The watchman and southron. (Sumter, S.C.) 1881-1930, April 17, 1915, Image 5
MAOOO-WILLIAMS ACCUSED.
< HAIU.I I? \\ I I II AiTI MI'llM. i<?
Witt i K WAslllM. loN HANK.
tilgt? Natlouul llunk Take* out In?
junction tgaln-i t.nxcrumcut Offi?
cial* to I'm o ut Collection t?r Fines
for l .111in- to Make Reports?Al?
legation* of lomplulnl ami Hcpl>.
Washington. April 12 -William 0
McAdoo. secretary of the treasury,
and John Skelton Williams. comp?
troller of the currency, were mad.
defendant* today m pi "ggtetlings be?
gun In the District of Columbia su?
preme court by the Kiggs National
bank of Washington, which alleged
that these officials have combined ami
?Potain! u< \s pat I IM I'ank.
Temporary and permanent Injunc?
tions to halt the alb nsplracy
and to prevent the comptroller from
making what the bank (barges are
unlawful demands for special reports
of various kinds, are sought from the
court.
One portion of the prayer seeks to
restrain John llurke, treasurer of the
I'ntted States .from payment into the
treasury of 16.000 declared to be due
the bank as interest on $1.000.000 of
United States bonds deposited with
the comptroller against its note cir?
culation. This Interest was withheld
to cover penalties of $100 a day for
the bank's failure to make certain re?
ports
i*ncs paid into the treasury, only an
Ml of congress could get the $&.000'
out and Justico HgCtg late today
granted a temporary injunction on
this phase of the case.
Tile Justice set April 16 as the das
for grswer by the defendants to show
causa why permanent injunctions
should not i
The bank s bill of complaint con?
tains 27 specific allegations designed
to show that the comptroller had
adopted unusual and legaly ques?
tionable tactics In dealing with the In
stltatlon. It recites that evidence of
an unusual desire for information ggeV
csrsing the bank was shown by Mr.
Williams shortly after he asumed the
office of comptroller more than a year
ago, and has continued ever since.
Prior to that time, in December. 1*13,
It says. Mr. McAdoo charged officers
of the hank with responsibility fw
publications ' regarding the official
???T' et of thu duf>ndatiT Williams'
as assistant a**.raiary of the Usaaury,
Whi i thU charge way gagged, gejora?
tsry StoAduO cursed Mi t. !?. l'i. -
a president of the bank,
snd ssid to C. C. (Hover. Its president:
"Mr. (Hover, you know what this
m?ans to the Klggs National bank0''
"Meaning thereby," the bill adds,
"that from thut time on the power <>t
the treasury department would be
aggressively used for the ruination
and destruction of the plaintiff h.mk
la order to satisfy the personal mall* e
and ill will of said defendants. Wil?
liams and McAdoo. and shortly att i
ward? the Buid defendants. Williams
, and .McAdoo, began a series of perse?
cutions against the plaintiff bank for
the put pose of impairing or destroy?
ing Its said business, thereby prosti?
tuting their high public offices and
violating tin If oaths in order tu Vent
their personal vindb.tiveness against
.he otlicers of the platntih" bank."
A fan months later, the hill set |
lorth, the j'l.tint iff bank was nidified
by C. S. Ilumlin, now governor of the
federal reserve hoard, but then assist -
aal secretary of the treasury, in
charge of the fiscal bureau .that Sec?
retary McAdoo purposed to exclude
the Kiggs from a share Of deposits to
anvat tin- Dlatrlol of Columbia tai
v. it hdrawals. which are divided
nmg the national banks of the Dls
Itrlct.
Mr. MaAdaO later wrote to Mr.
Olt/Var, Um complainant States, de?
clining to explain why such action
should be taken, and adding at the
same time ins intention of withdraw?
ing all government funds from that
lank. It is further alleged govern?
ment deposits amounting to more
than $1.200,000 were withdrawn from
the l ank, including Panama canal de?
posits amounting at one time to Si,
158,479.
These withdrawals were brought
about by Secretary McAdoo, It is
charged, at a time when the Euro?
pean war and the business depression
In the I'nlted States had made banks
conserve their rcsour ?'s, and in a "de?
liberate attempt to wreck the plaintiff
l ank In the execution of the con?
spiracy existing between him and the
defendant Williams for that purpose."
Further complaint is made that Mr.
Williams, as treasurer of the Red
t'ross society, had the funds It kept
on deposit with the Kiggs bank re?
moved to other institutions.
1 "t- almost a year, the bill avers,
the comptroller has bombarded the
Kiggs National with demands for spe?
cial reports of many sorts exceeding
the inquisitorial and visitorial powers
vested in him. The bank declares
that it has made an effort to comply
with these demands, has worked itn
clerks early and late to do so, but
that requests for time have been met
with refusals and in somo instances
with a reminder that failure to make
reports asked by a comptroller in?
volves a penalty of $100 for each day
after a report is demanded and not
rendered. Kvnct figures as to pen
>iitie>s tbi estnptrotler may hold the
l .ink has n< urrei in this connection
the inn statse, ore not available, but
it ??stimme? that i must be at least
$160,000.
In making some of these demands,
the bank alleges, Mr. Williams has
violated the fourth and fifth amend
on atS M the constitution prohibiting
unreasonable searches and seizures
and forcing any one to be a witness
against himself.
lit February last, according to tin
bill. Mr. Williams wrote to the bank
asking If its officers had destroyed
any of its records. On March 3<?, it |
Italian Tenor Who Will Sing at Our Forthcom?
ing Chautauqua
SIGNOR GIUSEPPE BARTOLOTTA.
SIOVOM f;il'Si:i?PE HAKTOLOTTA, the Italian tenor who Is to sin? at
the IttMlpi*rh rhuutauqna In thU city, linn won wide distinction M a
?Inger i.ofj? in Europe and America. He has sun? ?t lb* fort
in-si 'oiii ? rtH In Kurland In conjunction with iOtM of the most fa
fouus artiMtM. including 1'aftl, Melba, Kulxlik, PulfOWlIU and others. II?
I? a Neapolitan hy birth unrl atudled for aome years at the COMfffltOfJ of
M|>lea. Tbo renark:iMe rnnj^o and power of his hcautlful tenor voice are u
i #? elation of ? r whelming superiority of tin; Italian tenor In opera tic
slpjinK
Ut falv Immediate favor with the most apathetic audlencca. To In ir
MO> \* lu be convinced that he possesses every requisite of u great sluu'er?
?IHK? prcffODC*. excellent nty'e und enunciation and a dramatic power and In
f?4*,,v equal to the gicat oporu starv lie sln^s with true brilliance, ill tlld
uOepduu and wonderful effect*.
further sots forth, he demanded a
complete hsitory of loans of the Uiggs
bunk to its present oflleeri and that
for failure to comply with a like re?
quest made on January it was as
sesed a penalty of $f>.00 3.
The next day a formal demand for
payment of this line made l?y two
bank examiners was refused. On
April 1 a quarter installment of the
interest on the $1,000,000 of 2 per
cents, held by the Uiggs?in the comp?
troller's custody to secure its cir?
culation?came due. The comptroller,
the complaint sets forth, "wrongfully
and unlawfully'' ordered the treasurer
of the United BttaOfl to withhold the
payment of the interest.
In this connection the bill alleges
that Mr. MoAdOO has "usurped" the
power of the treasurer.
The bill asks that Mr. Williams be
enjoined from revoking the Biggs
designation {is a depository for the
reserves of other national banks or
refusing to approve it as such deposi?
tors'. An injunction to restrain Mr.
McAdoo "from usurping the powers"
of the treasurer of the United States
also is asked. The court also is asked
to find the sections of the revised stat?
utes dealing with the examinations of
banks unconstitutional and void "If
they must be construed as they have
been and are being construed and en?
forced" by the defendants.
The bank's olllcers tonight gave out
i statement outlining at length their
view of the events of the last year
which led up to the proceedings of
today along the lines of the sworn
statement in the bill of complaint.
Comptroller Williams issued this
statement tonight:
"I have not seen the bill llled by
the complainants, but have read the
extracts furnished the press.
"The recent investigations of the
affairs of the Uiggs National bank
disclosed irregularities and unlawful
practices on the part of certain offi?
cers of sufficient importance to merit
their reference to the department of
justice and that department engaged
the services Of Ixniis D, Brandeis of
Boston some weeks ago as special
counsel in the case, and it Is con?
sistent with the attitude of those of?
ficers to attempt by unwarranted and
untrue statements to place themselves
und the bank in a position of mar?
tyrdom at the hands of the adminis?
tration.
"Tt Is not the practice of thl* de?
partment to diso Uta in the public prets
ti e affairs <?i itny national hanging I
association, but stnsa the officers, inj
question have had the temerity to
submit this matter to the court, this
otllce is prepared to show a condition
of affairs in the management of this
institution which fully warranted the
action taken b ythis office. The bank
|| solvent. The interests of the de?
positors have been safeguarded by the
action taken by this office. The bank
if the methods and practices com
p.alned of had been permitted to con?
tinue the results would have been se?
rious. The evidenoe will abundant?
ly show that it has been necessary
for this office to seek to terminate
the reprehensible practices of the of?
ficers in question and their misuse of
the powers delegated to them by the
directors.
' The penalty imposed for failure to
make reports, th# collection of which
penalty they seek to have enjoined,
grows out of their unwillingness to
disclose the true nature of the trans?
actions enga'ged in.
"The whole purpose of the depart?
ment has been to require the bank to
give up the unlawful and dangerous
practices and methods which had
been In vogue for years past and
which had threatened alike the wel?
fare and security Of both shareholders
and depositors and to require the
bank to conform to the plain require"
ments of the national bank act and
to the regulations of the comptroller
of the currency.
"In its efforts to ascertain the real
truth in regard to the operations and
affairs of the Uiggs National bank,
letters were from time to time di?
rected to the bank from the otliee of
the comptroller of the currency for
Information. These requests for data
In various cases were refused, and on
March 30 the Uiggs National bank
w as not hied of the imposition of a
peitUlty of $5,000, under section !>2M
of the United States revised statutes,
tor its refusal to furnish information
to the comptroller's ollice in regard
to its affairs.
"On April T> the comptroller of the
currency addressed a letter to the
bank calling its attention to various
false statements Which bad been
made by its officers under oath, and
what are regarded as deliberate ef?
forts to deceive the department, and
notified the bank thai 'In view of the
unsatisfactory and dangerous condi?
tions which have com.? to light as i\\>
result of the Investigation of tin- bunk
by this office and the national bank
examiners, in view of Ihe unreliabil?
ity of the statements made i > your
officers under oath or otherwise, nod
your long continued dellance of 111??
law and disregard for Ihe instructions
nt this ollice. you are hereby notified
that the comptroller of ihe currency
will until further notice refuse i"
approve the Biggs National bank as
national bank.''
Attached to Mr. Williams' statement
are extracts from letters sent to the
bank at various times since July 22,
1914, which charge that officers of
the institution had benefited person?
ally from use of the bank's funds
through "dummy" loans and that a
policy of fostering stock speculation
among clerks and professional men
has been followed by the bank. Va?
rious other allegations also are mad i
to most of which the bank's bill of
complaint seeks to make answer. The
bill of complaint also gives extract of
dome of these letters and th?. replies
made by the bank.
EXCLUSIVE PRODUCTION RIGHTS
For "Tlie Servant In the House" In
Lyceum and Chaulnuquas in the
United States and Caiutdu Held by
the Red path.
In connection with the coming of
"The Servant in the House," to the
Redpath Chautauqua here, it is of in?
terest that the Redpath Bureau holds
the exclusive rights for the produc
tio of this play in both the Lyceum
and Chautauqua In the United States
and Canada. The Redpath pays a
large royalty for these production
rights. Charles Rann Kennedy, the
author of the play, will personally as?
sist Mr. William Owen In coaching
the cast.
CHATAUQUA TICKET SALE PRO?
GRESSING RAPIDLY.
Preliminary Arrangements for the
Opening of the Great Chautauqua
Season N earing Completion.
The ticket sale for the Chautauqua
is progressing rapidly. A great num?
ber of the people who have pledged
for tickets from last year have already
called at the Y. M. C. A. and redeem?
ed their cards. This has been of great
help to the committee and it would
be appreciated by them if more
would respond and call for their
tickets.
Theer are very few tickets which
remain to be secured at $2.00, so
those who did not subscribe should
made as early a call as possible at
the Y. M. C. A.
The program is bigger than ever.
