New-York tribune., 1919-05-23
Court Continues Injunction
Forbidding Williams from
Prosecuting Bank Which
Representative III e a d s
Must Not Abuse Office
Calling for Special Reports
and A ssessing Pen.
alties Also Restrained
Special Correspondence

Special Correspondence
HARRISBURG, Penn, May 22-An.
other chapter in the differences be.
tween John Shelton Williams, Comm.
troller Of the Currency, and the First
National Bank of Canton, Penn. OF
which Representative Louis T. McFad.
den, of the 18th Congressional District
of Pennsylvania, is president, has been
written by Judge Charles B. Wilmer
of the United States District Court
Over the objections of counsel for Mr.
Williams, Judge Wilmer has continued
the injunction of May 1 RESTRAINING
the Comptroller or his agents from in
terfering with the business of the
bank
BY the terms of the injunction. which
Judge Wilmer continues in full force
pending the determination of the case
on Its merits, Mr.. Williams is re-
strained from;
Calling and continuing to call for
or attempting to enforce calls for
alleged special reports by the bank.
and from assessing or attempting to
assess or collect penalties for failure
TO file such reports.
Calling for any special renort or
reports for private or personal nur-
poses, or for the purpose of harass
ing or prosecuting the bank, or for
public distribution with view to in
Jurlng the reputation or credit of the
bank or its president.
opening or causing to be opened
private letters, papers and packages
OF customers left in the bank for
safekecping.
Disclosing to officers or employees
of rival bank any information as to
the private affairs of the First Ma
tional Bank.
Disclosing the private affairs of the
bank or its officers, for the purpose
of destroying it's or their credit and
reputation, to banks, bankers. Nom
oers of Congress or the public CEN
orally
Disclosing to stockholders. deposi-
tors and creditors of the bank. and
members of the community in which
1T does business, information calcu-
lated to create alarm as to it's credit
and the withdrawal of deposits.
MEETING or attempting to induce
any person to press claims against
the bank or its officers and incitjnr
litigation against them.
Using the powers of the office Of
controller of the Currency over the
bank or its officers for private and
personal purposes.
The Injunction &C c-uoJ -. nr
on an eX parte hearing, is said to he
the first instance where the Contro11or
OF the Currency has been enjoined from
performing any of the acts of his Of
nee. 1t was issued on complaint of the
pank and of Mr. McFadden of various
acts which he declared were done
mallclously and with an attempt to
lnJure the bank and himself in return
Tor his efforts to abolish the Office
OF Controller Of the Currency and to
OBTAIN an investigation of the manner
IN which the Office has been conducted
AT the hearing on the question Of
making the injunction permanent conn
sci tor the Controller interposcd three
mouons to dismiss the suit on technical
grounds-lack of sufficient service and
lack OF jurisdiction of the court over
the controller personally and the mat
ter Of the suit. Following the denial
OF these motions, counsel for Mr.. Will
lams filed affidavits denying the CHARGES
OF malice and asserting that the acts
Of were justified because
OF alleged unlawful acts of the bank
The case is remarkable for the array
OF legal talent employed on both sides.
IN addition to United States District
Attorney Burnett, Mr.. Williams is rep-
resented by Judge Elliot, former solicit
tor to the Treasury Department., and
onetlme counsel to the Seaboard Air
line Railroad, Of which MIR. Williams
was presidents; Assistant Attorney
General Brown and Jesse Atkins, of
The bank and Representative Me-
Fadden are represented by Judge John
?. Kelly and Michael J. Martin, Of
scranton, and Stanchfeld G. Levy,
Charles A. Collins and Henry F. Wolff. |
If New York