davidaulloa/AmericanStories huggingface dataset:
Evening star., 1915-05-15
Long Service in Philippines.

The greater portipn of Maj. Browns
last twenty years df service, it is said
has been in the Philippines. and short
~ after coming to this country he was
sent with his corps to Vera Cruz. where
he remained during the entire period
of the occupation.
Besides his mother four sisters and
two brothers survive Maj. Brown, they
being Mrs. Samuel Mattingly, Mrs.
Charlotte VI. Conger and Misses Minnie
and Blanche Brown, and Messrs. Chaplin
and George q. Brown.
Evening star., 1915-05-15
Many Reports Inaccurate.

The controller denies the banks con-
tention that it's record with the officials
of the Treasury Department charged
with the duty of supervising national
banks was of the very best. or that
throughout it's history it complied with
the provisions of the national bank act
on the contrary. he adds. from its or
eanization il steadily and persistently
violated the act
The affidavit further denies that the
banks reports of condition have never
been challenged and declares that such
reports in many instances were false
and Inaccurate.
The controller denies. as charged. that
he has assessed penalties against the
bank aggregatine s150,00o. or that e
has assessed any penalty except the
$4,000 which 1t is aimed TO enJoin, for
refusal to furnish the report called for
January %. 1915.
The controller denies that as treas
urer OF the Red Cross he at any time
made an effort to withdraw the ac-
count of that society from the Riggs
Bank save for the purpose of securing
for the organization the most favorable
interest upon and greater protection
for its deposits. BY resolution o. the
eAecutiS. committee OF the Red cross
Evening star., 1915-05-15

The badly maneled remains of E.v-
erett Cirosan. a farmer residing sew
eral miles from Parkersburg, W. Va.
we're found along the Baltimore and
Ohio tracks.
Evening star., 1915-05-15
Closing

Several thousand OF the Modern Family Physi
can having been supplied readers, The Stars plan of
distribution will soon be withdrawn Ii you wish OF
these valuable medical books nominal price. please
present this coupon
Evening star., 1915-05-15

partment, SO as to tell him what 1
had heard and to urge him, If the re-
ports of the origin of the articles
were true, to discountenance the
Tribune's attacks in the interest Of
the banks of Washington and for the
protection of local business and fina-
ncial situation.
Evening star., 1915-05-15

Washington to New York for deposit
with the National City Bank in the
furtherance of the business of loanins
on bonds and stocks or to be oy saiu
National City Bank loaned on call on
stock exchange collateral for account
of the plaintiff bank. whereas the
funds if deposited in other directions
could be made available either Tor
local loans for business purposes or Tor
the purchase of commercial paper IN
the open market or through proheis
trafficking in such paper.
The above-stated reasons. supple
mented by the attached reports from
the controller of the currency as 10
the condition of the plaintiff bank ana
the character OF its mana cement, 10
gether with such information as had
as to the character of S business.
were among the reasons that controlled
my action.
his return a copy of a letter he Wrole
the Attorney General February y:
1915, regarding the employment OF
counsel in the case. long before the
filing of :he pending suit. and IN Which
he said
II am anxious that no injustice shall
be done to the Riggs National Bank
Controller Williams Affidavit.
Controller Williams. in his affidavit.
denies he has conspired with Secretary
McAdoo in any manner to lnJure or oe-
stroy the Riggs Bank; declares that each
and every one of the acts compiaihe"
of was done in the honest performance
of his duties as controller of the cur
rency and in the best exercise OF ms
judgment and discretion.
The controller explains that the ohls
penalty thus far imposed is one OF
$4,000 for the persistent refusal OF 'nf
officers to disclose their loans from the
bank that were made in the names OF
clerks and dummies. Other penalties
were threatened for delays in fufhish
ing information that was dema nded ana
subsequently furnished. but AS TO these
the controller says he has no intention
Of assessing the penalties.
Pointing out how he became famiiiaf
with the operation of the bank ana itS
officers. the controller says Ne learned
that about three-fourthS OF piainilh ;
total loans were upon stocks ana sc
curitieS and that it had been chdrSed
with conducting Il stock brokerage anu
real estate loan business throughout
the greater part OF its existence.
With this information before hlh 'ht
controller says he called tor spHcl:'i
reports from tn. officers III ORDER 10
ascertain The banks condition ana
whether it was accurately reflected by
its books.
Evening star., 1915-05-15

Continued from First Pageo
Evening star., 1915-05-15
Resume of Investigation.

