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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Feb. 8, 1908)
THE MOItXIXG OREGOXIAX, SATURDAY, J EBIILART 8, 190S. WELCOME INLAND EWE TOURISTS Arrangements for Reception Are Completed by Com mercial Club. EXCURSION HERE TODAY liuincs People Will Be Kovally En tertained During Brief Slay in v Portland on Their Way to California. That i he prcat Inland Empire has contributed much to the upbuilding of Portland as a seaport of impor tance Is a fact recognized by every body at all familiar with the growth of the :ity. That the bis-hearted people of that section of the Pacific Northwest hang out their latchstringa when Por.tlunders visit them has been evidenced many times; only a few months aro a delegation of repre sentative business men from this city wore royally entertained at different cities and towns in Eastern Oregon and KusU-rn Washington when an ex cursion whs sent into that region. Today there will arrive in Portland a special train from the Inland Em pire carrying about 220 excursionists, which left Spokane last night and will tome into Portland this forenoon at 11 o'clock. Portland is ready to receive hospitably these visitors. The train is said by William McMurray, general passenger agent of the Harriman lines In Oregon, to carry the largest excursion ever sent out on the North west Pacific Coast, and a telegram re ceived by him yesterday from the Harriman agent at Spokane says that tlio special attracted so much admira tion that many additional applications for tickets were made after It ,was hauled into the yards at that point. The railroad , officials have done much to make the trip interesting and comfortable for the excursionists. They have even added an illuminated tailpiece to the last cr showing in electric lights the words, "Inland Em pire Special.' Winn the O. R. & N. train reaches this city the coaches will be 'switched to the Southern Pacific tracks and a gaily decorated locomotive will then lake the special to Ashland. Auto Trip at Medford. Word was received yesterday from tin; Commercial Club .of Medford re questing that the members of the party arrange to disembark at that place and proceed by automobile to Ashland through the orchard districts, promising that no time should be lost by the change of plan. That matter will be considered upon the arrival of the train here. Excepting those who engaged trans portation late yesterday afternoon, a roster of the excursionists is as fol lows: From Spokane AcufT, "W. H.. Barton, Mrs. IS. .1.. Blldner, Val.. Bildncr, Mrs., Miss"tt, Mrs. Mary. Blair, Jt. . Blair, Mrs. II. C. Brattaln. Mrs. R. R.. Brower, Dr., Hrower. Mrs., Burcft, Dr. I,, v., Burch. Mrs. I.. V.. Burch, I.lla, Carmcl, D. A.. 'armel, Mrs. l. A., Chamberlain, II. I.., Conley, W. J , Conley, Mrs. W. J., Crx. John. Cox, Mrs. T. B.. Dart, I S., DpvlMe, J., Doerr, George M., Doerr. Mrs. VIeorpo H., Herman, O., Dnrman, Mrs. O., Doust. Mrs. W. J., Jn-nmlifller. l. M.. Kdwards, Mrs., Klllott, Harry R., Klliott, Mary Kerguson, Mrs. Charles. Ferguson, O. L.., Fink, J. II., Korfl ltani. M.. Kranke, William. Calhruttli, Mrs. K. r., Gardner. F. M., cloodall, F. tiray, lr., (';reenoiih. J. B., GreenouRh, Mrs. J. B.. Harrison. Mrs. "William, Hellman, Mrs., Hindi. J A., Hlndle, Mrs. J. A., Horst nmn. H., Huetter, John. Huntley, Georjje H., Hutchinson. It. A-, Hyde, E. J., Jamlrson, A. C . Janiiepnn, Mrs. A. C, Jonrs, Alfred, Jonfs, Mrs. Alfred, Kessler.'J. Fred. Knost inan. William, Koons. cJ., Koons, Mi's. ., Krum. Charles. ,arkln. O. H . I-nscr, Ed., Manley, Mrs. (')iai-les, Mccreary, W. M., Mc Crfary, Mrs. W. M-, McDonald, 1). K-, Mo Klroy, Mrs. Sadie. McKenzic, Dr., Mc Whorter. .1. K., Mocks, F. J., Meeks, Mrs. F. (i., Merrill, K. B.. Mitchell, A. P., Mitchell. Mrs. A. P., Monroe, I,. Moore, O. .:.. Miimon, II. C, Oakes. J. "W., Oakes; Mrs. J. W., Paine. J. I,., Parent. Mrs. N. A., Parsons. Dr. Effic. Pllsch, Adolph, Porter, A. 1,., Porter, Mrs. A. U, Porter, TV. II. , Porter, Mrs. W. H., Reed, L.. T.. T.eed. Mrs. T,. C., Rldpath, Colonel TV. M., Robertson, F. R., Robertson, Mrs. F. R., Sanders. Kd. ganders, Mrs. Kd. Sanders, P. W., Sanders, Mrs. P. W., Schueie, m., Shaw, K. H., Slilpman, Carrie B. . Skinner, Miss Bertie, Smith, S. M., Smith, Mrs. P. M.. Staples, c. G., Swadner. B. R., TVadman, ir. B., Waters, Mrs. Mary, Watklns. .1. M.. Watkins, Mrs. "J. M., Wat son. William, Watson, Mrs. William, TVIi-k-ersham, C. K., Wolf. Mrs. I. B.. Wooster, W. W., Wooster. Mrs. W. W., Ycarsley, W. From Walla Walla Aufrustavo. Mrs. H. H . Baumistcr, Max. Raninlster, Mrs. Alvina, Bfrr man. J. K., Beriyman. Mrs. .1. K., Blalock. Dr. N. t;., Cookerly. Mrs. Mat tie C Coleman. Miss Hazel, Coleman. Miss Krma. Cox. C. (J., Devries. Miss Grace, Dmnilicller. Oscar, TirumheStcr. Mrs. Oscar, Holloway, Mrs. K. A., .lolly, Mrs. T. I, Kaser. F. W., Kaser. Mrs. F. W., Kasebcrg, Mrs. W- 11.. Malloy. TV. S.. Morse. A A.. Muntlnga. J. U.. MuntlnRa, Mrs. Albert. Mc cormick. K. K., Me.-ormick. Mrs. N. K.. Mc .Tonnler. F. K.. Painter, Joe Ed. Painter. Mrs. Joe Ed, Severance, A. W., Severance, Mrs. A. TV.. Smalley, K. L. North Yakima. Wash. Allen. Ed, Calla han, J. St. Maries. Idaho McCarter, Mr. and Mrs. William. Wallace, Idaho Welghtman,' Mr. and Mrs. C. D. Colfax, Wash. McCroskey, V. T, Poteet. J. TV. Roekford. Wash. Mattern. J. M. Harrington. Wash. Newland. T. W. Lewlston. Idaho Brown, Mrs. C O. Coulee. Wash. Button. H. JI., Paul. Dan. Coeur d'Alene. Idaho Johnson. P w Johnson. Mrs. p. w.. Sander. Mr. and Mrs. V. TV., WiK8"ctt. J. Wenatchee. Wash. Llttlefield. II C . Minefield. Mrs. H. C. Wells. Mr. and Mrs. A. 7... Williams. Mrs. Mary. F.r.dlcott. Wash. Macliin, J. Moscow. Idaho David. F. A.. Hodglns, Ti . Orland. Hal, Wyatt. Miss A. V. Freeman. Wash. Thomas. Mr. and Mrs. CP. Pullman.Wash. Enos. c. P.. Murrav, Mrs .T. J., Murray. Miss Neva, Sander. Mrs D M.. Sparr. Mr. and Mrs. Marlon. Sand Point. Idaho Farmin, L. D., Farmin. Mrs. I.. D.. Richards. O. Ii: Rosalia. Warh. Flsk. R. J., risk. Mrs. R. ffj.. Flsk. Miss Rosalia. WaltsbnrK. Wash. Brining. John, Hosklns. F. M.. Shaftcr. Charles. 'Shaffer. Mr. and Mrs. TV. B., Shaffer. Miss. Watt. Mrs. M L. . Watt. Miss. Woods. Mr. and Mrs. Joel. Milton. Wash. foe. Miss Lena. Elam, Mr. and Mrs. A. M.. Elam. Miss Bertie. Pomeroy. Wash. Ford. J. p., Parlet. Mr and Mrs. W. R. Tacoma. Wash. Lawler. Georjre, Miller, Miss Jennie. Pearce. Miss J. D. M. Dayton, Wash. Pletrzyckl. Dr. and Mrs. M.. Price. G. F. rtltsvllle. Wash. Snyder. Mr. and Mrs. William. Arrangements Tor Reception. The special train bearing the party will arrive this jorning at 11 o'clock. Ar rangements for the reception of the visitors were yesterday completed. Sixty sutoiriolbles have been engaged to convey the member? of the party on a brief trip about the city. L.uncheon will be served at 12:3i) o'clock in the Hotel Portland. Im mediately afterwards the visitors will be given a trolley ride to various point, of interest. At 7 o'rlock they will be the guests of the Portland Commercial Club at dinner at the Hotel Portland. Among those who will speak, at the re ception tonight at the Portland Hotel are Governor George E. Chamberlain, H. W. Scott and Theodore B. Wilcox. At the conclusion of the dinner there will be a reception for the visitors.' The party will rfsume ile journey to California at 11 o'clock. . " At the conclusion of the dinner there will be a reception for the visitors. The party will resume its journey to California at 11 o'clock. r Show cards bearing inscriptions, of welcome were yesterday placed in, the windows of many of the business houses and at points to be. passed by the visitors in their trip about the, city. These cards read: "Spokane and TValla TValla Do Things Right." "The Inland Empire makes Portland the Great Wheat Shipping Port of the Coast," "The Inland Empire Made Portland; You Own the Town." The. reception committee from the Commercial Club is composed of the following: W. B. Glafke , J. W. Ganotig Edward Ehrman R. B. Miller Sfg Slehel Julius Meier E. H. McCraken W. W. Cotton Dr. J. R. Weatherbee Whitney I Boise W. E. Prudhomme H. S. Butterflcld W. P. Olds A. W. Umhert D. C. Pelton William Killingsworth Jefferson Myers A. c. -Jackson H. W. Mitchell A. P. Tlfft C. J. McPherson W. D. Wheelwright C. A. McCarRar John S. Bealls Dr. K. A. Mackenzie Dr. Sandford Whiting S. B. Lonenbcrg . E. E. Trent S. M. Wears T. N. Stoppenbach R. J. Holmes Paul C. Bates' E. B. McNaughton , TV. H. Chapin M. J. Buckley IF. H. fctowe Ceorse W. Boschke J. M. A. I,aue W. E. Coman J. W. Casey D. J. Malarkey . F. S. Dornbecher George W. Hoyt H. G. Reed C. M. Gunn W. D. Fenton T. ('. Devlin I,. Gerllnger. J. P. O'Brien C. F. Swigert William Gadsby R. F. Prael DEATH OF PETER J. FLYNN Contractor Passes Away After Un dergoing Surgical Operation. Peter J. Flynn, for the past 30 years a resident of Portland, and one of the best known contractors of the Pacific North west, died at St. "Vincent's Hospital Thursday night after a short severe ill ness followed by an operation for i cir rhosis of the liver. Mr. Flynn, who was a robust, hearty man, had- never been ill before in his life. He had not been feel ing well for at least two months and al though knowing that he was suffering from some serious ailment his rugged con stitution and energetic spirit kept him on his feet until he was forced to place himself in a physician's hands. He entered the hospital last Sunday and his condition was found to be so serious that an operation was performed on -Monday but the disease by which he had been attacked had progressed too far for surg ical aid, and aside from taking such pro phylactic measures as were found ex pedient the object of the operation had to be abandoned. It was seen that he could not survive the extensive operation his condition called for, and it being believed