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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 8, 1906)
VOL. XL.VI. XO. 14,275. PORTLAND, OREGON, SATURDAY, SEPTEMBER 8, 1906. PRICE FIVE CENTS. BRYAN AUTOCRAT OVER DEMOCRACY Sullivan Says That Is Leader's Ambition. WIELDS PEN WITHOUT MERCY Accuses Bryan of Several De liberate Falsehoods. CHALLENGES HIM TO TEST Illinois leader Disputes Bryan's Sincerity, Says He Made Fortune In Politics and Will Quit If It Doesn't Pay. BRYAN AS SULIJYAN SEES HIM. His new ambition to convert the Democratic party Into an autocracy with himself on the dictator's throne. If clow districts send Republicans to the next House the Democratic party will have Mr. Bryan to thank. I challenge Mr. Bryan to the proof of his truthfulness, his honesty and his sincerity. Is Mr. Bryan an exception to the rule that a man is known by the com pany he kcejjs? Mr. Bryan was not honest and he was not sincere when he commissioned Nelson. Thompson, Dunlap and Ralney to "purify" Illinois politics and claimed morality as his motive. The very first paragraph in Mr. Bryan's speech contains a deliberate untruth. Practically every succeed ing; paragraph contains either a delib erate untruth or an equivocation of that kind that we may expect only from the nifty, word-jugn?linfr pettifogger. Mr. Bryan says he wrote me a letter asking me to resign. That Is not true. He never wrote me a letter. Mr. Bryan saya: "I bad in writing a request for his repudiation signed by more than half the delegates." That statement U not true. Mr. Bryan knew tt was not true when be made It. Mr. Bryan has not one dollar that he ever made out of anything but pol itics. He tried to be a lawyer; he was a. failure at It. He tried to be a newspaper editor; he was a failure at that. He made every dollar of hia fortune out of politics as a stepping-stone to the lecture platform. He Is a shrewd advertiser and In his way a clever business man. He Is In politics because it helps the gate receipts. Mr. Bryan will quit running for Pres ident and quit politics just as soon as he discovers that some other form of advertising will bring more dollars to the box-office. No man Is fit to be a candidate for President who goes out In public and lies about any member of his party. NEW YORK, Sept. 7. Roger C. Sulli van, member from Illinois of the Nation al Democratic committee, tonight Issued a lengthy statement, in which he replies to the recent attacks made upon him by Mr. Bryan. Following is an abstract of Mr. Sullivan's remarks: In hie Jefferson Club banquet speech at Chi cago, Tuesday evening, William J. Bryan acain saw fit to make me the excuse tor exploiting his new ambition to convert the Democratic party of the United States Into an autocracy, with himself on the dictator's throne. I retire that he has done so, as I would regret any incident or circumstance tending toward discord in the Democratic party. Means Kepublican Success. If portions of Mr. Bryan's speech mean anything, they mean that he would rather have his own way than have Democrats elect ed to Oongrws or any other office. He has Invited all Illinois Democrats to agree with him in his opposition to me to bolt their ticket. If there are . any . Democrats In Illi nois who are disposed to act on this Bryan esque advice, many of them unfortunately will be found In Congressional districts which are close, but in which, with united effort, we have a good chance to elect Democratic Congressmen. If these districts send Repub licans to the next National House of Repre sentatives, the Democratic party of the Na tion will have Mr. Bryan to thank. As a Democrat, I regret that Mr. Bryan's rule or ruin disposition has led him to make euch a misuse of his influence. But In so far as Mr. Bryan's banquet speech applies to me personally, to my character, to my business, to my associates, to my Democracy and to my political acts, I welcome the Issue and on that itmue I challenge Mr. Bryan to the proof of his truthfulness, his honeety and his sincer ity that sincerity which he boasts la his po litical asset. I yield to no man in my ad herence to Democratic principles as laid down by the great founder, Thomas Jefferson. Judged by that standard, I invite comparison of my Democracy with Mr. Bryan's. Company Bryan Keeps. Continuing. Mr. Sullivan scores Mr. Bryan for the "company he keeps," and attacks particularly the characters of Theodore Nelson, Judge Owen P. Thomp son. Millard Fillmore Dunlap and Henry T. Ralney. These are the men indorsed by Mr. Bryan In his Paris Interview. Mr. Sullivan describes them as Mr. Bryan's confidential agents In the purification of Illinois