The Washington times., 1915-05-31
RIGGS BANK DENIES
DEALING IN STOCKS
Transactions Conducted by
Bank Officials Individually
or as Agents for Others.

A fiat denial that the Riggs Ma
tional Bank ever had any stock
transactions with Lewis Johnson &
Co. Is contained in a statement given
out by former Senator Joseph w.
Bailey and Attorney Frank J. Hogan,
counsel for the bank.
1t is admitted by the counsel, how
ever. that officers Of the bank had
stock deals with rhe brokerage firm
as individuals. acting not only for
themselves, but for others. such
transactions being entirely legiti-
mate.
The statement OF Messrs. Bailey and
Hogan resulted from the publication
in The Times on Saturday of the at
fidavit of Charles c. Glover William
II. Flather. and Henry II. Flather. Of
the injunction suit Of the bank
against the Treasury officials in de-
nial of allegations about tho stock
deals.
Supplementing the statement given
out by Mcssrs. Bailey and Hogan are
ritten opinions by Attorneys J. J.
Darlington and William G. Johnson,
who contend that the affidavit OF the
three bank officers is not subject to
prosecution or criticism.
| United states Attorney John r.
| Laskey. who is making preliminary
| investigation of the stock deals be-
|
firm declines to make any comment
| regarding the inquiry.
Following is the statement given
out by counsel for the bank:
| "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 G. Co. in the name of the
| Riggs National Bank. counsel for the
bank made the following statement:
since the issues presented by tho
| suit instituted by this bank were sub
| mitted to the court, neither the officials
nor the counsel of the bank have
deemed 1t 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 J. Flather, vice president, and
Henry II. 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:
"Never Amy Concealment."
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 this
ers, and at times on their own behalf
transacted the purchases and sales OF
stock through local brokers havins
New York Stock Exchange connections
among which was the firm of Levi.
Johnson G. Co. There was never any
concealment about the transaction.
thus conducted, and, therefore, never
any intention, in court or elsewhere, t
deny their existence: Year after yea
, national bank examiners have repeat
cdly examined the books of the bank
which clearly exhibited the course O
! these transactions conducted by tn,
hank officials in their individual ca
pacity, in most instances for customer
and in some cases for themselves; pro
to the pending litigation repeated re
ports made by the bank to the Comp
troller OF the Currency informed hi
office precisely how customers had beeI
accommodated in the making of thei
Investments since the banks organiza
tjon, At the hearing before Justic
, Mccoy, Mr.. Samuel Cntcrmeyer implie
that the Riggs National Bank ha
bought and sold stock for its own aC
count. No such transaction had eve
= taken place,
t Transactions Not Denied.
, ..To meet that charge the affdavi
made by Mr. Glover and the Messrl
: Flather was filed. The affidavit did nc
ideny. and was not meant to deny. tina