Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-05-18
Grave Charges Against Nc
Adoo and Williams Are Re-
iterated by Counsel for Fl
nanCiaI Institution,
WITHDRAWAL OF FUNDS
ALLEGED SPITEW0Rk
Fine Imposed Because All
Loans Covering 18 Years
Were Not Forthcoming at
Demand of Comptroller,

lbr hoNflfO lgoNNrl bftNf- AtNhto NtNhl
Washington. May i7-Argument on
motions by government counsel to
dismiss for lack of jurisdiction the
Injunction suit brought by the Riggs
National bank against treasury Off
cials began today in the District of
j Columbia supreme court Frank j.,
| Hogan, for the bank, occupied the en-
| tire day opposing the governments
contentious, and win resume tomor-
row.
An indication of the bitterness with
which the litigation will be fought de-
veloped soon after the casts was called.
| The opposing lawyers engaged in a
heated wrangle over publicity methods
( employed in the proceedings, upon
which Justice Mccoy. presiding, called
7 q halt with the announcement that
this court Is not going TO he used as
| Il laboratory to test bad blood.
stands on L.. 5. Rights.
Louis Brandels, Samuel Untermyer
and associate counsel for Secretary
| McAdoo. Comptroller of the Currency
Williams and Treasurer John Burke,
who are charged with conspiring to
WYNN tilF II SIS 'dittNF iAiNh " tfiH III
support of their motions to dismiss
the proceedings. They maintained
that "a suit involving the property of
the United states is a suit against the
United States, and that the govern
/ ment cannot be made a party to a
suit without its consent. The officers
in their dealings with the bank, 1t was
declared acted in their official ca
pacity and within the law. The right
of the bank to sue in equity also was
challenged on the ground thaC Il had
an adequate remedy at law,
Usurpation of Power Charged.
Mr. Hogan charged in his argu-
ment that political aspect had been
injected into the. case and that so per
cent of the affidaVits filed by Secre-
tary McAdoo had nothing to do with
the proceeding He cited authorities
to show that officials of the govern
ment may be made amenable to the
court when they attempt TO usurp
authority and asserted that Mr.. Nc
Adoo usurped authority by assuming
to be the paying officer of the United
States and Withholding IS, 600 interest
on bonds due the Riggs bank to sat
isfy penalties imposed by Comptroller
Williams.
Referring to Comptroller Williams,
Mr.. Hogan said: I'VE hale to the bar
an individual who has abandoned be-
ing u law administrator and becomes
a law violator."
Severely Scores Officials.
The withdrawal OF American Red !
Cross and Panama canal funds from
deposit at the Riggs bank the attor-
ney declared was brought about
through the influence of Secretary
McAdoo and Comptroller Williams. |
Together" he said. these men took !
away from the Riggs bank more than /
$4,000, ,000 in deposits, yet they say /
that the bank might not be as solvent |
as it is today II they had not helped
it.
The attorney dweit at length upon
demands for information made upon !
the bank by Mr.. Williams lie said |
the directors of the bank held meet
Ing last summer and asked the comp t
troller just what he desired the bank
to do, but that no advice or sugges. I
tlons were received.
Wanted Report for Eighteen Years.
In demanding penalty of IS, 900 !
from the bank for failure to submit
a report of the loans of the institution
for eighteen years, Mr., Hogan de-
clared that Comptroller Williams
made an erroneous calculation in or
der 20 stipulate thai amount, which
was due III interest to the bank. and
notified the bank that it would be
subject to a further and continuing
penalty
I'VE thought he meant what he
said" continued the attorney. 1T
now appears from Williams affidavit
that he was merely attempting TO
bully the officers of the bank, He
now says he had no intention OF ex-
acting further penalty and he makes
no attempt to calculate the amount
that had been Incurred"
National city Not Involved.
Touching upon the statement in Mr.. \
affidavit that the secretary
lid not know but two officers of the
City bank of New York ana
hat he had no dealings with that>in-
to arouse hostility. Mr.. Ho-
gan said the National City bank was
IN no way connected with this case
and did not own q dollars worth of
stock in the Riggs bank. and that 1
he plaintiff had made no accusations
n regard to Mr.. McAdoos relations
with the National City.
MT McAGOo charges that he was
lot made defendant in this case in
good faith" he added. but in order {
hat libel might be circulated under F.,
of the law. That is a con-
and unfounded aspersion
lpon Senator Bailey and myself as ;
counsel for the plaintiff"
1t was believed tonight that prob ,
,bly two more days would be occu-
lied nv the ARGUMENTS IN tba IauaI
phases of the proceedings. Ii the ,
.ourt should overrule the motions to |
lismiss. the defendant officials then ,
you'd have to show cause why they
ihould not be permanently enioined {
rom continuing the alleged unlawful :
Interference with the bank. q