New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-06-03
RIDDLE AND THE PENN BANK
THE PRESIDENT MAKES A STATEMENT.
HE WANTS THE BLAME DIvIDED-THE USE MADE
OF THE BANKS SURPLUS by THE DIRECTORS

BalK, 1lOTDT1g
have this statement to make and find that all kinds
Of things may take lifetime TO do are OF avail
when msforune comes Iherei9fe, mus De plain The
lived there was welded 10 IL always. TO me my
pleasure was second thought 70 It's prosperity KEPT
spare the money kept everything had there and even
gave up my health 10 its service The bank prcspered.
and paid to 7 per: cent. IL had good business,
u large OF merchant business, and when oil
%5s aaSs hs rs 20 accept them IL was ike
other bank. rich sometimes and poor sometimes UDtii
$780, gave It all my attention after that sick and
away great portion Of the time but was there when
could be- The paper there was as good az the AVERAGE
run OF that OF any other bank. Sometime in 1880 and
also 1881 II had money to lend, and In both years car
RED large amount OF oil for brokers' Some OF was
% ss2 'G was again sick and was ct
rest At the time was ready 70 go OIL wes very hge.
and while the BANK d haa 20 th s OH
n %b,cb we held eollaeraIs made up As the prices
were high did not them continue as loans
during the summer although all our loans ms were gooc
dent and Mr. Reber the assistant cashier, relieved me,
and I went away told Mr. Reiber not TO fal " SEQ
Ss sme and ON my way south teleaphed Mr. Reber
and wrote Mr.. Laughn again not TO faii 10 see .ae wy
did not get well as had hoped and thinking could yo
what had accumulated stated W Tue Do''" my u"
tenton Of quitting business
RIDDLES PLAN FOR RELIEVING THE BANK.
little later on our president, James III. Hopkins re-
signed and he and others urged to accept the vacant
place az one of had all my plans made 10 quit
business and leave the bank in good shape, but unfor
tunatey yielded to the solicitations ana became pres
ident In place OF position OF ease found burden
from the first and that might bear the burden had 10
give up everything else but sleep so that algat De aos
stand under t. Very soon found that my directions
had not been carried sundry accounts concern
ing which had spoken 10 Reber and Langhin plor 70
my departure SOUTH and IN which q. H. thompson ..
H. Thompson W. Haldsman. r. Moore and others
figured, and that the loans ran slO9 900 20 szoOyoo
than the collateral represented az tneh very low
prices. complained TO those whom nad toa 70 nave
these accounts made up ana Ga them ,a' teans se
Of people to buy enough oil TO put tne prce ~ an, M
oey T told Mr. Keller and told part board
yce-presdent +. b. Laughlin, and j. Brown, A, ~;
Them and all Of Them that would not then or any Other
time buy single barrel for myself saG d P9 ny h" %,rd
ew che bsTs % buy nnd aOG lot aa here
was the profits Of the hank had no individual interest,"
in the 9S az oc In Ss IN Se
was again sick. That the time those accounts
named " the papers fictitious accounts were made;
Old back accounts; Others wete Tor Indvla, Eno
then want TO say that these directors did know all
about this. After went 10 New-York to get such pare;
city, told these directors of the purpose OF my going.
They bought OIL individually at times that Is indicated as
their accounts with the bank VIII SHOW one " ,n o
parties transacted business through me- as thelr a
counts in the bank will show, was Mr.. hopkins: ,,h
bought oil for Mr.. +. b. LanShlia, ana; wiz Ia
his consent it was pat mo On the Stands 5snk tbe1s
undivided nothing having been said to where tie
profits should co. also bought Oh on ms aeeT Sat the
account sui STANDS theTc Win iO7o AnN
account known as Hill Co."
OIL ACCOUNTS or THE DIRECTORS.
Among other directors who bought oil upon infoTna'
ton received directly or indirectly from me were ..
Brown, on his individual account, and A d. Cayt on
his individual account and / believe his account still
stands overdrawn for part Of the amount A A Hutch
inson also bought on his own account ;. severance
bou qnt on his own account but paid for It, Isaac
Van voorhees, attorney the bank also bought largo
amounts Information received rom me- oeorke =.
Davis did buy talked of buying as be inquired every
day a. u tho prospects OF myself and Mr. Reioer. Mr.
SELF and myself representing the. bank; he DO.
ing with no special intention OF gam io ace mum
OF Watson Co. made and suggested Dy f. j. watson
The first transaction the transfer OF some OIL from
thereafter made were also through this account When
the timecame SELL all the amounts that had passed
counts Of r. NJ Kennedy No 2, and Z. NJ kennedy,
account OF principal. bought by his consent and
bsSF W He ms was s0 to get ons-h ali and
TO gs ,a 09e9a ia this account he maa uny ck
sndry orders and sundry notes. but ie II IN general
crested az first as money being received from parties in
Philadelphia and part of it from j. H. keene mat ac-
ceT h fso%n The account Of ~ p Be1e No
was the first made all these othr accounts aud in
the whole assist in making up these
worthless counts and any profits made, it was
not intended that Mr. Beae should have any 81 ;h@m
Some time IN July; 1855 IL was iouna necessary
this oil hit great portion OF customers OIL, hed
as collateral and this done told Ar. Langhin one
day that ii done and he good enough to help me
all he could. told him then and there that didn't SEQ
how could stand it much longer, AS my strength was
being taxed seemingly beyond human endurance. May
low rates sold at high rates and took money 70 the
credit of their own accounts At the time this OIL was
that this was only little pool to make MAKE ~, up
some bad accounts at the Penn Bank ana tnis
at empted such act and try to make this money
for these accounts and particularly when the price
had
keep faith with others insisted upon all whom had 10
in spite OF promises to do The account OF T.
ason has nothing do with any OF these accounts,
accounts ways been ready TO help In add;
ton to these directors having all this information and
acting upon it, Is was impossible for majority not TO
know OF it. and there is no reason why others
Ts there qSt op eaV' to "spoOn every Say
and many times away sck-and were audited by the
lie board were present the last audit While these
accounts for nearly year. there were some
loan which ali the no rd said Mr. Hopkins passed for
coal dealer and got the money or h nse Inc man
among themselves that they were sadiled by one OF
o 9nff e oMp or ocoo both Of WHICH, they say were
through the bank for personal use and over my
directors cut three had borrowed amount exceeding
the capital and surplus OF the bank to which seriously
la TO my credit OF from $4,000 70 siOoooo 10
being five times than the whole board had on de-
pos 20 say nothing OF my stock IN tae bank, which ws
the largest single block the books and no money Dor
rOwed.
ACCOUNTS THAT WERE oyERDRAwN.
Among tho largest borrowers were d. W. c. Carroll
at one time SlCOOO0 A. A. Hutchinson 100000 and
over; Mr. Hopkins 100000 to make up an oyerraft OF
the Ptsburg Southern Railroad Company. made during
my sickness aud j. o. Brown about $4,000 Major
swcringen had borrowed about 10000 and had daily
morning overiraft OF from 5000 TO $1,000 which kept
MIR Reber anC my self in the award position of having
notify him. we did also Mr. carroll on dlHetent oc
casons ana Mr. Cavitt think, continuously over
drawn.
The books are there for every cm stated upon the day
on which the bank first suspended and when IL was eoh
culed the DOORS had just made deposit IN the
bank To help IL. While | was directing that notice
ordering the slspeLsOn should be drawn. j, o. brohn
went doEn the back way aud drew good portion OF MS
hnance I'M currency and Major sWerlngen Wahten me 20