The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-10
RIGGS BANK COUNSEL
ATTACKS WILLIAMS
Says ''Wildcat Of Treasury"
Maliciously Prosecuted
Institution.
EVIDENCE IN COMMITTEE
Senator'S Are Told Williams
Tried to Fine Bank as Much
as 100000.
Special Despdteh 10 THn srE.


WASHINGTON. July with the qnes-
ton Of the fitness of John Shelton
Williams to continue for the next fvs
years as Comptroller Of the Currency
before II. the Senate Banking and Cur
rency Committee to-day plunged into
the famous Riggs National Bank case. in
which Mr.. Williams was involved in the
first year OF his term of office. The
committee heard Frank J. Hogan, attor-
ney for the bank. recite his views and
opinions Of the appointee.
Mr.. Hogan asserted that the opposition
OF Mr.. williams to the Riggs National
Bank had constituted "the most per-
sistent. consistent and malicious perse-
cution ever melted out to any banking
institution by Government official" He
denounced Mr. Williams as the wildcat
Of the Treasury"
c. G. Glover, president; Milton e.
Allies. Nce-preddent, and the former
vice-president, William J. Father, Mr..
Hogan asserted. were summoned to the
office of the Secretary of the Treasury.
Mr. McAdoo being then at the head of
that Department, and questioned owe,
articles which had been published with
regard TO the alleged prosecutions.
says McAdoo swore at Omcial.
Mr.. Hogan said that on this occasion
one OF the three bank officials, having
admitted to the discussion OF the ad-
miristration of the Comptrollers office
in ono Of these articles with a reporter,
Secretary McAdoo said:
Damn you, you'll never como into this
building again"
Those of YOU who know Mr.. McAdoo,"
commented Mr.. Hogan, will readily
recognize his language"
The attorney reviewed the entire his
tory of the Riggs bank case, and pre-
scented before the committee the volumin-
GUS correspondence that had passed be-
tween Comptroller Williams and officials
OF the bank, and the record in the suit
finally fled by the bank to prevent Sec
rotary McAdoo and Mr.. williams from
retaining $1,000 due the bank on bonds
deposited by 1t with the Treasury as
penalties imposed by the Comptroller
because the bank failed to respond to
calls for information within the time he
specified.
Pines imposed by the Comptroller
finally reached the total OF $3.50. o00."
said Mr.. Hogan. much of the data
asked by tine Comptroller was in rec
ords twenty years old. and much time
and tremendous effort were necessary to
search 1t out"
Early in 1914 the RIGGS National Bank
was stricken from the list OF institutions
receiving deposits OF Government tax
money, said Mr.. Hogan. When Mr..
Glover wrote Secretary McAdoo asking
an explanation, he added. the Secretary
replied a month later that the bank was
doing little commercial business and the
tax money. therefore, could be used 10
better advantage elsewhere. 1t was the
purpose OF the Treasury, Mr.. McAdoo
said 20 withdraw all Government funds
from the bank.
"rhat purpose was carried out TO the
letter" Mr.. Hogan continued. asserting
that between the time Secretary McAdoo
was asked the reason for the withdrawal
Of Government funds and this date of his
reply Comptroller Williams wrote let
ter to the Secretary. saying the Riggs
National Bank did only a small business
in lending on commercial paper. that 1t
had abundant funds on hand and that
the financial situation in the District OF
Columbia would be In no way affected
IL no tax money was deposited with II.
Until Carter Glass became Secretary OF
the Treasury no further deposits Of Gov
eminent funds were made, Mr.. Hogan
said, but Secretary Glass ordered that
deposits In tho Riggs bank be made.
The witness was asked by the commit
tee whether the penalties imposed upon
the bank by the Comptroller had ever
been paid.
Penalties Never Paid.
"They never have" he replied. When
brought before the bar OF the court Mr..
Williams did Just what any other man
who wrote such letters would have done
He crawied. Tho penalties were never
enforced. He came into court with
sworn affldavits that he did not intend
to enforce these penalties aside from the
5000 OF the banks money held in the
Urea sury. although he had written let
ter after letter TO the bank saying they
would be collected. II he was right in
imposing these penalties, who empow-
cred Mr.. Williams 10 give away $685. 900
OF the Governments money!"
Mr.. Hogan insisted that the bank had
finally won it's case against the Comp
troller. However, the decision was with
held for a year until within a month OF
the expiration of the banks charter. Mr..
Hogan said Mr.. Williams threatened to
refuse a new charter unless certain con-
dit,ons were accepted. Among the con-
dltlons was the dismissal OF the banks
suit against Mr.. Williams and Secretary
hcAdoo and the retirement OF Mr..
Glover, Mr. Allies and Mr.. Blather as Of
ficials OF the bank.
Mr.. Hogan renewed his charges that
Secretary McAdoo and Mr.. Williams had
oonspired to destroy the Riggs bank.
Bank officials were inundated by the
Comptroller and officials OF the Treasury
stood In fear OF him. he said. The let