Savannah morning news. [volume] (Savannah) 1868-1887, 1884-06-03
THE PENN BANKS RUIN.
RIDDLE SAYS THE DIRECTORS
ARE A PACK OF RASCALS.

| They Deny the Soft Impeachment-
The Presidents Story Puts Them I'm
Very Bad Light With the Public, How
ever-More Light on the Advantage
Taken of the Resumption.
PITTsBURG, June 2.-President Riddle,
of the Penn Bank, has Published long
statement, in which he says that all OF
his transactions as President, for which
he is now condemned, were made by and
with the consent, assistance and partici-
patton of four of the directors, whom he
names, and the Vice President and Cash
ier, and that the entire board was fully
cognizant of what was going on. He says
that before he became President of the
bank it had netted heavy losses by car
rying oil for spectators; that alter he
became President he and the other
officers determined TO speculate
in oil for the benefit
OF the bank for the purpose OF recouping
its losses; that the fictitious accounts
found in the books were the accounts of
these speculati0ns; that at different times
when he was absent for. periods on ac-
count of sickness the officers Of the bank
carried on this business, and at the same
time speculated on their individual ac-
count through the bank. He names as
the directors whom he consulted before
he went into this business j. b. Lough-
lin, j. o. Brown, A. NJ. CaYett, and
MAJ. swearingen, an6 these also
| speculated on their own ac-
knowledge of the actual condition OF
SSndlrs, and who speculated upon in
| "a A",lOh .,.lOh gained through the bank, was
n9 attorney. Mr.. Watson, the broker
Mno was arrested in Jersey City, was
| aware OF the condition of the hank hnt
his transactions We're for the benefit of
| the bank. y
THE DIRECTORS WELL INFORMED
President Riddle says that some Of fbase
| fictitious accounts have been on the hooks
| over a year; that the condition of the
bank was known to the directors two or
three years ago, and that the entire board
was present at the last audit of the books,
and that the whole business was underdis-
cussiOn when the accounts were audited
1t was found that all the directors but
three had borrowed from the bank till the
amount thus loaned exceeded the capital
and surplus of the bank. While Presi-
dent Riddle was preparing the notice of
the suspension, Director j. o. Brown
went in by the back way and drew a good
portion of his balance in currency, and
Mr.. Swearingen, another director, en-
deavored to secure a check he had de-
posted or its equivalent in money. He
also described how during his illness the
bank was plundered by those
who should have protected it, and
how it was gulled by these men
during its temporary resumption after
the first failure.
1t would appear from his account that
this temporary suspension had for it's
principal object to enable the directors
and others in the ring to secure from the
bank cash and collateral to protect them
selves from loss in the crash which was
bound to follow. His story is very long
and circumstantial, though a little dis
iointed at times. The statement has Gre
ated excitement,S and the newspaper
offices have been surrounded by people Of
all classes, who jostled and crowded each
other in their eagerness to obtain copies
of the papers. The directors implicated
Indignantly deny the allegations made,
but Riddle claims that the books now in
the hands Of the assignee will fully cor
rObOrate his statement. Riddle is much
worse to-day, and physicians fear more
hemorThages.
THE DIRECTORS PUT IN A DENIAL.
PITTSBURG, June 2, 10 P. M.-The Off
cial statement of the directors of the
Penn Bank, made tonight, characterizes
President Riddles allegations as false in
every particular. They assert they knew
nothing of the oil speculatiOns until after
the bank had suspended. The hearings in
! the cases of Cashier Reiber and Thos. j.
Watson have been postponed until next
Monday,