The Washington herald., 1915-10-02
RIGGS CASHIER RESIGNS
AFTER INDICTMENTS
CONTINUED FROM PAGE ONE.

names of Stanchfield and Maxwell
were being prominently considered.
The following statement was issued
yesterday by counsel for the Riggs
National Bank following the handing
down of indictments: The indictments
grew out of a controversy regarding
the technical construction of the
phraseology of an affidavit filed in the
course of the argument in the pend
ing suit of the Riggs Nationl Bank
against officers of the government
This new proceeding does not concern
any money Or other property of the
bank and is entirely personal to the
officers signing the affidavits
"On a purely technical construction OF
the wording of the affidavit. by which
neither the court nor any one else was
deceived. and without any charge in
volving loss or injury to the property or
business of the bank. this long threat
ened action is taken at the instance Of
the government and, contrary to what is
understood to be the usual course in such
cases. while the suit of the bank against
the government officials is pending.
Orders on Cash Basis.
''To facilitate its depositors and GUS
toners in making their investments. it
was the habit of the Riggs National
Bank to attend to the execution of orders
when received through one Of its officers.
acting in his individual capacity as a
member of the Washington Stock Ex-
change, or otherwise. These orders were
upon a cash basis and not upon margin.
As the transaction was conducted upon
the order and for the account of a par
ticular depositor, customer or other in
dividual, in the current course of busi-
ness. the execution OF these orders were
reported BY the brokers directly to the
bank, but no order or transaction was
ever made by the bank for its own be-
half or profit, but invariably for and in
behalf Of others. The fact that the bank
cleared orders of this nature for depos-
itors and customers was open and well
known to the investing community, and
to every Comptroller Of the Currency,
and to every bank examiner passing upon
the affairs of the bank. Since the new
Federal law reserve law came into effect
the bank has not accepted any orders of
this nature. and the practice referred to
then ceased and is no longer In operation.
These facts are stated to make it clear
that there never has been the least dis
pute or question that the officers of the
Riggs National Bank aided its deposit
ors and customers in the making of their
investments in the manner referred to.
and also to make 1t manifest that in the
affidavit it could by no possibility have
been intended to deny that orders of this
nature were made through Lewis john
son & Co. but to deny that they were
made for the account Of the bank"
Frank J. Hogan. who, as counsel for
the Riggs National Bank. drew the
affidavit on which the indictments are
based, said yesterday:
THE indictments returned today, in
nv opinion, furnish conclusive proof
of that malicious persecution which
the Riggs National Bank charged in
its suit against Messrs. McAdoo and
williams I doubt whether in the
history of American Jurisprudence men
have ever heretofore been indicted
in either Federal or State courts be-
cause of a difference in opinion re-
specting the legal Interpretation Of
written instrument.
"on a purely technical construction
of the wording Of an affidavit. by
which nobody was or could have been
deceived, with no question of moral
culpability involved. and while/ the
civil suit of the bank against two
government officials is still pending.
this action is taken. 1t looks, dan
gerously like an attempt to invoke
the operation of the criminal courts
to punish the officers of this splendid
bank Tor their temerlty III dppedhnS
to the courts Of the community in
which they live for protection against
official persecution. In inducing the
Department of Justice to obtain these
indictments. Messrs. McAdoo and Will
iams proved that malice against which
the bank sought protection in court
Indictments Not SurprisinG.
THE indictments are not surpris-
ing, because we have long expected
that all the power Of the administra-
ton would be invoked to punish men
who refused to remain silent under
persecution. The indictments are not
alarming, because conscious Innocence
cannot be alarmed at any act that
must result in giving public oppor-
tunity for complete vindication.
The officers of the bank. who have
been subjected to this new form OF
attack, are prepared to meet the issue
with the same vigor, manliness, and
determination which inspired them
when they and thier associates ap-
pealed to the courts OF the land for
protection against the gross abuse OF
official power to which thier bank
and themselves had been subjected by