
clared his department and the Treasury
were cooperating In these proceedings
1t became known also that Jesse c.
Adkins. former assistant Attorney Cen
eral. also had been retained In the case
DENY INVESTIGATION
OF RIGGS BANK AFFAIRS
Officials declined to say whether the
government TT this time .contemplates
any affirmative proceedings in addition
to the defense OF Mr.. McAdoo and Mr..
Williams In the injunction case. 1t
was denied, however, that the bureau
of investigation of the Department OF
Justice had undertaken any investiga-
tion of affairs Of the Riggs Bank.
Lawyers in the case gave attention
to day to the question of whether the
comptroller had exceeded his powers
In certain acts Of which the bank COM
plains. and 1t was maintained that for
tile sake of precedent to be established,
this alone would be sufficient to insure
q strong defense by the government. 1t
was recalled that while the courts have
declined to interfere with the ordinary
exercise OF the executive functions of
an officer OF the government. the su-
preme Court has decided that where an
excess OF such power is disclosed an
Injunction may be obtained.
That the present case may go to
the Supreme Court seemed entirely
probable. for both sides apparently are
preparing to fight to the end.
BANK REVIEWS CHARGES
MADE BY WILLIAMS
The bank tonight gave out a state
ment reviewing charges made by MT.
Williams last night. 1t called attention
to Mr.. Williams's announcement that
investigation of the bank had disclosed
Irregularities, and that the Department
of Justice had engaged the services OF
Louis D. Brandeis some weeks ago. as
special counsel In the case. The state
ment recitcd that at noon o-day, At
torneyGeneral Gregory stated that
Mr. Brandeis had not been engaged by
the Department OF Justice. and that the
statement that he had been retained
was incorrect ut the time It was made.
Mr.. Gregorvs own statement in re-
gard to the employment of Mr.. Bran
deis, given out before that of the bank.
follows:
The Department of Justice has em-
ployed Mr.. Brandeis as special counsel
to assist In the defense OF the injunc-
tion proceedings brought by the Riggs
National Bank. Up to the fling OF the
suit yesterday, the Department of JUS
tice had not had before 1t official con-
sideration OF the controversies between
the Treasury Department and the Riggs
National Bank. hut knew in a general
way that these existed and might
result In some character of litigation.
The Department OF Justice and the
Treasury Department are in accord and
heartily cooperating in this suit"
The bank. in its statement. declares
that Mr.. Williams takes credit to him
self for the fact that the bank Is
solvent. when, in fact. he caused the
withdrawal OF hundreds OF thousands
of dollars during the summer and fall
OF 1914, at a time when financial con-
ditions we're exceedingly uncertain in
this country because OF the great war
In Europe"
IT'S LOSSES THROUGH LOANS
TO WOMEN NEGLIGIBLE
Tho statement answers Mr.. Williams's
charge made in letters to the bank that
it loaned large sums to women for
speculation purposes by saying that
Washington has probably more women
than any city OF Its size in the world
who have fortunes, and adds that It's
losses through loans to such clients
have been negligible
The bank declares that Mr.. Williams
has no foundation for the allegation
young men and women to ruin through
speculation.
The fact is.' says the statement, that
tho officers of this bank have never
advised or encouraged any person, man
or woman. young or old. to speculate
In stocks or buy stocks for investment.
and the comptro!ler's insinuation to the
contrary Is n gross perverslon OF tho
truth. OF which no officer OF the govern
ment ought to be guilty with respect
to any matter. and especially the Comp
troller OF the Currency BIO guilty OF It
for the purpose OF inJuring a bank In
the public estimation"
The statement points out that officers