The Washington herald., 1916-05-20
RIGGS men gain
IMPORTANT POINT
Prosecution Witness Says Ten
National Banks Had Ac-
counts with Firm.
JUST, LIKE RIGGS ENTRY
Bookkeeper's Testimony Skaters Gov
ernment's Contention That Deals
Were Suspicious.

A startling admission by a Lewis John
son & Co. bookkeeper that national banks
OF Washing gton had accounts with the de-
funct brokerage firm, elated Charles G.
Glover, president: william J. Fiather,
vice president, and Henry H. Father
former cashier OF the Riggs National
Bank, and their counsel, in the trial for
perjury OF the three nnanciers yesterday
The testimony. coming from the star
witness for the prosecution, was declared
to be a double point of victory for the
defendant bankers. 1t was said II would
mean much In the present criminal trial
and in addition would be used In their
favor in the civil suit brought against
Treasury oficisls last summer, which
still is pending.
The prosecution in the perjury trial
has laid stress on a Riggs" account in
the books of Lewis johnson q Co. While
not In itself represented to be conclusive
Of guilt-guilt that the Riggs bank dealt
in stocks. denial OF which by affidavit
resulted In the tr1al-attempts were made
to show that the account was contribu-
tory evedince.
hammond on stand.
W. Morris hammond, the former Lewis
Johnson & Co. bookkeeper, declared that
nine other banks had accounts with his
firm, that their accounts were no differ
ent from the Riggs account, that advices
of stock market conditions were sent
them as they were to the Riggs, and
that the bills sent the others were of the
same form as those sent to the Riggs;
In fact, that the method of business be-
ween the brokerage house and all the
national banks was the same.
This supports the contention Of the de-
fsnse that Riggs" was entered in the
books Of the brokerage firm merely for
the convenience of the brokers, the same
as the names Of the nine other banks
were entered, and that neither the Riggs
nor the other banks necessarily were
dealing IN stocks.
The Riggs" account was a bone OF
contention between the bank officials and
Comptroller Of the Currency Williams,
tary of the Treasury McAdoo in the in
junction suit brought by the bank to re-
strain the officials from an alleged at
tempt to wreck the bank Counsel for
the bank contended there was malice in
Williams treatment OF the bank.
With Bookkeeper I-ammond's testi-
mony, the defendants believe they have
another point tending to prove the sl-
legged malice and persecution, since the
the nine other national banks, but, to the
knowledge Of the detendsnts, had In no
way harassed them because OF a Lewis
Johnson Co. account.
Frequent Surprises.
Frequent surprises were distributed
the trial yesterday. A major
GeN elopment was the announcement from
District Attorney Laskey that the gov
ernment would close its case against the
bankers Monday, probably before noon of
deTapaa estimates that 81
will take i've days to present its case, but
with the arguments to the jury the sub
mitting Of prayers. and recesses for their
consideration, the case will not go to the
jury before June /. it is believed.
Contrasting with the several points
claimed by the defense were those con-
ceded the government, probably the most
important OF which was the admission OF
correspondence known as the Crocker
ing this presentation of evidence that As
sistant Attorney General Fits associated
with the prosecution. made his first
lengthy argument during the two weeks
OF trial.
The correspondence related to a deal
whereby the National City Bank Of New
York bought s, 10000 worth of bonds is
sued by the Crocker Bank of San Fran
cisco during the 1907 panic. The Crocker
Bank had first consulted Milton E. Allies,
vice president Of the Riggs Bank, but
the local institution, being unable to
finance the enterprise, Mr.. Allies, as the
Washington representative of the Ma
donal City Bank, turned the transaction
over to the New York house Some
months after the panic the bonds were
disposed Of at a profit Of more than
s1oS, ,0o6.
Riggs Gets Part of Front.
one-half Of the profit was turned over
to the Riggs Bank, though Attorney
Stanchfield, Of counsel for the bank, de-
clared the Riggs did not have any money
In the enterprise and that 1t had no legal
right to the profit 1t was given to the
bank, he said, because Mr. Allies was in