Evening star., 1915-05-31
OFFER EXPLANATION
OF RIGGS AFFIDAVIT
Officers. Not the Bank. Had
Stock Dealings Through
Johnson Concern.
OUTSIDE ATTORNEYS
C0NSTRUE LANGUAGE
Declare Document Referred Only to
Corporation and Not to Its
Personnel.

The report that District Attorney
John Z. Laskey was conducting an in
quiry into stock transactions appear
ing on the books of the firm of Lewis
Johnson & Co. in the name of the Riggs
National Bank has caused the counsel
for the Riggs National Bank. in its suit
against Treasury officials. to make a
statement in explan nation of the stock
transactions
The statement was prepared by for
mer Senator Bailey and Frank Hogan.
1t contains letters written by j. j. Oar
lington and w. G. Johnson. prominent
members of the local bar, declaring
that the affidavit presented by the bank
to the court recently in regard to the
stock transactions on the books of
Lewis johnson & Co. was not subject
to criticism.
Bank Counsel's Statement.
The statement by the banks counsel
is as follows:
"Apropos OF the publication made In
an afternoon paper here yesterday to
the effect that the district attorney is
conducting an investigation of the
stock transactions appearing on the
books of Lewis Johnson & Co. in the
name OF the Riggs National Bank, coun-
sci for the bank made the following
statement:
Since the issues presented by the
suit instituted by this bank were sub
mitted to the court. neither the officials
nor the counsel of the bank have deem
ed it proper to issue any statement
The publication of the affidavit sub
mitted to Justice Mccoy at the hearing
signed by Charles C. Glover, president:
William ]. Flather. vice president. and
Henry H. Flather, cashier of the bank
together with the affidavit of w. Morris
hammond. formerly bookkeeper OF
Lewis Johnson & Co. makes appropri-
ate the following brief statement:
Explanation Of Transactions.
The Riggs National Bank never
bought or sold stock for its own ac-
count in connection with Lewis John
son & Co. For years the officers of the
bank, on behalf of individual custom
ers. and at times on their own behalf
transacted the purchases and sales OF
stock through local brokers having
New York Stock Exchange connections
among which was the firm of Lewis
Johnson & Co. There was never any
thus conducted. and, therefore, never
any intention, in court or elsewhere. to
deny their existence. Year after year
national bank examiners have repeat
edly examined the books of the bank
which clearly exhibited the course OF
these transactions conducted by the
bank officials in their individual ca
pacity. in most instances for custom
ers and in some cases for themselves:
prior to the pending litigation repeated
renOrtH fn
troller Of the currency informed his
Office precisely how customers had been
accommodated in the making of their
investments since the banks organiza-
ton. At the hearing before Justice
Mccoy. Mr.. Samuel Untermyer implied
that the Riggs National Bank had
bought and sold stock for its own ac-
count. No such transaction had ever
taken place.
Intent Of Affidavit.
ITO meet that charge the affidavit
made by Mr.. Glover and the Messrs.
Flather was filed. The affidavit did not
deny. and was not meant to deny. that
there were no transactions between the
officers of the bank and the firm of
Lewis Johnson & Co., but 1t did deny
the bank itself had dealt In stocks and
counsel for the bank explicitly declared
in open court that this was the purpose
of the affidavit There was no possi
bility of misinterpreting or misunder-
standing the affidavit while the court
hearing was still in progress and be-
fore any decision of the court on any
of the issues had been rendered.
In view of rumors, subsequent to the
trial, that the affidavit was questioned
bank might be fully informed, Frank
]. Hogan. of counsel for the bank, some
days ago procured opinions from two OF
the leaders of the Washington bar, j
]. Darlington and William G. Johnson
each Of whom says that the affidavit
is not only not the subject of prosecu-
ton. but is not open to criticism of any
kind"
w. G.. Johnson's Letter.
The letter of Mr. Johnson to Mr.
Hogan points out that the clause of
the affidavit in question is open to one
or the other of the following construc-
tions:
"(a) That tho bank never at any
time. on its own account. bought or
sold any stock whatever from or
through the firm of Lewis johnson &
Co.: or
"(b) That tho bank never at any
time. either on its own account or as
agent for other persons. bought or sold
any stock whatever from or through
the firm Of Lewis Johnson & Co.
"A statement that the former Of these
constructions was that which was in
tended by the affidavit was made at
the time of its presentation to the
court and leave obtained to file 1t, as
appears at PIP. 425-26 Of the steno-
graphic record of the hearing-this
statement of the sense in which the
language was used being made by
yourself. the attorney who drew it and
by whom it was presented to the af-
flants.
1T Is an elementary principle in both
civil and criminal law. and especially
in the latter, that words are to be
taken in an innocent rather than in an
illegal and especially rather than in a