Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-17
Change in Red Cross Deposit
Observation-Disclosures by
Mr.. Poole Denied.
RIGGS CASE is REVIEWED

MED fiatly that he had anything "
do with the withdrawal of Red Cross
funds from the Federal National
Bank. John Poole, president of that
bank. had testified Monday that he
believed Mr.. Williams was response
bic for the withdrawal of about 1888;
900 of Red Cross funds from the Fey
eral Bank and was actuated in thls
matter by his dislike of Frank J.
Hogan. a director of the Federal
Bank, and also an attorney for the
| Riggs Bank in its suit against Mr..
Williams several years ago.
Red Cross Letters of Denial.
Mr.. Williams read letters of denial
from Hugh s. Bird. assistant treas
[ urer. and E. c. kaneke, second as
assistant treasurer of the Red Cross.
Mr.. Williams insisted that he knew
nothing of the transaction at the time
it occurred. The money was return
ed to the American Security and Trust
Company when withdrawn from the
| Federal Bank.
'1f there had been any personal feel
| TT would not have had the money re-
turned to the American Security and
Trust Company, where one OF the
largest shareholders is an officer of
| Riggs Bank"
Senator Calder of New York asked
the controller if Mr.. Bird was not
| cousin of Mr.. Williams. Mr.. Williams
| replied that he was about an eighth
| cousin but that he did not claim kin
| ship.
Mr.. Birds Letter.
The letter Of Mr.. Bird stated that
| 1888, 900 in Red Cross funds was with
| drawn from the American Security
and Trust Company and deposited in
the Federal National Bank through
the mistake Of an accountant of
| Henry White, the chairman. The
yVpNr S~afpI ,nS n no ~ o.
| bank at once when the mistake was
| discovered.
The American Security and Trust
| Company had been selected as the de-
the Red Cross and the Federal bank
as that Of the foreign division, the let
ter continued. Other local banks were
depositaries for the various Red Cross
quested that accounts be kept. in diff
| ferent banks to avoid confusion. He
| said on or about the date the funds
| were returned to the American Sc
division had on deposit at the Federal
Bank between $4,000 and s55. 900 and
not $685.. as Mr.. Poole claimed. The
| average daily balance on deposit at
| that bank from February, 1918, to
June. 1919. he said. was $2S, 1856
| The letter from E. c. Haneke. as
sistant treasurer of the Red Cross.
stated that the information given the
committee by Mr.. Poole was 'abso-
Ilutely false" and that the removal of
the funds was not on account of any
personal feelings of Mr.. Williams to-
ward Mr.. Hogan. He said that in ad-
dition to the $4,000 deposit of the for
eiKh division of the Red Cross the ter
proximately $500 on deposit at the
Federal Bank on March ~ and -.
1918. and not $575, as claimed by Mr.
Poole.
Jesse c. Adkins Testimony.
! Jesse c. Adkins. former assistant at
| torney general. and counsel for Mr..
Williams in the Riggs Bank case, tes-
titled as to that case before Mr.. Will
liams took the stand. Regarding
voluminous correspondence presented
by Frank j. Hogan. who charged Mr..
| Williams with prosecuting the Riggs
National Bank. Mr. Adkins asserted
that the controllers letters asking
FOR information from the banks Off
Gals were prompted by his efforts to
determine whether that institution
was complying with law.
Reviewing the litigation proceedings.
Mr.. Adkins told the committee that
| calities and that the court upheld the
| controllers right to insist upon the
reports requested, although holding
| that ne did not make these requests
| in the proper manner.
Mr. Adkins declared the bank had
! openly carried on q stock brokerage
business. despite the law. until Mr..
! Williams assumed Office. when it was
| compelled to discontinue this bust
| ness.
"Too Lenient," Says Senator.
| II have begun to think that instead
| of Prosecuting them Mr.. Williams was
Il
| Senator Walsh. democrat. Montana.
Red Cross funds alleged to have
| been withdrawn from the bank in
| 1914 through Mr.. Williams influence,
| the witness said. were placed in ac
| cordance with interest bids obtained
| from Washington banks.
! Mr.. Adkins also declared the bank
had violated the law in making ex-
| cessfve loans and in regard to keep
| ing q sufficient cash reserve until
Mr.. Williams became controller of the
! currency. It was compelled by Mr..
Williams to discontinue these prac-
| tees. he said.
Senator Mclean, chairman of the
presented to show shortages of re-
| serves might be misleading. since it
did not set forth instances where the
| bank had ample funds with its agents
that such shortages might be regard
| ed as technical violations" of the
law. Mr.. Adkins replied he did not
| know what was meant by a tech
meal violation" Of the law.
! II am undertaking to show that
this national bank violated the law
from its inception" said Mr.. Adkins.
land that the violations were discov-
cred by the controller and he did
| what any other man would have
done"
Charges Bad Banking Practice.
Mr.. Adkins said that officials Of the
Riggs Bank had obtained money from
the bank on notes signed by clerks
and other persons not connected with
the bank, declaring this to be a had
banking practice, though not in vfo-
lation Of the law.
Senator Gronna of North Dakota
suggested that this was a common
practice. and not improper, II the loans
were adequately secured. Later Sena-
tor Gronna added that II the loans
were secured by deception. as sug-
gested by Mr.. Adkins. he would have
closed the bank II he were controller
of the currency.
The controller read to the commit
tee a letter which he recently sent to
Senator Owen OF Oklahoma, former
chairman OF the committee. alleging
that the resolutions presented to the
Senator Weeks from the Clearing
House Associations Of Winchester,
KY, and Lexington. KY were '.impo.
sitions' upon tho COMMITTEES. Mr.. Will
lliams declared no such organization
exists in the former city. but that the
"resolutions' were "concocted by two
junior local bank officials, appa rently
at the instance or influence of some
person or persone whose identity has
not yet been disclosed" in an effort to