The sun., 1899-01-26
COMPTROLLER IS ACCUSED.
SIJD TO HAVE SEEMINGLY MAD
RNOTLEDGE OF WRoNGDoING.

W. NJ. Cox snys the Affairs of n Memphis
National Bank Were Managed in Open
violation of the Laws and That Comp
troller Dawes's Deputy Was Informed.
CHATTANOOGA. Tenn, Jan. 20.-Comptroller
OF tho Currency Charles q. Dawes and Cashier
II l.. Armstrong of the Continental National
Bank OF Memphis are made defendants in a
bill nled at Memphis yesterday by W. NJ. Cox n
stockholder in the bank. The bill charges that
Armstrong IL running the bank In n reckless
and negligent manner in open violation OF law,
regardless OF rights Of stockholders and seem
ingly with the full knowledge and consent Of
the Comptroller.
1t Is charged that the cashier made over
drafts amounting TO over $4,000, which were
not reported and that, under the head OF
checks and other cash items,' false entries
amounting to thousands of dollars were made
and published. yet the Comprollertook no steps
to protect the stockholders. 1t is charged that in
formation relative TO Armstrong; alleged pecu
lations was furnished the Comptroller by the
teller Of the bank and by United States Bank
Examiner j. $. Escott. In the bill is n letter
from George NJ. Coflin. Deputy and Acting
United States Comptroller, in which the teller
is advised to let the matter drop. as 1T might
result IN serious trouble to all concerned
u Is IuTtHtT lndI lilt NDlnIIIOileT
knew several months ago that the bank was
being conducted improperly. yet he took no
action. A receiver Is asked for.
The petitioner. Cox, says that he is informed
that Armstrong has formed q combine with
two influential capitalists for the purpose Of
d epositing the price Of the banks stocks and
purchasing the samc for their own use. Ii is
said that one OF the capitalists referred to is a
New Yorker. but his name could not be learned.
Cox says that on Jan. IA he received from
Comptroller Dawes letter containing a certi
fled and sworn copy Of the list OF stockholders
Of the bank; The petitioner charges that said
list full but il in fact false and droTda, dGn
that ON on June 1 s. i$'S, Bank Examiner EsFott
Tnei '%s cashier %i fihs bank is seheminG
and the manner in which the bank 4 run is
constantly ip danger and Eb menace 70 the best
inSy ysrs grave T si and needs attsntions eA's
K similar letter was written t2, Dawes in De-
cember. 1897, It is alleged Teller snowden,s
gives full details OF the working of the bank.
In his letter Snowden said:
Of great surprise to myself and to the entire
business c9mmnnty that this +, nanca t,oc nstitn.
false statements. l do, not propose to any
longer lon be party to such methods hence my
Deputy Comptroller Coffin replied as follows.
WASHINGTON. June %. 1893.
" Mr.. Eugene Sno,rden. !MemphiS. T,nD.'
DEAR SIR. We are in receipt OF, your com
muncation of June t. and in reply will state
that we have carefully read same: If you had
any'duty in the matter in furnishing the infor-
nation to Examiners Forman and Escott, that
duty has been, performed. and we would most
respectfully advise you not to follow this mat
ter up. as 1t might result in very serious tron
Bile for all concerned. We would respectfully
inform you that, occupying a position of trust,
you should be very careful not TO create any
dlstrust in an Institution which employs you in
u position Of trust Very respectfully,
"GEoRGE NJ. COFFIN.
Deputy and Acting Comptroller"
The petitioner further charges that the CAPT
tai stock OF the Continental NATIONAL Bank is
seriously impaired and the position of the
Comptroller is in open violation OF section
5.2O5 of the, Revised United States stat:
utes and also section 5.233 Of said
statutes The petitioner prays that the
defendant, COMPTROLLER be REQUIRED to make
a full and true and perfect answer showing
cause for his action in not taking proper steps
to protect the stockholders OF n national bank;
rs provided by the law governing national
banks. and that II the merits of the case de-
mand a writ OF mandamus be issued against
both defendants,