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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 24, 1920)
THE MORNING OREGONTAN, FRIDAY, SEPTEMBER 24, 1920 BANKING SUPERVISOR CALLED TO ACCOUNT Bennett Asked to Explain Jacksonville Insolvency. D'EMAND IS FROM BOARD Information to Be Specific as to Superintendent's Kxamination of Defunct Institution. SALKM Or.. Sept. 13. (Special.) That Will II. Bennett, state superin tendent of banks, will be called upon In the near future to make a full re port to the state banking: board re garding .the insolvency of the bank of Jacksonville, as it relates to the bank ing department, and what efforts that department has made from time to time during its periodical examina tions to determine the financial status of the institution prior to its being close a few weeks ago, was made plain by Governor Olcott and Secre tary of State Kozer, members of the tate banking board following receipt today of Air. Bennett's formal report regarding the condition of the de functniepository. Information to Be Specific. O. T. Hoff, state treasurer, and third member of the banking board, was cut of the city and did not partici pate in the conference as to the an ticipated action of the body involving Mr. Bennett. Following the conference. Governor Olcott said the board was not pre pared to say as to just the nature of the nuesttoti9 that would be asked of Mr. Bennett or as to whether a hear ing would be held in regard to the department's activities in connection with the insolvent bank. It was made plain. however, that the banking board's requests for information from the superintendent of banks will be very specific and detailed as to the department's examinations of the bank In question. Safety Expected From Board. "The people of the state look to the state banking department to pro tect them against loose or crooked banking methods," said a statement ffiven out by the banking board to day. "The banking board, essentially, must depend upon the superintendent of banks and his subordinates to give the adequate degree of protection de manded by the people and the law. "The board feels that the situation In connctlon with the Jacksonville bank is one which merits the board's closest attention in fixing the degree of responsibility which may rest, if any there is, with the superintendent of banks and those under him. For that reason we feel that a complete and specific report should be made to the board.by the superintendent of banks covering the steps that were taken by the department to protect the depositors of the insolvent insti tution, and such report will be asked forthwith." Insolvent Condition Known. G. N. Roberts, district attorney of Jackson county, who was here today on legal business, informed Governor Olcott at an informal conference that he had been aware of the insolvent condition of tho defunct bank for come time. "Only a few days before the bank closed its doors." eaid Mr. Roberts. "I had . talk with V. 11. Johnson, president of the institution, and Myr tle W. Blakeley. treasurer of Jackson county, who had more than $100,000 of the county's funds on deposit in the bank. I informed them of my suspicions at that time, and predicted that the crash was near at hand. "Although there has been consider able newspaper speculation with re gard to npproving the securities of thebank under the laws protecting county and state funds, I was never called upon but once in that capacity. $11,000 Drpoult Approved. "On that occasion I approved the Institution's securities to the amount of only $11,000. In face of this, how ever. Mrs. Blakeley had approximate ly $100,000 of county funds on deposit In the bank at different times. Had the county officials have read the Quarterly statements issued by the bank they would have noticed that at one time the deposits were shown at only a trifle more than $35,000, while the county had on deposit In excess of $50,000. "Evidence in my possession shows that Johnson can be formally charged with larceny, forgery, perjury and half dozen other crimes. The assets of the bank are of doubtful value, n- cluding an overdraft for $46,000 of three years standing. There is every Indication that the bank has been de liberateiy looted and persons ether than Johnson may be involved." Johnson is now in jail at Jackson ville under $a0.000 bail pending a hearing before the grand jury which will meet the third Monday in October. ASSETS 2 5 CEXTS OX DOLLAR Bank Superintendent Completes Probe at Jacksonville. MEDFORD, Or., Sept. 23. (Special.) N o w that the state banking super lotendent's investigation is completed and his report on the hopelessly wrecked Jacksonville bank's condition has been filed with the circuit court, the next step is the action of the srand jury which meets next month and the trial early in October of Will lam Johnson, president of the bank. After working on the books of the defunct Jacksonville bank for six weeks. State Bank Superintendent Bennett today filed his" report with the circuit court, showing assets of $217. 