The Portland daily press., 1884-03-25
THE PACIFIC BANK.
hams Connection
with the Matter.
THE PRELIMINARY HEARING
CONCLUDED.

WASHINGTON, March M.-Conptroller Knox,
Receiver Price, Examiner Needhsm, Governor
Boutwell, aud Mr.. Lincoln, attorney for the
petitioners, were present at the meeting of the
banking and currency committee this morning,
when the investigation of the Pacific National
Bank was resumed.
Governor Boutwell, concluded his argument
begun last Saturday. He presented q letter
which Mr.. Needham had received from the
directors, containing resolutions, passed at
meeting of the board of direcors, rendering
the thanks of the directors, stockholders and
depositors of the bank to Mr. Needham for his
earnest efforts in behalf of the bank, as well
as for the effort he had made for its reorganiza-
tion. He characterized the charges made ia
the memorial as libellous, and said that IL the
criminal law was enforced these libellous allie
cations would bring every one of the eighty
signers of the msmorial to the bar of justice.
He read from correspondence between Need
ham ao6 the directors to show that Nsedham
had warned the directors OF the perils OF
undertaking to reopen the bank. He said If
the bank had eceived the support Of the busi-
ness Interests of the city, as it should have,
the disastrous consequences might have been
ayerted. He argued that there was no evil
deuce to show that Mr. Needham sanctioned
the reopening of the bank, but, on the con-
trary, the letters which Mr.. Needham had
written to the directors proved that he had
done all that was possible for him to do TO
bring the directors to realization OF the con-
dltion of the bank. He read letter from the
directors to Mr.. Needham in reply to his letter
to them, cantlonlng them against reorganiza-
ton OF the bank, in which the directors said
thev would take the entire responsibility of re-
habiltating the bank upon themselves. The
Comptroller of the Currency, he said, although
he sanctioned the reopeuing of the bank, did
not do so until he had required each OF the
directors to sign certificate to the effect that
it was their individual opinion that the bank
should be reopened, and each of the directors,
Including Frost, had signed certificate say
ing that this was the proper thing to be done.
"Frost," he said, chad made the statement
that he had in vain sought an opportunity to
examine the books. He was elected director
to protect the stockholders, and why had he
not, instead of signing this certificate, written
to tn Comptroller and said that he had sought
in vain for an opportunity to examine the
books. If he had done 80 the bank would
never have been reopsned." Mr.. Boutwell,
asserted that If anybody was to blame for the
unfortunate circumstance, it was not Mr..
Needham, who had time and again warned
the directors of the peril of rehabllitating the
bank, but Mr.. Frost now comes here and
makes these charges against an honorable man.
| In conclusion Of his argument he said: u
| have known Mr.. Knox for twenty years or
more. He came to tue place which he holds
| in the Treasury Department while was at its
| head, and upon my recommendation to the
President he was nominated and afterwards
| appoibted. have not yet accepted any re.
| tainer from him in this Case. but ] have some
| interest 10 him as public officer, and wish
| to ypress the belief, founded on an acquaint-
| ance of twenty YEARS, that these accusations
| are false, grossly false and criminal and In
this act of his life, which is now the subject of
investigation he was moved only by desire to
do that which he thought was best and in my
| judgment he ought to be excused. For Mr..
Needham have to say that l have known
him for forty years. He has held positions of
trust in more than one State. He has traa-
sacted all The duties of bauk examiner with
fidelity, and now, in the decline of his life tc
be arraigned here, and at moment when his
| mother, 80 years of age, lies on her bed pus'
sessed of Ler intellectual faculties, but waiting
for the approach of death, and hoping to heal
before her days shall close that this attempted
imputa'lon upon the character of her son ha'
been removed"
Mr. Lincoln, counsel for the memorialsts,
made short address in which he called atten