Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1884-06-03
President R,adIz,. statement nes.rd

ing the Penn Bank Failure.
PrrrspuRe- tauo 2.-President Riddle
thfs morning made a statement of the
affairs of the Penn Bank and the causes
which led to the collapse. In it he charges
the bank directors With being concerned
in the oil pool, which wrecked the bank,
and tells tow the failure was brought
about. He recites how the position OF the
presidency was forced upon him, ana now
he soon discovered that the loans on OIL
collateral exceeded that collateral at the
low prices then ruling. He complained
to Cashier Kieber and the ce-president,
whom he had toldsto have these accounts
made up, and told them he did not see
What he could do unless by personal e4er-
ton he coiild get lot of people to buy
enough oil to put the prices dp and buy
enough on the banks account to make
good theSS accounts. 81 told Mr.. Keber,
said he, and told part OF tie board. T. B,
Laughlin and ]. q. Brown, M. Cavitt and
Maj. Swearingen, of my intention, and told
all of them that would not then or any
other time buy q singie barrel for myself.
My only wish waste friake up these ae-
| counts. / went East and the board knew.
the nature of my errand and had lot OF
people there to buy. The sole purpose OF
this scheme was the profit Of the bank. l
| had no individual interesss In the venture
at sll. In May, 1883, q very large lot of
oil was bought and the prics advanced.
In the midst of this< l was
again taken sick. That was the time
these accounts named in the papers as
| fictitious accounts, were made. Some
| were for the gain to g0s to the bank, to
| make up these old back accounts. 0therf
| were for Individual. W iIo would hope foz
the profit which they would divide. Now
| then, want to say that these director,
| did know all about this. After went Il
New York to get saeh parties - ] could
| to buy oil with parties here ana In oi
| City, 1 told these ulrec,ols .. the purpos'
of my going. They bought oil indivicu
| ally at the times that l indicated, as theil
i account with the bank will show. Ont
/ of the parties that transacted busines.
| through he on their individual account
| as their account in bank will show, wa
Mr.. Hopkins. / bought oil for Mr.. T. B
| Laughlin, and with his consent it was pu
| into an account In the bank as T. B
| Laughlin No. 2, and still stands there un
| divided, nothing having been said as Il
whom the profits should 60. once bough
| oil on his account, and gave him one
| fourth, R. M. Kennedy one-fourth, tht
Penn Bank one-fourth to make up thess
l accounts, and G. L. Reiser onefourth Il
| make up accounts of two friends overdrawn
That account still stands there charged
with loss. That is tie account known q.
| Hill & Co. Ameng other directors wht
bought oil upon information received
directly or indirectly from me was ]. o
/ Brown, on his individual account, an(
| NJ. NJ. Cavitt on his individual account.
believe his account still stands' overdrawr
for part of the amount. A. Hutchinson
also bought on our account. S. Zeveranc,
| bought on our account, but paid for it
Isaac Van Verbees, attorney for the bank
also bought large amounts ON informatiof
received from me. Geo. G. Davis did buy
or talked of buying, as he inquired ever
day as to the prospects both of mysel
and Mr.. Kuber. Mr.. Swearingen talket
frequently of these transactions, and casu
ally inquired how they were getting alon,
as they passed through on their way t.
New York and Oil City, and said that &C
Mr.. McMillen, bought large amount
of Oil for himself and myself, representing
the bank, he doing it with no special in
tention of gain for himself, simply intend
| ing to put it there that it might benefit tn,
bank, and with this transaction is charges
the account of D. Wilson & Co. The &C
count Of Watson & Co. was an accoun
made suggested by Mr.. T. ]. Watson him
self The benefit of this account was t.
go, half to the bank for the use of thes
old accounts. The first transaction wa
| the transfer Of seme oil from Ouachita t.
| this place through accounts, and ais,
transfers thereafter made were through
this account When the time came t,
sell, all amounts that had passed through
this account were charged up against II
and the accounts of K. M. Kennedy an,
Z. M. Kennedy, on account of the princi
pal, were bought by his consent an,
monthly by his directions, and for my &C
count in the bank. He got one-half an,
got one-hslf toward making this account
| as stated, and to this account he mad
sundry checks, sundry orders and sun
dry notes, but left it in genera
way in my charge, and the account O
Bloom & Co. was credited at frs
as money being received from par
ties in Philadelphia and part Q
it frem ]. r. Keene. That account stand
balanced, so that there is nothing furthe
concerning it. In July Is, 1888, it wa
found necessary to sell, not only gres
portion of this oil, but great portion Q
our customers oil held as collaterals, an
this was done. l told Mr.. Laughlin o.
the day it was done, and he was goo
enough to help me all he could. I toll
him then and there that / didn't see no,
| could stand it much longer, as my strengt
/ was being taxed far beyond human endul
ance. Many of the individuals who ha
| received information to buy at a low fig
ure and sell high did so, and put thi
money to the credit of their own account
During the time this was being done tn
| report was circulated at the Exchange tbs
this was only little pool to o5ake up som
bad accounts at the Penn banl
and this was the case. 1t was work enoug
to have attempted to do such an act an
Try to make this money for these account
and particularly when prices had reacl
ed the limit of our intention" Coz
tlnuing, he asserts that the assets {
many directors were overdrawn at tint
from $4,000 to over 100000. Two day
before the suspension the condition of tt
bank in money was comfortable, but man
people, with malicious interest, gave o,
such reports that they caused a run an
l compelled us to close. All the stock an
deposits, amounting in value to $500, 90
he says, were left for the depositors, but II
, directors, without his permission, appr
priated them for their own security,
The statement has created intense e.
element, and the newspaper offices a
} surrounded with people of all classes, WI
} iostled and crowded each ether in the
eagerness to obtain copies. The directo
implicated Indignantly deny the alleg
tions made, but Riddle claims that Il
, books now in the hands of the assign,
will fully corroborste his statement. Ri
/ dies condition is much worse to-day, al
i his physicians fearmore hemorrhspes