politics, and asks: "Is Mr. Bryan an exception to the rule that a man Is known by the company he keeps?" Mr. Sullivan continues: Mr. Bryan has said, by innuendo, that I, as an official of the Ogden Gas Company, of Chicago, have secured Government favor and profit by Illegal or corrupt means. He harps on my connection with the Ogden Gas Com pany as If that connection were disreputable. The public press will show that the only of fense this corporation every committed was to reduce the price of gas. Among my asso ciates In that company were Governor John P. Altgeid and Judge Thomas Moran, of Chi cago. Does Mr. Bryan dare impugn their memories? Mr. Bryan was not honest and he was not sincere when he commissioned Nelson. Thomp son. Dunlap and Ralney to "purify" Illinois politics and claimed morality as his motive. He was not truthful when he stood up in Chi cago Tuesday evening to explain his position. Charges Deliberate Untruth. The very first aragraph in Mr. Bryan's speech on me and the Illinois "situation con tains a deliberate untruth. Practically eery succeeding paragraph contains either a delib erate untruth or an equivocation of that kind that we may expect only from the shtfty-word-Juggllng pettifogger. Mr. Bryan says he wrote me a letter asking me "to restgn in; the interests of the Democratic Darty." That Is not true. Mr. Bryan knew it was not true when he said It. He never wrote me a letter. He did write a letter to Judge O. P. Thompson in which he told the Judge to tell me that he (Bryan) wanted me to resign from the Democratic National com mittee. Mr. Sullivan declares that Mr. Bryan's assertion that he holds his seat on the National Committee by fraud was Re futed two years- ago at St. Louis by the National Convention itself and that he (Sullivan) had not asked for an in dorsement from the state convention instead of resigning: in the Interests of the party, as Mr. Bryan said he had. He proceeds: Mr. Bryan says: "I examined Into his (Sul livan's) conduct of the Springfield convention before I took part In the attempt to unseat him and at the St. Louis convention I had in writing a request for his repudiation signed by more than half the delegates to the con vention." That statement Is not true, Mr. Bryan knew It was not true when he made It. Mr. Bryan's statement that he had In writ- FRANK K. HIPPLE, PRESIDENT OF REAL ESTATE TRUST COMPANY OF PHILADELPHIA, WHICH HE LOOTED TO THE EXTENT OF $7,000,000, AND FOUR OF THE DIRECTORS WHOM HE "HIPPLEIZED" yt&& ' V 4 . - f Dr. 8. Weir Mitchell. lnff a request signed by more than half the delegate to the Springfield convention w a statement that has been made before. It waa made at the Bt. Louis convention, and its truth was there challenged. Mr. Bryan haa never substantiated It with evidence. Mr. Bryan and his associates In that con test at St. Louis made the statement that some GOO delegates In the Springfield conven tion had signed petitions or letters repudiat ing the action of that convention. They never presented to the committee on credential of the National convention any such number. They presented some. The other side at the same time presented telegrams and affidavits certifying that nearly all of the signatures presented by Mr. Bryan and his associates were -forgeries. The discussion of the Springfield conven tion and its action from Mr. Bryan's side Is always coupled with the Innuendo that the elements of the party with which I was con nected had perpetrated a fraud. by unseating hundreds- of- legally elected delegates. That Innuendo Is false in spirit and false in the suggestion it conveys. Measure of Bryan's Party Fealty. Mr. Sullivan then reviews the St. Louis contests, again accusing Mr- Bryan of untruthfulness and repeating that he did not seek Indorsement at the hands of that convention and saying he did not attempt to link his name with that of Mr. Bryan. He accuses Mr. Bryan of having advised his particular friends in Illinois to bolt the Democratic ticket, and asks: Is this the measure of Mr. Bryan's party fealty? Is this the way Mr. Bryan proposes to help elect a Democratic Congress? Mr. Bryan says: "My political assets are the confidence the people have In my sincer ity." Mr. Bryan has. twice led the Demo cratic party to defeat, the second a worse defeat than the first. If he is proud of that evidence of the people's belief In his sincer ity, he is welcome to it. But his boast of slnceAty merits further consideration. He In sinuates that I make money out of politics and that his sincerity therefore compels him to oppose my participation In Democratic af fairs. The plain Inference is that Mr. Bryan thinks It wrong to make money oue of pol itics. This boast of his puts the etamp of insincerity all over him. Made Fortune Out of Polities. It Mr. Bryan thinks It wrong to make money out of politics, he should quit making money. Mr. Bryan has not one dollar that he ever made out of anything but politics. He tried to be a lawyer; he was a failure at It. He tried to be a newspaper editor; be was a failure at that. He is now a man of property. As fortunes go, he Is a rich man. He made every dollar of his fortune out of politics as a stepping-stone to the lecture platform. Mr. Bryan discovered many years ago that he could make his political prominence pay. He Is a shrewd advertiser and In his way a clever business man. He has discovered that, so long as he is a candidate for President and a possible nominee, gifted with the abil ity to weave flowing sentences into well rounded fierlods. the' public will come to hear him at so much a head. He Is In politics because it helps the gate receipts. Like the actresses who have discarded the stolen dia mond dodge for the greater publicity of a divorce suit, Mr. Bryan will quit running for President and will quit politics Just as soon as he discovers that some other form of ad vertising will bring more dollars to the box- office when be is announced to appear on the stage. Charge of Fraud Rejected. Mr. Bryan has said that I owed my elec tion to the National committee to fraud in the Springfield convention of two years ago and that the Peoria convention of this year, which refused to do his bidding, was "asphyxiated" by me. Both statements, as I have said before, are untrue. Mr. Bryan's fraud issue was before the convention franklv and fully. The question at Issue, namely, Air. Bryan's desire that I resign from the National committee, was presented to the convention In plain terms. The roll call waa 103$ against Mr. Bryan's request to 570 for It. This result throws a little more light on Mr. Bryan's sincerity when he talks about "asphyxiation." This result ought to be, I think. In the view of any sober-minded person, enough to settle Mr. Bryan's "Issue" as to me. He seems not willing to accept it. a To test Mr. Bryan's boasted sincerity.' I (Concluded on Page 3.) E E False Alarm of Fire Inspires Stampede to School in Ghetto. CAUSE: BURNING RUBBISH Small Boy Spreads Report In Poor Chicago District and Mothers Trample Teachers In Rush to Save Children. CHICAGO, Sept. 7. (Special.) A mob of ignorant, terrified mothers and fath ers stormed the John M. Smyth public school this morning and caused a panic Judge W. W. Porter. among the 1300 children in the building, which is in the heart of the Ghetto. The men and -women fought like beasts to reach their little ones, who in their blind fear, they believed would- be burned to death. They attacked the teachers, who strove bravely to prevent a panic, and ran from floor to floor, mingling the names of their little ones with the cries of fire and wild supplications to the Virgin. Nineteen nationalities are rep resented in this district and all went mad. Panic Spreads to Children. For a few minutes the children wav ered. They heard both the cries of their parents and the commands of- their teachers. . In. the end . discipline . broke under the strain and boys and girls, big and little, catching the contagion of senseless fear, made a rush for the doors. ' The teachers, mere girls, some of them, pale, calm, stood against the doros and struggled to restore order. By chance, a merciful providence or something else, all escaped unhurt. Some of the smaller children were bruised, frocks were torn and faces ' scratched, but the madness passed and the teachers restored order before any of their charges bad been in jured. Of course there was no Are. Only Burning Rubbish. In the grounds of the Smyth School three portable one-story school struc tures have been erected. In one of these the Janitor swept together a pile of rub bish shortly after 9 o'clock this morn ing and lighted it. A small boy, tardy and bating school, saw the thin spiral of smoke curling from the window. He turned and ran homeward, crying as he went: "The school's burnln'; they'se Are In the school." Many mothers were standing in the street bargaining with hucksters or gos siping with neighbors. Big, brawny wom en those mothers are, and they love and flgbt for their young as do wild animals. They heard the cry and took it up. In three minutes those words: "The school is burning," were ringing through the streets in half a dozen lan guages. Drop Everything and Run. Then came the first rush. "Women dropped nursing babies; turned from washtubs without stopping to wipe off the suds; dropped their marketing In the street and started madly for the school. At their head was a man, and here and there in the throng were other men, but nearly all were women, and all were mad with fear. From narrow side streets and twisting alleys they poured into Blue Island avenue. The thin column of smoke still rose from the little school building. The win dows of the main structure were open and the hum of childish recitation could be heard. Save for the thin column of smoke there was no sign of fire and ab solutely none of danger. But the un reasoning mob did not stop.. Trample Teachers Down. Like a charging army the parents swept through the school yard and en tered the building by every door. Teach ers were swept aside and trampled upon. Their orders, their pleas not to start a panic and their assurances that there was no fire went unheeded. Some of the frantic mothers had heard from friends in New York of the wild day there when the school authorities had attempted to butcher children. They recalled that now, and shouted that their little ones were being burned to death deliberately. They struck savagely at FRANTIC NTS C S WD PAN the frailer women who confronted them and swept from room to room, shrieking the names of their children until the building had been emptied. CANNON DEFIES GOMPERS letter's Measure Will Never Pass While Ue Is Speaker. . PORTLAND, Me., "Sept. 7. Speaker Joseph G. Cannon addressed a largely attended Republican rally in City Hall tonight. Mr. Cannon said that so long as he was Speaker he would prevent the passage of the measure advocated by Samuel Gompers. He also alluded to the return of W. J. Bryan to this country and said that evil results would attend his nomina tion and election to the Presidency. Shaw Starts on Tour South. WASHINGTON, Sept. 7. Secretary Shaw left today for a tour of Virginia, North Carolina. Tennessee, Missouri and other states. He probably will not return to Washington before election. Brackett Out for Governor. NEW YORK. 9ept. 7. State. Senator Edgar R. Brackett, of Saratoga, today an nounced that he is a candidate for the Republican nomination for Governor. Fairbanks at Indianapolis. INDIANAPOLIS. Sept. 7. Vice-President Fairbanks returned to Indianapo- frank K. Hippie. lis today from his Western trip and will be here until next Tuesday, when he will-leave for Concord, N. H. The Vlco-Presideivt Js to deliver an address t the New Hampshire State Fair, next Wednesday. " . Depew's Health Restored. NEW YORK, Sept. 7. When Congress meets at the beginning of next Decem ber, Senator Chauncey M. Depew will be found in his seat. This assurance was made yesterday by a member of his- fam ily. "Senator Depew's recovery has been slow, but the gains he has made have been held," he said. "At no time within the last year has he been in such good health and spirits, and the doctors assert that if the improvement continues he will be equal to the, strain of another session of Congress." 1 CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature. 78 deg. ; minimum, 62. TODAY'S Rain and cooler. Fresh south erly breeze. Foreign. ' Russian peasants destroy crops to cripple ..government. Page 4. Moorish rebels capture Mogador and expel Jews. Page 3. Palma offers armistice In Cuba, but Guerrera answers by blowing up railroad bridges. Page 3. Great review In Germany seen by Amerfcan Army officers. Page National. Secretary Wilson answers J. J. Hill's speech on agriculture. Page 4. Secretary Shaw forbids use of Government deposits for speculation, forcing down call money rates. Page 1. Politics. Roger Sullivan makes savage attack on Bryan. Page 1. Cannon bids defiance to Gompers. Page 1. Domestic, i Hippie proves to have forged notes for fU0,0U0. Page 1. Fear that Stensland will commit suicide or escape. Page 1. Panic-stricken parents stampede Chicago school at false alarm of fire. Page 1. Mayor Rose finally surrenders to law. Page 4. Aeronaut picked up almost dead after night on unmanageable airship. Page 5. Gaslt's election may prevent ruin of South Dakota University. Page 1. Sport. Three Junior 'records broken at National amateur meet, fage 7. Harvard and Cambridge oarsmen ready for great race. Page 2. Individual rifle match at Seagirt. Page 7. Los - Angeles takes .game from Portland, S to 3. Page 7. Pacific Coast. Factional warfare among Seattle Repub licans. Page 6. Government will plant forest trees In Idaho. Page 6. Sleuths at Rainier have little Taope of cap turing bankrobbers. Page 6. Quarterly convention of Willamette Devel opment League at Forest Grove. Page 6. President Calhoun refuses closed shop to San Francisco street-car employes. Page 6. M. F. McElfresh. horticulturist, kills