Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-06-07
A BANK PRESaDENT CONEESsEs.
VIZ. Riddle. of tie Penn Bank, Tells
How IL was Wrecked by Speculation.

President Riddle, of the Penn bank Pittsburg
which suspended recently. made a statement
Tuesday, in which, after speaking of his deyo-
ton to the interests of the bank. he says that
until 1880 he gave it all his attention. After
that his health became impaired. and he was
forced to be absent frequently. In 1880 and 1881
the bank carried large amount of oil for
brokers'. some of it being carried for year or
two In 1892 he went south for his health. and
enjoined upon Mr.. Reiber assistant cashier and
Mr.. Laughlin. vice president, to have these &C
counts settled before his return. while oil
was high. This Injunction he subsequently
discovered had not been obeyed. He thought
OF retiring, on his return. from the
bank. but was persuaded to accept the
presidency Oil fell. and he found that the
loans made on oil certificates ran 800, 900 or
$40 GOO over the value of the co!aterals at the
lew prices then prevailing. With q knowledge
Il the portion of the board OF directors. he
formed a pool to buy OIL so as to put up the
price and make good the banks account Some
of these purchases were made in May. 1882. and
were made. Mr.. Riddle claims for the sole bene-
lit of the bank. 1t was then that the fictitious
accounts that appear on the bank books were
made HebOught oil fora number of the directors.
Some time in July, 1888. 1t was found necessary
to sell not only their own oil, but great por-
ton of their customers oil held as collateral.
Mr.. Riddle insists that the state of affairs was
hoN I'D EOSt Oh the directors, anG tilaC IL might
have been known to all ofthem as the books were
constantly open to inspection There was q
$1,000 delinquent lean, of which all the board
said iir. Hopkins passed for a coal man and got
money for himself. The man failed aId the bank
got his note The directors all acknowledged,
Mr. Riddle continues, that they were saddled
by one OF their own number with $4,000 of
real estate and an old claim for so 900, both of
which they say were passed through the bank
for personal use and over my objections. Then
the accounts were audited when all directors
but three had borrowed an amount exceeding
the capital and surplus of the bank, to which l
seriously objected, as / was then and had been
carrying an average balance to my credit of
from $4,000 to 100000, to which was charge
able one certified check of SEE, 600, that being
five times more than the whole board had on
deposit. to say nothing of my stock in the bank,
which was the largest single block on the books,
and no money borrowed
Upon the day on which the bank first sus-
pended. and when it was concluded to close the
doors. had just made deposit in the bank to
help it, While was directing that notice order
ing the suspension to be drawn, ]. O. Brown
went down the back way and drew good pOr-
ton OF his balance in currency, and Major
Swearingen wanted me to give him back check
he had deposited or the money for it. which /
could not do
Mr.. Riddle claims that he left all his securities
In the bank to secure the depositors but two of
the directors came to his bed while he lay sick
and had him sign a Judgment note to secure
them for 100000, transferring his securities to
them. He claims that all the blame for the fail
ure Of the bank should not be laid upon him.
The implicated directors deny the allegations
but Mr.. Riddle asserts that the books will fully
cOrrObOrate his statements