that He would live perhaps for a month or two it was thought best not to under take it. Air. Flynn was a native of the state of Pennsylvania, having been born in Phila delphia on April 19, 1857. His early life was spent in Youngstown, O., where he has relatives, and from whence he came to Oregon with George Langford SO years ago, making his home in this city. From the time of his arrival here he engaged in the contracting business and remained in it until two years ago, when he re tired from active work. Mr. Flynn built some of the most important structures in the city, among them being the Union Depot. While operating largely alone in his business he has been associated at various times with James McBride and A. J. Bingham, well known In the contract ing business. In June, 1SS2, Mr. Flynn married Miss Elizabeth Beutgen, of this city. Besides the widow, who is a sister of ex-Representative Beutgen, of this state, Mr. Flynn is survived by four sisters and two brothers. Mrs. Sarah T. Gribben. of Youngstown, O. ; Mrs. William O'Hare. of San Francisco; Mrs. Mary O'Mara, of Anaconda, Mont.; Jlrs. Rose Heffernan, of this city; James Ij. Flynn, of Youngs town, O.. and J. K. Flynn, of this city. The funeral will be held at the Flynn residence, 161 Twenty-first street. North, probably Monday.' The interment will be made in . Mount Calvary Cemetery. Mr. Flynn was widely and popularly known in this city, bearing the reputation of strict business and moral Integrity. He leaves many friends in both business and social circles. During his career in busi ness in Portland he prospered and he left a large number of valuable pieces or real estate to his heirs. COURT TO DECIDE RATES Temporary Agreement on Lumber May Be Keaclicd. SEATTLK. Wash., Feb. 7. (Special.) That there will be absolutely no com promise in the tight being waged in the courts by the railroads and the lumber interests is the announcement made today by men directly Interested In the outcome. Not until the Su preme Court. has decided the question will the rate controversy cease: The railroad officials are willing to consider some plan tending toward an amelioration of present conditions, pending the final result of the rate tight. The legal forces of the rail roads will ascertain if there is any way in whicli resumption of the lum ber industry can be made possible, without affecting the rights of the rail roads before the court. IXSPKCT VAST TIMBEK IiAXD Eastern Capitalists Penetrate FVjr- csls on Vancouver Island. , SEATTLE, Wash., Feb. 7. (Special.) Acquirement of vast timber inter ests in the Pacific Northwest is the avowed object of a trip Into the forests of Vancouver Island now being taken by officials of the Chicago, St. Paul & Milwaukee Railroad. At the head of the party Is President A. J. Earling, who Is accompanied by H. R. Williams, local president of the railroad, and Potter Palmer, the young Chicago mil lionaire. The party left here three days ago, accompanied by timber cruisers and guides. CHAXGE IX THE AXTI-SAIXOX State Superintendent to Become Ed itor of Xicague Publication. . SEATTLE, Wash., Feb. 7. (Special.) It was announced today that Ernest H. Cherrington, for more than two years state superintendent of the Anti Saloon League of Wash4ngton, has re signed and will go to Chicago to as sume tlio duties of associate editor of the American Issue, the league's offi cial National organ. Cherrington. who ramo here in 1905 from Ohio, will be succeeded by Rev. Itoyal V. Raymond of Wilmington, Del. Girl Slioots Herself In Head. Susie Cloninger, daughter of Thomas (Toninger, a rancher living two miles north of Scappoose, was fcring from a severe gun wound in me neaa. nie gin sustained the wound early yesterday morning, while alone In her room. Whether the shooting was accidental or with suicidal intent is not known. The girl is 15 years old and .her parents say they know of no reason why- she should attempt self-destruction. While in a precarious condition, she was resting well last night and hopes for her recovery were entertained. AMAZING ORGY OF FRENZIED FINANCE (Continued From First Pasc.) having the public share some of its responsi bilities, a savinRa bank departnu-nt was or ganized (June 3(. 1004), by the pretense of setting aside of sundry notes which assi'e- gated tlO.000, and the issuing of $4v',wo of bondfl on a safe' deposit vault which had cost $9200. Of course this pretense of setting aside of securities for the purpose, of secur ing the deposits In the bank, was only for appearance, a It was not in the power of the company by any mere bookkeeping ruse to exempt part of its aseets from its general liabilities and create a special Hen upon them In favor of any particular class of its credit ors. With this meager protection, the savings of children and working people were solicited. These deposits soon grew to a larg sum by reason 01 me connoence 01 ine puonc m the wealth and etanding of its principal stockholder, and were invested in the various enterprises of the company. The company also became the depository of state funds to a large amount and these were invested in the same manner. The leading fixed expenses of the company. such as salaries, rent and interest, were a heavy drain, and It is questionable as to whether the legitimate departments of the company produced sufficient profit to meet them, eliminating the extraordinary itema of Inflation, from the earnings account, conse quently the sum disbursed in the various en terprises were in the main from the three eources heretofore described. I.e. from Laud & Tilton, from depositors and from the state. Disaster Follows Disaster. In a review of the accounts of these specu lative companies disaster after disaster ap pears. Many have been wholly or partially charged off. the result totalling a large amount, and others Indicating by their char acter a still further Iocs. . Nowhere in the record of the minutes of the company does there appear a single pro test as to its policy of speculation. Appar ently Its president expected to profit by he large per cent of interest earned on the sums advanced, which provided an -outlet to his capital, and on prospective earnings from his stock, of which he held a majority interest until a quite recent period; and the other officials, reason of their stock earn ings and outside speculations. With continued prosperity, some of the ventures of the company might have proved successful and established the company on a firmer basis, but its policy was ill fitted to withstand the storm which overwhelmed it, without further protection. In time of war our people look to those who have assumed the, responsibility of their protection to remain behind their guns. This requires both moral and physical courage. So in time of financial strife our people look to those who have, assumed the responsibility of the care of their money to remain behind the guns. In the care of this. bank, when the attack came,- the 'gunners had deserted, and the bank failed. It is a matter of public knowledge that there was ample wealth among the major ity stockholders to protect this, bank, whose condition was a direct resuft of their own acts, but at the time of crisis the bank was lef$ to its fate. Results of the Failure. The result of this disaster directly has brought hardship and suffering to Its de positors, and indirectly, through the tying up of capital and- general lack of confidence created, has affected the people at large, and our proud city, which has long boasted of its financial strength, has been humiliated by the publicity which this scandal has brought upon it. It is but Just to Mr. L,add to say that, some time after the closing of the bank, he came to the rescue of Its creditors and as sumed all Its liabilities, thus partially reliev ing the dis-trees caused by the failure. Reveals Grab Methods. Significant of the grab methods of the bank was the absorption of thte revenues of the Marquam building. This was done In order, obviously, that if the court should order the company to hand back the building to its original owner, Mar quam would get none of the earnings of the last few years. The total of the ex cessive charges is between $00,000 and $250,000. One of the items is $140,000. pro ceeds from the sale of the Marquam theater, in . April, 1907. This money, in the. form of a note given by the pur chaser of the theater, was paid as divi dend by the Oregon Company, possessor of the building, to its stockholder, tlio Title bank, and the Title bank -conveyed it to Ladd & Tilton, to be exoditcd on the big debt owed by the Title hank, then amounting to some $780,000. Should Marquam regain his building he should have the theater with ft, but that will be confronted by the claims of an inno cent purchaser. Other Big Charges. Other biir charges against the building are for services rendered by Ross and his bank, attorney fees, and eommissio'ns. One of Ross' grafts was the insuring of the building, given to J. T. Ross & Co., insurance agents, the profits of which were wholly absorbed by them person ally. In June, 1905, Ross and Munly were credited with $10,883 attorney fees, for compromising county's tax recovery suit against the Marquam building. On these matters th& report says: Kxliibit No. 2.'. Ths i an exhibit of ac covfnt of J. Thorhurn Ross, trustee of Mar quam property. It shows something of the transactions concerning one of the com pany's most valuable assets, and some rather extraordinao entries in connection therewith, among which is one, December 15. 1900, cash paid Ross. $S000; December 1900, cash paid Ross, $15,774.83. These eri tries are void of any explanation on the books. June 30. 