Under the following ten headings, the
controller sets forth list Of what he
declared to be actual VIolatohS OF Id"
as we'll as improper practices
!, stock brokerage and real estate
loan business: >. excess loans: ). STOCK
investments: L. excess liabilities: >, de-
ficiencies in reserves: 3. real estate
loans; = directors oaths: 3. loans TO
Treasury Department officials: y.
dummy loans, and 10. loans 10 oI'ieers
and employees. ~ ,
From its organization as National !
bank until the practices We're stopped
after the controllers investigation, me
affidavit declares that the RIGGS Bdnk
has conducted large and extensive
stock brokerage business, and has en-
gagged in lending its own moneys upon
real estate security and in negotiating
for others on commission loans on
such security.
From it's organiza tion to the present
time an average of about h5 per cent
of the total loans of the bank nave
been made upon stocks ana oohds,
many Of which We're purchased 10: the
owners by the institution and many OF
which were speculative and of uncer-
tain value In some of it's reports the
controller declares that the bank mas
stated untruthfully the facts with re-
spect to its loans upon real estate
Describing these operations in detail
the controller points out that IN 1906
a new bank examiner discovered the
manner In which the plaintiff was con-
ducting it's stock brokerage business,
and the bank was again informed that
the same was ultra wires and could
not be continued. Thereupon. with the
Knowledge and approval of the exam
iner. and. il is claimed, of the then
controller of the currency. the bank
adopted the method of conducting this
business through the accounts known
as Glover and Flather' and "Flather
and Flather.
Evening star., 1915-05-15
Ceased Deposits June IL. 1914.


The controller reported 10 the Secre
tary May IA. 1911. and June .. 1914.
showing the large proportion Of loans
of the bank the security of stocks
and bonds and the stock market opera
lions Of its officers. The Secretary calls
attention TO the fact that the bank in
It's statement to the controller March
4. 1914 showed only slightly i'll excess
Of - per cent of its funds as loaned
on commercial paper. while approx
imateIy ., per cent Of it's loans were
made on bonds and stocks The Com
inercial National Bank, the next lare-
est bank in the city of Washington,
had 80 per cent loaned CONNIE ercial
paper etc. and about 81 per cent on
bonds and stocks.
from the controller. the Secretary
wrote the bank June H.. in reply to
it's inquiry as to why II had been
funds, that he intended to withdraw
all government deposits from the
Riggs Bank. In this connection he
says:
1T was not until June II, 1914, that l
finally reached the conclusion that il
was not in the public interest to de-
posit government funds in the plaintiff
bank or to advise their deposit be-
cause. as before stated, among other
reasons, l do not believe that funds of
the government should be placed in
banks in which the officers are con
Quoting a stock brokerage business
within the bank and using such funds
directly or indirectly, for the CARRYING
of speculative accounts i'll stocks and
bonds in violation of the spirit, if not
of the letter, of the national bank act
and especially when such funds can
be employed with greater benefit to
the public by depositing them in banks
that will use them for legitimate com
mercial purposes.
Government Funds Transferred.
In carrying out the crop moving
plans for 1913 the Secretary said it
was desirable to withdraw deposits
from banks in those sections Of the
co4ntry where the funds were not
needed, and to transfer them to banks
that would use them for crop moving
or other legitimate business purposes
The Secretary continues:
1T was the carrying out of the finan-
cial theory on which the federal
reserve system was founded in ad-
vance of the operation of the law. T.
had been informed that II was and
has been >for many years the custom
of the plaintiff bank TO transmit I,
arGc part Of its funds that were not
usabIc 10 advantage III the city VI
Evening star., 1915-05-15
Cites Loans to Officials.

