The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-04-13

actions Of the Comptroller's ONCE. but
| IL the methods and practices complaint
ed OF had been permitted to continue,
the results would have been serious.
, The evidence will abundantly show
! that It has been necessary for this Of
flee to seek to terminate the repre-
hensible practices of the officers in
question. and their misuse OF the pow
ers delegated to them by the directors.
Unwillinw to Disclose situation.
THE penalty imposed for failure to
make reports, the collection of which
penalty they seek to have enjoincd,
grows out of their unwillingness to
disclose the true nature of the trans
actions engaged in.
The whole purpose OF the DEPART
ment has been to urge the bank 20
give up the unlawful and dangerous
practices and methods which had been
in vogue for years past. and which had
threatened alike the welfare and Sc
lcurity of both shareholders and de-
positors, and to require the bank TO
conform to the plain requirements Of
the national bank oct. and TO the resu
lations Of the Office OF the Comptroller
of the Currency.
I'm view Of the many false and mis-
leading statements contained in the
announcement prepared for the press
ty the Riggs National I.ank. and the
references of the TANK 10 the letters
which ii has received from this Office
during the past six or eight months.
this Office thinks IT proper that the
public should be given further infor-
nation as to the true contents and
- 10
therefore. submits extracts from three
of the letters addressed to the Riggs
National Bank by the Comptroller of
the Currency since July last, and re-
ferred to In the statement given out
by the bank.
Sought Actual Facts.
"ln its efforts to ascertain the real
truth in regard to the operations and
affairs of the RIGGS National Bank.
the letters were from time to time
directed to the banking office of the
Comptroller OF the Currency for in
formation. These requests for data
in various cases were refused. and
on March 80 the Riggs National Bank
was notified of imposition of a PEN
atty of $1,000 under section 1891. of
the United States revised statutes.
for its refusal to furnish information
to the Comptroller's office in regard
to its affairs.
ION April 5 Comptroller of the
Currency addressed letter to the
bank calling it's attention to various
false statements which had been
made by its officers under oath. and
what are regarded as deliberate ef-
forts to deceive the department. and
notified the bank that in view of the
unsatisfactory and dangerous condi-
tons which have come to light as
the result OF the Investigations of
the bank by this office. and the Ma
tional Bank examiners: in view of
-a#Feliaeiffiitp -af statements
made by your officers. under oath or
otherwise. and your long defiance of
the law and disregard for the instruc-
tions of this office. you are hereby
notified that the Comptroller of the
Currency will. until further notice,
refuse to approve the Riggs National
Bank as a depositary for the reserves
OF other national banks.
One OF the letters to the Hrggs
bank given cut by Comptroller WILL
liams was under date of January %,
1914. In ii he said;
Issues Another Warning.
"You are hereby admonished that
this Office strongly disapproves of the
policy and practice of having the
president. vice-preSident and cashier
III n iMuOIlat Ntnk SOHuulN UfUkCF-
age shop. or business within and as
"a part of the business Of the national
bank. buying and selling speculative
and wild cat stocks and other ssCuri-
ties. on commission. and using the
bank as the agency for carrying on
margin stocks and other securities
thus bought and -e1d. and dealt In.
The books OF your bank show that
large sums of money are being loaned
xnpetlaffgA aaenrfttnu 70 the nf-
ticers of your bank and to it's clerks
and employees in these speculations.
This office regards this as a democrat
izing example to the other employees
of your bang
In speaking of the loans made TO
the cashier of your bank aggregating
ss3,500, you declare that these loans
We're secured by high class market
able local and out Of town stocks and
bonds. having a market value Of &7o.-
00O.' although at today's prices they
barely cover the loan.
Gives List of Securities.
Among the rich class marketable
local and out of town stocks and
bonds l note the following:
400 shares ST. Louis and san Fran
cisco. market value. preferred. 4.
100 shares Rock Island Railroad.
preferred stock. Ia.
100 shares Rock Island Railroad.
common stock. l.
1900 shares Missouri Pacific Railway
stock. 3 IA.
ZOO shares Inspiration Consolidated
Copper stock. Is.
1850 shares Inter Continental Rubber
stock. 7 la.
Among the stocks securing the
loans to your assistant cashier. which
you approWngly refer to as recognised
stock exchange collateral notice: