Image provided by: University of Oregon Libraries; Eugene, OR
About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 5, 1913)
7 THE MORNING OREGONIAN, SATURDAY, APRIL 5, 1913 PROMOTERS FOUND GUILTY OF FRAUD Ex-Member of Congress Con victed of Misrepresenting Insurance Stock. 'BANKERS THEIR VICTIMS Gorfrnment Has Contended Those Who Signed Articles of Incor po ration Did Sot Do So In Good Faith. . ST. LOUTS. April 4. Henry C. Coud rey. ex-Representatives In Congress, and Harry B. Gardner were found guilty in the Federal District Court to day of using the malls to defraud. The verdict of the Jury was reached after 24 hours' deliberation, and when attorneys were predicting that the jury would not oe able to agree. As soon as the verdict of anility on all seven counts of the Indictment had been announced, attorneys for the de- fens asked that sentence be deferred and that the prisoners be set at lib erty on their present bonds. This re quest was denied by Presiding- Judge liver- The prisoners then were re manded to the custody of the United Mates Marshall. laaaraaee Coaeeras Iavolved. Coudrey and Gardner were charged with using the malls to defraud in the promotion of what came to be known as the twin Insurance companies the Continental Life Assurance Company of America and the International Fire As surance Company of America. Both companies went Into the hands of re ceivers. Evidence was introduced at the trial to prove that stock in the twin com panies was sold throughout the coun try and that bankers in small towns were Induced to take stock on the promise that funds o- the companies would be deposited in their banks. It was charged that the promoters of the companies made misleading statements about the concerns in letters they sent out. The maximum sentence for each de fendant is 11509 fine or four and a half years' Imprisonment, or both. Bis; Stark CommlHlon Paid. In the arguments before the jury, Assistant Cnl(ed States Attorney Hall said that many of the persons who signed the articles of incorporation of the companies had no intention of car rying on an insurance business and that they had provided for no stock. Witnesses testified that at the first meeting of the directors, held on May 31. 1909. it was voted to pay Gardner 24 per cent of the proceeds of the stock sales for acting as fiscal sgent of the concerns. In the arguments, Mr. Hall ( said that these stock com missions meant sguu.uuv ior uaroner. Attorney Douglas, arguing for the defense, said that the prosecution had failed to show that the promoters had Intentionally attempted to defraud. Coudrey represented the Twelfth Missouri district In Congress In 1909-11 The court will not pass sentence on Coudrey and Gardner until 2 P. M. Monday, and they must remain In jail until that time. AGED JANIT0R RELEASED Man Who On re Confessed Sending Bomb So Longer in Prison. NEW YORK. April 4. John Faul Farrell. the aged janiter who confessed to sending the bomb that killed Mrs. Madeline Herrera and later repudiated the confession, was released today by the Coroner after a jury had returned verdicts at a double inquest on the deaths of Mrs. Herrera and Henry Klotz. the bombmaker. The jury decided that Klots came to his death by the explosion of a bomb of his own construction and that Mrs. Herrera died from the explosion of a bomb placed In her home by "a person or persons unknown." although police officials testified that Klota bad con fessed on his deathbed to sending bombs to Mrs. Herrera. as well as to Grace Taylor and Judge Rosalsky. Farrell spent two months In prison. PUBLICITY W0RK TALKED Continued From Flrwt Paice.) t.ie means of undertaking: so tremen dous a programme. The total'amount'of money handled by this office during the year is ISO. T4S.12. of which $25,000 was appropri ated by the State of Oregon. 1500 sub scribed by William Hanley. and the balance paid In by the business men. . professional men and property owners of Portland. Wsrk Vndrr Three Heads, "In the main these funds have been expended to further agricultural devel opment, the work being classified under three heads: First, publicity to secure inquiries from agricultural homeseek ers and replying to their inquiries; second, endeavoring to locate home seekers upon arrival in this state; third, co-operation with farmers al ready located here to help them make more money. Korrlca Casapalsra Planned. The energies of our publicity and Inquiry bureau have been confined to the United States and Canada. In co operation with the State Immigration Commission. It is proposed to launch a foreign immigration campaign so as lo secure desirable agricultural immi gration from Northern European coun tries. "The results from our advertising In the United States and Canada are con stantly growing'. Xeweomen Find Welcome, "Many of the ontlying commercial organizations In this territory have de veloped, in co-operation with this of fice, efficient methods of receiving newcomers and assisting them to lo cate to their own advantage. "The Importance of marketing farm lands at a low price without specula tive profit