St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-04-14
Kyox's STATEMENT.

WASHINGTON, ID. c., April 12.-The com
mittee on banking and currency called upon
Comptroller Knox for all papers and cores
pondence in his office relative to the Pacific
National bank of Boston. A number of
charges against Knox have been placed be-
fore the committee since the recent investi
cation by the secretary of the committee OF
shareholders Of the Pacific bank, and a copy
of these charges was handed to the comp
troller to-day, in order that he might answer
them. A member of the committee says,
that with few exceptions they are similar to
those previously filed before the committee,
and that the new charges are that Benyon,
president of the defunct bank, was default
er when appointed, and that 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 tonight, Il have to-day re-
ceived a communication signed by the secre-
I,tary of the committee of shareholders of the
Pacific National bank. 1t is somewhat
extraordinary that the communication
does not bear the signature Of a single share
holder. There is not single allegation, though
already been answered in the pamphlet con-
tanning my statement. There is no proof
whatever accompanying the allegations, they
are simply repetitions of statements made by
the attorney of the stockholders before the
banking and currency committee. The first
| allegation refers to the fact that Benyon, the
president of the Pacific bank, was formerly
president of the National Exchange bank of
| Boston, and that he was obliged to resign
| from that office. This fact was fully stated
in my reply before the committee, and [ also
stated, Notwithstanding the fact of Benyon's
| disgrace he associated with him, for the pur
pose of organizing new bank, persons in
| Boston and in the state of Maine, who were
recommended by member of congress as
being persons 'of the highest character and
standing" After the organization of the
Pacific bank, Notwithstanding he had been
obliged to retire from the presidency of the
| Exchange bank, he was for two
succeeding years reelected a director
| by the shareholders, and president by the
directors of the Pacific bank, although he
| had but 81, 900 stock at any time. There is
nothing in the law that prevents shareholders
from electing any man director, or the di-
rectors electing any man president, provided
| he holds the requisite amount of stock. The
| comptroller has no authority to prevent the
organization of a bank by any class of men,
provided the capital stock is paid up, and
other restrictions of the act complied with
One of the allegations is: 1 did not bring suit
against the directors. Mr.. Rauney,
a 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 suit. Another charge is, that the COM
mittee did not have all the papers and cor
respondence in my office. The whole cores
pondence has been furnished to the attor-
ney in Boston, and every material fact print
ed for the use of the court. Since that time,
I have given everything in my statement be-
fore the banking and currency committee.
| 1t would be much more manly
for the stockholders who are hiding
in the dark to place their names to these al
legations. My whole action in reference to
the officers of the Pacific bank, was based on
the reports of the bank examiner and chiefly
on the reports of the directors themselves,
who are the agents of the shareholders. The
only question that can arise is in reference
to my construction of the law, and that is
for the courts to decide. The complaints of
the shareholders have arisen from the fact
that some are being prosecuted as vigorously
as possible, as the law requires