Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-05
RIGGS BANK CASE
BRIEFLY REVIEWED
Controller Williams in Report
Gives Synopsis of the Pro-
ceedings in Court.
JUDICIAL DECISION QUOTED

The Riggs Bank controversy is brief
ly summed up and synopsis OF the
decision of the Supreme Court OF the
District of Columbia unfolding the con
troller's right to all the Information
and reports of every sort demanded OF
the bank is included in the report OF
the controller of the currency, John
shelton Williams, made public today.
Tho report first refers to the fact that
the Riggs National Bank applied for
renewal of its charter for twenty years
from expiration. June 81, 1916, and
continues:
Previous examinations OF this bank
had shown that during the entire period
of its existence 1t had been guilty of
persistent violations of the national
banking act and had been conducting
Its business in continuous disregard of
regulations and admonitions of the
controllers Office. Its violations OF the
law had begun shortly after its organ,
zation In 1896 and had continued
throughout the life OF the 5aaK' up tho .o
result Of the action Of the controller
of the currency.
Alleges Attempt to Conceal.
The bank had attempted by various
devices and eubterfuges to conceai its
irregular and unlawful practices ana
had persistently evaded or answered
imperfectly various requests for in
formation and data which the con-
,roller considered It important and nee
essary to have in order to be properly
Informed as to its condition and opera
tons so that the controller of the cur
rency had experienced much dincuit In
ascertaining its true condition"
The report then briefly gives Con-
troller williams version Of the contro-
versy, leading up to court proceedings,
the subsequent litigation and the judi
cial disposition of the case. 1t then
continues:
After the Supreme Court of the Dis
trict rendered its decision, the Riggs
National Bank, in a letter signed by its
president, both vice presidents. cashier
and assistant cashier and fourteen di-
rectors. including all directors who
were officers. acknowledged the full and
complete authority of the controllers
Office as confirmed by the courts deci-
sion. and the signers solemnly and sew
orally pledged themselves to conduct,
in the future. the affairs of the bank
in strict compliance with the national
bank act and all the laws Of the United
States. and in conformity with the law
ful rules. regulations and requirements
of the ONCE of the controller Of the cur
T6uCy, ana their lcttcis
to the court decision. the banks officers
and directors said:
THE court sustains the right of the
controller to have the reports and in
formation called for. and the right to
impose fines in accordance with the
provisions of the statute. if the bank
should refuse them.
Banks Charter Extended.
THE controller thereupon. having re-
ceived these explicit and unequivocal
assurances as TO the banks future man.
agement. granted to the Riggs National
Bank an extension Of its charter for the
ensuing twenty years.
Controller Williams advises Congress,
In submitting his report, that the
United States at the present time seems
firmly as 1t Is possible for any human
government to be-"
Practically the whole world is in
debt to u.s." the report said. land is
financial condition in relation to other
peoples and the world at large become
stronger from week to week and from
month to month. AS the figures show
with wonderful rapidity, but to do our
proper work In the world and to pro-
tect and enlarge our own interests we
may before long need every dollar of
these resources, Slgantlc ana lneXnduS-
tible as they now seem to be.
Tn reviewing our banking and fiscal
situation we seem now to be intrenched
financially almost as firmly as it Is pos
sible for any human government to be.
We are well prepared for preparedness
and ready and able to provide for what
ever increases of army and navy Con-
gress may think to be necessary"
Recommendations in Report.
The controllers recommendations pro-
pose the enactment of laws to
Amend the criminal code. making it
a felony for individuals. firms or cor
porations to make false financial state
1nents to banks for the purpose of Sc
curing loans.
Burglary of national bank a crime
punishable by federal laws.
Limit the funds invested by bank
in its own building to the amount of
its capital stock
Authorize the treasurer to sell bonds
securing circulation thirty days after a
bank goes into liquidation.
Since the Inauguration OF the federal
reserve system, the report states, char
ters have been Issued to 264 new ma
tional banks with aggregate capital of
S1s.10s,000. and 1s9 NATIONAL banks IN
ing the same period, to November is
last. 143 banks went into liquidation
and thirty-four banks reduced their
capital. In addition twenty-seven ma
tional banks were placed in receiver
ships.
Gross earnings of national banks for
the past fiscal year. the report states,
were $590.642.051, and net earnings,
s157,543,547, an increase in the latter
item of $50 100000 during the year.
Dividends paid were s114.724.594. an in
crease Of approximately 100000.
Speaks Of Exorbitant Interest.
The practice of charging exorbitant
Interest rates has decreased to a
marked extent. the report states. The
total reduction throughout the coun-
try during the year is placed at nearly
so per cent.
The trouble has not been fully recti-
ned" the report says, land banks here
and there continue to disregard the
law in this respect and to exact rates
which cannot be justified on any
ground These DHrsiSteut offenders are