has Impressed itse'.f upon all who have been actively engaged in these development activities. Long term options are being secured on large tracts of land, which are cut up Into farms of proper size and sold on easy terms at a low rate of interest with tinly such a nominal profit as to cover the bare expense of operation. It is highly Important to have this system of handling colonists well or ganized and perfected before immi grants begin arriving via Panama Ca nal from European ports, or before the state's foreign Immigration cam paign is carried into Europe. "The principal organising energies of this office for the past year have been expended in helping farmers now here. Our farmers have three needs: Better farming methods, better mar keting methods, better living condi tions. To date the principal attention given by our commercial organisations has been to what might be called bet ter farming methods. In conjunction with the Agricultural College and the various counties of this state, there has been Inaugurated active agricul tural work. "Responsibility for conducting this campaign before the Legislature was thrust upon this office. The work done by your manager along these lines was ratified at a meeting of the full com mittee soon after the Legislature opened, and under Instructions from the committee your manager went to Salem, where be found It necessary to attend the entire remainder of the ses sion In order to secure the passage of this agricultural legislation. Committee' Work Lasded. "Portland has assumed ' a unique position of leadership In the agricul tural development of this great Pacific Northwest territory- This Is the di rect result of the broad policy outlined nine years ago under the auspices of the Portland Commercial Club and the direction of this executive committee, which today numbers in its member ship the same men who Were respon sible for this great programme. "This committee has taken over bur den after burden. There never has been a call for co-operation from any Dart of the Pacific Northwest that nas been unheeded. These men have risen VARSfirS -HONtEY MAY BE WITHHELD New Organization Will Seek to Invoke Referendum Affect ing Buildings. CONSOLIDATION IS SOUGHT Declaration of Principles Said by H. j. Parkison to Bo for Bene' fit of State University and Agricultural College. Organization of the Oregon Higher Educational Institutions' Betterment League was completed yesterday. One of the primary objects of the league Is MEN CHOSEN TO HEAD COMMITTEES OUt STATE-WIDE PUB LICITY WORK OF PORTLAND COMMERCIAL CLUB. r'yN '-1" kl G. F. Johaaoa. Re-elected Chair- T. B. Wllrox, Chairman Special mum of Publicity Committee. Committee oa Finance. to the occasion and have aided con structively in the upbuilding of agri cultural development throughout the length and breadth of -this vast Co lumbia Valley. While these men have stayed In the background, avoiding public appearances and shunning per sonal publicity, to them belongs the real credit. With the nations of the world as sembled at the San Francisco Exposi tion two years hence, with hundreds oi of teonle traveling to our Coast. Portland will have at that time a gigantic burden. Continuation and enlargement of the great work of, the Portland Commercial uiuo win mean that the "Rose City" will be in readi ness and will rise to the full height of all that can be expected of her by the people of Oregon and visitors to the Northwest." DUNIWAY MAKES OFFER STATE PRINTER CHALLENGES CO IPET ITIOX. Letter Sent Governor West Intimates That "Copy" Is Xot Always of the Best. cii.rAf fir. Anril 4. (Special.) Declaring that he Is willing to give trtnn t anv cnarlty the Governor may denominate if the printing of the State Librarian's catalogue can De aone h.aMp under competitive commercial bidding than by the state printing of fice at legal rates, state irraier uuni way has forwarded a letter to Governor wt rhalleneinir the State Board to do this work by competitive bidding. Some time ago the state rrinier tv,! in a letter to the Governor, declaring he would be willing to waive the rignt to oo me priming furnish the paper and binding, which he could not waive, he said. In response the Governor said the t- i -nniUf, tht miestion Of doing competitive commercial printing in the event that the State Printer would not insist that the printer select le class oi priming e-v uuiic. In response to the Governor's letter ie State Frinter says in part: r , vnn .1 ij nnt accent mV offer ar.d make the great saving which vour expert is wont glibly to assert may be easily effected by going to mas ter printers ana paying lop mmiiwrew rices, out mat insienu juu iiucaicjriw ...opbinir that VOtl 'must have something to say as to the selection of copy to bo sunmutea to cummmuii printers for bids.' Do you not thus seek Impose conailiuns timerem. iiwm lose under which I must work? I can t 'select copy,' but must take it as it comes, even though the copy be retchedly bad and entail cnanges, al terations, revisions ana losses, as your recent message did." EVANGELICALS AT EUGENE Annual Session of Oregon Conference Opens W ith 50 Delcsates, EUGENE. Or.. April 4. (Special.) Bishop W. H. Fouke, D. D., of Naper ville. 111., opened the 19th annual ses- ion of the Oregon conference of tne United Evangelical Church this mora ine with 50 delegates In attendance from Oregon and Washington. Bishop Fouke in his opening address conveyed greetings from the Eastern onferences over wnicn ne nas presiaea this year. Presiding Elders C. C. Poi nt: of Portlano, ana o. . .tiummey, oi Salem, gave Interesting and encourag ing reports of the work m their districts. The field ocvered by the Evangelicals on the Coast Is from Ada, Wash., south as far as Kugene and west to the coast. Dr. C. C. Poling, ot Portland, was re-elected presiding elder and will re turn to the Portland t lrst cnurcn lor another year. Dallas. Or., was select ed for the next annual conference. The church was crowded this even ing at the reception tendered by the Ministerial Union and the Commercial Club of this city. The address was given by Dr. Parsons, of the Presby terian Church, and the response by Dr. C. C. Poling, of Portland. Father" E. F. Well, or Des Moines, Iowa, celebrated his 78th birthday to day as the. guest of the conference. tx.ilcn adopteu resolutions congratulat ing lum on his long years In the minis. ry. His reply waa especially touch ing. the consolidation of the University ot Oregon and the State Agricultural Col lege, and one of its immediate pur poses is to apply the referendum to two measures passed by the last Leg islature, appropriating $100,000 for a fireproof administration building and 175,000 for an addition to the library and other permanent Improvements at the State University at Eugene. The league does not propose, how ever, to interfere with the expenditure of money for the maintenance of the university until after the question of consolidation shall have been sub mttted to the people at the next gen eral election, in November, 1914. Al though it is not specifically stated in the league s declaration of principles, one of its purposes will be to bring the question of consolidation before the people. Officers Are Named. . The officers of the league, as an nounced yesterday,' are: President, A. C. Libby, of Jefferson, master of the Marlon County Grange; first vice- president, T. H. 73urchard, of Portland, president of the Oregon State Federa tion of Labor; second vice-president, Dan Kellaher, of Portland; third vice- president, Clara L. Jarvis. of Hood River, state .legate from Pine Grove Grange; treasurer. George w. Joseph, of Portland; secretary, H. J. Parkison, of Portland. The "publication committee" of the league Is as follows: Dr. C. H. Chap man, of Portland, chairman; Luella C. Hunt, of Hood River, lecturer for Pine Grove Grange; R. O. Rector, of Port laud, president Central Labor Council; A. I. Mason, of Hood River, a member of the eexcutlve committee of the State urange; 1. ti. uurcnara, of Portland, Executive Committee Chosen. The league's executive committee In eludes A. C. Libby, of Jefferson; Frank T. Collier, of Portland; H. C. Johnson, of Hood River, master of Pine Grove Grange; Dan Kellaher, of Portland; J. H. ilotir, secretary of a grange near The Dalles; T. H. Burchard, of Port land; Luella C. Hunt, of Hood River; Dr. C. H. Chapman, of Portland: W. B. Dickerson, of Hood River, president of the Applegrowers Union; John M. Wall, of HUlsboro; George W. Joseph, of Portland; Jean Bennett, of Portland; Clara L. Jarvis, of Hood River; R. O. Rector, of Portland; J. C. Jarvis, ot Hood River, delegate to State Grange; A. I. Mason, of Hood River, and H. J. Parkison, of Portland. Organisation Declared Independent. Mr. Parkison, who has been promi nent In effecting the organization ot the league, said last night that, while many of the officers and others who have affiliated with the league are prominent in grange and labor circles, there is no significance to the fact as indicating that the league has the In dorsement of the grange or of organ ized labor as bodies. "Our educational problem will tiow be dealt with by the great Oregon pub lic through the use of the referendum, and then the initiative and lastly, the ballot," continued Mr. Parkison. "The question of consolidating the higher educational institutions, with Its many collateral issues, such as sup port by direct mill tax, location, per sonage and powers of the board of regents, limitation of .appropriating powers of Legislative Assembly, etc. will be presented. Before this is done, however, the two laws appropriating 1175,000 for permanent building im provement at the university will be referred to the voters for their ap proval or rejection. Referendum on Improvements. "The referendum is applied on build-' lng Improvement appropriations only, as it Is thought unwise to spend large sums of money for betterments until the uninformed and unbribed Mrs. and Mr. Common Citizen of Oregon settle the educational problems of our uni versity and college. "The Educational Betterment League presents a declaration of principles which, in my opinion, declares its in tentions. It