The Washington herald., 1915-10-03
BY JOSEPH p. AMIN.


denying that the grand jury bore malice
toward the indicted officials" was the
governments contribution yesterday to
the controversy between Secretary Nc
Adoo, Comptroller OF the Currency Will
l1iams, and other Federal officials. and
the Riggs National Bank. The Attorney
Generals statement was offered, ostensi-
bly,. in reply to one of Frank Hogan.
counsel for the bank. Mr. Hogans state
ment neither made nor intimated the
charge that the grand jury was either
p-ejudiced in advance or bore malice to-
ward the indicted officials. II dealt ex-
clusively with the influences alleged to
be behind the Federal officers who pre-
sented the case to the grand jury.
The resignation of Henry H Flather.
cashier Of the bank, made public the
day following his indictment by the
grand jury. was the main topic of dis
cussion yesterday in circles which have
followed closely the controversy. Off
cials of the bank declared with emphasis
that Mr.. Fathers resignation was in no
way connected with the action of the
grand jury or any act or incident in
volved in the events leading up to the
indictments. Careful investigation by
The Washington Herald conclusively
substantiated this position.
Resignation Not Forced.
The Washington Herald is in. posi-
tion to state authoritativeIy that Mr..
r FlatherS $ resignation resulted from fric-
ton with certain portion of the direc-
torate of the bank; that it was not
forced by the bank, and that officials
and directorate alike made every effort
to retain his services in his important
and responsible capacity.
From unimpeachable authority, The
Herald learns that Mr.. Flather in
sisted upon the acceptance of his
resignation because of criticism of his
personal business operations. which
he believed was unjustifable. AS an
individual, and with his own personal
resources. Mr.. Fiather has operated
on the stock market with perfect can
dor. His activities have been an
open book to his associates and have
been accorded their approval for years,
and he held that certain criticism of
these activities. coming at this time,
was unfair to himself and to his rec
ord as a responsible officer of the
bank. Neither the funds of the bank
nor those of the private account which
figures in the controversy with the
District Attorneys office were in
volved. 1t is learned that every ef-
fort was made following the heated
directors meeting at which Mr.
Flather determined upon his action
last Thursday. TO change his determ-
ination to resign. but that he insisted
upon pursuing the course he had de-
Cided upon
That added interest may be given
to the controversy through the efforts
of counsel for the defendant officers
under perjury charges to force an
early trial was indicated yesterday.
Persistent rumor held that the Dis
trict attorneys office would not seek
to expedite the trial. Questioned as
to this rumor, Attorney Genera.
Gregory simply returned:
The nature of the rumor indicates
its source"
illuminating" was the comment of |
Attorney Hogan. of counsel for the |
bank. on this statement Of the At |
torney Generals.
Friends of the bank insist that the !
were procured simply with |
a view to supporting any contentious !
the Comptroller of the Currency might |
make in refusing to recharter the |
Riggs as a national bank next July |
II was asserted that the indictments |
would be held untried until after the |
had been able to use them |
as reason for refusing a recharter |
to the bank with its present officers |
Attorney General. Statement.
Mr.. Hogan refused to comment for |
upon the statement issued |,
by the Attorney General yesterday. !
ostensibly in reply to a statement from |
Mr.. Hogan printed yesterday morningl
The Attorney Generals statement fol-
lows:
MY attention has been called to |
statement appearing in the morning /
papers purporting to have been given |
out by counsel for the Riggs National !
Bank in which 1t is intimated that the !
indictments for perjury recently re-
turned by the grand jury of the Dis
trict of Columbia against CERTAIN Of
ficals Of the bank were inspired by J
malice. and the charge Is made that the |
Department of Justice was induced to
obtain these indictments by the Secre-
tary of the Treasury and the Comp
troller of the Currency.
Il know of no fact which would |
Justify the intimation that the grand |
jury bore malice towards the indicted |
officials or had in mind anything ex- /
cept the discharge Of its Official duty.