New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-02
Charges Perjury in Civil
Suit Against Treasury
Officials.
PERSECUTION SHOWN,
ACCUSED MEN SAY
Assert Allegations Are Based on
Technicalities Fully EX-
planned in Court.
rrrnr N. r-.lun. pur,sul


Washington. Oct. Charles c.
Glover, president; ". J. Father. vice
president, and Il. II. Father. cashier.
of the Riggs National Bank. Of Wash
ington, were indicted BY the Federal
Grand Jury to-day on a charge Of per
jury. The perjury was alleged 70 have
been committed in the making OF an
aadivit fled in the recent civil suit Of
the bank against Secretary McAdoo and
Controller Williams.
This affidavit made the statement
that the bank had never bought or sold
stocks through the brokerage firm OF
Lewis Johnson & Co.. and that any en-
tries on the books Of this firm which
would show such & transaction were
false. This was in answer 20 afiidavits
fled b. the governments attorneys.
tending 70 show that the bank had been
buying and selling stocks through this
Arm.
Of1cers OF the bank assert that this
affidavit meant only that the bank as
bank had never bought or sold stocks.
The bank had often. they pointed out.
bought and sold stocks for customers.
and there was no intention TO deny
this. II having been discussed at the
trial prior 20 the fling Of the affidavit
in question. Bail viii be given for
$4,000 each by the officers indicted.
There we're no arrests.
Sequel TO Civil Suit.
The indictments are a sequel 10 the
suit Of the bank, which alleged that
Secretary McAdoo and Controller
Williams. because of personal animus
toward some Of the banks officers.
had conspired 70 injure the institution
by withdrawing public deposits, making
extraordinary demands for special re-
ports, and. finally, by imposing a fine
$4,000 upon the bank for failure to
make certain report called for by the
controller.
The District Supreme Court dis
missed all the charges the bank made
against the Secretary and the Con
troller, but left undecided the question
OF the $4,000 fine A decision on that
point is expected at the fall term Of
court.
A statement declaring that the in
dictments returned to-day constituted
proof Of chat malicious persecution
which the Riggs National Bank charged
in It's suit against Messrs McAdoo and
Williams" was made to-day by Frank
J. Hogan. who, as attorney Tor the
Riggs Bank at the time Of the suit,
drew the affidavit on which the perjury
indictments were returned.
Bank Alleges Persecution.
"On a purely technical construction
Of the wording Of an affidavit, by which
nobody was or could have been de-
ceived, with no question of moral cul-
pability involved, and while the civil
suit of the bank against two govern
ment officials is still pending, this
action is taken. Il looks dangerously
like an attempt 20 invoke the operation
OF the criminal courts 10 punish the
officers Of this splendid bank for their
'temerity' in appealing 10 the courts
o. the community in which they live
for protection against official persecu-
ton. In inducing the Department or
Justice 20 obtain these indictments,
Messrs McAdoo and Williams proved
that malice against which the bank
sought protection IN court.
"The indictments are not surprising,
because we have long expected that all
the power Of the administration would
be invoked 10 punish men who refused
20 remain silent under persecution.
The ind tmcuts are not alarming, be-
cause conscious innocence can not be
alarmed az any act that must result IN
giving public opportunity for complete
yindlcauon.'
Indictments Personal.
At the Riggs Bank a statement was
issued saying the indictments were en-
tirely personal against the officers who
signed the affidavit. and do not involve
the institution.
The statement explained that II long
had beer the banks custom 20 act for
customers and depositors in making in
vcstments. by having one OF its officers,
in his own capacity as member Of
the Washington Stock Exchange, ex-
ecute orders for stocks for cash and
never on margin.
"No order or transaction was ever
made by the bank for lis own behalf
or profit. but invariably for and in be-
half Of Others" said the statement
The fact that the bank cleared orders
Of this nature was open and yel known
20 every controller Of the currency
anC 20 every bank examiner passing
on the affairs Of The bank Since the
new Federal Reserve law came into
effect the bank has not accepted any
orders OF this nature, and the practice
referred 20 then ceased and IS no
longer In operation"
The statement added that the aih-
dsvit on which The indictments were
found had been technically construed.
FOR IL had been presented only TO refute
intimatious that the bank had been
dealing IN stocks. Since the meaning
OF the affidavit came into question, the
statement says. the bank employed an
auditing company 90 examine the books
Of the stock brokerage firm and found
no stock sales whatever as being those
Of the Riggs bank.
"0ne by one the items referred 20 in
the affidavit OF W Morris Lamond, filed
by government counsel" says the state
nent, "wore traced and identified as
being TO- the account o. particular in
EI1ExLYl