The controller would create the i'm
preston that the Riggs Bank sought
TO establish some improper influence
at the Treasury Department by making
loans to Treasury officials. If the con-
troller had wished to be just he would
have stated that the Riggs National
Bank had made loans to officials in all
the other departments and had made
loans to many representatives and SEN
atorS.
Controller Williams statement that
at the time of the call of June, 1919,
the Riggs Bank had . shortage of re-
serve exceeding 100000 is a fair sam
pie of his labored efforts to create
false Impressions. On this one day the
bank was short in that portion of it's
reserve which it is required to keep in
cash just S332.S1S, but it had an ex-
cess i'll reserve cities of s26O,4OS, so
that it's actual shortage was $4,000. In
other words. the bank was actually
Mort on this one day less than | per
cent.
Evening star., 1915-05-15

the controller was authorized to try
to obtain higher rate of interest than
the Riggs Bank was paying the So
ciety on its deposits. and, was further
authorized to require the depositaries
OF these funds to furnish collateral
securities for their protection.
In regard to his refusal to approve
the Riggs National Bank until further
notice as depositary for the reserves
OF additional national banks. the con-
troller says:
7 regarded the condition of the
piaintif as distinctly unsatisfactory
and assets which were eligible for re-
discount The bank was not fulfilling
IT'S proper function as commercial
institution. hut was using its assets
largely in loanng upon stocks and
bonds and in conducting stock brok-
erage business
Regarded Condition Unsatisfactory.
All things considered, | regarded the
CONDITION of the pla intiff bank as very
uhsatisfactory. and the policies and
hethods which it had been pursuing.
contrary to both the letter and the
spirit OF the national bank act and the
instructions of this office. as distinctly
uahsefous. While unquestionably the
bank was solvent, yet because of the
lhellslbillty for rediScount under the
We system OF any consiu-
eiabie portion of its assets it seemed
clear tiiat should financial emergency
occur the plaintiff might be put in
such position that il would be difficult
ior these country banks to promptly
obtain their reserve deposits In the
exercise OF my best Judgment as con-
,roller of the currency, I thought that
the plaintiff bank under the circum-
stances was reserve agent for a suf-
icient number of country banks. and
that until there should be a change in
Its methods it would be prudent Ger
tainly for the present. moi to approve
II as reserve agent for additional
banks.
My conclusion was based also upon
other Facts disclosed by the investiga-
ton INTO the plaintiff bank heretofore
stated.
Evening star., 1915-05-15
Riggs Bank in Denials.

In repl! to the atfidavits submitted
today by Secretary Of the Treasury
McAdoo. Controller of the Currency
Williams and Treasurer Burke, the
RIGGS National Bank has issued n
statement denying many of the facts
set forth IN the atiidavits. This state
mt'nt Is IN part follows:
John SHELTON Williams, controller
oi the currency. in his reply to the
Sult or the Riggs National Bank COM
pietely backs down from his previous
position and retracts his previous
statements regarding fines he has I'm
posed on the bank, with the single
exception of the one for $500.
That Williams backs down and re-
tracts his warming of March 81 is
solely because it is "A fact that he had
become 'obsessed by his purpose to
wreck and ruin the plaintiff bank, if
possible. in order to satiate his intense
hatred of its officers as charged in the
banks bill of complaint, must be appar-
ent to every one who observes the
VlndIctlve character of Williams cor
respondence and reply.
The defendants statement that this
department has no purpose to be exact
ing or tyrannicaI may be dismissed
with the statement that they took from
the Riggs National Bank public and
quasi-puhlic deposits amounting to ST.
2no,o0o most of it when the stock eX-
change was closed. and there was "A
serious financial crisis.
Evening star., 1915-05-15
Excees Loans Are Alleged.

From its Organization urtii June -.
1906, the hanil the controller adds. CON
stantly Violated tle law regarding the
limitation upon the amount of loans to
any one person or firm
While :ne bank through the ten years
in question:" continues the controller
Openly and continuously violated this
Law. there were several occasions when il
apparently attempted to conceal certain
of its Violations
The alfida Wit declares that the bank in-
vested large sums in stocks Of other cor
pora aticns: particularly during the Years
1896 10 1906, and was repeatedly admon-
shed py controllers OF the past to dis
pose OF the stocks il owned because the
Supreme Court had held such transactions
ultra wires.
The controller continues
Among the stocks which the bank
was directed To dispose of III May. 1902
was 4 large block Of stock in the Capi
tai Traction Company. Of which MI
Glover was for many years the vice
president. and which at about that
time was a heavy borrower from the
bank
.Ju response to calls for such reports
made by me- the plaintiff bank hks fur
nished lists of loans made by it since
its organiZat ton to secretaries of the
Treasury assistant secretaries Of the
Treasury. controllers of the currency.
bank examiners and employees of the
latter's office. From these 1t appears
that throughout its history the plain
tiff bank has frequently loaned money
to those officers of the government hav-
ing to do with the conduct of the con-
tiolleI's office. and has loaned various
sums of money to many employees of
that office, including even the personal
messengers attending upon the con-
tr,,lleT
Evening star., 1915-05-15
Conflict of Statements.

