The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-04-14
THE PACIFIC BANK.
A Series of fourteen Charges Preferred
Against Comptroller KnOx-MIs Reply
20 Them.


Boston, April 12.-William A. Paine, Sec
rotary of the committee OF shareholders of the
Pacific Bank, said this afternoon that on
Tuesday last, series of charges against Comp
troller Knox were forwarded to the House
Committee on banking and currency in Wash.
ington which is now investigating the affairs
of that bank. These charges said Paine are
IA in number, contain entirely new entries
duplicating Comptroller Knox, all of which
charges are sustained by evidence. At the
time of the previous hearing before the House
Committee on banking and currency, we had
been too much hurried owing to the death
OF Mr.. Ives and change in our counsel, to put
these charges in proper form, so we DELAYED
their presentation until now in order 10 make
them complete in every detail, both as regards
allegations aud the evidence supporting them
am not at liberty to state what these charges
are because Mr. Knox is to appear before the
House Committee on Tuesday next, when they
will be formally presented. Suffice it to saw
thot they are Abundanlly supported by incon-
testable proofs. The first of the fourteen
charges refers to another prominent bank in
Boston with which also Comptroller Knox was
identified. One prominent shareholder of the
latter bank one who owned $500, 900 worth of
stock in the Pacific Bank has declared that il
the House Committee on banking and curren-
cy does not proceed in the matter as would
seem just and proper from the serious nature
of the charges presented, he will at once insti-
tute criminal proceedings against Comptroller
Knox.
WASHINGTON, April u.
The committee on banking and currency has
called on Comptroller Knox for ali papers and
correspondence in his Office relative to the Pa
ci6c National Bank OF Boston. A number of
charges against Mr.. Knox have been placed
before the committee since the recent investi-
CATION, by the secretary of the committee OF
shareholders of the Pacific Bank A COPY of
these charges was handed to the Comptroller
today, in order that he might answer them. A
member OF the committee says that with some
exceptions, they are similar to those previous
" filed before the committee and tn at the
new charges are that Benyon, the president of
the defunct bank, was in default when ap-
pointed that Knox knew that the bank was
insolvent when its capital stock was increased
in 1879, and again in 1881.
The Comptroller said to q reporter OF the
Associated Press tonight: "I have today re-
day received communication signed by the
secretary OF the committee of shareholders of
the Pacific National Bank 1t is somewhat
extraordinary the communication did not bear
the signature of single Shareholder. There
is not single allegation, though there are IA
in number, that has not already been answer
ed in the pamphlet containing my statement:
there Is no proof whatever accompanying the
allegations; they are simply a repetition of the
statements made by the attorney of the stock
holders before the banking and currence COM
mittee The first allegation refers to the fact
that Bsnyon, president of the Pacific Bank,
was. formerly president of the Exchange Bank
in Boston; that he was obliged to resign from
that office. This fact was fully stated in my
reply before the committee and also stated
that notwithstanding the fsct of Benyon's dis
grace he associated with him for the purpose
of organizing the new bank persons in Boston,
and Ia the State of Maine who we're recon.
mended as being persons of the highest char
acter 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 succeed
ing years reelected director by the stockhold-
ers and president by the directors of the Paci-
fic Bank, although he held but $4,000 stock
at any time. There is nothing in the law that
prevents stockholders from electing any man
director, or directors from eleoting a man pres.
ident provided he had the requisite amount OF
stock, and 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 are complied
with. One of the allegations is that [
oid not bring suit against thes directors.
Mr. Hsnney a member of Congress
VINO is attorney for the receiver, states before
the banking and currency committee that the
delay had been caused by the lattorney 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 the attorney in Boston, and
every material fact has been printed for the
use of the court. Since that time I have
given everything in my statement before the
banking and currency committee. 1t would
be much moro manly for the shareholders who
are hiding in the dark to place their names to
these allegations. My whole action in refer.
ence to the officers of the Pacific Bank was
based on the reports of the bank examiner,
aud chiefly on the reports of the directors
themselves who are agents OF the sbarehold-
ers The only question that arises ia in refer
ence to my construction of the law, and that is
Tor the courts to decide, The complaints OF
| the shareholders have arisen from the fact that
| suits are being prosecuted as vigorously as