La Grande evening observer., January 24, 1911, Page PAGE 2, Image 2

PAGE 2
LlA UKANDE EVENINli OBSiSRVJSJa,
rr
UESDAY, JANUARY 24, 1911.
Ti IE OBSERVER
BRUCE DENNIS
Editor and Owner.
Entered et the postoce at La Grande
as second-class matter.
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'f i JANUARY m
' 12 1-3141 567
8 "9MU12 1314
15l6fl718 192027
1110 267 28:
flTOlp 'I
CBOOKED BANKING IS NEW YORK.
. Dickens once wrote that whilxnlek.
. only, to rig up an office with fancy
,, brass i grill work and gilt' signs and
call It a lank, and people' will rush In'
&nd hand their mosey over the coun
ter . without . a murmur, v. says
the Literarv DIiresL Soma of tti ro.
.cent bank closings in New York City
a re taken to show that the nvethods la
, rogue in the days of Dickens are still
in style, and one of the "bankers' now
in jail is being classed with famous
criminals of days gone by who were
clever enough to dupe trusting de
positors, but not cleveT enough to sea
that honesty is the bent policy. ' In
New York City during the past few
weeks a State bank, a saving bank,
and a' trust company 'carrying depos
its amounting to many millions of
dollars have' been closed by order of
the Stats Superintendent ofBanks,
While a mimbP fit nttiAff M flniiTtyilal
w i " O wunuviM
Institutions Were' only saved by the
iprompt Intervention of the Morgan
Interests." Although the ' effects of
this sudden, breakdown were prompt
ly; circumscribed, it served, as many
papers remark, to flash once more a
WlHrlnir tlvM nn valn U.au.1. .i.lt '
In onr banking system. ' A "weak spot"
Jsf a' dfect in our system of safe
guards that allows a crooked financ
ier to pocket the depositors' money.
At the same : time, declares the St,
Louis Globe-Democrat,' the fact that
the incident caused scarcely a ripple
In Wan street la abundant iproot that
"the basic conditions -of the market
.were seldom In a sounder condition
than they are irr now." "Had this col.
lapse occurred In a time of general
fear," It adds, "there would have been
a recession in prices all along the
line." The New York Herald adds its
assurance that the banks and trusts
companies as a whole were never In
sounder condition than 'they are to
day. Retu'rlng to the "weak apots" In
our banking system, we find them
summarised by The Wall Street Jour-
i
wl as .Irresponsible ownership and ,
u.ugCu,cut, juc or aanerence to
THE OFFICERS
. of this bar k will pleased to talk with you at
any time concerning mutual business relations
TV A HEN the Federal Government, the
county, the city, and a large- and
) V i 8rowinS list of commerciM and private
deposibrs'entrust their funds to this institu-
tion to the extent of $800,000.00; you may
be sure that it is a safe one for you "to identify
yourself With. '
r
, UALL AND I ALK
La Grande National Ban!
' LA GRANDE, OREGON. " ' "
CAF11AL . .
SURPLUS ... 100.000.00
RESOURCES . . . US5.000.00
; UNITED STATES DEPOSITORY
George Palmer, Pros. J Fred J. Holmes, Vice Pres.
