Evening star., 1916-05-31
SEES NO CONSPIRACY
TO WRECK INSTITUTION
Holds Secretary McAdoo Has Right
to Withdraw Government
Deposits.
WILL NOT ENJoIN CONTROLLER
Court Says There Is No Threat at
This Time to Assess Penalties.
But Such Intention Has
Been Disclaimed. 4.

Justice Mccoy of the District
Supreme Court today rendered an
opinion in the civil suit of the
Riggs National Bank against
John Shelton Williams, controller
of the currency; William G. Nc
Adoo, Secretary of the Treasury,
and John Burke, treasurer of the
United States. The case was sub
mitted to the court May 2I, 1915.
Some points are decided in
favor of the plaintiffs and some
are decided in favor of the defend
ants. The decision awards the
bank continuance of the tempor-
ary injunction to prevent the
$1,000 due it as interest on bonds
from being covered into the
Treasury as a penalty sought to
be imposed by the Treasury Off
Gals and to prevent the assess
ment of penalties against the bank
for failure to comply with de-
mands of Controller Williams for
special reports.
In all other particulars the bill
is to be dismissed as to all the
defendants.
No Pending Penalties.
mo preliminary relief says Justico
Mccoy, will be granted against the con-
troller. as he is not threatening at this
time to assess any penalties and has dis
claimed any intention of doing SO. The
temporary injunction restraining the pay
ment of S. 900 due for interest into the
Treasury will be continued. but not as to
the controller of the currency. as he has
no control over that matter.
The opinion SuStainS the right OF the
controller under section 52ll to call for
special reports and eNonerates Secretary
McAdoo and Controller Williams of the
charge of conspiracy to ruin the business
Of the bank.
Doesn't Enjoin Conspiracies.
Justice Mccoy points out that courts
of equity do not enjoin conspiracies, but
only the doing of acts in pursuance, and
that therefore the Secretary Of the
Treasury cannot be enjoined even
though a conspiracy is alleged because
the only official act done by him con-
sists of the withdrawal of deposits of
government money from the bank and
the statement that he would no longer
make such deposits.
This decision by Secretary McAdon.
the court points out, is absolutely be-
yond the control of the courts because
there is no law requiring the Secretary
to make any deposits with the plaintin
nor to leave them there after they
have been made. 1t is next stated that
there is no basis for charge of con- ,
spiracy against the Secretary because
of the Withholding of the payment OF
interest for the reason that the Secre-
tary has no right to inquire into the
iuvalidity of the assessment made by
the controller. II the court decides that
the assessment was not rightly made
the Secretary will have mere minis
terial duty to perform in paying the,
interest.
Defines Joint Conspiracy.
Speaking generally of the joining q
persons as officials in suits against
them based on charges of conspiracy
the rule is laid down that where the
act sought to be accomplished by IN
alleged conspiracy is not in itself an
official act. and where the persons said
to be endeavorlng to accomplish the
object of the alleged conspiracy are
acting in an official capacity only, each
one having official duties which he
alone can perform. the performance Of
which is not under the control OF the
other, they should not be Joined as Of.
fcials in one action conspirators.
The law imposes upon them a duty to
act If they act within their powers
their motives cannot be questioned. II
each is undertaking to act without
authority he can be restrained in a
separate suit and his motives make no
difference
The opinion next takes up the charge
that the Secretary of the Treasury In
duced the Secretary OF War to with
draw from the plaintiff bank deposits
of Panama canal funds and points OUT
that the withdrawal of these funds was
within the exclusive jurisdiction OF the
Secretary OF War. 1t then calls atten.
ton TO the fact that the statement that
the withdrawal Of government deposits
and the Withholding OF the deposits ot
money collected as taxes in the District
of Columbia and the efforts to induce
the withdrawal of the Panama deposits
occurred at time when the war in
Eurppe had resulted in closing the pub
lie exchanges throughout the United
States is shown by the bill not TO be
true. for the reason that the bill alleges
that money .. collected in payment of i
taxes In the District is distributed
among the banks IN May: that the bank
was discontinusd as depository Of
public moneys on July /. and that the :
shorts to induce Withdrawals of Pana-
ma funds began before July /. whereas
the war did not begin until about the
LIST Of August.
Considers Charges Against MeAdoo.
Closing the censiasfatson Of the