him self near Salem. Page 6." Commercial and Marine. Collapse of famous tomato 'syndicate. Page 15. Stocks depressed by prospective cash loss by banks. Page 15. General trade conditions good. Page 15. French ship Laennec chartered for grain by Kerr. Gilford 4 Co. Page 14. Steamer Alliance arrives after encountering tierce storm off the coast. Page 14. Portland and Vicinity. J. W. Hopkins, land-fraud witness, brought from Nevada, arrested on old Indictment and faces new one for alleged perjury. Pase 10. Thomas Goodwin, City Hall Janitor, is mangled by street-car and dies from injuries. Page 14. Rainier block, at Twentieth and Washington, sells for (40.000. Page 10. Hill's suits have stopped construction on Co lumbia Valley, but Counsel George W. Stapleton says only temporarily. Page 11. Curtis G. Sutherland replies to Councilman Kellaher's accusation that East Third-street franchise was doctored. Page 9. Dr. Stephen S. Wise denounces Church of Rome, declaring It opposed the vipdtfnion f Dreyfus. Page 14. SINN BLOW TO SPECULATORS Shaw Forbids Use of Govern ment Funds in Wall . Street. KNOCKS CALL, MONEY RATE Order Against Landing of Federal Deposits by Country Banks to Sew York Send9 Interest Tumbling Rapidly. WASHINGTON, Sept. 7. (Special.) Alluringly high rates of Interest on money loaned for speculative purposes' are no longer to be enticing to banks holding Government deposits. Secretary of the Treasury Shaw has struck the backers of the "market" the under writers of speculation a blow between the eyes, with a few strokes of his pen, knocking the call money rate in New York from 40 down to 3 per cent. Inci dentally the Government depositories throughout the country have received a strong hint, if in the future they di vert tlielr surplus funds from the chan. nels of regular business in order to take advantage of intermittent tempt ing conditions in Wall street, they sud denly may cease to be Government de positories. Public money deposited in banks Is intended for use in the communities where it is deposited, declares the Sec retary, and is not to be loaned through brokers and other agents In New York tor speculative purposes. The declara tion, which to the wise will be regarded as an ultimatum, is made in a circular letter Issued today and sent to all Na tional Bank depositories. , Great Shock to Speculators. Coming directly on top of the ' no tice given by the Secretary of the Treasury that he would loan enough money from the Treasury beginning next week, to relieve any stringency likely to occur pending the importation of gold shipments engaged abroad, the financial centers received a great shock when the news was flashed to them this afternoon. The putting of the offi cial stamp of disapproval on specula tive loans at exorbitant rates will. It is expected, bring forth a huge protest from some sections of the financial world, but that it will be received with approval by the conservative banking interests of the country Is the belief of the Treasury Department. Mr. Shaw refuses to say any more on the subject of loans and speculation than Is contained in his circular, but it may be said that the Secretary holds a stronger card than the one he has now played. He has control absolutely, as far as making Government deposits is concerned, and he can withdraw de posits as well as place them. That he will not hesitate to take radical ac tion, if his plain warning be disre garded, Is a safe Inference, if not ab solute certainty. Lure of High Interest. It in known that for several days some of the big banking houses In New York have been sending letters and telegrams to their country correspond ents urging them to send on their sur plus funds to be loaned for them at 15 per cent. The bait has' been a tempting one to the country banker, who at best can get only 5 or 6 per cent for .his money at home. Fifteen per cent for money let out for only a few days, and which then can be called In and loaned over again, bad created an appetite that was unwholesome to legitimate business. Mr. Shaw learned of what was go ing on, aside from what he was able to judge by the dally reports on rates for call loans. He realized that many small bankers might turn down a local borrower who wanted money for six months when there was a chance to use the money at a high rate with quick returns. Mr. Shaw's letter is as follows: "I am advised that many banks, scattered throughout the country, are loaning their surplus funds through brokers and others in New York on call at high rates of interest.