The Washington times., 1915-09-24
Failure to Include -Four Words in
Affidavit Believed to Have
: Been Starting Point. <..."
JURY REPORT NEXT WEEK
Affidavit in Question Concerned
Alleged Stock Sale Transac-
tons of Bank.

The omission Of four words from an
affidavit iled by Charles Z. Glover.
William J. Flather. and Henry H. Fla
ther, officers Of the Riggs National
Bank, is believed by their friends to
have been the starting point of the
recent grand jury investigation, which,
according to reports today. may result
in an Indictment OF these officers for
perjury as an aftermath Of tho civil
suit fled by the bank against Treas
ury officials.
A report Of the grand jury which
recently heard witnesses connected with
The bank IL not expected before next
week. 1t IL impossible. Of course, to
obtain Information regarding the secret
SESSIONS Of the grand Jury. but 1t was
learned today that the bank officials
themselves are prepared in event an in
dictment is returned.
The four omitted words in the Glover
Flather affidavit. which bank officers
say were inadvertently left out-al-
though 1t Is not conceded that the affi-
davit as drawn makes the signers
guilty Of false sweartng-were FOR its
The affidavit concerned the alleged
stock sale transactions Of the Riggs
bank counsel for the Government in
the civil suit contending that the bank
lluufScu III MUM SpcCulullOu. III ICpsJ
e this contention Messrs. Glover,
Flather and F1ather fled an affidavit
which declared:
Declaration of Affidavit.
That the said bank never at any
time bought or sold any stock whatever
from or through the firm Of Lewis
johnson & Co.. that the Riggs National
Bank never at anv time from Its or
ganization to the present ever made a
short sale Of stock to or through the
firm Of Lewis johnson & Co.. and that
II there are any entries on the books OF
the bank or the firm Of Lewis Johnson
Riggs National Bank bought stock. sold
stool: or mode short sales. these en-
tries are false"
The fllng Of this affidavit followed
the accusation by samuel Untermyer,
the civil suit. that the Riggs Bank was
virtually conducting brokerage house
within its bank. The charge was
promptly refutsd In court by ATTORNEYS
Flather affidavit was subsequently, pre-
sented.
e Present Counter Affidavit.
Attorneys for Secretary McAdoo and
counter affidavit signed by w. M. Lam
mond, former bookkseper of the then
defunct firm Of Lewis johnson & Co.,
who testified that there were numerous
entries on the books Of the johnson
company showing stock transactions
with the Rigs National Bank. Lam
mond said he had handled checks Of the
bank covering such transactions.
The record Of Lewis Johnson & Co.,
covering this account were also made q
part Of the record Of the civil suit.
Stock Orders Not Denied.
In connection with the hammond af-
fidavit. attorneys for the bank officials
asserted that 1t was not denied that the
Riggs Bank had placed stock orders for
its customers with the Arm Of Lewis
johnson and Company. 1t was denied
specifically. howere. that the Riggs
Bank. as a bank. had had any stock
transactions with the brokerage con-
cern. The bank, 1t was declared. had
acted merely as buying or selling agent
for It's customers and had not pur-
chased or sold stock "for its own ac-
count"
Friends of officials Of the bank be-
lieve that If the affadavit had been
comprehensive-settin forth that the
bank as such had not engaged in stock
sale transactions-there would be no
grand Jury investigation today.
Under the circumstances. the officers
Of the bank are awaiting the decision
Of the grand jury and are preparing
themselves for any eventualtty.