Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-04-13
ACCUSES M 'ADOO
AND WILLIAMS
OF CONSPIRACY
Injunctions Are Sought to
Restrain Officials of
Treasury Department.
MANY COMPLAINTS MADE
OF MALICE AND ILL WILL
Bill Cites Alleged Series of Per-
secutions to Vent Personal
Vindictiveness.
COHTpTROTLERtS STATEMENT
CoMPTROLLER's STATEMENT
Gus Irregularities and I'm
lawful Practices.

WASHINGTON. April 12.-Secretary
OF the Treasury William G. McAdoo and
Comptroller of the Currency John Skel-
ton Williams were made defendants to-
day in proceedings begun in the Dis
trict Of Columbia Supreme Court by
the Riggs National Bank, Of Washing
ton. D. c.. which alleges that these
officials have combined and conspired
to wreck tho 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 paying into the
Treasury $1,000 declared to be due
tho bank as interest on s1.oo0.0O0 of
United States bonds deposited with the
comptroller against its note circulation.
This interest was withheld to cover
penalties of 500 n day for the banks
failure to make certain reports. Once
paid into the Treasury. only an act of
Congress could get the $1,000 out. and
Justice Mccoy late to-day granted
temporary injunction on this phase of
the case.
The justice set April Is as the day
for answer by the defendants to
show cause why permanent injunction
should not Issue.
THIRTY-SEvEN ALLEGATIONS
IN BANGS BILL OF COMPLAINT
The banks bill Of complaint contains
thirty-seven specific allegations de-
signed to show that the comptroller
has adopted unusual and legally ques-
tionable tactics in dealing with the in
stitution. 1t recites that evidence Of
an unusual desire for Information con-
cerning the bank was shown by Mr..
Williams shortly after he assumed the
Office OF comptroller. more than year
ago. and has continued ever since.
Prior to that time, in December, 1918,
it says. Mr.. McAdoo charged officers
OF the bank with responsibility for
publications regarding the official con-
duet of the defendant, Williams, as
Assistant Secretary OF the Treasury.
When this charge was denied, the bill
asserts. Secretary McAdoo cursed Milton
T. Allies. Vice president OF the bank,
and said to G. c. Glover. its president:
Mr. Glover. you know what this
means to the Riggs National Bank"
Meaning thereby" the bill adds.
that from that time on the power Of
tho Treasury Department would be
aggressively used for the rulnation and
obstruction OF the plaintifY bank, in
order to satisfy the personal malice and
Ill VIII OF said defendants Williams
and McAdoo. and shortly afterwards
the said defendants, Williams and
McAdoo. began series OF prosecutions
against the plaintif bank for the pur-
pose OF impairing or destroying its
said business, thereby prostitutinc their
nigh public office and violating their
oaths, In order to vent their personal
vindictiveness against the officers OF
the plaintiH bank"
A few months later. the bill sets
forth, the plaintiff bank was notified
by Z. 5. Hamlin, now governor of the
Federal Reserve Board, but then As
sistant Secretary OF the Treasury. in
charge of the fiscal bureau. that Secre-
tarY McAdoo purposed to exclude the
Riggs from share OF deposits to cover
inc District OF Columbia tax with
drawals. which deposits by custom are
aiVided among the national banks OF
the district.
GOVERNMENT DEPOSITS
WITHDRAWN FROM BANKS
Mr. McAdoo later wrote to Mr.. Glover.
the complainant states. declining to
explain why such action should be
taken. and adding. at the same time.
his intention OF withdrawing all gov
ernment funds from that bank Sub
sequently, IT is alleged. government
deposits amounting to more than
Sl.200.o00 were withdrawn from the
bank, including Panama Canal deposits,
amounting Al one time to sl,15s,47s.
These Withdrawals were brought
about by Secretary McAdoo. 1t Is
charged. at time when the European
war and the business depression in the
United States had made banks hus-
band their resources. and ''in n de-
lioerate attempt to wreck the plain
tin bank In the execution Of the con-
spiracy existing between him ard tho
defendant Williams. for that purpose
Further complaint is made that Mr..
Williams. as treasurer Of the Red Cross
Society. had the funds 1t kept on de-
posit with the Riggs bank removed to
other institutions,
For almost year, the bill AYERS.
the comptroller has bombarded the
Riggs National with demands for spe.
cial renorta of manv aort, sx,>.a,r.