Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-06-03

TsyrsDAY -EvENIN0, JUNE 8, iss4.
How mr.. RIDDLE Did 1t.


President Riddle, OF the Penn bank at
Pittsburg, explains the smash Of that in.
stitution by saying that IL lost hundred
thousand dollars or 30 Of its money
several years ago, when he was III and
unable TO attend to its affairs, through
bad loans made, and that when he found
out how 1t was, he concluded that the
best thing he could do would be to use
the banks remaining money to speculate
for o rise In oil, and make good for it In
this way loss that 1t could not make
good in the regular business. Mr.. Rid
die says he formed a syndicate to ad'
vance the price of oil, and that the
bank directors knew of it, and went into
1t themselves, for their own profit, put
that all his own operations intended
for the banks profit /; and he thinks he
cannot be blamed, his intentions being
aood. because he failed in his object and
lost all his own property in the under.
taking. Mr.. Riddle evidently thinks he
Is worthy OF sympathy; and he seeks
still further to provoke 1t by charging
upon his fellow directors in the bank
that they overdrew their accounts and
sold out the OIL they had promised to
keep, and generally failed to help him in
his operations for the banks relief.
No doubt Mr.. Riddle sincerely believes
that he is much abused man by fortune
and his fellow men and quite probably
he is entitled to our sy mpathy; just as is
every unfortunate person who proves to
be incapable Of discharging successfully
the duties with he is charged. Mr..
Riddle evidently was not cut out by
nature for a bank president of the or
thodox type, who is expected to act upon
the inflexible rule that it is his business
to borrow money without interest
and lend it with Interest, upon
sufficient security; and beyond this
to have no other business whatever.
The experience of ages has demonstrated
that there is no business so profitable as
that which the bank president does
when he does it under this stringent
restriction. What can better recommend
itself to the money-maker's eye than
the prospect of compounding interest
for his own benefit OH other peoples
money I? Mr.. Riddle was seduced into
thinking that booming oil was better
business; and some New York bank
presidents have been similarly overcome
by sweet dreams of rising stocks; but
they have all come to grief when oil and
stocks descended.
The ownership Of bank stocks would
be an unmixed Joy forever il bank
presidents would but abide by the teach
ings of experience and bank clerks woult
never forget their Sunday-school les
sons. But while presidents speculate
and telers steal, as it seems to be human
nature to do, the ownership of ban
shares cannot be an undiluted pleasure
1t involves, too, an insurance of mora
hazard which does not recommend itsel
to the prudent soul who likes to know
what he ha3 when he has it,. The Penn
bank, of Pittsburg, had some Of its bes
business men in its directory. It's forme
president was James II. Hopkins, VIII
retired when he was sept to Congress
but was still one Of its directors. Under
his direction the bank must have been
properly managed, as he is all that a bank
president should be in intelligence, pru.
dence and honesty. The history of these
late bank houses shows, however, that
bank directors do not direct. They know
nothing Of any crookedness there may
be, it being entirely in the power of the
officers TO deceive them if they desire to
do 80. Being engaged in other business,
1t is necessary for them, to rely upon the
statements of the president, who has the
bank especially in his charge. 1t doe:
not seem practicable to give to the
stockholders any better security thar
they now have against the moral hazard
Of their business They must rely upon
the knowledge they possess OF the com
potency and integrity of their officers