The Washington times., 1915-10-01
RIGGS BAN kHEADS
ARE INDICTED TO-DAY
Continued from First Page.)

i
and the said Henry II. Flather. en- the
aay and year aforesaid, and at the Dis
| trict OF Columbia aforesaid. did COM
NIT wilful and corrupt perjury; against
tne form OF the statute In such cases
inade and provided. and against the
peace and government Of the said
United States.'
Four Indictments In All.
In all four indictments were returned
by the grand jury. One indictment COW
cred the three bank officials jointly.
separate indictments were drawn by
the District Attorney and presented.
naming each officer individually.
The indictments arc practically iden-
mined 10 ask FOR individual as well as
a Joint Indictment
1t was said at the District Supreme
Court building today that the three de-
District Of columbia or the penal code.
For the offense of perjury the District
code provides that the punishment shall
be Imprisonment for not less than two
wears nor more than ten years.
Under the penal code the offense OF
perjury Is punishable by a fine "of
not more than 5000 and Imprisonment
for not more than five years"
Covers Eight Pages.
eight typewriter pages. Much OF
made at the trial of the civil suit
instituted by the bank against Secre-
taiy McAdoo and Comptrollec Will
liams. who were accused OF "persecut-
Ing" the institution In that they had
caused to be cut off certain large de-
posits Of the Government. and others.
and had unlawfully withheld $4,000 in
interest money due the bank.
Defending their rulings concerning the
Riggs Bank, the Treasury officials filed
the Riggs institution should not be
made n Government depository. and 1t
was asserted In the McAdoo- Williams
replies that the Treasury officials had
learned that the Riggs Bank had
bought and sold stocks and other Sc
sion for others" and had continuously
conducted a large and extensive stock
brokerage business"
This brought the Glover-r'lather-
Flathcr affidavit. which was presented
to the attention Of the grand jury last
week
1t is said that the accused bank ofri-
cials will give bond promptly lomor-
row. Former Senator Bailey and Frank
j. Hogan are expected to represent the
officials when the criminal cause comes
to trial.
The indictment OF the Riggs Bank
officials is ar orshoot Of the civil
suit instituted by the bank against
Treasury Department heads who were
charged with prosecuting" the bank.
and of illegally withholding certain In
tcrest due on its bonds.
During She trial of the civil suit,
which is still before the courts. counsel
for the Government accused the riggs
pf n
now defunct firm OF Lewis Johnson *
Co. Samuel Cntermyer. one of the Gov
ernment's attorneys. made the charge.
which was denied. that the bank was
stock brokerage and banking business.
To refute the accusation that the
Riggs Bank dealt In stocks and made
short sales through Lewis johnson IL
facing prosecution. signed an affidavit
which was presented during the trial
of the civil suit several months ago.
This airidaHit ss;G aefiared hsnI never At anv
time bought or sold any stock whatever
from or through the firm Of Lewis
Johnson & Co: that the Riggs National
Bank never at any time from its or
short sale of stock to or through the
firm Of evils johnson & Co. and that
II there are any entries on the books or
the bank or the firm of Lewis Johnson
Riggs National Bank bought stock, sold
stock. or made short sales. these en-
tries are false"
The affidavit was signed by Charles c.
Clover. William J. Flather. and Henry
II. Flather.
The hammond Affidavit.
On its face this affidavit appeared to
be in direct contradiction to an AFFIDAVIT
later filed by the so-called Government
attorneys In the civil suit, which was
obtained by w. Morris hammond. for
mer bookkeeper for the. concern Of
Lewis Johnson & Co.: Mr.. hammond
count books of Lewis Johnson Co.
and that these books contained records
Of manv stock transactions in the name
Of the Riggs National Bank. The Lam
mond affidavit said there We're "l64
pages containing these accounts OF our-
chases and sales for the riggs National
Pank in its own name. each page show
ing on the debit and credit side about
twenty transactions"
The account. hammond said. was
opened in 1906. and closed in October,
1913.
There was discussion Of this apparent
contradiction during the civil suit. and
Frank J. Hogan. of counsel for the
reoaration Of the GloverFlat ther af-
fidavit 1t may have been unfortunately
wOrded.
Reconciles Affidavits.
1t was cxpla ined that the bank off,
cials did not intend to convey the i'm
preston that the bank had never pur-
chased stock for its customers, but did
wish to assert that the bank. as bank.
had not dealt in stocks.
The Glover Flather affidavit as pre-
pared. omitted to state specifically that
the bank ''as a bank" had not engaged
In stock transactions.
1t was recently declared by per-
son close to the bank officials that the
entire situation might have been saved
by the insertion OF the words for its
own account" in the AFFIDAVIT. II was
further said that the three bank Of !
ticiais meant only to say that the bank, |
as a bank, had not indulged in stock |
purchases and sales. There was no de-
sire, this authority said, to deny that |
the bank had executed orders for the |
sale and purchase of stock for its GUS
toners.
Grand Jury Consideration.
While the civil suit brought by the
bank against Secretary Of the Treasury |
Nc Adoo Comptroller Williams and
Treasurer Burke was in progress, there |
were reports that this affidavit, which |
had been closely sCrutinized by Gov
counsel, might be made the |
basis of an attempt to seek an indict- |
ment of the bank officials who signed |
1t These reports recently became preva-
lent and 1t was rumored the Glover |
ylnt Inx II n hnn 90 n no