Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-11-28
COMPTROLLER EcKELs TALKS.
Prosecuted for Criminal
Practices.

Practices.
4. Washington. Nov. H.-(special.) There is
no substantial doubt that Messrs. Rieger
and Covington. president and cashier Of
the Missouri National bank. will be In
dicted on criminal information relating to
the management Of the defunct bank and
the manipulation of its funds. No direct
action has as yet been taken, n moth
ing probably will be done until E. P. Mox-
ey. the special examiner Of this bank, gives
the word to the district attorney. Between
the comptroller at this end and Mr.. Moxey
at the Kansas City end. there has been a
lively interchange Of intelligence for sew
eral days past. indicating that something
unusual had recently developed In the sit
uation with regard to the bank.
This activity was based upon information
furnished by the special examiner that all
was not right. To add to the interest. ex-
Councilman James Rieger. brother of the
late bank president, accompanied by Judge
McDougal. were known to be. In Wash
ington. But Mr.. Rieger did not call on
the comptroller, though Judge McDougal,
presumably acting as his attorney. paid a
visit to the comptrollers Office and dis
crssed the situation.
MI. R!egsr and Judge M.Dousal have
gone back to Kansas City. Just what In
formation they Cleaned here has not de-
veloped. 1t is strongly suspected. however,
that Mr.. Rieger's presence In Washington
was to make observations. and. IL possible.
ascertain what action, II any, the treasury
department had in contemplation.
The comptroller admits that indictments
are impending over the heads both of Rie-
ger and Covington- Upon information fur
nished him by Moxey, he called upon the
department of justice here to learn the ex-
tent of his power in reaching the ex-presi-
dent and his cashier by the proper legal
methods. As the United States grand jury
has just adjourned, he wanted to know If
the highest judiciary powers here would
provide for the call Of a special grand jury
to find indictments upon evidence to be
supplied by Mr.. Moxey. He was told that
the usual course was to go before the
United States judge mt the district attor-
ney md solicit the former to make the call.
but that in the event that 1t should be
deemed necessary to depart from this es-
tice would make a direct request of the
judge for the summoning Of a special jury.
The comptroller says that Mr.. Moxey
eral conferences upon this subject in which
the former expressed his readiness to pro-
coed with indictments against Messrs. RE
examiner chose to give the woyd. And.
this being the case. he instructed Mr.. NICK
ey to prepare his evidence and at .he ear
Hest practicable moment urge the district
attorney to apply for a special grand jury,
II necessary to prevent the charges from
being outlawed, or proceed before the reg
ular jury In the regular way. IL there was
time for the purpose of finding true bills
against both the late bank officials. And
hat is the status of the case as 1t stands
to-day. according to the comperoller's own
statement.
What are the charges against Messrs.
Rieger and Covington?" asked The Jour-
nal correspondent, late tonight.
"Misapplication of funds. rendering false
reports to the comptroller and quite a
THE whole business looks like a very
dirty job. There Is no doubt that these
officials were guilty of criminal ;ction, Gov.
ering a period of years."
1t is somewhat surprising that the climax
be- approached after so long a time, but it
seems from the comptrollers statement
that he was stdetracked by assuring state
mentG from the involved affair.
Forman reported evidence Of crookedness
and when he confronted the officers with
proceedings they declared they could ex-
plain matters satisfactorily. They were
given a private hearing before the district
attorney and their explanations were so
satisfactory hat the matter was dropped.
But the investigation went on. As it pro-
crossed. fresh evidence of rottenness was
turned up and suspicion was created anew.
The comptroller thereupon concluded to sift
the matter to the bottom and he sum-
moned MI. Moxey. He is the man who
turned up noted bank swindlers and wreck
age In New Orleans. Knoxville and other
two months ago. The result Of his visit is
told above.