F. L. Meyers, Cashiet Earl Zundel,ss'(. Chie'r
sound banking principles, end bank
ing Isolation.". Under present condi
tion, which, art characterized aa "a
disgrace to our financial Intelligence'
"It la possible for a group of pro
moters, or even a single individual
with a little money and unlimited im
pudence to found a bank or buy one,
and run it to their, own taste. The
lian who has made a million or so by
putting, through a big 'merger, in
flated with, a sense of his ability to do
big things, imagines that be. can run
& bunk as easily as he can float a min
ing oomipany. If he has the dexterity
of a Morse or a Robin,' he may create
a chain of banks, alleged 'surety' com-
panies, title companies, and savings-
banks, using the credit and assets of
one to bolster up another. If he can
get the services of some ex-official
with a high-sounding title, the game
caw be worked even more smoothly, 'A
'superintendent' retired from some
State department makes an excellent
'come-on.' " . " "
These evils, we are told, would be
neutralized by a central bans; -but in
the absence of Buch leadership, Bug-
gesxs tne wail street Journal, "some
thing could .be accomplished If clear
ing house committees in the large
cities wouid gradually build ud a re
cognized authority over banking pol
icy and have the courage to exercise
if . .. .,'..: -j
Against the weakness which comes
.. wuummm w, una uisnage
ment, thinks the New York Journal
of Commerce, there can be no ade
quate provision "without a somewhat
! .radical change in the" system." We
have in this country over, 7,200 Inde
pendent National banks under the eye
of one official bureau at Washington,
and a still larger number of State
banks and trust companies subject to
no national supervision, but regulated
under a variety of laws in the several
States. , Says The Journal of Com
merce: ' ; ,
"With this dual system of some
thing like 20,000 Institutions engaged
in ' commercial banking and scattered
over the wide territory of the country,
partly under national Jurisdiction and
partly under that of forty-six differ
ent States a regulation that Is con
stantly effective Is out of the question.
It Is hardly possible to prevent the
establishment of bank now and then
which are weak in capital, weak in
management, and destined to be weak
In support' Still" less is It possible to
prevent some of them from falline
into unscrupulous hands and
j ... ...... . ..
being
used In a manner to profit those who
have control of them at the risk and
the possible cost of their depositors,
creditors, and trusting stockholders.
How Is this weakness to be remedied?
We see no way, If the system of many
local banks with, small capital 1 is . to
be continued, except by some form of
legalized association In districts, with
centers of administration, which ehall
impose upon the banks forming such
association in each district mutual
functions obligations and responsibili
ties, and make it for their Interest
and Bafety to keep the necessary
watch and maintain a standard of
sound banking practice. This is a
feature In one form or another of most
of the plans that hare been proposed
for currency and banking reform, and
it swrns to be essential, not only to
the further development, but the con.
tinuod existence, of many' local banks
- , ...".1.7 i ucujna
rather than a smal number of power-
ful Institutions with branches or a
IT OVER WITH
us
. $ 100.000.00
rea central bank which fehall domin
ate all others. -.'$ ;
In the recent breakdown the first
two failures are laid to the bunking
exploits of Joseph G. Robin exploits
which have landed him. in the Tombs
prison while the closing of the Car
negie Trust Company was the sequel
to rather than the result of the Robin
case. . Andrew Carnegie, we may men
tion in passing, had no connection
whatever with the trust company
which bore his name. ' "Jt waa felt
after the ; 1907 panic," remarks th
New York Financier, "that every spot
of weakness had been eliminated," but
aa It turn out, the important task of
j preventing the formation of new spots
was entirely . overlooked." But the
.events of the last few weeks, adds the
"same paper, will do much to hasten
the day. when "the weak spots la the
road. will be repaired and the danger
ous aide-paths ", effectively barred."
What we need as much aa, If not more
than, a central bank, says The Finan
cier, la "a central banking authority
placed in the. hands of the State de
partment by the legislature to prevent
the first formation of bank chains, so-
calted, unless it can be shown that the
ownership of ' more than one bank Is
held by interests si strong, ' or for
reasons so legitimate, that objection
to multiple, ownership can not exist
Of the dangers inherent In the 'pres
ent condltlons'the' same peoer says:
, VTo peaH, plainly. the .fact dis
closed smcs. the checking of Mr. Rob.
in's meteoric financial career' by the
police power of the State, and the evr
idence of .weak banking that followed
the closing of the Carnegie .Trust
Company, and the erobarraament of
one or two subsidiary institutions,
constitute a disgrace to the financial
reputation of the first city in America.
: "Sa long as speculators of the Rob
in type are allowed to enter and re
main in the banking business, and so
long as Irresponsibly managed con
cerns are permitted to hide behind
high-sounding titles, Just so long will
the business of banking be disgraced
periodically by , the .; breakdown, of
banking machinery. ; ,
"We are well aware that , men who
desire to do so can buy control k of
banks or other financial Institutions,
and' we realize that It Is no less true
that onceln control, such men usually
attempt to fasten their clutches on
other institutions, In order';hem
as additional links In if
The experience is
s by ST
s, founcn
vnanes v. Rlorae, lound TIZrnty
in iputMng together a chain oMhis
character, which was sundered into
fragments at, the first sign of strain.
Ills successor in this particular school
of finance fortunately either did not
have the genius of tflorse, or the op
nqftunlty to extend his manipulations
Into circles of higher finance, but ev
en the trouble into which, Robin suc
ceeded into getting himself, , spread
within a week until all the signs of a
sporadic financial epidemic were ap
parent." 1: .. . . ,
The American Banker, while confi
dent that the day is not far, distant
when the very possibility of this
phasa of financial disaster will be el
iminated, does not tell us what partic
ular form It thinks the remedy will
take. Turning to the lay press we
find the New York American declar
ing that "In the long run some system
of State or national guaranty of bank
deposits must be worked out," be
cause "under modern conditions' the
whole industrial fabr'c of the coun
try rests upon bank credit, and these
all-embracing public interests ought
not to stand any chance of being Jeop
ardized because some Morse or Walsh
or Bobln happens to run wild." .,
One outcome of the incident which
la attracting much attention Is the
strengthening of Mr. J. P. Morgan's
dominance of the banking situation
To relieve certain embarrassments
growing out of the closing of the Car
negie Trust Company, J. P. Morgan
& Company provided funds to fortify
the Nineteenth Ward and Twelfth
Ward Banks, and the Equitable Trust
Company took over the business of
the Madiftm Trust Company. While
many paipers echo with the praise of
Mr. Morgan's public spirit In thus
chK-klng Incipient panic, others ad
monish us to temper our praise with
a few searching questions. Thus
white the Washington Post remarks
that "The house of Morgan ftCompany
bas of late years come to Dear about
the same relation to financial New
York as the Bank of England does to
London, the Bank of France to Paris,
the Bank of Germany to Uarlln, and
so on." with the difference .that it
"voluntarily ssauita reiiponslblllty
for the general financial health." the
new York World thinks that in the
ng run 'financial instltuUons will
r
i
1
mi
4
t
s
.. r-
EVERY l A
T
jflnd bein. rescued by Mr. Morgan
"more expensive that hones banking. '
And In the Evening World we read:
"Praise for the action of Mr. J. P.
Morgan in coming to the rescue of
three shaky banks should be tempered
by an inquiry as to how it comes that
he alone should 'rescue' the water
togged In finance. It, to because Mr.
Morgan, with extraordinary genius In
the use of men and money, has creat
ed by a Money Trust without whose
behest all thlnga financial are in vain
,ln New York.
"Eicii crisis, however created, finds
hlra the gainer. The Morse-Thomas-Helnze
episode gave him the Tennes
see Coal & Iron Company and the
Portchester Railroad, though the three
adventurers named had nothing to do
with either enterprise. They simply
created a condition that tightened
money and which grew tighted as thi
Great Rescuer pulled the rope. ,
"It is announced that 'cash' has
taken the place of unsound securities
In the 'rescued banks. Whose cash?
Why. yours and ' everybody's that
chances to be stored in other banks
and about the use of which not you
but Mr. Morgan has the say. kN He has
now gobbled up a tidy bunch of mil
lions and so is rapidly completing his
control of all the money In this town
your money ptiease remember, fel
low citizens,; which will soon be turned
against you m In. the subway deal; to
earn you no "interest from the deposi
tory, but to make you pay 23 per cent
or more in profit to the Money TruBt'
subway!" '
' Sees More Railroad Work. : .
Work la soon to U resumed on the
Lewlston-Huntlngton allroad along
the Snake river by the O.-W. R. & N.
Co., announces the Joseph Herald.
There is already 60 miles of this road
built from the Huntington end, and
several miles from the Lewlston end.
Th9 road Is being built entirely on
the west side of the rjver, which will
tap the entire eastern boundary of
Wallowa county. This road will prove
f f vast benefit to this county In every
respect : '
O .A
PROFESSIONAL BIRECTOKY.
f fifit
niISlCl.L3 AXD SURGEOSfsT'
N. M0L1T0R, M. D. Physician and
Surgeon. Corner Adams Ave. an!
3
i : i ' r:.::.:T7-i
. . ,..v --v j, t, v.
Day
Many
t..
1 ....v,.,.l. .IL.M. -
ofWestV13t
Sfuyino;;: Opportunities.
JMEeS;,fci 1
v .' ; , .
trrr '.n
!
Special Offering;
' If
t ft -I :i t;;
Depot street,
denes 69. .
Office, Main 68; Resi-
C, H. UPTON, Ph. G. M. D. Physician
and surgeon". (-Special attention to
Eye, Ear, Nose and throat. Office
In La Grande'National Bank Build
ing. Phones: Office Main , Resl 4
denes' Main 32.' - ' : ' 'v.-
A. L. RICHARDSON, M. D.
J. W. LOUGHLIN, M. D.
, Drs. Richardson & Loughlln,
Physicians and Surgeons, 1
Office Hours 9 to 11; 2 to 6; 7 to 8.
Phones Office Black 1362; Ind. 353.
Dr. Richardson's Res. Main 65; Jndi
. 312. . .
3EO. W. ZIMMERMAN Osteopath
Physician. Sommer Bldg., Rooms 7s
8, 9 and 10. , Phoaes: J Home 1332,
Pacific, Main 63, Residence phone.
Black 951. Successor to Dr. C. &
Moore. '
HR. M. P. MENDELSOHN Doctor of
Optics. Spectacles and Eye Glasses
Fitted and made to order.' All er
rors of Refraction Corrected. 1105
Adams Ave. Foley Hotel Bldg. La
Grande, Oregon.
OR. H. L UNDERWOOD, and DR.
- DORA J. UNDERWOOD Office ot
er Wright Drug store. Special" at
tention paid to diseases and surgery
. of the eye. . ..
Phones Office Main 22; residence,
Main 728.
J. C. PRICE. D. M. It. Dentist Room
23, La Grande National Bank Build'
Ing. Phone Black 399.
DR. R. L. LINCOLN, DENTIST Firs,
class services given. Office over Lil
ly's Hdw. store. Phons Black-451. ,
DR. P. A. CHARLTON .Veterinary Sur
geon. Office at HUl's Drug Store
La Grande. Residence phone, Rei
701; Office phone, Black 1361; Inde :
pendent phone 63; both phones a)
residence.
ATTORNEYS AT LAW.
COCHRAN & COCERAN Attorneys
Chas. E. Covhran and Geo. T. CbcV
ran. I Grande National Bank
Bldg., La Grande. Oregon. ,.
1 . '
T. H. CRAWFORD Attorney at Law
Practices in al lthe courts of, the
Stat and Unite States. Offlcs In
La Grande Nmuuum hunt Bldg., La
vGrando, Oregon.
0. W. C. NELSON Mining Engineer
Baksr City, Oregon. .
Bs) aai Mm. ' WT m
mm-
- . n I
y .:;! ''
.- - - .. M , J .- . ... :
Sale
top;
. v: i 5 . f', r ry? ,
... ";r;:i.
1
New Buggy for Sale.
' A fine new $100 buggy, run les
than 50 miles is for sale at reason
able figures. Inquire at Observer of
fice. I '
Be GorsetHappy
When you decide to be corset
happy, come and be fitted in
the lace-in-front Gossard. There
Is a model In tho Gossard to
show off to ' best advantage
your special type of figure.
$M0 to $5.00. '
Mrs.RobertPatti5on
- v PHONE BLACK 1JSL ,
New Transfer
Line
M. L. Leader
PROPRIETOR
PHONE
RED 3762
Draying of All Kinds