The Washington times., 1915-05-15
Continued from First Page)

Reserve Bank funus. The Riggs Bank
charged in effect that the Government
against the institution.
secretaX MGhdoo re replies that hat he has
involved, because these arc entirely
within the discretion OF he Comptroller.
In this connection the peculiar relation
. OF. the Comptroller 10 the Treasury De-
partment iG outlined in, Mr.. McAdoo's s
statement He insists that he has not
conspired with the Comptroller or any
body else against the bank. and charges
that his inclusion In the suit Is due ito
resorted to solely for the purpose of
thereby uttering and publishing grossly
false and libclous statements under the
privilege and protection OF judicial
forms"
Despite the confidence that he is inn
mune from prosecution in the case, how
ever, the Secretary says:
Il avail myself of this opportunity, to
meet and answer in deta II each and all
OF the allegations. ins.ruatlons, and
conclusions contained in the bill Of COM
plants in so far al the bill affects me. )"
shortly after he became Secretary Of
the Treasury, Mr.. McAdoo said. he was
advised of close relations between the
Riggs National and the National City
rumors OF favoritism shown by the de-
partment.
Salary From New York.
National City bank. through the City
Securities Company. was a large stock
holder of the Riggs National. He
averred. in his answer. that the City
Securities Company Is an auxiliary
of the National City, its entire stock
being owned by the stockholders OF
the National City Bank in the pro-
portions in which they hold the stock
OF the latter; that Milton f. Allies. vice
at1 1ant - hA l.
4 two-thirds of his total salary from
the National City Bank. and that the
National City was then maintaining
several employees in Washington un-
der regular salaries: These were Mr.
Allies. receiving $4,000 annually
George c. Voss. secretary to Mr.. Allies,
S2.500 per annum; Jerome j. Wilbur.
2.700 per annum: Miss Marks, 81 200
per annum. AMI Lotta M. Taylor, $40
per annum.
Soon after becoming Secretary. Mr..
McAdoo says. he learned that Miss
Taylor was provided a desk in the
Comptroller's office and given facil
tiles for getting information concern
ing the reports OF national banks. He
regarded this as irregular, and issued
an order that It must cease, pointing
out the improriety of this condition.
and assuming that it would be so un-
ierstood by banks generally.
About the same time. the bill ayers, on
discovering that depositaries of Gov
eminent funds were not paying inter-
est, he directed that they be requir-
that time the National City Bank had
100000 and the Riggs National $780,
900 of such funds. The National City
declined to pay interest and surrend-
cred the account. Out of the 1870
banks that were then Government de-
positaries, only seven declined to pay
interest and keep their accounts.
Denies Any Malice.
Secretary McAdoo denies that he
has ever had any business with the
National City Bank or had ever at
tempted to establish business rela-
tions with 1t. He knew only two
his acquaintance was entirely cas-
ual. He absolutely denies any malice
or unfriendliness toward either the
National city or the Riggs National.
The affidavit at this point proceeds
TO a discussion OF the financial crisis
which was prccipitated in Washing
ton by reason of the troubles Of the
United States Trust Company and
The. the snbseapen5 nH assumpt,Gn Of that
Trust Company. Rumors concerning
the United States Trust Company. he
says. were undermining confidence in
and when the national banks of the
city asked for deposit with them OF
a million dollars, in order that it
might be transferred to the Munsey
ments for paying the depositors OF
the United States Trust Company, the
deposit was made. 1t was secured by
ample collateral and served the pur-
In the local situation. Nevertheless.
the Treasury Department was severe
ly criticised as was Comptroller Will
llams, for It's course by articles pub
hL IL. 1x,{h
answer asserts that Secretary, Nc.
Adoo sent for Charles {. Glover;
Bank. .,
In Mr.. McAdoo's affidavit. as follows:
Talk With Glover.
when Mr.. Glover reached my office
said to him. rather brusquely. for
the express purpose of drawing out
the facts:
"'Mr. Glover, what does the Riggs
Bank mean by encouraging these at
tacks in the New York Tribune?'
asked.
II handed him the Tribune and told
him IN substance what the articles
were. Mr. Glover denied emphatical lily
and with some Indignation that the
Riggs Bank was responsible for these
publications. l had had but a short
tHlK Win NT. IIlONel when Mr. VIII
liams and Mr.. NJ c. Elliott, with
whom I had been discussing the sub
jcct before MI. Glover came returned
at my request to my office. l said
to Mr.. Glover:
1T would be fairer for me to say
that am told that one or more offi-
GERS of the Riggs Bank. and not the
Riggs Bank itself. are responsible for
these publications.
He said; To what officers do you
refer
II said: 1 am told that Vice President
Allies or Vice President Flather. or both
Of them, inspired the statements in the
Tribune.
Mr.. Glover said: I do not believe II
is true. Suppose we ask Mr.. Allies and
Mr. Flather to come over here
Il said | would ask my secretary, Mr..
Cooksey, to telephone them III Mr..
Glover's name to come to my office
Shortly thereafter Mr.. Allies and Mr..
Flather came. ] said to them what ]
had said to MI Glover about having
been informed that officers of the Riggs
Bank were responsible for the articles
that had recently appeared in the
Tribune attacking the Munsey Trust
transaction and the Treasury Depart
ment. Mr. Allies and Mr.. Flather each
separately denied having been re-
sponsible for the articles in question. ]
then said to MIR. Allies: