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i :; f '-.J'. THE WEATHER Fair Wednesday ...and Thursday; warmer Thursday. TTA TOO BUST TO ADVERTISE. V The man who Is too busy to advertise Is busy just being busy. VOL. XCVMSO. 23. WIIIIXGTOK, ST. O, WEDNESDAY MOKNING, APRIL 14, 1915 WHOLE NUMBER 39,169 -i I SITUATION IN THE EAST PIVOTS ON U2&6K PASS GERMANS TAME CHARGE Two Gateways, to Hungary Yet Remain in Control of the Forces of Austria. ' REINFORCEMENTS COME i , - German .Troops by the Thou sand Pouring Into Moun tains for Their Defense. Little Action on Other Fronts in Europe. London, April 13. Two gate ways into Hungary still remain barred, despite the tremendous Russian hammering, and, as the Beskid Pass is the less important of the two. strategically, a further advance into Hungary hangs on the possession of Uzsok Pass, where the invaders ' are meeting with stubborn opposition. Several days ago the Russians captured a position which gaye 1 hem command of a road leading 1o the i ear of Uzsok Pass, but .since then the Teutonic allies have checked the movement. The im portance of the Carpathian oper ations is indicated by! the half hearted actions along the rest of . - ' lh long eastern front -- Tlie people of the dual monarchy aiv said to be greatly cheered by the number of German -reinforcements passing through Budapest on the way io the Carpathians front to take part ini the operations, which are now be lieved to be in charge of the German general staff. .The whole situation in the East piv ois on Uzsok Pass, where the Austro Oerman forces are ' in such great strength that the efforts 'bf the Rus sians to reach the Hungarian plains u-e likely to be prolonged. In the West the French apparently are satisfied with their recent success es between the Meuse and the Lorraine frontier and claim only to have come in contact with the German entangle--ineiits in this region. Official German reports assert that determined acts by the French have been repulsed along this sector Probably no session of the Brtishl . . J.1 A h& ! rarliament since the opening- of the v-ar has been awaited with keener in terest than the sitting whicn will be ji in tomorrow. A "dry' England, unknown except for a period of two years 150 years ago, is not beyond the possibilities, but the government has given no official hint as to what action may be expected. Several days ago an opposition ' pa ver published a forecast of the. govern ueiit plans which it asserted, contem ldated the prohibition of all liquors except light beer, which would be man 'nfHctured by the government.. - This pri diction received som econfirmation tonight from a government organ which declared the entire business of the manufacture and sale of alcoholic liquors is to become a government mo nopoly. t'OXSIDER MEMORANDUM. iat? Department Gives No Hint as to Tone Reply Will Have. Washington, April 13. State Depart ''int olficials were considering today the recent memorandum of the German 'mhassador Count Von Bernstorff, on the question of the shipment of food stuffs and the exportation of arms but no intimation was given as to the char acter of the reply to be made. The- attitude of the Washington gov riimer.it on the exportation of arms ''as been set forth in various state ' nen is f io m the State Department since the outbreak of the war. . The position -ssumei is that firms of the United States sell on an equality to all bellig- ' 'fins, foodstuffs, arms, ammunition i - ffi'l all classes of contraband but do t o: undertake to deliver these prod responsibility for delivery or f""'.:re to deliver rests with the naval forces of the belligerents. The pro-VOf-u to forbid the exportation of '"ms is viewed by the Washington gov '.rniivnt as likely to embarrass the ri'fd States in the future, for in the ent of v.ar it might find the market arms barred in other lands because ! f ny a.-tiori taken by the United 'otr? during the 'present struggle. OMKX TO THE FRONT. .- Thirtj-Three -thousand Sign Up tr leeial War Service in England. London,' Aril 13. . Thirty-three "ousmid women had registered them ':'!vfs for special war service .up to end 6f March, Walter Runciman, President of the Board of Trade, tonight old a deputation representing various -oti.joTi women's societies, iiix. thou '.iiK, of the women, Mr. Runciman said, ; declared themselves willing to '' rk in armament factories, 4,000 in 'otinnjr factories, 1,700 in dairy work, "' gardeners, 2,000 - in. various t riches of agricultural work, 1,100 as ! -i assistants,. 500 as leather workers, "J --..00ft .u clerical work. Six hundred 0'.!;n had been civen emulovment at lie oard of trade, Mr. Runciman an- I. S MORE DATA Fl State Department Wires Con sular Agents in Mexico. MATAMORAS ATTACKED Sortie of Carrania Garrison Inflicts Heavy Blow Upon Villa Forces Second In Command Badly Wounded Town Is Shelled Washington, April JL3. The State De partment telegraphed tonight to its consular agents in the vicinity of Ce laya and Irapuato for more definite information on the military situation. Interest in the outcome of the impend ing battle between Villa and Obregon is keen here, as the question of com munication with Mexico City from the border and the relief of many interior towns short of food is at stake. Early reports from George C. Caro thers, consular agent at Villa's head quarters said that the Villa forces had withdrawn after the opening skir mishes, i This was taken generally to mean in official quarters that the Car ranza claims- of victory in the opening struggle were confirmed. "A reported dated April 12th from Irapuato," the department's ' summary says, "stated that General Villa was still at the front and that the battle would begin again after the troops had had a good rest". Of conditions elsewhere the sum mary says: "The department is advised that on the night of the 11, Tuxpam was at tacked by a force of Villa troops un- --Genera -galea. , It appears - that 1 these'forces captured the town in-the morning of the 12th and that it was iater recaptured by the Carranza forces The fighting however, continues. GARRISON STRIKES BLOW Carranza Forces Inflict Heavy Loss on Villa Forces Around City Brownsville, Texas, April 13. In a sortie today the Carranza garrison de fending Matamoros inflicted a heavy blow upon the Villa army besieging the town. General Saulo Navarre, second In command of the ! Villa troops, - was brought to Brownsville tonight dan gerously wounded and the Carranza consulate here claimed the Villa dead numbered 300. The sortie drew from the Villa forces their long-promised ahelline of Matamoros, but the shelling stopped when the Carranza garrison i returned to the trenches and tonight flrlne- had ceased, with the positions of i - the armies practically unchanged. J . . 1 3 A. I l- 4. -11 ' )Jf During the bombardment eight shells passed completely over laaiaraurua a.uu four others dropped in the city but did little damage. None of the shells fell on ie American side of the Rio Grande. -Both factions tonight claimed to Continued on Page Eignt.) . MB VESSEL ID CARGO III PRIZE COURT Joseph W. Fordney, . From New York to Sweden. Other Neutral Ships Carried Into Brit ish Ports England Will Pay For Cargo on the Wilhelmina and for Delay to Vessel Ixindon, April. 13. The American steamer Joseph W. Fordney and her cargo haVe been thrown into the prize court at i Kirkwall. The admiralty charges the steamer attempted to evade search while bound with a cargo of foraee for Malrao.. Sweden. The Ford ney sailed from New York March 20 and was taken into Kirkwall April 8. The Swedish: steamer Hilding, from New York March 10th, for Copenhagen and detained: at Kirkwall March 3lst was taken to Leith April 9th. The ad miralty alleges that the vessel carried copper not on her .manifest. The Norwegian steamer Sorland.-ffom New Tork. March 17 for Gothenberg, Sweden, was detained at Kirkwall Ap ril 7th and taken to Hartlepool Sun day. The steamer will discharge sev eral shipments . in her cargo for in vestigation. The British government definitely has agreed to purchase the cargo of the American steamer Wilhelmina and to compensate the owners for loss. An agreement tV this effect was reached today between ther W. L. Green Com mission Company of St. Louis and. the government. , The Wilhelmina left New York for Hamburg January 22 with food prod ucts . and was taken into custody by the British marine authorities. . ' Great Britain agrees to pay the price" the owners would have realized on the "cargo had ' it gone to Hamburg, and the additional loss sustained, in consequence pf the. ship being stopped. A referee to.be named by Amer ican Ambassador Page and Sir Edward Grey 'will-:, determine the total, amount due the owner. - - r ' --'o - OM mi LINE MANY WITNESSES HEARD AT CHICAGO At Inquiry ,. Into Telegraph Business in America. REVIEW 1907 STRIKE Officials of Great Telegraph Compa nies, Heads of Telegraphers' -Union and Others Heard by Federal Commission. Chicago, April 13. Views ' on the American telegraph business tinder in quiry by the Federal Commission on Industrial Relations were presented to day from widely divergent angles. The- witnesses included S. J. Konen kamp, president of the Commercial Telegraphers' Union of America; Belvi dere Brooks, vice president and former general manager of the Western Union Telegraph Company; Henry Lynch, an operator who claimed his unionism forced him into exile in Winnipeg, Canada, to find work; H. B. Berham, president of the Order of Railroad Tel egraphers; Edgard G. Barrett, a West ern Union employe who confessed him self a former special agent, or "spot ter," and Edward G. Reynolds, general manager of the Pqstal Telegraph & Cable Company. Mr. Brooks made plain his opposition to . the Commercial Telegraphers' Un ion, as at present constituted. Review of 1907 Strike. "I will not say that we object to the present officials but that inference may be drawn," he remarked. "Thirty years ago our company opposed the union, but just prior to 1907, when a strike was called which cost us $5, 000,000, the union became rejuvenated and we made no protest. Then came strike talk and we bfifered arbitration. On June 20, 1907, tffrough the instru mentality of Dr. Neil, Commissioner of Labor, and participated in by Mr. Per ham and Mr. Konenkamp, then a mem ber of the executive committee of the union, , S. J. Small was president, an agreement was reached. The very next day a strike was called in San Fran cisco which eventually spread all over the country. Since then we have not cared to employ men in this union. "W rjco; not deal with an organiza tion Ilk?' that, d .wjj iould. do jsrith-one headecl by a 'man like Mr. Perham or Commissioner Garretson," he said. The witness added he did ' not consider wages high enough. Mr. Perham took ,the stand to ex plain that when the strike was called S. J. Small was on the Pacific coast and pould not be reached with news of the agreement .nd the men in San Francisco walked out in ignorance of it. Mr. Reynolds said the welfare of the Postal company employes was his per sonal and special consideration. There is a union within the company, he said; officers of which take up grievances with the head of the company. Vaca tions with pay are allowed and there is a benefit system. In 1907 members of the Commercial Telegraphers' Union were employed by us, but the strike was foreshadowed when the union men began coercive tactics. They made errors for the . 4 m.1 n nt vtn- 4 Vinll n SXft 11T 1 fTi nurooae of placine their non-union companions in a bad light and when they struck they did so without having made any complaint or demand on the company," said the witness. 1 "We were merely informed that they had been ordered out. It damaged the company greatly and would have wrecked it had not some old timers! like myself been able to still send the Morse alphabet.'. Mr. Reynolds disagreed with the Western Union witnesses on the wag question. "Theyare paid as much now as they would be. able to earn in any other tine of endeavor," he said. He added that he bad led in fighting loan sharks, from whom the men were chronic suf ferers and had provided sanitary working quarters for employes. "Our men are satisfied absolutely," he concluded. Barrett said that while engaged as a "spotter" he visited various cities but Oklahoma City was the only place where he found union men and so re ported to the company's chief special agent. To get the information he Joined the union. "I used honest methods to get the information," he asserted. Commissioner O'Connell then read to him his application for membership. It bound the member to keep faith with fellow members, to do nothing to in jure them and contained other pledges of loyalty. "I did not read all that stuff. A blank was shoved at me and I signed it without reading," said Barrett. Mr. Lynch said he was dismissed by the Postal Telegraph Company, wfcare he had an unblemished record, for at tending an open union . meeting. He applied again and again for work with the Western Union where he said he had a previous good record, but was put off until he concluded employment in the United States was impossible. .He was asked why he did not get work on a railroad and replied that the pay was too low. , ATTACK ON HUERTA. Both Factions in Mexico Are Against Him Says Villa's Consul General. Nfew York, April 13. General Victo riano Huerta, who arrived here last night from Spain, was attacked tonight in a statement issued by Francisco Uuquidi, Villa's consul general in New York, who declared that both factions in Mexico were united in opposition to Huerta. PRISONERS ARE EXECUTED. Word Reaches Border That 350 Villa . Soldiers Were Executed. " Laredo, Texas, April 13. Information from Carranza officers and soldiers in Nuevo Laredo, Mexico, indicate that 3 SO Villa troops who surrendered after yesterday's battle near HuisOchite, 30 miles south of the border, were sum marily executed by : the-Carranza REPAIRJIS SHIP Commander of Kronprinz Wil helm Wants Three Weeks. IS THE CURRENT REPORT I Only Wants to Make r Temporary Re pairs at Newport News Vessel r Needs Complete Overhauling Will Not Intern Newport News, Va., April 13. Lieu tenant Captain Thierfelder, commander of the German con verted, cruiser Kron prinz Wilhelm delivered to Collector of Customs Hamilton late today his formal request of the Washington government for time to. remain In this neutral port for temporary repairs to his" ship. The request was made in two letters, one amplifying the other, which were forwarded to the Secretary of the Treasury and their contents not divulg ed. ; It is understood that the German commander asked for three weeks time as a maximum in which to make the Kronprinz Wilhelm seaworthy but he said he would make every effort to complete temporary repairs and leave port bef oer that time. It was learned that the stipulations related only to temporary repairs be cause of necessity for thorough over hauling of the .Wilhelm, which would require months were all needed repairs undertaken at this time. Captain Thierfelder in the communi cations did tiot make a request for coal and provisions explaining that he would do this when the Washington government decided how long he may remain in these neutral waters. . The commander said he did not wish to take on i permanent supplies which might partly Be consumed during his stay for repairs, it is understood that his request includes, however a peti tion for per mission, to go into dry dock immediately. Until the Washington authorities grant this permission" the German (raider must "remain at anchor in the yjames river. Unotficially the captain of the Kronprinz Wilhelm tirg ed tbatlacUQresjjlfng hisjhip .be expedited "as much fts pb-8sTbTeTalta '"in" this connection he requested the State Department2 through the' German em bassy to have the naval hoard make an examination of his -'ship at once. . This may be done tomorrow if permission is given to -take the ship into dry dock. - "",. Experts Decide om Repairs The shipyard experts estimates of repairs necessary were included in the captain's letter to the Secretary of the Treasury . One letter, it is understood refers to repairs to machinery and the other" to extertor plates which have been ; warped by coaling at sea and ramming Merchant ships of the Allies. While opinion continues to prevail that the Wilhelm will never leave this port until the close of the war, com mander Thierfelder is much more de monstrative than was Captain Thieri chens of the Prinz Eitel in his insist ance that the merchant raider must re turn to the high seas even if she must run the gauntlet of Allied warships off the Gapes a second time. ' "We must get out", he said again today, emphasizing his statement by pounding a table tn his cabin. "We got in and we -can get out. The fact that warships of the enemy are y.aiting for us nust not deter us. The ships might sinks, but that has no fears for me." The young captain stroked his fore head as he spoke and cohtinued : "Who am, I?" I am as nothing, nil. These men "are nil if we can do any thing, to help our country." Later in discussing the repairs ' of the ship with the civilian experts who surveyed her he impressed them with the necessity for quick action because he must get away . Dr. Joseph Goldberger, of Wash ington, at the request of Surgeon Gen eral Rupert Blue, of the public health service made an examination on board ship today of the beri-beri patients. Few opportunities have been afford ed the' United States health authorities to study this disease. Dr. Goldberger found about 95 cases, several having improved considerably -since Sunday. He was assisted in his examination by Dr4 Wand B. MacCafferty, quarantine officer at Old Point Comford. He re turned to Washington tonight with his observations. Warships Off the Capes One French warship and one British cruiser were sighted today off the Vir ginia Capes by pilots who brought ships into. port. The French warship had four funnels and was believed to be the Cohde. She was lying about five miles out when sighted this morn ing. - Later in the day a British .cruiser believed to be the converted Caronia was sighted. The pilots brought with them a report which they received from . merchant men that the British knew that the KronRrinz Wilhelm had (Continued. on Page Two.) 1 j TIME I ,.' ,-;- i: : :-', '.-. ' -''r '" '. :r WILLIAM R. NELSON PASSES OVER RIVER Founder, Owner and Editor of Kansas City Star. A BRILLIANT CAREER His Great Ambition Was to Bring About Better Election Conditions. The Star Will Follow Path Marked 'by Him. Kansas City, Mo., April 13. William Rockhill Nelson, editor of The Star, died early today after being uncon scious since Thursday. Death was due to uraemic poisoning. Mr. Nelson's last conference with his associates took place in his bed Iroomi the day be fore he became unconscious. It per tained to the necessity of! keeping up the fight for honest elections. "That is fundamental for democratic government," he said. . "I may not be here to see the fight won, but The Star will fight on with all its resources un til the present rotten system is brokT en down." I As Mr. Nelson became weaker arti ficial means were used to prolong his life. To this he objected vigorously. Thursday afternoon he sank into a coma from which he did not rally. Throughout his illness the problem of the poor was of intense concern to him. He made large gifts to local charitable institutions and was absorb ed in the work of a soup kitchen which his daughter, Mrs. Kirkwood, inaugu rated and conducted. It was announced that, as far as is humanly possible. The Star will be conducted in accordance with the aims and ideas of Mr. Nelson, j Life of Colonel Nelson. William Rockhill Nelson was found er, owner and editor of the Kansas City Star. Although he did not enter the newspaper business until he was near ly 40 years old, he brought to it such originality, ability and energy that he built up one of the greatest newspa pers of the country. IMr. Nelson was born in Fort Wayne, Ind., March H 1841. He. came of two ceieA maternaT grandf athefrWmtsmF -atrtc4 hill, settled in Indiana when that state w wuui a w,aB ."?.- The Japanese minister again post first farmer in America to plant- a - -. 5I-.5 , thousand acres of corn. His father, Isaac DeGroff Nelson, was; identified; with the upbuilding of the state and took an active hand in its political life. William Rockhill Nelson! was edu cated at Notre Dame University. After a short experience as a youngster in cotton growing in Georgia j just after the ' war, he returned to Indiana and became a general contractor. He en gaged in the building of roads, pave ments and bridges, and was; associated in a cdntract for the construction of the Southern-Illinois state, penitentiary. Intense admiration for the reform work of Samuel J. Tilden brought him Into contact with that great Democrat and when only 34 years old, he became Tuden s Indiana campaign i manager, His interest in political . j leadership made him turn to newspaper work as the best way to influence men in the mass. He bought an interest in the Fort Wayne Sentinel and a business reverse determined him to ;devote all his time to journalism. He soon became convinced that the opportunities in Fort Wayne were too small, and after looking the field over, he decided on Kansas City as the most promising city of the country. He per suaded his Fort Wayne partner, Sam uel E. Morss to make the venture with him. They sold their Fort Wayne in terests, went to Kansas City and start ed the Evening Star as a little four page afternoon newspaper, oh Septem ber 18, 1880. Mr. Morss withdrew from the enterprise after a few months on account of ill health, and Mr. Nelson continued as sole owner and editor-in-chief. j Fought for City Betterment. Essentially a builder, he-took an in tense interest in the development .of th city. Almost from the first issue The Star urged the necessity of paving the streets, of getting a park system, of building attractive houses, of plant ing! shrubbery and trees. Mr. Nelson himself had the trees set along the first Kansas Citfc boulevard. He wafc constantly instigating movements for city betterment. 1 One of his achievements was the res idence district which he laid out near his home as an example of what could be done toward city beautlflcation. Hs built nearly a hundred modest houses along roads which he lined with stone walls covered with honeysuckle and crimson ramblers.- - He was intensely interested in fine pictures and ihe made a collection of reproductions of Euro pean masterpieces done by the best artists who could be found, which he gave to Kansas City. ' ' In politics he was, as he often said. "independent but never neutral." But he would never consider any i elective Or appointive position. Early in Presi dent Taf t's administration the j sugges tion was made in newspaper reports that he might be appointed ambassador to France. He commented editorially as follows: "The editor of The; Star Is amply occupied, sustained and satisfied with "his present job. He regards him self as holding a place of greater re sponsibility and usefulness than any within the gift of the President, or the electorate Not only has hei never been i a candidate, active or receptive, for ay office, but -he never has asked for the appointment of any one else." In J881 Mr. Nelson married Miss Ida Houston. , Their one child, a daughter, Mrs. Irwin R. Kirkwood, lives in Kan sas City. - - - - Wilson; N. "C.,- April- 13. Officials from the sheriffs office t are searching the 'swamps aro'und Black Creek for James Roberts, . who is wanted for shooting Henry Ford. . Both men live in Black Creek township and the shoot ing followed a spree.; -The load pene trated Ford's, side.' The wounded man Is in a critical condition . " " GOVERNMENT TO BACK M'ADOO AND WILLIAMS IN RIGGS BANK SUIT CHINA HOLDS FIRM JAPAN THREATENS Deadlock in Negotiations at Peking Still Unbroken. SITUATION IS SERIOUS Japanese Minister Threatens to Discon tinue Negotiations if Group Five Not Discussed No Answer as to Manchuria. - Peking, April 13. The deadlock in the negotiations over Japan's demands on- China remained unbroken today. China declines to recede from her po sition notwithstanding the fact that the Japanese minister, Bki Hioki, threatened today to discontinue the negotiations. The Chinese foreign minister, Lu Cheng Hsiang, refused today to dis cuss Group V, of the Japanese demands. This group relates to a number of the most important demands made by Jap an, including the employment of Jap anese political, financial and military advisers and Japanese police; Japanese supervision of the manufacture or pur chase, of China's war munitions and rights for railway and mining opera tions.' - , M. Hioki endeavored to draw the Chi nese representatives into a discussion of article V, of this group which has to do with the concession to Japan tf rights for construction of railroads. He intimated that China had favored Great Britain with railway concessions and had . not given similar rights to Japan. He again urged China to grant the .'concessions - demanded and permit vW -'iVwrtiSfSSa?5 Sr arise in respect olflehei'oiicnnent of British railway interests group. The Chinese - foreign minister asked, once more that discussion con cerning this group "be concluded, but M. Hiojci replied that he still was without instructions on this point from Tokio. FEAR GRAVE RESULTS. Missionary Says if Japanese Demands Are as Stated, Matter Serious. Honolulu, April 13. 'Rev. Dr. James W. Bashford, resident bishop in China of the Methodist Episcopal church, who arrived here today on his way to the United States, said he feared demands made upon China by Japan would have errave results if the demands are in re J ality what the newspapers have re- ported them to be "Missionaries depend upon the news papers for their information -as to the nature of the Japanese demands," he said. ' "If 'these demands threaten the in tegrity of China, judging from wide experience of the Chinese people, I fear (Continued on Pass Eight.) UNVEIL BRONZ STATUE TO THOMAS JEFERSON University bf Virginia Cele brates Founders' Day. Several Donations Made to University. Fairfax Harrison, President of Southern Railway, Speaker of the Occasion. Charlottesville, Va., April 13 Found ers' Day was celebrater at the Univer sity of Virginia today by the unveiling of a bronze statue of Thomas Jeffer son, done by Karl Bitter and present ed to the University by Charles R. Crane, of Chicago. . President Alderman announced a gift of $100,000 for a new laboratory, half from John Blackwell Cobb, of. New York, and half from a donor whose name was withheld. Mrs. Charles H. Seneff, of New York, has given $10,000 to improve the University grounds. Dr. Alderman was congratulated by the speakers on completion of the first decade of his presidency. Secretary - Houston paid tribute to Jefferson as the one man of a century ago who .more completely than any other, would, if he were alive, compre hend the present day and feel at home in it. "Certainly the present desperate sit uation of the world would seem very familiar to him,", said Mr. Houston, "for from the beginning of his official ca reer until its close, Europe was ablaze, as it is now, and our nation was la boring under many handicaps. In the trying, and threatening circumstances of ' his day, he and tiis great . chief, Washington, were determined that this nation should , not step into the -bloody' arena, but. they were equally bent on preserving . the sovereignty and independence of the nation, 'pre ferring every consequence to insult and habitual wrong'. "His plea for strict neutrality," said Mr. Houston, "has a .singularly modern character." , Louis M. Brandeis, of Boston, Engaged by Department - of Justice in the Case. JESSE C. AD KINS ALSO Bank Charges Systematic and Long-Continued Persecur tion by These Officials. Department of Justice and the Treasury in Accord. Washington, April 13. Develop ments today indicated that the govern ment intends to do its utmost to back up Secretary McAdoo, of the Treasury', and Comptroller of the Currency- Wil liams in the legal fight precipitated by the Riggs National Bank, complainant in equity proceedings to, enjoin these officials from alleged attempts to drive that institution out of business through systematic and long continued persecution. Attorney General Gregory announc ed tonight that the Department of Jus tice had employed Louis D. Brandeis, of Boston, to defend Messrs- Williams and McAdoo in the injunction proceed ings. He declared his department and the Treasury were co-operating in these proceedings. It became known also that Jesse C. Adkins, former as- . sistant Attorney General, also had been retained in the case. Officials declined to say whether the government, at this time contemplates any affirmative proceedings in addi tion to the defense of Mr. McAdoo and Mr. Williams in the injunction case. It was denied, however, that the bu reau of investigation of the. Depart ment of Justice had undertaken any Investigation of affairs in the Riggs bank. - :-rwr of Comptroller. . Lawyers in the case gave attention today to the question of whether the Comptroller had exceeded his powers in certain acts of which the bank com plains, and it was maintained that for, the sake of precedent to be established this alone would be sufficient to insure a strong defense by the government. It was recalled that while the courts have declined to interfere with the or dinary exercise of the executive func tions by an officer of the government, the Supreme Court has decided that where an excess of such power is dis closed an injunction may be dbtained. That the present case may go to the Supreme Court seemed, entirely proba ble for both sides apparently are pre paring to fight to the end. The bank tonight gave out a state ment reviewing charges made by Mr. Williams last night. It called atten tion to Mr. Williams' announcement that investigation of the bank had dis closed irregularities and that the .De partment of Justice had engaged- the services of Louis D. Brandeis some, weeks ago, as special counsel in the case. The statement recited that at noon today Attorney General Gregory stated that Mr. Brandeis had not been engaged by the Department of Justice and that the statement that he had been retained was incorrect at the time it was made. Mr. Gregory's Statement. Mr. Gregory's own statement in re gard to the employment of Mr. Bran deis given before that or tlie bank fol- ; lows: "The Department of Justice has em ployed Mr. Brandeis as special counsel . to assist in the defense of the injunc ton proceedings brought by the Riggs National Bank. Up to the. filing of the suit yesterday the Department of Jus tice had not had before it for official investigation the controversy between the Treasury Department and the Riggs National Bank, but knew in a general way that these existed and might result In some character of litl- gation. The Department of Justice and the Treasury Department are in accord and heartily co-operating is this suit." , ' The bank, in its statement, declares that Mr. Williams takes credit to him self for the fact that the bank is sol vent, when in fact he caused the with drawal of hundreds of thousands of dollars during the summer and fall of 1914, "at a time when financial condi tions were exceedingly uncertain In xthis country because of the great war in Europe." The statement answers Mr. Williams' charge made' in. letters to the bank, that it loaned large sums to women for speculation purposes, by saying that Washington has probably more women than any other city of its size in the world who have fortunes and adds that its losses through loans to such clients have been negligible. The bank declare that Mr. Williams; has no foundation for the allegation also made in letters that it has tempt ed young men and women to ruin through speculation. "The fact is," says the statement, "that the officers of this bank v have' never advised or encouraged any per son, man or woman, young or old, to speculate in stocks or buy stocks for investment, and the comptroller's in sinuation to the contrary is a gross perversion of the truth of which no officer of the government ought to be guilty with respect to any matter and especially the comptroller of the cur rency be guilty of it for the purpose of injurng a bank in the public esti mation." The statement points out that Offi cers of the bank who held seats on the Washington stock exchange -voluntarily gave Hhem up in 1914 because they believed the Federal Reserve Act mifi.forbid anofficer of a bank act ing as a broker on a stock exchange. : r . ' - i ' V Si H .;i t t-' J I At f -4 .... -v . :i:i
Wilmington Morning Star (Wilmington, N.C.)
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April 14, 1915, edition 1
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