The president of the bank in letter
on June 10, 1914. stated that no Off
Ger had profited personally by any
commission received on any transac-
tion for the bank, and in letter on
June 1s, 1914, the president declared
that no officer ever claimed or intended
to claim any part Of the commissions
covered into the accounts of Glover
and Flather'' and "t'lather and Fla
ther.
These statements. the controller
points out, We're in direct conflict with
the statements made by w j. Flather
and H. II. F'lather to the bank exam
i,ier in May. 1914
"Notvit standing thu continued re
fusal of the plaintiff bank and its Off
GERS to answer the simple question as
to the ownership of said fund and upon
all the information accessible to me.
aver that the commissions. moneys
and propert! covered into the
said account of tiather & Flather and
the balance now to the credit of Flather
&. F'lather rishtfuliy belong, and al
ways have belonged. to the plaintif
bank, and that the said commissions,
moneys and property should have been
carried upon the hooks of the bank i'll
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
Ingenuity of
the Captain
Saves BOOl

New York, Dec. captain Simon
e. Gull Of the Italian steamer Verona
which arrived here today after being
chased by submarine in the Mediter-
ranean on Nov. 10, said heavy sea
which caused the submarine to roll
and pitch was the chief factor in
enabling the steamer to elude the I'M
dersea boat.
Captain Gull said the submarine did
not fly flag nor did it appear to have
a number and he said there was no
way he could tell whether it was
German or Austrian. Other officers,
however, expressed the belief that
the craft was a German Z boat.
We were about I10 miles west OF
the straits of Bonifacio on Nov. 49,
said Captain Gull, when a large sub
marine appeared on the surface abouv
two miles off our starboard side and
slightly astern There were no sig
nails and I Immediately put on all
speed possible. and steered a course so
that the submarine would be forced
to take the heavy sea at a quarter1ng
angle.
Although the sea which was then
running was not heavy enough TO ma
terially bother the Verona, it caused
the submarine to roll and pitch and
I the crew were unable to aim either OF
/ the two deck guns at US We saw the
submarine crew go below and al
-! though it was q close race for more
/ than an hour and half, we felt COM
paratively safe for we were conf
dent they could not accurately fire a
/ torpedo in such sea
/ 'As soon as I sighted the submarine
sent out wireless. reports to all ships
and shore stations but l did not ask
! for assistance as I did not have any
+ passengers aboard and did not think
the Verona was in much danger ! la
ter received a radio message saying a
French torpedo beat destroyer had
gone in search of the submarine.
! Shortly after $50 o'clock it be-
came dark and after continuing on my
course a short distance / cut a wide
semi-circle and completely lost the
submarine"
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
PASS Sentence
()NC0NSpIRhTORS

New York. Dec. 4.--Dr. Kari Buenz,
George hotter and Adolph Hachmeis-
ter, of the Hamburg American line, re-
Gently convicted of conspiracy to de-
fraud the United States government,
were sentenced today to serve one and
0ne-half years in the federal peniten-
tiary at Atlanta. Joseph Poppinghaus
was sentenced to one year The Ham
burg American line was fined one dol
lar
All the defendants were admitted to
bail pending the issuing Of a writ Of
error in their behalf
Bail was fixed at $4,000 in each
case and was accepted from a surety
company.
Sentence was pronounced after
Judge Howe had oYerruled motions by
William Rand, Jr, chief counsel for
the defense, for dismissal of the YER
dict on the ground that it was contrary
to the evidence and law in the case.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
TWO MORE SHIPS
ARESUNkbYSJbs
British Steamers Middleton and Clan
Mcleod Torpedoed in Medfter-
ranean Sea.