1901, item chtrged (by Title Company) $23.i:'. explained as "ac cruted equities not heretofore charged." Exhibit No. 24 is an exhibit of the ac count of thcJDregon Company. This shows the transactions concerning the Marquam property from the time it was turned over to the Oregon Company (in 1901) by J. T. Ross, trustee, to date. Among other things noticeable In this account Is that the lire Insurance on the . Marquam property, the premiums amounting to many thousands of dollars, was given entirely to J. T. Ross & Co. (insurance agents), the profits of which was whollyabsorbed by them (personally). Also item of June, 190o, crediting Ross and Munly attorney (-personal,, for services in compromising county) tax recovery suit, $10,883.98. On June, 1903, appears charge (of Title Company) for services 16 months, $1333.33 and 3 per" cent commission on renfs collected. $2093.57 and one-sixth increased. Income per annum, $1 100.60. June, 1904, charge (of Title Company) for partial pHy- IN winter no amount of warm clothing will make you safe if your vi tality is low. Warmth inside is what you must have. Scott's Emulsion of Cod Liver Oil supplies carbon to the blood and tissues and makes you warm and comfortable all over. It is a safeguard against colds and all the ills that follow them. Small, easily taken doses will do it All Drnscuts: 50c aad $1.00. ment Interest and servlts, J1S (no details given). June. l'.XM. charge (ot. Title Com pany), for partial payment for interest and services rendered. $1fi.HM). , June, I'.mmj. (charge by Title Company) ' for services earned and rendered, $12,ooo. Deals With Iafe Pence. The Lafc Pence Companies, byname the Portland Pevelopment Company and the Colonial Investment Company, owe the bank $399,000. Arthur W. Jenks owns practically all of the stock of the Development Company. Until the appointment of the bank receiver hp drew from departments of the Title Company $200 a month salary, from the Development Company ?200 and from the Investment Company $-00, making- a total of $600 a month. "The Hawkeye Investment Com- ! pany," says the report. "seems to be a company formed, so far as we could ascertain, for the pur pose of having- run through It trans actions where bonuses were to be re ceived and disposed of. and matters which apparently the Title Guarantee & Trust Company did not care to openly handle. It appears that at least one of its transactions was a case where M. B. Rankin applied for a loan of $42,500. but instead of making the loan to' him directly, the Hawkeye Company took his note, secured by some stock in the Independence Coal & Ice Company, as collateral. The Hawkeye Company gave the Title Guar antee & Trust Company its note for a like sum and turned over with it collateral it had received. The Title Guarantee & Trust Company still holds this note and the Hawkeye Company still holds the note of Rankin.'.' Burkhart and Ross had two prune partnerships. One was the C. W. Laver Trust, the other the Laver Partner ship Trust. Both borrowed money from the bank and lost heavily. The sum of $25,000 of the Laver Trust was charged to the suspense account of the bank and then to loss and the Trust still owes the bank $67-10. -l-'or the Laver partnership trust $3000 was charged off to suspense, and there Is still a balance due the bank of $19,756. "These accounts charged to sus pense,'.' says the report, "were after ward charged off as losses by order of the board of directors. Thus it ap pears that these two partnerships, con sisting of Burkhart and Ross, were advanced cash by the Title Guarantee & Trust Company, both the sums charged to suspense and afterward charged off to losses, and the additional sums remaining as balances, amounting-in all to $56,495, for which as part ners each of them would seem to be personally liable to the Title Guarantee & Trust Company. Loaned to Themselves. "Of course, these two men being in control of the bank and its funds, ap parently loaned these large sums to themselves as partners, and then as officers of the bank excused them selves from repaying to the bank the loans thus made and received by them." Further on the report says regard ing similar deals: Along in 1902 and 1903 there was organ ized the Great Ccnjral .Railroad Company, a corporation that was to construct a railroad from Coos Bay, Oregon, via Roseburg. to Salt Lake City. One L. D. Kinney was the -chief engineer and Dromoter of this enter prise, and in common with many of. the other fake corporations mentioned, succeeded in getting its and its promoters hands in the treasury of the Title Guarantee & Trust Com pany, and we find In the suspense account that finally by the resolution of the Board of Directors. September 17, 1907, eliminated . from the hook as permanent, the Title Guar antee & Trust . Company suffered 'an aggre gate I0S3 from its misplaced confidence in this high-sounding enterprise, of $:t5,195. Tlie Gold Coast Company, another enter prise1 organized in those years, by which credulous patrons were Induced to part with their, money on the Representation that It was to be expended In prospecting for and discovering mines anywhere hereabouts, wis organized by one D. H. Stearns and through this company and other enterprises of said Stearns the Title Guarantee & Trust Com pany lost $is.ao. Other Losing Ventures. Other companies which caused the bank to lose money heavily are the Oregon Land & Water Company (Irri gon), whose bonds amounting to $225. 000 the bank holds and in addition favored it with an overdraft of $92. 131; Gold Bug Syndicate, Union Light & Power Company, Levens Gold Min ing Company, Fourth Plain Kvaporat ing Company, Mill Plain Fruit Com pany and Hawkeye Investment Com pany. AH these losses have been made public and the report contains nothing new about them. The report does not summarize the total losses which the bank suffered from its ventures, but the total is probably about $7,-0',000, as nearly as it is possible to ascertain. The organization of the bank de partment in 1904 the report criticises severely, showing up the fake $50,300 .capital which the officers set apart (on paper) as a decoy to depositors. Of this capital $10,000 was notes, mort gages and contracts and $40,000 was bonds on the safety deposit vaults. These vaults had cost $9200. This $50,000 'capital was largely fictitious. The report says: Of course, the whole of this was a mere sham intended to deceive the children or their parents, who were to make the depos its and fill the little iron boxes that were distributed among them. It Is an interesting query as to whether in encouraging the prospective depositors by publishing this so-called capital of the bank they apprised them of the fact that the company's treas ury was in arrears to the treasurer (Ladd & Tiltcm) in an enormous constantly increas ing amount. Could the company sequester its assets, whether safety vaults or other assets, or by any bookkeeping process give them to any of Its departments fo as to With 7 - I w 1 ',5 u I deprive Mr. T.add of his right to recover his debt from the company out of whatever it had. Under Xew Hanking; Law. The new State banking law requires that whenever an officer of a bank bor rows money from a bank, the loan must be approved by a special committee of the Board of Directors. In June, when this law became opera tive, such a committee was appointed in the Title bank composed of Secretary Aitchison, Treasurer Burkhart and As sistant Treasurer Kopf. Of course, the function of this committee was a mere sham. As a matter of fact there is no record of Us ever having passed on any of the loans. The futility of this committee is pointed out by the report as follows: "Judging from the fact that the subsi diary corporations and partnerships owned or officered largely by the offi cers and employes of the company now owe the company large sums of money aggregating an enormous sum. besides other sums aggregating also very large which have been charged off to profit and loss as complete losses, it seems to be apparent that the locking of the stable door at this late date came too late to avert the ruin that has fallen upon the business of the company." Regarding the suspense account, which was a junk pile of bad accounts, "old hoss" items, and Inflations generally, the report says: "A lanye number of items in ..8 ac count show that the account was a sort of limbo in which doubtful items were placed and also that it was used in in flating and enhancing values when de sired, and on the whole, without going into details, this account will furnish much food for thought and merits a care ful examination." As to Suspense Profits. The report next treats of the suspense earnings account, which showed a prolit last June of. $124,000, and says: To illustrate the nature of this bookkeep ing Increase in the earnings and holdings of the 'company, and to show that It largely, at least, was moonshine, it will only be necessary to cite briefly the manipulations of the plant account, which is included in it. In the first place the plant account is put in at $125,000. which the books show is in flated about $40,000 over what is cost. After ward the plant value was raised to $100,000 from labor charged to tt. and then by an arbitrary edict of a resolution the valuation was reduced to $60. "O0. Then on June 30. 190(1. by resolution the valuation was raised to $125,000. There was another account called the gen eral, earnings, which the report says appears to have been genuine In the early part of the company's business. But later, items appeared with inflated figures. On July 30. 1903. the general earnings are credited by an entry "safe deposit vaults for art oi advanced value on basis of . $30,000 total." On June 30. 1904. appeared credit entry "safe deposit vaults $10,000 and suspense $10,000. enhanced value of, vaults in excess of entries heretofore made $20,000." It would appear from this that they wanted a showing of earnings Instead of $20,000. so they charged $10,000 to safe deposit vaults and $10,000 to suspense, although the entry undertakes to make it appear that the whole $20,000 Is enhanced value of vaults. "Of course, all such earnings are purely fictitious. The profits of the safe deposit business may possibly have increased but that would not increase the value of the vault any more than it would the chairs and desks in the office. Their value depends upon what similar ones could be purchased and installed for." Methods of Inflation. The profit and loes account shows the same method of inflation. On June 30, 1907, the balance on the credit side was $64,381. "Were these Items eliminated," says the report speaking of inflation, "the credit profit balance would melt away and the balance would be on the other side and would show a loss of considerable amount Instead of this gain. There are other accounts standing on the ledgers which, if investigated and properly charged up, we are of the opinion would considerably further increase the showing of loss. "One of these is the surplus account into which was transferred the yearly balances and profit and loss account. On June 29, 1907, for some reason unexplained, an entry was made transferring from, profit and loss to surplus the sum of $9S76, thereby increasing the surplus account to an even $125,000. As we have previously shown if the proper entries were made, relative to uncollectible and 'depreriative accounts it would show the balance on the other side by a considerable sum. And further, if the water in this credit balance, owing to the system of Inflated values we havo referred to, were squeezed out of It, the balance on the debit or loss eide would be still further largely increased." WOMAN'S COUNSEL SCORED Terjury and Bribery Charged in the Dora McDonald Trial. CHICAGO, Feb. 7. A bitter denuncia tion of the tactics of the defense was the keynote of the address of Assistant State's Attorney Day, who began the concluding arguments in the trial of Mrs. Dora McDonald, charged with killing Webster Guerin, this afternoon. He made charges of perjury, treachery and brib ery against the opposing witnesses and counsel. There was no hint of the death penalty in Mr. Day's address. He asked the jury to find the woman guilty of murder, but gave it to understand that a peniten tiary sentence will satisfy the prosecution. Soda Crackers that -crackle as good Crackers should needa Biscis meals for meals between meals tgjjlffi In dust tight, V ft ISIS J jf-tr Neper sold in bulk. NATIONAL BISCUIT COMPANY BRIDGE PROJECT Gil RIG BOOST Mass Meeting of Citizens on East Side Addressed by Governor and Mayor. STEEL BRIDGE INADEQUATE President Munly, of North Eant Side Improvement Cluo. Gives Figures ShoxVing How Section Has Out .g row ii Present Facilities. An audience of more than 500 citizens gathered last night In Woodmen Hall, on Russell' s'reet, under the auspices f the North East Side Improvement Asso ciation, to assist in boosting the pro posed high bridge across the Willamette River north of Sullivan's Gulch. M. G. Munly, as president, delivered the wel come and set forth with figures and sta tistics the need of this bridge. He showed the great growth of population and prop erty valuation on the East Side and the consequent congestion of traffic on the present bridges, and declared, that It was absolutely necessary to have another bridge, high enough to permit vessels to pass under and wide enough t accom modate traffic for 50 years. In speaking of property valuation, Mr. Munly pointed to the taxable valuations on the East Side for 1908. showing the following: Seventh, Eighth. Ninth and Tenth wards, total, $46,850,305; total soutn of Sullivan's Gulch, Seventh and Eighth wards, $23,009,340; north of Sullivan's Gulch, Ninth and Tenth wards, $.843. 965; excess valuation north of Sullivan's Gulch, $S37,331. He said that the total population of Portland in 1890. Alblna. East and West Sides, was 64.891. but in 1907 it was 205,000, or. according to Polk's directory, 225.000. North of Sullivan's Gulch it was 65.000. south of the gulch 47,000. He said that these figures had been Increased so that it now stands 60.000 north of the gulch and 50,000 south of the gulch, or making a total for the East Side of 112.000 January 1, 1908. Figures were given for the school pop ulation to show the growth of the East Side, the total in 1892 for the entire cits' being 4164. and now is 32.304. about 12.000 children being north of Sullivan's Gulch and 10.940 south. Judge Munly said that the statistics showed the growth of the Kast Side, and they were the basis r demand for this high bridge. Governor Chamberlain was introduced and spoke strongly for an adequate bridge that would serve for many years. He said that this bridge , should be built for the future. He declared It would receive his hearty and most active sup port. Mayor Iano followed with a short talk, in which be reviewed the progress of the city and said -none of the present