Daily Kennebec journal., 1884-04-14
PACIFIC BANk.
A New List Of Charges fAgainss Comp.
tr0ller. knox.-What the Comp.
tr0ller Sayes About the
Charges.
BosroN, April u.

William A. Paine secretary of the COM
mittee of shareholders of the Pacific Bank
said this afternoon that on Tuesday last q
series of charges against Comptroller Knox
were forwarded 10 the House committee on
banking and currency in Washington, which
is investigating the affairs of that bank
These charges" said Paine, ''are fourteen
in number. and contain entirely new evidence
duplicating Comptroller Knox.
All of the charges are sustained by the
evidence. At the time OF the previous hear
ing before the House committee on banking
and currency. we had been too much hurried
owing to the death OF Mr.. Ives and a change
in our counsel, to put these charges in proper
form, so We delayed their presentation until
now, in order TO make them complete in
every detail, both as regards allegations and
the evidence supporting them.
l am not at liberty to state what these
charges are, because Knox is 10 appear be-
fore the House committee on Tuesday next,
when they will be formerly presented. Suffice
il to say that they are sbundantly supported
by the strongest proofs. The first of fourter n
charges is preferred by another prominent
banker of Boston. with which also comptroll-
er Knox was identified. One prominent
shareholder of the latter bank, who owned
$500, 900 of stock in the Pacific bank has de-
ing and currency does not proceed in the
matter as would seem just and proper from
the serious nature of the charges presented.
he will at once institute criminal proceedings
against comptroller. Knox.
WASHINGTON, April l2.
The committee on banking and currency
has called upon Comptroller Knox for all
papers and correspondence in his office rels-
tive to the Pacific National Bank of Boston.
A number of charge, against Knox have
been placed before the committee since the
investigation by the secretary of the COM
mttee of shareholders of the Pacific bank.
A copy of these charges was handed to Knox
today in order that he might answer them.
member of the committee says that with
some exceptions they are similar to those
previously filed before the committee, and
that the new charges are that Benyon, the
president of the defunct bank, was a
defaulter when appointed and Knox knew it ;
that Knox knew the bank was insolvent
when the capital stock was increased in 1879,
and again in 1881. The comptroller said to
a reporter Of the associated press today Il
have today read a communication signed by
a committee of shareholders of the Pacific
National Bank. 1t is somewhat extraordi-
nary that the communication does not bear
the signature of a single shareholder. There
is not single allegation, though they are IA
in number, that has not been answered in a
pamphlet containing my statement, They
are simply a repetition of the statements
made by the attorney of the shareholds of
the banking committee. The first allegations
refer to the fact that Benyon, the president
of the Pacific bank, was formerly president
of the National Exchange bank in Boston,
and he was obliged to resign from the office.
This fact was fully stated in my reply before
the committee, and | also stated that not
withstanding the fact of Benyon's disgrace.
he associated with him for the purpose of or
ganizing the new bank Persons in Boston
and Maine, who were recommended as being
persons of the highest character and stand
ing. After the organization of the Pacific
bank, notw outstanding he had been obliged
to retire from the presidency of the Exchange
bank he was for two succeeding years re-
elected director by the shareholders, and
president by the directors of the Pacific bank
although he held but 81 200 of stock at any
one time. There is nothing in law that pre-
vents the shareholders from electing any
man director, or directors from electing any
man president, providing he holds the requis-
lite amount of stock. The comptroller has
no authority to prevent the organization of a
bank by any class of men, providing the
stock is paid up and the other regulations are
complied with. One of the allegations i.
that did not bring suit aginst the directors.
Mr.. Rauney, member of Congress, who is
attorney for the receiver, stated before
the banking and currency committee that the
delay had been caused by the attorney of the
shareholders, who is associated with him in
the slit. Another charge that the COM
mittee did not have all the papers and cores
pondence in my Office. The whole cores
pondence has been furnished to the attorney
in Boston, and every material fact has been
printed for the use of the court. Since that
time have given everything in my statement
before the banking and currency committee.
1t would be more manly for the shareholders
who are hiding in the dark to place their
names to these allegations Ny whole ac-
ton with regard to the officers of the Pacific
Bank was based on the reports of the bank
examiner, and chiefly Oh the reports of the
directors, who are agents of the shareholders.
The only question that arises is in reference
to my construction of the law, and that is
for the courts to decide. Complaints of the
shareholders have arisen from the fact that
the suits are not being prosecuted as vigor