527. IS and liabilities of $319,000, with an estimate that the bank will be able to pay 25 cents on the dollar. Thp report shows that W. H. John- Always it leaves a pleasant taste: Red Rock 9 Cottage Cheese a delicious food for young and old. You'll like "Red Rock" This Is Portland's Real Clothing Sale The reductions named in this advertisement are genuine reductions from normal prices not from fictitious "values"! I, firmly believe that I am selling clothes for less than any other establishment in Portland. I am quite willing for you to compare gar ment for garment price for price. That is not all: my unfailing guaranty of complete satisfaction attaches to every gar ment I sell, whether at normal price or for less. You are protected in your saving! All Suits and Overcoats for Men and Young Men at these Real Reductions $40 SuitsandOvercoats$32 $50 Suits and Overcoats $3 8 $60 SuitsandOvercoats$47 $70 Suits and Overcoats $5 5 $80 Suits and Overcoats $60 $90 Suits and Overcoats $70 Men's Suits, Main Floor. Men's Overcoats, Third Floor. Young; Men's Suits and Overcoats, Second Floor. en Sellin son kept two sets of books, and falsi fied his sworn statement of the bank's condition on June 3. "The chaotic condition of the banks affairs defies description," said Mr. Bennett, "and I doubt if it is ever known where all the money has gone. Mr. Johnson enjoyed the highest reputation and the most com plete confidence of his patrons. Keep ing one set of books tor the puo-uc and another for himself with no rec ord at all of many transactions, it is physically impossible to determine the exact condition of affairs. The extent of the liabilities is only esti mated, but after the most thorough investigation possible. I believe the bank will be able to liquidate about 25 per cent." Superintendent Bennet s report shows that only a part of the bank's notes were reported. In fact $60,000 worth of notes were found stowed away In a drawer. The liberty bond record is in a muddle and apparently a large number of patrons who pur chased liberty bonds and left them at the bank had nothing but the solici tors' receipts to show the extent of their Investment. No record at all was kept of liberty bonds sent to San Francisco to be converted. It is said. while $6000 worth of liberty bonds were found deposited as collateral for one of Johnson's personal notes. No overdrafts, as far as known, were reported by Johnson, but the examiners found about $72,000 in overdrafts. Mr. Bennett pointed out today that he was not in a position to make charges ana he would make no comment on the case from the Direction Jensen At Von Her berg. Elaine Hammerstein in "WHISPERS' A Sweet Story of Gripping Interest Today 1 Only -I -V 1-K . i JA ft- h - IT "iff l Duty and love meet in a struggle for supremacy Also Sunshine Comedy, TEX SIGHTS WITHOUT A BAR ROOM, With the Sonshlne Bathlns Beauties. w Picture Saturday, ELSIE FERGUSON LADY ROSE'S DAUGHTER standpoint of the criminal liability of Johnson further than to state that there was no doubt of the falsifica tion of his statements. He also said there was no way for any bank ex aminer to have known the true con dition of the bank as long as there was no suspicion of the honesty of the banker, and the books as pre sented showed no discrepancies. It is apparent trom the report that Johnson made a daily etatement of the bank's condition which balanced properly on the face, and then in a rough way kept a record of the arc tual condition of affairs for his own Information. But even his own rec ords, it is said, are hopelessly incom plete. Irrfact. the report indicates that until Johnson himself explains, no one will be able to determine wherp the money has gone and why -LAST TIMES WALLACE REID "WHAT'S YOUR HURRY?" U arold Graf Irs Extraordinarsfoi7f bmwr.lovc.buried feasure.gWs.infrigtu STARTING SATURDAY i t'i it M ADDED ATTRACTION- MY J fpir ' ?t ( W " Leading Clothier Morrison at Fourth Johnson conducted his affairs as he did. Apparently he could refuse no re quest for money and did not even ask for security. Whenever a person couldn't get credit anywhere else, h3 could get credit at the Jacksonville tank. On the other hand the patrons ot trie bank were equally unbusiness like, it is charged and they appar ently acted on the assumption that Johnson was not only the personi fication of honesty, but that his fi nancial resources were inexhaustible. Many patrons handed over their fi nancial affairs entirely and never asked for an ' accounting. The report throws no new light on. the condition of the Jackson county funds, but it is known there was approximately $107,000 on deposit, and if the bank examiners prediction is borne out, this' means Jackson county will re ceive $26,750 and lose $80,250. TODAY- - j,:uid ii.. a. I'?.;: ;tha sfelfar east: llenr Posemary TKcb Norman