is the desire of its mem bers and friends to present to the Ore gon voters at an early date a consti tutional amendment which will work a great benefit to the university and col lege, and at the same time give the greatest possible educational value for each dollar spent by the taxpayer. "The referendum petitions are now in the hands of the printer, and will be In circulation this week. The sec retary of the league desires to get in touch with all truly interested citi zens who can lend assistance in cir culating petitions or in maturing the plans of the organisation. All money received by the league will be preperly accounted for by report of the treas urer and auditing committee." Following is the declaration of prin ciples which appears on the lists which will be circulated for the signatures of those who wish to become members ot the league: Declaration of Principles Made. The purpose of this league Is to establish a sound and economic system of higher edu cation in Oregon. This League believes: That, the State University and the Oregon Agricultural College should be consonaanfo, thas to stOD duplication of costs for lands. buildings, equipment, salaries and expenses for separate boards, faculUes and presi dents; and thus, also to secure me grearesi educational benefit for each dollar expended for higher education by the taxpayer. That. the Question of consolidation should be submitted to the voters at the next general election. That, until the question of consolidation Pas been passed upon by the Oregon voters, there should be no further expenditure for buildings and other permanent improve ments at the University of Oregon. But that support for the current educational work of the university should continue as ioiiowb: Reornlar. continual. bienniaL state appropriation $200,000 Interests on endowments and univer sity land moneys, . moneys appro priated by Congress for special work. Uonevi anoronrlated hv last lectsla- tlve assembly for maintenance 100,000 For Summer school and extension work 30, 000 For university medical department. 45,000 I. the nndersirned. indorse the above prin cipies. and hereby subscribe the amount set opposite my name for the purpose ot apply ing the referendum on the two measures passed by the last legislative assembly for buildings and improvements at ,ugene, as follows: House bill No. 287, appropriating $100,000 for fire-nroof administration building. House bill No. 2H9. appropriating $75,000" for addition to library and other permanent betterments. DR. f.lACPHERSON FETED O. A. C. FACULTY MEMBER RE CEIVES BIO SEND-OFF. Banquet Is Tendered to Oregon Man Who Will Study Rural Credits and Economics in Europe. CORVALLIS, Or., April 4. (Special.) Dr. Hector Macpherson, of the Ore gon Agricultural College faculty, who Is one of the two appointed by Gover nor West as the Oregon members of the American commission to study rural credits and economical condi tions In European countries, was ten dered a banquet here last night in the Julian Hotel. More than 100 attended and the event was one of the most brilliant In the history of Corvallis. The banquet was given by members of Farmers' Union, No. 81, and among the guests were citizens high in prom inence in the county and state. Dr. MacDherson's colleague on the commission, H. G. Starkweather, of Milwaukle, was present also, ana in the addresses the two men were made to feel that their mission would be of great benefit and importance. George H. Tinker, manager or ine Benton County Growers' Association, was toastmaster. Among the speakers and the topics .were: Dr. W. J. Kerr. Agriculture"; A. F. Swift, of Baker, What the Farmers' Unions Are Do ing": A. E. Clark, Portland, "Benefits of the American Commission to the Na tion and of State Co-operation to Ore gon": J. A. Bexell. dean of commerce at O. A. C. "Parliament of Man": F. A. Sikes, Milton, "Why I Am a Member of a Farmers' Union, and Mr. Stark weather, "What the Commission Ex pects to Accomplish." W. S. Brown also spoke Introducing the toastmaster. Dr. Macpherson outlined the possi bilities of the commission and prom ised faithful service. He gave Mr. Tinker credit for starting the move ment which aroused the Legislature to appropriate $2400 for the expenses of the trip. - Musical numbers were given oy Captain Harry Beard and Dledrlch Clark. The assembly sang "Auld Lang Syne." ' . Dr. Macpherson and Mr. Starkweath er leave on the Saxonia April 26 from New York and will leave Queenstown July 18 returning to America. Dr. Mac pherson leaves Corvallis today tor tjni cago, where he will attend the First National Conference in Marketing and Farm Credits, to be held next week. FROST'S MOTIVES ISSUE LETTERS HELD TO SHOW IX- TEXT TO DEFRAUD. Really Good Beer is pleasant tasting. , There are plenty of breweries that buy good materials and mate their beer the best they know how. But they can't produce a mild, pleasant tasting brew like Hop Gold Beer - n Vnir nrVnr tVio most fast.iflionft L I'll nailt auun " ...w people use none but Hop Gold try a case for your own table. Then you're through with sharp, unpleasant