New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-14
new YORK BANKERS
BEHIND The RIGGS
Look to Washington Con-
Germs Suit to Establish
Their Rights.
MANY GRIEVANCES
AGAINST WILLIAMS
Controllers Methods of Seeking
Information Regarded as
InquisitOrial.

After reading the reports yesterday
Of the injunction suit brought by the
Riggs National Bank. Of Washington
against John SHELTON Williams. Con-
troller OF the Currency. and William
G. McAdoo. Secretary Of the Treasury
the sympathies Of the important Wall
Street national bank officers were all
with the plaintiff. Because OF the in
quisitorial methods adopted by the
Controller in seeking information, they
think il is time test is made or what
they believe TO be their constitutional
rights.
So far as could be ascertained. none
of the national banks of this city Will
bring similar action against the
Treasury Department. although 1t was
stated that past grievances would JUS
tify the banks in doing 60. II is the
policy of these institutions 10 await
the outcome of the Riggs National suit.
which they hope will establish a
precedent in the relations of national
banks with the Controller of the Cur
rency.
At the National City Bank President
Frank A. Vanderlip reiterated his
statement of the night before that this
institution had no connection with the
action taken by the Washington bank
other than as an interested observer.
In other banking quarters, however. 1t
was believed the City Bank had more
than a passing interest in the dispute,
in view of its previous relations with
the Controller of the Currency.
Charles c. Glover, president OF the
Riggs National, has sent an appeal TO
the other national banks of the coun-
try for their support in the present
controversy with the Controller. Mr..
Glover directs attention to the alleged
hardships suffered by his bank at the
instigaton of John SHELTON Williams,
and adds:
This bank is maintaining. that the
law does not invest the Controller with
unlimited power TO harass a bank with
endless and useless demands for tran
scripts from its records and details
Of past business having no relation TO
il present condition.
1.-THE Riggs National Bank in making
this fight is making fight for every
national bank in the country. II is an
attempt 10 defeat a gross usurpatlon
OF authority by the Controller, and II
successful will establish a precedent
and barrier that will serve as perma-
nent protection to the banks in the
future. II. on the other hand. this
bank is defeated in the courts, which
It does not anticipate, or if by means
Of the prestige and power of the Con-
troller's Office its business can be ma
terially diminished, the occupant of
that position will be able to exercise
despotic power in the future"
As examples Of the inquisitorial
policy Of John SHELTON Williams in his
relations with the New York banks
officers of these institutions recalled
Yesterday the suit brought early in
1914 by the Merchants National Bank
against Examined Starek 10 compel him
TO return papers removed from its
vaults. About the same time Mr..
Starek. who is now vice-chalrman Of
the Federal Reserve Bank of New York,
also had a lively set-to with the presl-
dent Of another large national bank be
cause he was preparing TO take away
a list Of its principal depositors, with
their average balances.
II was thought then that Mr.. Starek
was acting under orders from his chief
in Washington. The examiner has also
figured in much of the discussion Of
an alleged antipathy between the Ma
tional City and other banks and MI
Williams.