Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-05-22
Calls Washington Institu-
ton Persistent Violator
Of Law
OBSERVES NO MALICE
Motion to Dismiss Injunction Suit
Against Treasury Officials Taken
Under Amusement.

Washington, May 22--At the con-
clusien of FIVE days of argument JUS
tice Mccoy, of the District Supreme
Court, took under advisement yester-
day the motion of the Government to
dismiss the suit brought by the Riggs
National Bank to enjoin Secretary
McAdoo, Comptroller of the Currency
Williams and Treasurer Burke from
alleged unlawful persecution of the
bank.
Relief sought by the plaintiff pend
ing litigation was denied by the court
except as to the payment into the
treasury of $4,000 interest on bonds
due the bank and Withheld to cover pen
alties imposed by the Comptroller for
failure to furnish certain reports.
A temporary restraining order
against the payment of this money
into the treasury was granted at the
outset, of the proceedings and the
court later will pass upon, the ques-
ton of continuing it..
Justice Mccoy indicated that he
would occupy some time considering
the case, but would endeavor to dis
pose of it before July l. In denying
the prayer for an injunction pending
litigation, he said that without con-
sidering what evidence might here
after be presented, there was moth
ing in the record before him now
which showed the Government officials
had exercised arbitrary power arbi-
trarily in regard to the refusal to
select the Riggs Bank as a reserve
agency.
cit seems to me on the record as it
stands. that the Government officials
would be remiss in their duty in Sc
lesting it as an agent for new appli-
cant banks" said the Justice. "The
evidence here is of persistent viola
tion of the law, and those violations
did not begin when Mr.. Williams
came into Office, and they have con-
tinued to this day"
I As a judge in, passing on banking
questions, Justice Mccoy added, it
might not be out of place for him to
say that the policy of not having de-
posits, in Stock exchange banks, as
compared with commercial banks, was
geod ,one and that Congress had
adopted the same view as expressed
in the Federal Reserve act.
;Th Court also considered on the rec
ord as now made up the charge that
Secretary; McAdooI showed malice in
an interview in his office with Riggs
Bank officials. The justice said it ap-
peareG to him that the Malice was
rather: "on the other: side"
At the opening of the days. session
Samuel Untermeyer,.of Government
counsel, presented bookkeeper's af-
fidavit that there were 5000 stock
transactions. shown on the books of
Lewis Johnson. and Co., stock brokers
in the name of the Riggs Bank.
Mr.. Untermyer, who made the con-
Guiding argument for the Govern
ment after former Senator Bailey had
closed for the bank, declared that it
appeared that two officers of the bank
were getting personal benefit from
such transactions for which the Riggs
Bank furnished the security.
"Do you know" asked Justice Nc
Gov, whether theree is anything tt
show that Johnson & Co., if the mar
ket had gone wrong, could have helt
anybody responsible but the, bank
leaving out the question Of whethe
the bank could have required REIN
bursement from third party?"
The, attorney declared the stock bro
kers could have recovered only iron
the bank.
II think that the record as nov
made up" commented the Court
"shows that the Riggs Bank was deal
ing with Lewis Johnson & Co., in
legal sense, whatever interest ma,
have been behind the dealing"
EYES," ard to say that such is scan
dalous is to express it mildly" al
ded Mr.. Untermyer.