Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-11-20
CHARGES 0'CONN(R
ACTED ARBITRARILY.
Counsel for Col. Cooper At
tacks Controllers Course in
U. S. Savings Case.
Charging Controller q the Currency

Charging Controller Of the Currency
j. F. T O'Connor with arbitrary" use
of discretion. counsel for Col Wade II :
Savings Bank, today launched in Dis
trict Supreme Court the final argument
in the battle to force the Treasury to
reopen the bank under Col. Coopers
plan. =
When Justice Jennings Bailey ex-
pressed some doubt as to whether the
discretion of an executive offcer was
renewable by the court, Cooper's coun-
sci presented an array Of decisions
which, they claimed, presented prece-
dent to the effect that other courts had
granted relief similar to that requested
by Col. Cooper.
Justice Bailey said the court only had
the power to enloin and he knew OF no
cases were the court has substituted its
decision for that Of an executive officer
Cites Court Decisions. - &
w. Bisseli Thomas, of counsel for
Cooper, explained that In all instances
where the courts have taken jurisdic-
ton in case of discretionary use Of au-
thority of executive officers. the courts
were not substituting their decisions for
that of the executives, but in effect
held the law must be obeyed and sat-
isfaction given the plaintiff. Authori-
ties were quoted ON both points Of dis
cretion and satisfaction" and both IN
stances, Thomas claimed, afforded re-
lief to the plaintiff.
Unless there has been an abuse of
authority, Thomas pointed out, 1t may
be taken as settled principle of law
that the acts of q public official, such
as the controller of the currency, will
not be reviewed by the courts In any
injunction proceedings, where such
acts are done under discretionary
power. Where there has been an abuse
of the authority, the acts of the official,
If done in an arbitrary and capricious
manner, are renewable by the courts.
Controller O'Connor went beyond the
law. Thomas charges, when he required
higher degree of liquidity and sol
vency of closed banks than of open
banks. This. Thomas declared, was
completely destructive Of the rights
of stockholders"
Attacks Bank Examiner.
John w. Staggers, also Cooper,s
counsel, in support of the charge Of
arbitrary action on the part of the
Government, declared the sole purpose
of an examination of the United States
Savings Bank by National Bank Ex-
auiner Bishop had been to write
down and destroy the assets OF the
bank Bishop, the attorney declared,
had set up his own Judgment against
that of the city assessor and the
Treasury Departments own appraisers,
in writing off real estate values in the
paper held by the bank.
Staggers sharply criticized the offer
ing of the stock In the Hamilton Ma
tional Bank in a campaign by the
United States Savings Bank, the ex-
penses Of which we're taken out Of the
bank itself.
Can the controller justify this act?''
asked Staggers.
Wilbur H. Zepp, conservator Of the
United States Savings Bank. Staggers
said. did not make up his mind to help
place the savings bank IN the Hamilton
merger until after he had been offered
Job as vice president.
THAT, IN effect" charged Staggers,
was equivalent to q bribe."
The attorney declared there were four
other conservators in the same boat
staggers reviewed hsiedy the plan Q!