The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-02-16
Mr.. BENEFITS BANK.
Now Being Investigated BY
Federal Grand Jury.
NE MIsREpaEseNrs THE JURY.
1hsy Make . Dfgninsa nepiy-csunsy
0Ynnl JsSy Msy Yes CsssA
water gwfaA1ers.


States district court:
'sThe grand jury respectfully state that
thsy ara informed that the officers. direct
nrs and employees Of the Merchants
National bank OF Tacoma are under grave
suspicion concerning the management OF
the Affairs Of that bank prior TO IL sus-
pension; that it IL currently reported
and generally believed In this
community that In such Management
Of that bank viosstions OF the
criminal statutes OF the United States have
been committed. They ere also informed
that the affairs of that bank were invests-
gated by the grand fury for the state of
Washington in Pierce county recently, but
no indictments were returned by that
body for the offenses mentioned, became
that grand jury Was Instructed that this
court had exclusive jurisdiction of the
matter. We have no information before
Us IN the form required by the charge given
us BY your honor. nor has any lneniher. OF
this grand jury personal knowledge
Of the violation Of the Law by
these bank officials. bat we beiieve that If
the court would authorize tho grand jury
% investigate the management OF that
bank, with authority to subpoena wit
nesses and to compel the production OF
books and papers, Il wozgd be determined
whether these bank officials had violated
the United States statutes IN the manage
ment Of that bank prior to its suspension.
We, therefore. respectfully request that,
II In the judgment Of the court IL il deemed
proper, this matter be by the court sub
mitted TO us Tor Investigation
Nv. j. BOWMAN, Foreman"
In directing full investigation Of tho
affairs Of the bank the court took occasion
20 eriticiss Tacoma sensational Journal
Ism. Judge Hanford stated that while Il
was wrong for the newspapers to invade
the grand jury room congress had failed
TO provide any punishment therefor.
There were acts In connection with the
management Of banks that are wrong,
hat there II no punishment provided by
Law. In the case Of the former ssnsa-
ton xxs made out Of . rumor that
tho legal department Of the court, 40 stated
In the Posr-IxTxLIiaKscEH today. could
not agree with the grand jury regarding
the Jurisdiction Of that body. The Ledger
and its Seattle Democratic side partner
apparently did not go deepenough TO learn
that the trouble alleged was regarding the
Merchants National bank, of which the
supposed owner Of the Ledger 10 president,
else thinking people believe IL would never
have breathed word about the affair.
Tho Posr-IyTEILIaEScER simply gave
the statements Of the directly interested
parties, Assistant Prosecuting Attorney
Robertson and Foreman Bowman. Of the
grand jury. In the case OF the Tacoma
and Seattle Democratic papers. flash"
heads were put over sensationally written
matter. After tho court adjourned Judge
Hanford said: ut In wholly wrong to
print mess Of falsehoods about the grand
Jury. 1t excitss the people, and II q riot
should result the newspapers would be
directly responsible tor the same"
withdrawing was referred to twice by
Judge Hanford In instructing the Jury.
He stated that IL would not be competent
for il to make an investigation for the pur-
pose OF vindicating any one. apparently. in
the whitewashing sense, nor was IL its
duty TO make an investigation I'm general
way to find ont IL there was any wrong
for which punishment by the penal code
was provided. The court announced
that IL had heard rnmors OF the mis-
management of the Merchants bank. but
at the time the Jury was charged he did
not deem Il necessary to cali attention to
the matter, believing that the jury would
be informed or that specific charges would
be presented. However, no specific
charges having been presented. the court
directed the Investigation. The attention
of the jury was directed TO any acts
punishable under tho laws Of the
United States that could be sup.
ported by legal evidence sufficiently
20 justify an indictment. The eour,
recalled only the third chapter of the ma
tional banking laws as applicable in this
case, bat stated that the prosecuting at.
fur .tsk ax.fg A . -
sired IL there were other laws bearing upon
tho subject II the grand jury found evi.
dence upon which to base an indiotmsn,
IL would report q true bill. Ii not, the
court stated ID was not necessary 10 report
further. No whiiewashing was desired.
Tho superior court was also asked By
the county grand Jury il IL could look
further into the Merchants National ban !
matter. IL was instructed that il could
not, endorsement and the disposition oi
the funds OF the bank being matters for
the Federal grand jury 10 investigate.
Somehow the county courts legal de-
rartment has got the idea that the Federal
court was trying 10 shiEk and thrust unon
the former the Investigation az the where.
aboais Of the funds of the Merchants
bank. at is simply absurd" said legal
arm Of the county court, 80 think that i,
Is within our jurisdiction 10 investigate
such matters. II is clearly the duty OF
the Federal courts. as shown by many de.
cisios wherein officers of national banks
when Indicted by county grand jury
have been haoeas eoFpased out"
Receiver Robert Wingaie. 81 the Mer.
chants National bank. Was summoned tee
fore the Federal grand iary this afternoon.
be members 81 the Federal grand Jury
repeat over their signatures the state.
rnens maize ia toaay's r0sr-iSrwtrtsEScE IA
10y Foreman bowman. and SO further in
dsnoanclug tue sensational Tacoma and
Seattle Democratic newspaper sensation "a
slisss. as follows
we. the undersigned. members Of the
Federai grsad jury, pronoGnes absolutely
false the statements published in the Ia
coma LSassr and tbs Seattle TslsssapA
stSting tae fact thas thsre had
been any difference, aisanierssana
ing or disagreement between this
jury or any member thereof, and tie
United States attorney. BFsnksr. or bis
assistant, SIT. Robertson. The publication
al pnrpotted quarrel between the iurv
aud either Of the above gentlemen or II
any conversation passing in the grand
Jury To9n - a malicious talseA0od and al.-
s9aasely without tauaaatloa. That neither
TIE United States attorney OF his assistant.
AF. Robertson, stated e. this grand
jury t8at ne Woasi have them
discharged ~ ia aav Nav al.
tempted % induenoe them as 90 the
scope o. any investigation they sax ia "a
pursue. ". }. Bowpsa. foreman; i. k.
Hal secretary; Charles HeaFiot, T. "
ve. TeT. AouT0s Nallett. john l. Brown
tRw / - prsne~ FaSN,,h Z .,.h -. -.