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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 15, 1905)
VOL. XLV.- 13,969.
PORTLAND, OREGON, FRIDAY, SEPTEMBER 15, 1905.
PRICE FIVE CENTS.
Sentiment of American Board
is Not With Dr. Gladden's
MR. WMTCOMBE'S OPINION
Chairman of Prudential Committee
Says It Is Not Practicable to
Look Up tho Record or
DR. GLADDEN WILL CARRY FIGHT
SEATTLE, Sept 14. Dr. Washing
ton Oledkden Rrrived tonight and was
lit coofer&noe with some of his sup
porters anUl a late boar. To Inti
mate friends Dr. Gladden declared Ms
latoaUoM of oarrjriag the fight against
"tatatod money" into the convention.
Tho eectaratJon created consternation
among the Minority and thoj- taxed
every rowree at their command to
pej-aoade htm to recede from his po
sition. Dr. CMaddeft replied that he
regards the teette of such Importance
to the tuteorlylag principles of Chris
ItMlt y that he cannot permit himself
to waive the opportunity to compel a
coMoMoraUon of the question.
The tact that he is in what is con
sidered to he a hopoteos minority was
impressed on the mind of Dr. Gladden
by Dr. Brown, hut he Insisted that he
1 MfcUK for a principle.
Dr. Gladden does not feel that the
formal protest Hied with the pruden
tial committee and disposed of by
thot body disposes of the matter. He
soys that the hoard should he given an
opportunity to place Itself on record
before the incident is doped.
Dr. Brown, who was counted on by
Dr. Oloddeo for support in thctce'h
troveroy. should It be brought up at
thie meeting, left for his home tonight,
called there by church buainese.
Dr. Moxom. of Springfield, Mass.;
Dr. Frank K. Sanders, of Boston; Dr.
McLiOM. of Berkeley, Cal., are said to
be friendly to Dr. Gladden. Dr. Moxom
woo one of the protectants.
If the matter is brought up at all it
to probable that it will be at the
afternoon aesoion tomorrow.
SEATTLE. SopL 14. A .strong senti
ment 1ms been expressed among the mom
bers of the American Board of Cornrnls
doners for Foreign Missions of the Con
Fregattouel Church, now in session in this
oity. against the rosslutlon that has been
prepared by Dr. Washington Gladden to
present to the convention in his fight
against "tainted money." The resolution
has not bcon presented to the convention,
but the pen oral sentiment among the
members is that the resolution would be
loot by an overwhelming majority if pre
sented. ift view of the sentlmont that has been
expressed by the members, it is impos
sible to stato what action will be taken
by Dr. Gladden. Dr. Gladden has not
reached the city as yet, although the
New England party, JOS strong, arrived
in Seattle title morning. The most prom
inent among the New Englanders who
-arrived thte morning is G. Henry Whit
comb, chairman f the prudential com
mittee, to which the question of "tainted
, money" was referred some weeks ago.
Opposed to All Resolutions.
Mr. Whitcomb has expressed himself
as strongly opposed to the adoption of
any resolution by the board dealing with
the question and the committee of which
he is chairman will recommend that no
action of any character be taken. In out
lining his position on the question, Mr.
Whitcomb made the following statement:
'I do not know what Dr. Gladden pro
poses to do. The incident is really closed,
though, of course, the question can be
brought up under tho head of new busi
ness or can be interjected at almost any
time. We are bound to consider any
matter that is proposed, no matter how
radical or how abusrd it might be.
"But every one, almost, savo Dr. Glad
den, considers that matter settled. A
canvass of the 300 members of the board
showed a short time ago that 90 per cent
of the members were opposed to Dr.
Gladden's position. If he brings up the
question, it will be quickly disposed of.
No Censoring of Donations.
"The prudential committee cannot be
placed In the position of looking up a
-saw's history and his family's record
whenever he offers money to carry on
the work of the church. Dr. Gladden's
resolution would make it necessary for
the board to weigh the standing of every
man and to put tho committee in the po
sition of censoring every donation. That
cannot be done, and I do not believe the
board will suggest it."
Most of the time of the board during
the convention in this city will taken
up with the consideration of the question
of maintenance of foreign missions. Ac
cording to the statement of Mr. Whit
comb. there was a deficit ot the end of
the last fiscal year of $10,000. and the
question or financing the 600 missions
which the board has in the field, will be
the most Important matter to consider.
Missionaries for Japan.
Among the members which reached the
city from Boston this morning are a num
ber of missionaries who will sail from
this dty Soptembcr 20 for Japan. These
missionaries have been invited to appear
before the board and tell , of the work
that has been done in the past and the
plans for the future for Japan.
The annual review of the work of.the
board la the different countries in which
xolssioft'S novo been established was' pre
sented, to tho convention this morning.
The review dealt with Japan, Turkey, In
dia and Ceylon, China papal lands and
Africa. Touching briefly on each country
mentioned in the review, the report in
The Japan mlrsloav of the board, covering
12 of the largest cities and strategic centers
In the empire, has aasutned new importance
from the events of the past year. This little
Island empire la already reckoned as a new
and vital' force In all the affairs of the Tar
Bast. Her very location gives her the com
mand of the soa approaches of Co re a, Man
churia and China north of Hongkong.
Understand the Coreans.
The Japanese alone can understand tho
characteristics of the CoreaiM and the Chi
nese. The Chinese language presents no
Insuperable barriers and to the Chinaman the
little Japanese la not a "foreign devlL" Al
ready S000 Chinese students are said to be in
the schools of Japan, and China is rapidly
filling with Japanese professors and teachers
and schools of lower grade, and Japanese edi
tors are connected with Chinese Journals. A
peacoful conquest of China by v Japan la al
ready in full operation.
In some respects Turkey is the most tatorestr
lng mission country in the world. One rea
son for this islhat Constantinople is the capi
tal and Hamid II is the Sultan, net only of
all the Turkish, but also the head and center
of the Mohammedan power of the world. So
long aa the Sultan of Turkey governs the two
sacred cities of Mohammedanism, Mecca, and
Medina, and so long as the precious reilcs of
the Prophet Mohammed are in hie keeping,
so long will the 200,000,000 Mohammedans in
Turkey, Africa, Persia, India and C&iaa leek
to him as the visible head of Islam.
It is worth much as a strategic move to
have a etreng, aggressive Christian work cen
ter at Constantinople, within plain aight of
the Sultan's palace, and conducted and or con
cessions irranted by him.
Great Changes In China.
More changes J re taking place this year
In the optBlons, Judgments and purposes ot
the leaders of China than have traaeplred
there during the last century. China is be
ginning to observe and think in terms of mod
ern national life. She Is beginning to move
under the Imputee of modern national aspira
tions. The-strength of that mighty country
cannot be overestimated. Her resources of
wealth, manufacture and Intelligence are be
yond our power to tabulate at the present
These are the West, the most matured and
settled missions under this board. Here for
60 years there has been eo-eperatlea from
the government and a general welcome from
the people. Persecutions have arisen almost
entirety from the conflict of Christian prin
ciples "with caste regulations. The missionary
Is honored by all dashes and trusted by the
government officials. In many respects India
and Ceylon might be called the "ralss4onaria
Demands of True Religion.
In a' marked degree our work In Mexico.
Spam and Austria Is a demonstration of the
fruits of simple Christianity rather than the
teaching of a creed. The effort of the mis
sionaries is directed to demonstrate that true
religion demands of Its followers purity, right
eousness, truth and lntotligenee, and that it
grants to them liberty f conscience while
Imposing upon them responsibility for indi
vidual acts. .
Hardly a month passes without some dem
onstration of advance. The large and in
fluential liberal party of Spain baa not been
stow to recognise that the principles taught
by the missionaries psomtse most for the in
telligent advancement of the kingdom. Con
cessions made during the year giving to
Protestants larger liberties to worship anew
that the King reeegnlres, in a measure at
least, that they are not an Injury to the
AVork Among the Zulu.
In Africa we are at work among the meet
virile and aggressive race in all that great
continent. The Zulus are aa ambitious and
progressive people. ' They are net contest' to
dwell in idleness In their kraals.'upjertod
by the labors of their women. They seek edu
cation, they pu out in commercial and in
dustrial endeavor, always eager and always
In the mining districts of the south they
are found in large numbers from a wide ex-
Concluded on Page 5.)
CONTENTS TODAY'S PAPER
i'DSTERDAT'S Maximum temperature. 6S
deg.: minimum, 40. Precipitation, trace.
TODAY'S Fair. Northerly winds.
Armistice agreement signed in Manchuria.
Indignation In Finland against Russia.
Norway and Sweden still at -issue about
fortresses. Page 4.
President approves commissary contrast for
Panama Canal. Page 3.
Nicaragua gives reasons for arrest of Albers.
Alarm among manufacturers at advance In
Argentine tariff. Page 4.
Boycott may cause financial crisis in Shang
hai. Page S.
Miss Roosevelt visits Empress of China.
State Auditor of Indiana removed by Gov
ernor and accused of ombozzioment.
Bryan proposes to Roosevelt plan to preserve
Peace. Page 8.
Nebraska Republicans demand rate regula
tion and condemn passes. Page S.
New gasoline motor makes successful trial
trip. Page 3.
Mire secrets of insurance companies re
vealed. Page 1.
Pacific cable to be extended to Japan and
China. Page 8.
Terrible condition of fever-stricken Louisiana
village. Page 4.
Chicago master printers organize to fight
eight-hour rule. Page 5.
Pacific Coast League scores: Portland 3, Los
Angeles 2; Oakland 2. San Francisco 1;
Seattle 7, T a com a 3. Page 7.
Dr. Gladden will carry "tainted money" con
tention before convention of American Board
at Seattle. Page 1.
Presiding Elder Landen involved with Paster
Elliott in Hidden church scandal. Page C
Grangeville. Idaho, la visited by a $200,000
fire. Page C.
Frank Paoquale confesses murder of Charles
Gray at Tacoma. Page 6.
Richard Darnell shot to death by partners at
Dufur Springs. Page C
Convicted murderer almost forgotten In the
Walla Walla County Jail. Page 6.
Commercial and Marine.
Fruit Inspector condemns large quantity of
unfit fruit. Page 15.
Hop-picking resumed. Page 15.
Strong demand strengthens Chicago wheat
market. Page 15.
Stock market relieved of selling pressure.
San Francisco grain market buoyant. Page
All space on Oriental liners for September
and October taken. Page 7.
Captain McLean's sealing schooner fined
$1000. Page 7.
Dredge Columbia may be lengthened. Page 7.
Levels and Clark Exposition.
Admissions. 2LS04. Page 10.
Governor Folk is boomed for the Presidency
on Missouri day. Page 1,
Jury of awarda-wlll report next week. Page
Portland plans for big day at the Fair.
Portland and Vicinity.
Government gets new evidence In land-fraud
trial. Page 16.
Report In favor of a 40-foot channel in the
bar. Page 10.
Park site where Forestry building .stands
may be bought. Page 11.
Convicted because of his aliases. Page It. '
Big reduction made in round-trio rates from
X California points. PageJ.i
BOOMS FOLK Fin
'Governor .Chamberlain Sets
the Crowd; Cheering the" .
MISSOURI DAY AT THE FAIR
Tremendous Oration Greets the Men
tion of the Name of the 3ran
Who Convicted the St. c
Govornor Chamberlain yesterday after
noon, during the Missouri day exercises
held in the auditorium at the Lewis" d ,
Clark Exposition, launched the boom' for
Govornor Folk as the next Presidential
candidate on the Democratic ticket. Gov
ernor Chamberlain was scheduled to de
liver an address of. welcome, but In the
course of his speech mentioned Governor
folk an the natural choice of the Demo
crats for President. Folk's name. a a
Presidential candidate, wag greeted by-a
tremendous outburst of applause the
equal of which has never been witnessed
at the Exposition. Men, women and oven
children cheered and atmlauded with r.
( markabie enthusiasm.
Missouri and Folk Day.
Missouri and its Chief Executive. Gov
ernor Joseph W. Folk, divided honors at
the Lewis and Clark Exposition tyester
day. Officially, yesterday was known as
Missouri day, but It was also in part
Governor Folk day. Thousands of peo
ple flocked to the Exposition to acknowl
edgo and rejoice In the greatness of the
grand old State of Missouri, and to see
Governor Folk, who has startled the
whole country by his brilliant career.
Native Mtseourians were particularly con
spicuous, and it seem ad as though the
whole population of Oregon has been born
or had lived some time In the state where
the "show me" spirit is a lasting charac
teristic Missouri Interested In Fair.