- Money loaned on call is well-nigh universal for speculative schemes. I recognize the right of any . individual to specu late in stocks or In lands, and. the legal right of any bank to loan money John H. Converse. at appropriate rates of interest, at home or abroad, on ample security, even witn knowledge that it is being used for speculative purposes. "I am not willing, however, that Gov ernment money shall be enticed away from the locality where it has been deposited for the purpose of being used in this wuy. Public deposits are made In aid of legitimate business as distinguished from speculation, what ever its nature. Depositary city banks are expected to loan at regular rates or hot at all. and they must not be tempted to act as agents instead of correspondents for other depositary banks in making call loans at high rates. "If you bave more money than your community can appropriately absorb, please return it to the Treasury, for it can be promptly placed where It will do much good. This does not ap ply to banks with large reserves reg ularly on deposit with city corre spondents." Surprise to Xew York Bankers. NEW YORK. Sept. 7. Secretary Shaw's letter on the use of public money for speculative purposes created a great deal of surprise in banking circles In this city, where it was believed that a good deal of the money to be deposited by the Gov ernment at interior points would speedily be diverted to this center. Special inter est was shown In the Secretary's order enjoining depository banks from lending Government funds at high rates. It was recognized by New York bankers that the Treasury Department is in a position to maintain a close watch on the operations of the depository banks in this connec- Bayard Henry. tlon, because of the report made by them five times a year to the Controller of the Currency. Portland Has Surplus Cash. Secretary Shaw's circular objecting to loans of Government funds by local banks to New York banks for speculative pur poses does not affect Portland banks. One banker said: "There Is more money here than there is demandv for. Anyone hav ing security does not have to leave this city to secure loans. There is about 000.000 on deposit here, and of this sum only about Jl,300,000, or maybe a trifle more, is on deposit by the Government. Of the many millions of dollars on de posit, there Is not a demand for more than approximately 40 per cent, so that it is necessary to go outside of Portland for Investments." OFF ITS GAUIF GOES TO SOUTH DAKOTA UNIVERSITY TO SAVE IT. Political Wrangling In Board of Regents Damages Institution. Election Ts Compromise. SIOUX CITY, la.. Sept. 7. (Special.) . In selecting today Dr. F. B. Gault, of Ta coma. Wash., to be president of the South Dakota University at Vermilion, the Board of Regents is believed to have end ed an era of political wire-pulling in the conduct of the Institution which has great ly damaged the prestige of the institution and threatened at times to ruin it. The resignation of President Garret Droppers was asked because he insisted upon the resignation of another professor who was financially involved, the creditors having a pull witn the regents. President Chalmers, of the State Agri cultural College, was elected to succeed Droppers, but the expose of past indis cretions drove him from the position and the state. Meanwhile the attendance at the university fell off. Droppers claimed he was opposed because he came from the University of Japan on invitation of Sen ator x-eitigrew. then a Democrat, The university presidency has been a political Issue for several years. ' Dr. Gault Is ex-president of Whltworth College. Tacoma. He formerly taught in Mason Cit- and Tama, la. He is looked upon as a compromise candidate, more of an educator than politician. SHIELDS SLAYER TO LAST Goldfield Miner, Fatally Wounded, Tells Conflicting Stories. GOLDFIEIvD, Nev., Sept. 7. Mike Klernan, a miner, was shot and fatally wounded on the outskirts' of Goldfield early this morning and died at the coun ty hospital. Kiernan refused to give the name of his assailant. He declared It was his own fault and that he was hold ing up the man who shot him. believing that he was a high grader and had rich ore on his person. Later he told a dif ferent story, and neither story is believed, but he protected hie assailant up to the last, although he declared that he knew his name. Before death Kiernan eald that papers in his apartments would disclose his identity. It was found that he is con nected with a prominent family and that his borne was Dewittville, Canada. IiOwer Dividend on Paper Bags. . NEW YORK. Sept. 7. The directors of the Union Bag & Paper Company today declared a dividend of 1 per cent on the preferred stock. This is a reduction of 9i per