Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-31
RIGGS NATIONAL BANK
BREAKS ITS SILENCE
nepiies to Statements Concerning AL
legged Investigation Into Stock
Transactions.
OFFICERS ADMIT DEALINGS
nut Deny Any Transactions by Bank
itself-Amdavit and Argument OF
counsel In Open Court Made No
secret of What Occurred.
Especial to The Times-Dispatch.l

Il WASHINGTON. May 3O-The policy
slience followed by the officers Of
4 we Riggs National Bank and its coun-
gel since its controversy with Treasury
ohcials was submitted to the court.
'iter argument lasting through six
lays was broken to-day in a reply to
4 certain statements that have been pub
"shed that the district attorney was
Investigating the stock transactions
appearing on the books OF the failed
urn or Lewis johnson & Co. in the
name OF the Riggs National Bank 1t
seems that this investigation. il il is
'eing made, relates to what is alleged
20 be false statements in an afidavit
nat was filed on behalf Of bank Of
"cials relating TO these stock trans
actions
AZ the hearing before Justice Mccoy
samuel Cntormyer. counsel for Secrc-
'arE McAdoo and Comptroller John
skelton Williams, implied that the
hiEss Bank had bought and sold stock
Tor its own account
NO such transaction had ever taken
place, says the statement issued by
counsel FOR the bank this afternoon
40 meet that charge" continues the
statement. the AFFIDAVIT made by
ifesident Charles &. Glover, Vice
'FcsinNnt William j. Flathcr and
cashier Henry H. Father was filed
[ Inc ahidavit did not deny. and was
not mean, to deny. that there we're
[ transactions between the officers OF the
bank and the firm OF Lewis johnson e.
= 10 lar
dea!t In stocks, and counsel for the
. oaAh explicitly declared in open court
mat this was the purpose of the am
Ha'l' There was no possibility Of mis-
interpreting or MISUNDERSTANDING tho
aH,daHit while the court hearing was
7 sun in progress and befor. any dcci-
sion OF the court on any of tho issues
had been rendered
For years tho officers OF tho bank
on behalf OF Individual customers and
at times on their own behalf. trans
acted the purchases and sales Of
stocks through local brokers having
Nc" York Stock Exchange connections.
among which was tho firm of Lewis
Johnson 4" co. There Was never any
concealment about IN. transactions
thus conducted and. therefore, never
any intention. in court OF elsewhere TO
national bank examiners have re-
peatedly examined the books of the
hank, which clearly exhibited th..
course of these transactions Prior to
the pending litigation. repeated re-
ports made by tho bank TO tho Comp
trol!er OF the Currency Informed his
ONCE precisely how customers had
been accommodated in the making of
their investments since the banks or
Eanization."
OPINION FROM Tw"
OF LEADERS OF BAT,
The statement then goes on TO say
that in view OF rumors. subsequent
20 the trial. that the affidavit was uues
toned. and in order that the directors
of the bank might he fully informed
counsel for the bank procured opinions
from j. j. Darlington and William q;
Johnson. two Of the leaders OF the
Washington bar. each Of whom says
that the AFFIDAVIT is not only not the
subject 81 prosecution, hut is not open
TO criticism of amy kind"
Mr.. Darlington holds that the AT
fidavit can only he construed as mean
Ing that the bank never at any time.
on its own account. bough, or sold
any stock whatever from or through
the firm Of Lewis Johnson e. CO." The
fact that a statement by counsel was
submitted setting forth tho purpose of
the affidavit when IL was filed" MFR.
Darlington says. should. in my opin
ion. Of itself he decisive of tho uics
ton" That the affidavit was so un
derstood by the government through its
counsel. and was not open TO any
charge of falsity. IL the bank did not
nuy and sell stocks on us own account.
Mr.. Darlington adds is apparent from
an extract from the argument of Mr..
Untermyer when he said: 1T the
bank) was doing an open stock broker
age business. and il has not denied il.
and IL cannot deny it
Mr.. Johnson in his opinion SAYS he
attended the trial of the case through
out and heard all the arguments He
holds that the affidavit lis insusceprihl.
Of extension to a denial Of any act ex-
cent transactions of that nature on
its own account for its own benefit -
and that IL cannot he construed as ex
tending to such purchases or sales if
any such were made by il. as the agent
or broker OF any person or corporation
If, as ] assume. the statement in tho
affidavit as thus cor trued be ,rue
no conviction OF false swearing could
possibly be based upon il. whatever the
bank may have done as the agent or
broker of others"