Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1884-06-03
RIDDLE ON RIDDLES.
He Explains How the Thing Was
Done.
LOOKS BAD FOR THE DIRECTORS.
The Mystery Of the Penn Bank Failure eS-
planned by Its Late and Hsw Dying
President Big es-
element
RIDDLE ON RIDDLES.
LOOKS BAD FOR THE DIRECTORS.

PIrTsBrRG. June 2.-Presidcnt Riddle this
morning made statement OF the affairs OF
the Penn Bank and the causes which led TO
the collapse. In it he charges the bank
directors with being concerned in the oil
pool which wrecked the bank aad tells how
the failure was brought about He reci,es
how the position of the presidency was
orced on him and how he soon discovered
oans on oil collateral exceeded the
collateral at the low prices then ruling.
He complained to cashier Reiber and
the Vice President who he had told to have
these accounts made up, and told them he
did not see what hc could do unless by per
sonal exerton to get lot Of people to buy
enough oil 10 put prices up aud buy enough
on the banks ACCOUNT TO make good these
accounts. Il told Mr. Reibcr and ! told
part Of the board OF my intention and told
all Of them that | would not then or any
other time buv single barrel for myself.
| had only wish 10
Make Up These Accounts.
| went East and the Board knew the nature
of nv errand there and had lot of people
there to buy aud lot here 10 buy. The
sole purpose Of this scheme was for the
profit of the bank. In May, 1882, a very
large lot of oil was bought and the price
advanced. In the midst of this was again
taken sick. That was the time these ac-
counts named ia the papers a. fictitious
accounts we're made Some were Tor my
gain TO 20 to the bank to make up these old
bach accounts Others Tor individuals who
would hope for Il proht which they would
divide. Now. then, | want to say that these
director, did know all aOont this. After J
went to New York To get such parties as ]
could to bus oil with the parties here and IN
Oil City told thc-c directors Of the purpose OF
nv going They bought oil individually at
times that Indicated ~ their account with
the bank will show One OF the parties
that transacted business through me on
their individual account as their accounts
in bank will show was Nr Hopkins j
bought oil for r. b. Laughlih and with his
consent was put into sn account IN bank n
FL Laughiin No. (:
and still stsnds there undivided
Among other directors who bought oil
upon information received directly or IniI-
rectly from me was J q. Brown on his in
diyidual account " Caviti on his intiyi
dual account and believe his account still
Stands over drawn for part Of the amount.
A. A. Hutchinson also bought on his own
account: s Severance bought on his &C
count, but paid for it. Isaac Van Voorhees,
Attorney for the Bank
also bought large amounts on lnfdtmahon
received from me. Geo. c. Davis did buy
or talked OF buying, as he inquired every
day as 10 the prospects, both Of myself and
Mr. Reiber Mr. McMullen also bought
large amounts Of oil for himself and myself
representing the bank. The account Of
Watson a 20. was an account made and
suggested by Mr.. 7. J. Watson & Co. The
benefit Of this account WAS to go half TO the
bank for the use Of these old accounts.
When the time came 10 sell amounts that
had passed through,s account was charged
up against il. The accounts Of "R ". Ken
nedy No q and"R. ~ Kennedy on aeeoutA
Of principal were bought by his conseai
and mostly by his direction and for my &C
count in bank. be TO get one half and 10
get one half towards making up this account
A. stated. During July. 1888, it was
Found Necessary to Sell
not only graf portion Of this oil bnt Q
great portion Of our customer oil held ~
collateral. and this was done. Many a. the
individuals who had received in1osnAif-e
10 buy At lo~ rates sold at high rsfss md
took the money 10 credit their Osasaceoant
During the time tbs oil was booSM itvas
currently circulated 3, tbe E<ctsnse tbst
this was +
20 make up sorne lad sec6sa1fs Of ~ peon
Bank. and this was fjsE case With Others
I insisted us.oH ~ G1af I bad To do sitb
not TO seu. bet ,saAy in3isiiuas did ssD IN
spite a ,,S pfcmises netj b do 10" Con.
tipaisg a. slAerts thos the acceGuts Of
many direetors were oserayasa ~ tins
from Sls 900 20 oyer Sl0sg9e Two daJs
befere the sGspenscn the condition Of the
hank IN money VA oossfrtsbae, but Tnsay
people with plshfious inteni gave 0ut such
repor.s as cale6d rsE and eosnpsllesi a etcse.
Al his stock and deposits. sryo1n.inz IN
value 10 80 900. he says. sss l-it for d.
u.Si:ors. bv. The directors. sl.hoat his per
mission. appropriated them for the ovn
sscari1
II Crss,<s 7ntsnss Exc;tetasst.
The siatenen. created in,eass excitsmen.
sed The newspaper Offices we're sarrounded
win r4sple Of al cia.Ses, v5o :ostied and
crowded each oshsr ia their, ezserness b
obt.in copies TIE dire'ons implicated ~
dignantIy deny sll tbs.sSg.iioas mai
bat Riddle claims thst b1Il6 no- "a tn
LAnd. Of lie assignee vii fsliy corooorst
his stsiersesI RisEss eoaj;.isa Is msei
Eorse todsJ.