cent. . VXv HIPPLE 11 FORGER LIKE STENSLAND Borrowed $250,000 On Bogus Notes. TRICK TO MEET OVERDRAFTS : Men Who Secured $2,000,000" Now Being Souflbi." NONE GUILTY WILL! ESCAPE Investigation of Wrecked Real Esj tat Trust Company Dally De ' velops Xew Crime Earle . Will Head Company. i PHILADELPHIA, Sept. 7. Forg-erlesJ for more than a quarter of a million dol- lars by Frank K. Hippie, the suicide president of the defunct Real Estate-l Trust Company, have been discovered byj Receiver Eearle. The latter made thlsi statement late tonight, ad:Iing that ha had no Idea where Hippie's villainy I would end. Hippie, in order to meet hial immediate overdrafts, used the names ofj some of the most prominent business men of this city on notes which in soma cases amounted to J15O.000. The president had taken copies of th signatures of a number of business men while some of their checks or negotia ble securities passed through his hands, but in every case he avoided the use oe a Real Estate Trust Company expositor. "When pinched for money to meet hia overdrafts or some big Segal loan." Mr. Earle said, "as a last resort Hippie would draw up a note with the forged slgnatura attached. Thls he would take to the cashier or paying teller, saying he hadi personally made the loan, and it was dis counted. With "he amount to his credit he would satisfy the pressing claim." Earle Head of Reorganized Bank. Mr. Earle said tonight that. In order to accomplish the reorganization of the Real Estate Trust Company, he would, accept the presidency If the depositors Insisted. The reorganization is likely to be soon effected. Early in the day Mr. Earle stated that he could not accept tha office, but was still working on the de tails of the reorganisation plan and., when it was announced it would bai bound to conserve all interests. It is now believed that an early reor ganization of the company on the plans1 mentioned in these dispatches is assured. The directors, it is asserted, have pledged ' themselves to advance J3.000.000, creditors' will take preferred stock worth H.oOO.OOO,, and Segal's security will be sold for 2,500-! 000. In this way the institution can be again placed on a sound basis. Who Got That $,000,000? That someone secured $2,000,000 for ne gotiatlng the loans made to Adolph Segaii by Hippie, is believed by those now en-s gaged in investigating the company's! affairs. Segal's repeated assertions that he did not borrow more than ?2,000,000 from the trust company have caused tha, investigators to exert every effort to( discover all of the details connected with these loans and, if it Is found that oth-i ers benefited, they will be made to re- turn the money. It developed today that the last Stat examination of the Trust Company was. made by Banking Commissioner Reedep In 1902. Robert McAfee, who was State Banking Commissioner from April, 1903J to July. 1905, made no examination and" Commissioner Birkey, who succeeded Mr. McAfee, also failed to examine tua institution. Trust Estates Intact. The two expert accountants, ap pointed yesterday by Mr. Birkey to in-j vestlgate the condition of the concern,, after a third of their first day's workw announced that they found the trust estates, of which the Real Estate Trust. Company acted as trustee, to be intact. The committee appointed by the trus-i tees of the General Assembly of tha Presbyterian Church to ascertain tha condition of the General Assembly's trust funds, today made the following? announcement: "Careful examination shows that tha great bulk of the Investments of tha trustees, amounting to $963,000. is in tact. The entire loss through the mal feasance of the late treasurer is not likely to exceed $3J,300." Punish Every Guilty Man. District Attorney Bell with a corps of assistants Is pursuing the investigation to learn whether any other persons con nected with the institution are criminally liable for ruining It. He said that until today he had only Investigated the com plicity of Frank K. Hippie, the dead presi dent; Adolph Segal, the promoter, and W. F. North and M. S. Colllngwood, of ficers of the bank. "From this time on," he said, "I will go right to the bottom of this whole affair and find out the name of every one con nected with the ruining of the Institution. If evidence can be found against any directors, warrants will be issued for them without regard to their political or financial standings." i The two principal points we wish to clear up, said Mr. Bell, are the Hminal liability of the executive board of the di rectors, and whether two lawyer direct ors of the Institution accepted fees to the amount of $750,000 for passing upon Concluded on Page 6.)