The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-04-14
Statement from Mr. Knox.

WASHINGTON, April 12.-The committee on
banking and currency has called on Comptroller
Knox for all papers and correspondence in his
Office relative to the Pacific National Bank Bos-
ton. A number of charges against Knox have
been placed before the committee since the re
cent investigation by the secretary of the COM
mittee of shareholders of the Pacific Bank. A
copy of these charges was handed the Comptroller
to-day in order that he might answer them. A
member of the committee says that with a few
exceptions they are similar to those previously
filed before the committee, and that the new
charges are that Benyon, president of the de-
funct bank, was a defaulter when appointed,
and that Knox knew that the bank was inSOl-
vent when the capital stock was increased in
1879 and again in 1881
The Comptroller said to a reporter of the As
ISOLATED Press tonight: II have to-day re-
ceived a communication signed by the secretary
of the committee of shareholders of the Pacific
National Bank 1t is somewhat extraordinary
that the communication does not bear the sigma
ture of a single shareholder. There is not a
single allegation, though they are fourteen II
number that has not already been answered in
the pamphlet containing my statement There
is no proof whatever accompanying the allega-
tons. They are simply repetition OF the state
ment made by the attorney of the stockholders
before the banking and currency committee
The first allegation refers to the fact that Ben
yon, president of the Pacific Bank, was formerly
president of the National Exchange Bank, BOs-
ton, and that he was obliged to resign from
that office. This fact was fully stated in my re
ply before the committee and also stated that
Notwithstanding the fact of Benyon's disgrace.
he associated with him for the purpose of the or
ganization of a new bank persons in Boston and
in the State of Maine who were recommended
by members Of Congress as being persons of the
highest character and standing. After the or
ganizaton of the Pacific Bank, notwithstanding
he had been obliged to retire from the presidency
of the Exchange Bank, he was for two succeed
ing years elected a director by the shareholders
and president by the directors of the Pacific
Bank, although he held but 81 900 stock at one
time. There is nothing in the law that prevents
shareholders from electing any man director,
or the directors eecting any man president, pro
viding he holds the requisite amount of stock
The Comptroller has no authority to prevent the
organization of a bank by any class OF men, pro
vided the capital stock is paid up and other re-
strictions of the act complied with. One of the
allegations is that 1 did not bring suit
against the directors. Mr.. Ranney, a men,
Der of Congress, who is attorney for the
receiver, stated before the banking and
currency committee that the delay had been Oc-
casoned by the attorney of the shareholders,
who is associated with him in the suit. Another
charge is that the committee did not have all the
papers and correspondence in my Office. The
whole correspondence has been furnished to an
attorney in Boston, and every material fact
printed for the use of the court Since that
time have given everything in my statement
before the banking and currency committee. 1t
would be much more manly for the sharehold-
@ers who are hiding in the dark to place their
names to these allegations. 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 them
selves, who are the agents of the shareholders.
The only question which arise is in refer
ence 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 the
suits are being prosecuted vigorously as posi-
BILE, as the law requires"