beer. STAR BREWERY Northern Brewing Company PORTLAND - VANCOUVER Government Contends Written Agreement With Friends and Employes Xot Xecessary. CHICAGO. April 4. The Government ended Its onening argument in the Fed eral Court today for the conviction of Albert C. Frost and his four co-defend ants, promoters of the Alaska Central Railroad. Assistant District Attorney Welch, in outlining the Government's ease, based his strongest attacK on Frost's letters, and directed his state ments Drincipally at Frost as tne lead ing figure in the alleged conspiracy. "There Is not the slightest doubt that the defendant's intentions were to ac quire those lands for himself and his railroad," said Mr. Welch. "He didn't need to have a written agreement to that effect with his office employes and close personal friends who took out the claims for him." Albert Fink, of San Francisco, opened for the defense, declaring that while the Government had proper grounds for the indictments, investigation of tne case before the petit Jury showed that the defendants had not been guilty. We differ with the Government on me nference drawn from the Frost let ters." he said. "Light has been thrown on the interpretation of these letters, and it shows they were innocent of In tent to violate the law." COURTHOUSE BIDS OPENED The Dalles Contractor Submits Low est Bid lor Wasco County Work. THE DALLES, Or., April 4. (Spe cial.) bid of $53,537, submitted by A. A. Lambert, of this city, lor tne com pletion of Wasco County's new $150, 000 Courthouse, was the lowest. Other bidders were: Boyajohn & Arnold, Portland. $58,475; J. P. Weaver. Port land. $57,553; Bartlett, Roth & Co., Portland. $54,258. The framework or tne new structure was erected last Fall, being of solid re- nforced concrete. The work Included i v. .Annn .i , .-a i- ta f ' r thn nut. side finishing only. This will include stone work, wnicn wm cover ine con crete skeleton of the first floor, the brick work and the terra cotta, which will reach from the stone to the roof. The greater part of the outside walls will De covered wun a Deaumui graj granite-finished brick. The trimming around the windows and doors, the great columns at the front entranco, the three-quarter round columns of the side entrance and the cornice will be of terra cotta. The interior will be fin ished early next Spring. - Woodland Has Xeir Paper. CEXTRALIA, Wash.. April 4. (Spe cial.) The town of Woodland, metrop olis of the Lewis River Valley and one of Cowlits County's best business points, has a new newspaper, taking the place of the ill-fated ucno, wnicn suspended publication January 1. The new paper 1b called the Cowlits County Chronicle and is published by C. R. Collins and H. W. Conger. GIRL ROUTS ROBBER Five Shots Fired as Burglar Clambers Through Window. SUBTERFUGE IS EMPLOYED Young Woman Hides Jewels in Her Mouth While Mother Gives In truder 60 Cents Revolver Then Used With Poor Aim. LOS ANGELES. April 4. Hiding her engagement ring and other small arti cles of valuable Jewelry in her mouth, Miss Ethel Hall, a young musician, fired five shots at a burglar as he left the apartments of herself and her mother through a window at an early hour today. The two women were awakened by the intruder, who shook them gently, while he asked in a husky whisper where they kept their money. Mrs. Hall arose and consumed much time in finding a purse containing only 60 cents a subterfuge she, had kept prepared nightly for years. In the be lief that a burglar eventually would vllst her. Miss Hall, at the same time, sought the place where her Jewelry was con cealed in a bureau drawer. She placed her valuables in her mouth with one hand, while with the other she seized a revolver hidden in the same receptacle. She feared to fire while the burglar was near her mother, but when he sat. Isfied himself that there was only 60 cents In the place and started through the window, Miss Hall fired at him five times, though none of the bullets ap parently took effect. Echo Delegates Xamed. ECHO. Or., April 4. (Special.) The Henrietta. Rebekah Lodge, No. 36, of Echo, on Wednesday night elected Mrs. Kate Gulliford and Mrs. Zena Houser delegates to attend the 27th annual Rebekah assembly at Medford, Or., May 20. Mrs. Gulliford was recom mended for district deputy. Flagler's Condition Unchanged. WEST PALM BEACH, Fla., April 4. Henry M. Flagler's condition was un changed today. His friends continue to express hope of his early recovery. Watch for Our Announcement in Sunday's Oregonian Oregon Motor Car Co. Ready for Instant Use f or Cooking as a Beverage A perfect blend of Sure cocoa and sugar, hirardelli's Ground Choco late is ready to use as it comes from the can. There's no trouble, no time lost no waste and the full strength of the cocoa bean is there, with the true chocolate flavor. ELL IS Is the ONLY Ground Chocolate It is a meal in it self nourishing, healthful, invigorating. Unequaled as a chil dren's beverage. Used in chocolate dishes it imparts an added deli ciousness and richness. Order a can from your grocer today. D. GHIKARDELLI CO. Since 1852