New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-05-07
Controller Wants Right to
Fine Officers, as Well
as Institutions.
RIGGS CASE IN MIND
SHOWN IN LETTERS
Request TO House Banking Conf
mittee Similar to One Turned
Down Last Year.

Washington, May 6.-The right 10
fine individual officers of banks, as well
as the institutions themselves. for just
such pracuces as he charged against
tho officers Of the Riggs National Bank,
is being urged by Controller Nil!lamS
IN letters 10 members Of the House
Ranking and Currency Commlttee'
A request for this power was mace
20 Congress by CONTROLLER NllhamS IN
his annual report, submitted last De
cember, but it was ignored. a.,
To strengthen his argument inc
Controller has sent the members OF
the House Committee a copy OF ms
original statement on the Riggs BANK
situation. in which he made most OF
his charges against the bank mat ne
evidently had the Riggs BANK IN minu
as far back as the time OF making ms
report is clearly shown by the similarly
IN language. r.,,.,,...
His request for power IS as follows:
at is earnestly recommendeq INA.
tho law be so amended as TO place u
within the power OF the CohIIol'ei
ofice 10 Denalze. by imposition OF APP
,,ronriete fines. all infractions and vio-
iations Of the law and regulations Oh
the ofice; and it is suggested that these
fnes should be imposed upon the Of
Tending officials as well as upon the
hank Certain violations OF the law
and regulations should be punlshaole
with Imprisonment as well ms a me:
suits 70 enforce such penalties OF
course TO be instituted by the Depart
rent of Justice in the United states
courts"
In leading up to this request for
such mower as the ability TO hne an
individual officer of a bank for cola
tions of. not only the law, but 'regula-
tions Of the Office" meaning the once
Of the Controller, Mr.. Williams de-
clared: 49,.
"AmonC the many abuses and VIOLA
lions Of law and regulations win "HlCh
the department has to contend are cN-
cessive loans; overdrafts; loose ana
unbusincsslike methods Of accounting
excessive borrowing by the banks; IN
vestment of the banks funds IN Sc
curities not authorized by law; charg-
ing of usurious rates Of interest; uh-
lawful loans on real estate; excessive
loans TO officers. clerks and employees
of the bank employing them; loans 10
a banks officers or employees and others
through dummies; loanlng money az
ricetly or indirectly upon the oahk 5
own stock: transaction Of brokerage
or commission business by the bank
executive officers, the commission thus
collected being somtimes appropriated
personally by the officers and some
times going directly or indirectly 10
the bank; false statements Of directors
as TO ownership Of stock; false state
ments made by bank officers, such as
including as cash or cash items mem
oranda of money due from one source
or another which do not represent
actual cash and can not be Immediately
converted into cash; and failure or re-
fusal when so directed to charge OIL
bad debts and other ascertained losses;
delay on the part Of directors in taxing
the oath of office.
For many Of the offences indicated
the only penalty which can be inforced
bv the Controllers Office is the for
feiture Of the banks charter by SUIT
in the United States Court This IN
many cases would prove a great hard
ship to innocent stockholders and de-
positors, and can only be resorted to
with much reluctance by this Office"
Several influential Democratic Rep
resentatives in town tonight declared
that there was small likelihood of any
further powers which would increase
the ability Of the Controller Of the
Currency 10 annoy the banks Of the
country, being granted so long as the
present Controller remains IN ofilce.