Kerr Tkomas Jofjersoa Ylosepli Dow!inc 01 o R 1 If It 'BABE" RUTH The Schuessler Tissue Remedies HOMEOPATHIC DEPARTMENT Mezzanine Floor IIIHIBBBBIDIIIfllll SiniiiiiHiitiHiiiii iimiitMmmniMMiimMniHiiiiitmtiiimnmiiniiiimHMMu PERFUME DEPARTMENT I Popular Tooth PASTE ; Pepsodant 43c I Pebeco 39c i Forham's , 55c ; S. S. White 25c i Williams' 25c ; Pasteurine 25c Hudnut's 25c Rogers & Gallefe 50c A. D. S. Paste 35c Dr. Lyon's 23c ! Dr. Peck's 35c Euthymol 25c ( Kolynos 25c I Colgate's 25c NIKK MARR QUALITY TOILET REQUISITES I Neo-Plastique .' $2.50 I Peerless French Gray Hair Restorer $1.25 Peerless French Quinine Hair and Scalp Tonic $1.25 1 Peerless French Velvet Cream 50c and $1.00 I S Peerless French Velvet Balm 50c and $1.00 1 Peerless French Liquid Face Dressing ............ .50c and $1.00 $1.75 Hughes Ideal Hair Brush 1.29 Water -proof, Service Model. Special $1.29 Talcum Powders I Lazell. Dewbuds Talcum. .. .25c I Lazell Orange Bud Talcum...25c ! Lazell Field Violet Talcum...25c Lazell Massatta Talcum. . . .25c I Lazell Sweet Pea Talcum... 25c 1 Palmolive Soap, specially priced 1 Creme Oil Soap, specially priced I niiiiimnimtniitiHiiiuiiimiiiitifiinntiiiHiiiitiiHiiHitiiitnu Patent Medicines Doan's Kidney Pills 60c Carter's Little Liver Pills 20c Thompson's Herao 90c Capalaris 47c Bromo Quinine 25c Nature Remedy Tablets 89c Vinol $1-00 Eatonic 45c Muls. Cocoanut Oil 49c Bromo Seltzer 25c Sloan's Liniment 63c Murine Eye Water 49c Dextri Maltose No. 3... 72c Dryco 75c Listerine 23c Glycothymoline 25c Nuxated Iron 98c Qban Hair Tonic 50c Yellow Minyol $1.10 Veronica Water 60c 1: ''V.'-.C-. Af'- 1 1 "HUMORESQUE" The Picture Beautiful TODAY ONLY SPECIAL MUSIC 4 "PORTLAND ROSES" 4 The Rose City's Premier Artistes Tomorrow "Don't Ever Marry' !floodard,Glatte&Go. ALDER STEEETATWEST PARK. Pastes and Powders 1 r POWDER Calver's Carbolic 63c S. S. White '. 25c Listerine . .- ....25c A. D. S. Powder ...30c Colgate's 20c and 30c Brown's- Camphorated 25c Dr. Lyon's 23c Dr. Graves' 23c Revelation 25c Calder's 25c Vantine 25c Dentox 25c CLA-WOOD 25c Pyorrhocide 98c i t. TOOTH PASTE Watch for our advertisement in Sunday's issue, Sept. 26. Star Electric Massage Vibrator $5.00 For a fresh, youthful com plexion. Complete, $5.00. TOILET WATERS Assortment of Toilet Waters Regular $1.00; special 69 at only, 1 doz $1.00 at only, 1 doz $1.00 1 Main Floor. Specials in Our Drug Department Merck's Sugar Milk, 1 lb 53c Cascara Co. Pills (Hinkle No. 3) 100 35c Chloroform Liniment, 8 ounces. . . .90c Cod Liver Oil in jug, 1 pt -.$1.25 Max Geisler's Bird Seed, 1 pkg 30c Parowax, for sealing fruits and veg etables, 1 lb 25c Cla-Wood Syrup Hypophosphites, 1 pt. $1.25 Elix. Lactated Pepsin, 1 pt $1.25 Sulphite Lime (used to arrest fer mentation in cider), 5 ozs. to bbl..25c Saturated Solution Boric Acid, 1 pt..35c Senna Leaves, 1 lb 60c Saltpetre, 1 lb 65c Main Floor. LAST DAY a DM BASEMENT NEWS CANDY SPECIALS Chocolate Chips Chocolate Chop Suey Chocolate Peanut Clusters. Gimball's Marshmallows . . 49c . Pound PYRENE FIRE EXTINGUISHER Save Protect Your Auto Home Office Factory Price $10.00 Liquid for Refilling, 1 qt., $1.75 TFTPT The Luster Mops are clamped to the handle and cannot work off. Neither can the handle mar furniture. The Mop is more than a mere fringe of yam it has a full yarn center. A WORK SAVER A TIME SAVER A Mop that should be in every home. Dry or Oiled $2.00 UIIIIIMIMIIIIIIIIIIIIUIIIillllllMIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIUIHIIIIIIIIIIQfllllillllt: 1 FOUNTAIN PENS The best that money can buy E: is found in WATERMAN'S, CONKLIX'S, MOORE'S, and SHEAFFER'S FOUNTAIN PENS Perfect safety, satisfaction and " service. AH styles and prices. points to suit every style of handwriting. Priced $2.50 up. nllllllllllllllllltllllllllllllllllllilllllllllllllllllllllllllllllllllllllliiiiiiiiiiiiiiiiilin 5 WE WILL ALLOW FOR YOUR OLD c Hot Water Bottle or Fountain Syringe (This Week Only) We will allow you 50 cents for your old hot water bottle or Fountain syringe on the' price of a new one at $2.50 or over. FREE A Flannel Hot Water with any of our 2-qt. Hot Water Bottles. 1 ill I STARTING VI I TOMORROW l The Season's Best V V- - i Comedy-Drama V it' , fir 1 llr Iff A In maw" ) II I . Hear the I Al ' A ; I I New Columbia V v U I vj t ,1 I Wurlitzer II f KJ this COUPON' Friday or Saturday, September 4 or : and secure SO EXTRA S. It. 20 lirern Tmdinsr Stumps with first Jl of your pur chase and double Ktamiis x-iti Ihri l.'iiii'rt nf nirr- U chase. El OF INTERES i A KENNEY SHOWER BATH Attach to any faucet. No curtain no water outside the tub. Convenient Practical; price S10.00 One Best Oil Mop "EVERSHARP" Pencils 1 Use an "EVERSHARP" al- ways ready to make your work easier. Ahways sharp never E sharpened. No whittling, no E broken leads. Handsome and 3; attractive designs. Priced $1.00 E and up. jr Special Designs Engraved E to Order. Bottle Cover WOOD - LARK Main Floor. rresent ai (kti3j