The Washington times., 1915-05-21
IN RIGGS
CASE BRING CLASH
Untermyer Charges Attempt at
"Imposition on Court, 1t Not
Worse"
Continued from First Page.)

Continued from First Page)
ficials from alleged persecution of the
bank Mr.. Bailey address today was
a mastery legal effort, which brought
room and the bench. The audience IN,
clCded several members of Congress ana
les ders of the local bar.
1t is probable that the arguments In
the now noted case will be concluded
late today and 1t will be takSn under
advisement for several days by Justice
Mccoy.
Mr.. Bailey concluded his main argu.
ment at 1890. and Government COUNCIL
announced that Mr. Untermyer and Mr..
Brandeis would reply briefly during the
afternoon. Counsel for the bank may
make answer II they desire.
That In no instance in his calling for
special reports from the RIGGS National
Bank had the Comptroller of the Cur
rency followed the law, was one of the
sarcastic and dramatic statements OF
Mr.. Bailey during his argument today
Familiar With Transactions.
The hammond AFFIDAVIT, probably the
most important development Of the
days session. recites that Mr.. Lam
mond entered the employ of Lewis
johnson & Co. about twenty years ago,
and that he remained continuously
with the firm as bookkeeper during the
last fifteen years of that period UP to
time of Its failure in November Il,
1914" The affidavit continues:
Il am and have been from the begin
ming 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 & Co. This account was opened
January 3. 1906 1t was closed on Octo-
erb Z. 1913 There were about 1874 pages
containing these accounts of purchases
and sales for the Riggs National Bank
In its name. each page showing on the
debit and credit sides approximately
twenty transactions moro or less.
II began the keeping of the stock
ledgers only In November, 1905 from
which time I kept and had charge of
them continuously up to the failure.
During that period there we're many
thousands Of purchases and sales OF
stocks and bonds by the firm of Lewis
Johnson & Co.. for the account of the
Riggs National Bank. including all
manner of mining and other speculative
stock. some at less than 81 per share.
the Riggs National Bank, all Of which
were entered from day to day In the
books of the firm and charged or cred
lted upon this account with the bank"
How Handled.
Mr.. hammond then detailed how the
transactions were handled upon alleged
telephone orders from the bank, which
was followed by a memorandum from
the firm to tho bank after the execution
Of the order. Both buy and SELL
orders were executed, the affidavit SAYS.
Checks by the firm to the bank, It is
asserted. have the name of the Riggs
National Bank filled in after the words
pay to the order Of" The paper con-
tinues:
There were many occasions when on
which the Riggs National Bank would
OOT0ar q har
OF shares of q certain security and to
sell the same number OF shares the
Same day.
ON such occasions the bill would be
rendered to the bank. showing the pur-
chase and sale and a check given for
the difference. In these Instances the
check would be made payable either to
the order of the Riggs National Bank
or TO II; H. Flather. when 30 instructed
checks In the office. all Of which were
paid"
Entries Are False.
The Glover -Flather AMI
davit. filed previously. after settins
out the official positions Of tho three
men. reads
THAT we have been connected
with that institution (the Riggs
Bank) since the first day Of It's
organization as a national bank
ing association; that the said
bank never at any time bought or
sold any stock whatever from or
through the firm of Lewis John
son & Co; that the Riggs Nation
al Bank never. at any time since
Its organization to the present
made short sale Of stock to or
Trough Lewis johnson & Co;
the books Of the bankrupt firm Of
Lewis Johnson & Co. which pur-
port to show that the Riggs Ma
+ tional Bank bought stock, sold
stock. or made short sales. those
entries are false"
The concluding paragraph of tn.
legged fictitious accounts" on The
books OF the defunct firm.
Inference Not Intended"
Attorney Hogan's analysis OF thi
| affidavit today and the colloquy result
| Ing was as follows:
Your honor has, through my misror
tune In phraseology, drawn the infer
enCe that was not intended.
mere Is what that intended to say
That II there are any entries in tina
account headed Riggs National Bank
| which purport to show that the RIgg
| National Bank made short sales @
|
| The Court: 1T may be that tn
| Riggs National Bank had not a partici
OF interest in the ultimate outcome O
q single transaction that was show,
on Lewis johnson & Co.'S books. ! d
not know. But ! gathered from tina
affidavit that 1t was intended to cor
vey to the Court that II an account h
the name Of the Riggs Bank stood O.
the books of Lewis Johnson b Co. tn
bank did not know that to Be- the fact
Mr. Hogan: That Is not what
says. now take this opportunity [
correct that impression. because wha
1t says or what 1t intended to say an
what 1t intended to convey. by Infer
ence from the language used, was this
| That If 1t shows or 1t 1t purported o
intended to show that the Riggs Ma
tional Bank had made this character G
sales and there were any entries this
could be so characterized, then thos
entries were false"
"FOr Other Purposes."