London, Dec. 4. 12;3o p. mJ--Two
more British steamships have been
sunk in the Mediterranean by sub
marines. They are the Middleton and
the Clan Mcleod.
Four men on the Middleton were
killed and one was wounded. Nine
teen were landed at Malta
There are no records Of the recent
movements of the Middleton, which
presumably was in the service of the
British government She was 304 feet
long, 2,506 tons gross, built in 1895 and
owned in Hull
The Clan Macleod was last report
ed in Glasgow, was 1895 feet long,
ed in GLASGOW, was 1895 feet long,
4.796 tons gross and built in 1908.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
ENGINEER FOILS
TRAIN ROBBERS
Bandits Attempt to Holdup Iron Noun.
tain Passenger Train Near NAL
vern, Arkansas.

Little Rock, Ark. Dec. 4. - Two
posses early today were close on the
heels Of a gang OF bandits who last
night attempted to hold UP south
bound Iron Mountain passenger train
No. 8 near Malvern. Ark. The holdup
was foiled through the GOODNESS OF 7.
P. Homard. the engineer. and so quick
" were officers and citizens on the
trail of the would-be robbers that a
pitched battle was fought with them
less than three hours later.
Sheriff Stanley OF Malvern was
wounded in the foot during the Shoot
Ing. the only known casualty. The
bandits escaped in the darkness. Sher-
If Stanley continued in pursuit with
his deputies.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
THE WAR TODAY

Berlin today reports the capture
of more than two thousand addi-
ti0nai Serbian prisoners.
A British official statement nd
mits that the British army in Me-
s0pOtamia is in retreat down the
Tigris, about one hundred and five
miles south of Bagdad. The Brit
ish are reported 10 have lost more
than four thousand five hundred
men. The Turks apparently have
been heavily reinforced and are
able TO put a stop, for the time at
least. TO the advance of British
forces.
From German sources comes the
report that Greece has virtually
turned over Greeian Macedonia as
a base of operations to the entente
allies, besides giving them free use
of the railroad and the harb0rs on
The Aegean sea, Including Eavaia-
According to an Athens dispatch
Serbian soldiers who fell back into
Greek territory aite:' Monastir was
evacuated were moi diSarmed but
were treated with notable consid-
Grafton.
Much suffering Is reported
among thousands Of refugees from
Honastir who are arriving at Flor
ina, Greece. after a long tramp
through deep snow.
Debarkatian ef additional British
farces Mt Sai0niki is reported
through London. 4 British CORES
pendent at the Greek port, how
ever. declares the military situa-
ton there is not satisfactory from
the standpoint of the entente allies.
A Montenegrin official statement
declares that aH Austrian attack
near pleyije in northeastern Mont
enegro, a short distance from the
Serbian border. was repulsed.
A wireless dispatch from Berlin
denies rumors that Germany is
contemplating peace proposals.
The report that Emperor William
is to visit Censtantinople is also
denied.
London has a report. which lacks
confirmation. that f2 miles Of Ger.
man trenches have been taken BY
the Russians along the road TO
Tukum, west oil Riga.
A dispatch from Petrograd car
ries the report that Field Marshal
Won Mackensen was slightly
wounded BY a serbian bullet dur
ing The Serbian operations.
The British steamer Middleton
OF 2.506 tons. and Clan Macleod Of
i.ss9 tons, hare been SINK By sub.
marines In the Mediterranean.
-Four men ON the Middleton were
killed and one MAS wounded.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-12-04
Are Looking
to Recall of
the ea4tOfas

Washington, Dec 1.-The American
government today looked to Germany
for the immediate recall of Captains
Karl Boy-ed and Franz Won Papen,
naval and military attaches Of the
German embassy here. in accordance
with Secretary Lansing's request,
Alleged improper activities on the
part OF German officers in connection
with naval and military affairs is Civ
en- as the reason for Secretary Lam
sings request
Request for immediate recall was
made through Count Won Bernstorft,
the German ambassador, who was in
formed that the officers had rendered
themselves persona non grata to the
United States
The case against Boy-ed and Won
Papen, although not susceptible Of
legal proof, consisted of complaints,
since the beginning Of the European
war, which connected them with at
tempts to violate American neutrality.
The state department regarded the
complaints as fully justifying the with
drawal of the attaches from the diplo-
matte service of Germany in the Unit
ed States
The action of Secretary Lansing has
the full approval of President Wilson
and his cabinet The president is said
to have decided TO get rid Of all for
eign officials whose activities are con-
sidered harmful to the best interests
Of this country.