Evening star., 1916-05-10
FURRY IS CAUSED
IN RIGGS BANK TRIAL
CONTINUED from First Page.)

United States Treasury, explaining that
the government cannot be sued by the
citizen and that upon that theory the gov
ernment claimed the court had no 5ur1s-
diction.
A letter was sent to Controller Will
liams nearly a year previous to the
equity proceedings, he said, from the
bank. explaining the Glover & Flather
Flather & Flahter and the commission
accounts covering transactions IN
stocks and bonds and other securities
by a bank official for depositors in the
bank. This was, he said. to correct any
mistake or misunderstanding given IN
hasty report on these transactions COW
ering a long period of years.
He recounted how Controller Will
liams. using technical right. would
send a bank examiner over to inter
rogate Mr.. Glover-he will soon be
notwithstanding bank conditions;
not of that date, but Of years before.
that had been passed upon and closed
1t is not impossible" he explained
that under these conditions answers
might have been made that the bank
officials might by careful scrutiny later
correct"
He instanced one such case in which
Mr.. Glover of his own volition made
such a correction and was told by the
controller that 1t was false. He said
the officials were frequently told by the
controller that they were "perjurers."
Mr.. Stanchf1eld read an excerpt from
a letter from the controller. calling at
tention to list of forty women to
whom the bank was lending money.
amounting to more than million ($1.-
100000. improperly secured, many of
them doubtful and Improperly mar
gined."
Among the customers of the bank,
he explained. referring to the corre-
spondence. are 2.SO0 women. and that
the bank felt it had a perfect right to
accommodate these woman customers
as men. He then read the banks re-
ply. showing these loans to be strong
and defensible.
AS far as you are concerned" Mr..
stanchfield told the jury. there is
affairs of this bank that are not an
open book" He said this in preface
to an explanation about fifty-three
shares of American Telephone and
Telegraph stock. This was sold. he
said, through the house of Lewis John
son & Co. but no one of these defend
ants or head officers can tell how this
sale was made. This was sale that
realized $1,000, placed in the profit and
loss account of the bank in March.
said. in comparison with the volume
Of daily business. and was overIooke ed
In statement made In the Riggs
Bank equity suit. This is the state
based.
Mr.. Stanchield then read extracts
showing that Mr.. Glover. in reply to a
letter from Controller Williams. in
explanation by Mr.. Glover as "a false
hood. explained the account Of the
hrm known as Glover, Hyde & John
son. and his earlier incorrect state
ment regarding this firm
He also read extracts from CORE
o hnu inc i,
the commission account containing prof
It's from stock transa ctions by bank Of
nclals for its depositors was used for
Extraordinary expenses, such as con-
tributfons to charities and humanIta-
rian works
Interrupts With Protest.
United States Attorney Laskey here
interrupted to protest against Mr..
Stanchield's argument to the jury,
as though he were, in fact, closing his
case instead of opening it"
THE attorney for the Defense" said
Mr.. Laskey. has stated his un-
familiarity with the practice in this
spoken to the jury for one and one
half hours yesterday and three quar-
ters of an hour today. We have been
patient and indulgent. He Is nov en-
gagged and has been in reading letters
which are clearly inadmissible and can
have no bearing"
Mr.. Stanchf1eld argued that he was
presenting information to the jury Of
what he intends to prove.
Appeal was made to Justice Siddons
Stanchfeld would make his statement
to the jury of what he intended to
prove without argument. Mr.. Stanch-
field protested his desire to proceed as
the court might wish.
In resuming his statement to the Jury
he explained that he was necessar rily
lengthy that the jury might be given
preliminary information regarding the
history Of the case SO that later argu-
ments might be clear.
Arguments Over Statements.
Mr.. stanchfeld asked permission Of
the court to read statements Of counsel
regarding methods of transa citing busi-
ness by the bank and aff1davits by the
defendants on which the perjury
charges are based. This led to
lengthy argument between counsel for
the government and defense regarding
the admissability of this matter at the
time.
He was allowed to read these affi-
daN1tS, WHICH ann III tHdt tHe RIGGS Ma
tional Bank never bought or sold or
made short sale of stocks. and that if
entries on the books of the bankrupt
firm of Lewis Johnson & Co. show such
transactions they are false He ex
planned that false" is used as a
synonym for erroneous" and mt in
this shape for convenience.
That the bank as a corporation never
meant any such transaction as a bank
account. nor did either of the officials
intend these stock transactions to be
for the bank. IF this sentence said
this bank never-for itself-bougbt or
sold stocks, etc. this litigation wouJd
never have occurred" said Mr.. Stanch-
field. The question is whether this is
what was meant"
He then read statements of Samuel
Untermyer, attorney in the enuitv
suits, stating that I'VE do not claim
that the bank has been speculating.