bridges were adequate. He pledged his assist ance to the new bridge project. In con cluding he declared no mistake should be made in preparing plans for the bridge and that it ought to be ample for all re quirements for years to come. W. M. Cake said that the -figures pre sented demonstrated that the trend of population and business was toward the peninsula, and declared that the West Side must support the efforts to build this bridge. In order to facilitate trans portation between both sides. Whitney L,. Boise, representing the section south of Sullivan's Gulch, brought the greet ings of that section to the North Knst. He' said that the people south of. Sulli van's Gulch would help the people north and would expect their help in getting a new Madison bridge. Joseph Buhtcl, "the well-known pioneer, who helped start the Morrison bridge, was received with hearty applause- as. he stepped on the platform, where he delivered one of the most effective talks of the evening. In the course of his address he spoke of the efforts being made to' regulate the opening and clos ing of the bridge draws, and asked the support of the North East Side Improve ment Association. Dan McAllen. was In troduced as the father of the Iewls and Clark Exposition and talked with Ills usual optimistic spirit for the new bridge. After the addresses the actual work of circulating petitions was started. The petition la addressed to the City Council, asking that the matter of erecting a new bridge across the Willamette river at some point between the railroad bridge and the Albina ferry be submitted to the voters: that an ordinance be passed as prescribed by sections 81 and 84, and that plans, estimates and propositions for the construction be obtftlned. The. petitions will be signed up as soon as possible and presented to the City Council for action. The meeting was liarneterized by great enthusiasm. Soda it ill 1 luP A mother who is iu good physical condition transmits to her child the blessing of a good constitution; sickly, ailing mothers, the reverse. The tiny babe brings to her a liv ing responsibility. At such a time too great care cannot be taken to build up the mother's general con stitution, and restore her feminine system to a healthy, normal con dition. The greatest assistance that any woman can have in accomplish ing this all-important work is LYDIAE.PINKHAI1'S VEGETABLE COPOUO Mrs. M. Gilmer, of West Union, S. C, writes to Mrs. Pinkham, Lynn, Mass. " I was greatly run down in health, suffering from a weakness, peculiar to my sex. I beg-an to take Lydia E. Pinkham's Vegetable Compound, and I was not only restored to health but am the proud mother of a fine baby girl. I wish every sick and ailing woman would give Lydia E. Pinkham's Vesretable Compound a trial." Mrs. Paul Oliver, of St. Martin ville, La., writes to Mrs. IHnkham : " For years I suffered from the worst form of female troubles, and the doctor said I could not pet well without an operation. Lydia E. Pinkham's Vege table Compound restored me to perfect health, and I have the sweetest little baby girl. I will never cease to praise Lydia E. Pinkham's medicine." FACTS FOR SICK WOMEN. For thirty years Lydia E. liuk ham's Vegetable Compound, made from roots and herbs, has been the standard remedy for female ills. Hid has positively cured thousands of women who have been troubled with the worst forms. Why don't you try it? VKsUliVjiht-d 1R70.) Cares Whllt ton Sltrp Whoopirtg-Coug h, Croup, Bronchitis, Coughs, Diphtheria, Catarrh. Confidence can be placed in a rem edy, which for a quarter of a century has earned unqualified praise. Restful nights are assured at once. Cresoieae Is a Boon to Asthmatics All Druggists Stnd tostal for de scriptive booklet. Cresolene Antiseptic Throat Tablets for the irritated throat., of your druKprist or from us. 10c. in stamps. The Vapo-Cresokiie Co, 180 FoltM St., N. Y. C. GEE WO The lYHI-Knows Reliable CHINESE Root and Hrrh DOCTOR Has made a 111 iudr nf roots mil nerba. and 4 In that study discovered Sl and 1 glvlni to tne world hie wonderful ramtili iv.. .r....... . ..i.una or l)ru-e Used lis Cures WUnoul Operation, or Without tba Aid ot the Knife. He uaranteea to cure Catarrh. Asthma. Lun(. Throat, Rheuma tism. Nervousness. Nervous Debility. Btotn ach. IJver. Kidney Troubles; also Lost Mao hood. Female Weakness and All Private Diseases. CAJJCJ,R CVRX Jnst Received from Feklnie. China Safe, (jure and Reliable. IF YOU ARE AT FLI0TKt. DON T DETLAT. PELATB ARB SAN4EROCS. If you cannot call, write for ymptom blank apd circular. Inclose 4 cents In stamps CONSULTATION FREE. The C. lice Wo Chinese Medicine Co. 16211 First S- Cor. Morrison. Portland. Oregon. t riemse) Mention Xuie Faner. rlsverythloO and very black. Paint it j on. Is better than enamel. Dries quicker, wears longer. For aale by Hexter. May at Co.. distributors. FOR WOMEN ONLY Ir. 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