New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-19
Said To Be Aiming to In
volve New Workers in
Riggs Bank Case.
INTEND TO HOLD
DIRECTORS LIABLE
Calling of Untermyer by McAdoo
and Williams SO Interpreted
in Washington.

Washington. April 10 beIl'A '""'
the case Of the Riggs National Bank
against william G. McAdoo. Secretary
Of the Treasury. and John Shelton
Williams. Controller of the Currency
would be broadencd by the government
20 make it case Of the government
against ,hc so-called Money Trus'.'
,5icn was given color by the confer
encc held by Controller Williams and
others with samuel Uoterm-er OF New
York. was strengthened to-day
Controller Williams, so far, has maze
70 charges against the directors OF the
pigge hank His attack was levelled at
five officers Of the institution, particu-
larlv the four ranking oficers-Presi-
dent Glover. Vice-P Presidents Flather
and Ailes and Cashier Father. 1t is
understood. however. that the Treasury
officials. 20 include the big financial in
tcrcsts Of New York with which the
Rigg, hank is allied, intend 10 hold the
directors of he bank personally re-
spovs.b'c lo~ the actions OF the c.
fcor5.
Couuollc. Williams charged the Of
fcers with irregularities and unlawful
practices. Ii is thought the directors
will be brought into the prosecution on
the charge of permitting the officers to
do the acts regarded as irregular and
unlawful by the Controller.
Directors Of the Riggs National are
Charles G.. Glover, Thomas Hyde
James u Johnston, ". j. Flather, K.
Ross Perry. Henry Hurt, John R. NJ
Lean. Frank :. Nanderllp, Milton ~ r.
Allies. Henry II. Father, Sylvester W.
Labrot. T.. Roster Dulany, F. ID. Nc
Kcnntv. willard II. Browhson, Charles
J. Corbv. Joseph Paul and Robert c.
wilkins. All are Washingtonians, eX-
ccpt Frank a. Nanderlp, president oil
the National City Bank of New York,
and Sylvester W. Labrot, Of New Or
leans.
With National City Bank.
In addition to Mr.. Vanderlip on the
board. Milton +. Allies has been the
personal representative in Washington
Tor the National City Bank for several
years. He told one of the bank exam
iners nut on the case by Controller
Williams that he usually made trip
10 New York TO see the National CITY
Bank officers about once week.
One Of the points made against the
Riggs Bank by Controller "llliams
related TO the acting of two of It's
OffGGES rs q IlIL va VI O4ANA Sc N'''
deal i'm inch this firm and the Ma
t.oral City Bank bought lot Of gov
erumcnt bonds from the Croker Ma
tional Bank. Of San francisco, the
profits were divided evenly between the
National City and the Pigs banks
through the two officers who acted as
brokers. The Riggs Banks share
amounted to S24.7O4.16. The point made
by the Controller was that in this deal
the bank was really party TO JOINT
account and was not protected by the
officers acting as a firm. He objected
tc the tisk being taken in such trans
action by Jhe bank.
In reply to this, the banks officers
pointed out that the various deals in
which the officers TOOK part as firm
resulted greatly 10 the profit Of the
bann. as all that was made was turned
over to ita prof and loss account.
Another evidence that the scope of
tn prosecution by the government IS
broadening 10 include what admInIstIa-
ton circles have regarded as the
money trust was the calling in Of
Mr. Urtermycr, who was counsel for
thc House committee IN the PuJO in
vcstigatIOu o. the money trust and
last session was brought into the Stock
Exchange investigation by Chairman
Owen OF the Senate Banking and Cur
IeEcy Committee
After New York Bankers.
. is believed here that Controller
Williams Us the leader IN the effort TO
Guide 900 the PRO ecutlon the entire
body of inanc,ers sometimes referred
90 .- the National City Bank group"
Il was pointed out tonight that Mr..
JntcrmyCr, whose principal qualifca-
tion for the case would bc his familiar
ity with the New lork financial sltua-
tlou has had conferences with Con-
troilcr Williams. but has not been TO
the Department OF Justice nor has he
seen Louis ID. Braudeis the ranking
counsel for the government in the
case.
IL was reported tonight that the ut
most efforts were being made by the
administration 20 whip Attorney Gen
eral Gregory into more thorough ac-
cord with Controller Williams on this
case. 10 was for this reason, u is said
that Postmaster General Burleson, re-
gardcd as the most practical politician
in the Cabinet, was brought into the
recent White House conference. Mr.
Burieson is from Texas, as is Mr.. Greg
Ory. and both are regarded as being
close tr ends of Colonel House, of
Texas. po sibiy the closest friend Presl-
dent Wilson has.
Efforts also are still being made in
administration circles TO induce Attor-
ney General Gregory to clear up the
point Of veracity between him and the
Controller as 10 the date of employ
ment Of Mr.. Brandeis, but up to date
the Attorney General has refused 70 DO
more than issue the statement saying
his department and the Treasury De-
partmeut were in hearty accord