The Redpath management has spent
$700 more on this year's program,)
which assures and guarantees u groat ?
program.
The big tent is here and will bo.
placed on the hall park. The old
seats ol last year have been discard?
ed and new ones which are much
more comfortable are in their place.
Mr. Knox is trying to arrange for
an auto parade. All those who have
cars and wish to join are welcome.
The cars are to be filled with chil?
dren who will be given a red or green
Chautauqua hat. The cars will be
decorated with Chautauqua flags and '
Neilsen pennants. The parade will be
given by the local supporters of the
Chautauqua. Monday, April 19th at
3 P. M., is the date planned.
TO OPEN CURB MARKET.
Florence, April 13.?A curb market
for the sale of country produce has
been under discussion in Florence for ,
some time and the efforts which have
been made by the Chamber of Com
meree and the Housewives' league for
the establishment of this convenience
are expected to be realized in the
opning of a market on Saturday,
April '17. The stewards of the Meth?
odist church have very kindly given
I
for the use of the ladies the property
at the corner of Dargan and Cheeves
Streets. This property is situated in
the centre ol the city, conveniently lo?
cated for the purpose designed. A
number of the farmers have promised
to bring produce in on that day and
offer the housewives the opportunity
of supplying their table at iirst hand j
with the very best and freshest that
can be obtained. This movement is
under the direction of the Housewives'
league, recently formed In the city,
and which now has a paid member- I
ship of more than 50, all agreeing to |
cooperate and make successful every
effort undertaken for the general good
of the community. This Is their ftrsl
practical undertaking and they wish
to make this opening day a marked
success. Therefore, every housewife
in Florence, whether a n mber of
the league or not, is urged to bring
her basket on Saturday morning to
the old Methodist church grounds be?
tween 8 and 10 o'clock and get her
veegtables for Sunday dinner. Quite
a variety has been promised, In?
cluding spinach, mustard, onions, let?
tuce, radish, cabbage, asparagus and
turnips, besides other things. Tne
young ladles of the canning clubs in
the county have asked for a special
booth In which their products max be
displayed for sale under the manage?
ment of tl<e director ol the clubs. ;
Miss Isla Willotighby. Some of the
girls will soon have loinatoes read)
for market.
Work on i lie Hob Join s tabernacle
is being rushed, n large force of car?
penters being employed. The big
edifice will be completed, it is expect
< d, i his week.
?tmmttttttmtmmmtmttttitmtmtmm
"A ROLL OF HONOR BANK."
CAPITAL
$100,000.00
EARNED PROFITS
$125,000.00
THAT'S WHY
Builds Up a ?j(^ Business!
Another young man in u nearby town started in with a smajl
Bank account. In a few year* it grew to a very substantial ?um.
He than was able to start In business lor himself. Today he lias
one of the nicest stands in his town and carries a good bank ac?
count. When you see a good business opportunity will you be
ready to take it? Why not pre|>are for the future by opening an
account with us now?
THE PEOPLES BANK
r H 1 rt< itt*??**!?*?***II IIIIIMI
??????????????MMlMl
"IT IS OUR CLAIM"
In every transaction It is the aim of the Officers of this Bank to
serve its Depositors in a distinctive and careful manner; to keep
in mind the individual requirements of each and leave nothing
undone that will better serve and protect the Customer's interest.
Those bating financial matters to transact are cordially Invited
to avail themselves of our assLstancc and advice.
Business and personal accounts arc welcomed.
TBK GROWING BANK
t
it The Commercial & Savings Bank? I
GEO D. SHORE,
Prt&ici?:?t.
J. K. CROSSWELL
Vice-Pres,
R. A. BRADHAM, ?
Cashier.
The Safest Place
For Your Savings
is a National Bank
We pay 4 per cent compounded
quarterly.
Any deposits made by April 10
draws interest from
date.
The National Bank of
Sumter
ESTABLISHED 1889
"SAFEST FOR YOUR SAVINGS"
Lumber, Lime, Cement,
BUILDING MATERIAL GENERALLY
AND FEED OF ALL KINDS.
Booth-Shuler Lumber & Supply Co.
Successors to Pooth-llurby Live Stock Co. und CentrahLumber Co.
CJeo. Fpperson's Old Stnnd *>PP? Court House