The Birmingham age-herald., 1915-09-25
RIGGS BANK CASE IS BEFORE GRAND JURY Criminal Action Against Higher Officers Likely BASED ON AFFIDAVITS Were Characterised as Misleading by Justice Mccoy Last Spring-Audi-
 tors at Work in Bank Since
 Last June

Washington, September 24.-The suit of the Riggs National bank of Wash ington against Secretary McAdoo and the comptroller of the currency, charg- ing them with conspiracy to ruin the bank. took a new turn today when officers of the institution were called before the local grand jury. says a spe- cial to the New York Times of Sep tember 23.
 There have been reports ever since the suit was started last June that the government would seek to force complete victory by bringing crim- inal action of some sort against some of the higher officers of the bank
 The officers of the bank examined today by the grand jury were Milton E. Allies. vice president, who was once Assistant Secretary of the Treasury. and Joshua Evans. Jr. assistant cash fer. Other witnesses were their bank banks books all summer, w. Morris Hammond, who for many years was employed in the now bankrupt firm of Lewis Johnson x Co.,, a firm of stock brokers. through whom it was charged the Riggs National bank had carried on many questionable stock trans actions, and an emp1oye of Frank J. Hogan of the banks counsel, who. as notary. acknowledged disputed af- fidavit made by officers of the bank.
 The witnesses summoned before the grand jury indicate that the investiga- tion has to do with an affidavit sub tad l,1-t ho he, ,,ly Irt,- last June, which was then character ized as misleading by Justice Mccoy of the supreme court of the District of Columbia and which was referred to even more harshly by counsel for the government. 1t was pointed out that no officer of the bank signing the af- fidavit was summoned. The signers were: Charles c. Glover. president of the Riggs National bank w. J. Fla ther, one of the vice presidents. and H. H. Flather, cashier.
 Investigating Officers Conduct
 It is not believed that the general conduct of the bank was at issue in today's proceedings, but only the per sonal responsibility of the officers who signed the affidavit. This affidavit was offset at the hearing by ono sworn to by Mir. Hammond, who said that the bank had had an account
 
 1913, that it occupied 164 pages of the firms books and involved over 6o0o transactions.
 In court during the hearing MT. Ho gan stated, in behalf of the bank, that these transactions were made for GUS toners of the bank, or for the bank 8 officers, either personally or for their clients. The implication was that the grouping of all the transactions under the banks corporate name was simply a short cut of bookkeeping. This con tention was sharply contested by Sam ue1 Untermeyer of New York, of coun- sel for the government.
 The banks affidavit was as follows:
 "The bank never at any time since organization bought or sold any stock whatever from or through the firm of Lewis Johnson & Co., and that If any entries on the books of the bankrupt firm of Lewis Johnson & Co. purported to show that the Riggs bank had ever. at any time since its organization, bought stock, sold stock or made short sales, those entries are false"
 This is MT. Lammonds affidavit:
 "I am and have been from the be- ginning familiar with the stock and bond transactions between the firm and the Riggs National bank which appear upon the accounts in the books of Lewis Johnson & Go.
 This account was opened January 3, 1e0e It was closed October '. 1913. There are about 164 pages containing these ac- counts of purchases and sales for the