Missouri has been unusually kind to the
Lewie and Clark Exposition. Admtrin?
the enterprise of the people of the North- j
wost who successfully engineered the ;
vast public Institution, which the Expo- j
si tion has turned out to be, Missouri has J
takon a remarkable Interest in the Fair. '
Not only has it erected a magnificent !
state building, which cannot bushel to j
dd materially to the attractiveness ofl
the Exposition, but it has sent to Port- j
land Its most prominent men. David P.. '
CiKOUP Or MISSOriU VISITORS AND CROWD PHOTOGRAPHED IN FRONT OF MISSOOU BUILDING.
Francis, president of the Louisiana Pur
chase Exposition, honored the Western
World's Fair by his presence, but Mis
souri was still anxious to please,, and
sent her most noted son. Governor Folk.
The Missouri building was the center
of activity at the Lewis and Clark "Ex
position yesterday. From early morning
until late at night, when Its'doors were
closed, it, was thronged with people.. Open
house was held during both the "morning
and afternoon, and everything possible
.done in '. the way of .entertainment for
those who were taking an - interest- In
tKp celebration of Missouri day. Music
was furnished by the Hungarian band,
and at dlfforont times refreshments were
served. Here also were distributed hun
dreds "upon hundreds of Missouri badges,
but oarly In the afternoon the supply
was exhausted, as the crowds exceeded
all expectations. So crowded was the
.Missouri building all during the after
noon that-It was difficult to obtain accoss.
But tho Mlssourlans did not turn away
vwhen they saw with" pride that their
building was filled, but remained outside,
""waiting for the appearance of Governor
Exercises of the Day.
Tho Missouri day oxeroisos were held
in the auditorium at 3 o'clock in the after
noon, before probably the largest . crowd
of the season, which served as a testi-
-monlal of the popularity of Missouri and
Governor Folk. Not only were tho lower
and upper floors i Jammed and crowded
with visitors, but 'hundreds were obliged
to stand, and thore were . many who
could not obtain even standing room. Of
'course, all of them were not Mlssourlans
by nativity, but their hearts were in the
right places and for yesterday they were
Governor and Ills Staff.
On the platform were grouped Governor
Folk and his official staff, other prom
inent Mlssourlans, ana Exposition, state
and city officials. R. H. Kern, president
of the Missouri State Commission at the
Exposition, presided as roaster of ceremo
nies and Introduced the speakers. Mr.
Kern, who is a typical Mlssocrian, with
one of those w.holc-souled and enthusiastic
natures, made a few Introductory remarks.
In which he paid many glowing compli
ments to the people of the Northwost for
the success of the Exposition.
He then introduced President H. W.
Goode. who extended the customary wel
come to the people from the great com
monwealth of the Mifldle West. President
Goode, however, was particularly enthu
siastic yesterday in his praise to the Mls
sourlans. as he said he had been waiting
for many weeks for Just'-such an oppor
tunity. President Goode said that Mis
souri mirnt be termed the mother of the
Lewis and Clark Exposition. It was at
the St. Louis Exposition that so many of
the. officials had learned bow to make the
Portland Fair a .success. He spoke in the
very highest terms of Governor "Folk.
Starts Boom for Folk.
Governor Chamberlain distinguished
himself and made the hit of the entire
Missouri day celebration by munching
Governor Folk's boom for the Presidency.
Governor Chamberlain .said that the Re
pubtteaas looked upon Governor George
C. Pardee, of California, with much favor
as a Western eand'date inasmuch as
President Roosevelt had. araoMnciid . bo?
retirement upon the-cpntpklkm of lils
term, but that the Democrats could make
(Concluded on Page 10.)
ON TRUST SICK
Cromwell Says Dividends- on
One Company Exceeded
BULLING THE BOND MARKET
Railroads Refuse to Sell Direct to
Mutual '"Life, hue Deal AVith
in Hcnl Estate.
NEW YORK. Sept. 14. Whon the
special legirlatlve committee probing
life' Insurance companies' methods ad
journed today. Chief Counsel Hughes
bad flnlshpd for the" present the exam
ination Into the Mutual Life Insurance
Company, and the Metropolitan Life
Insurance Company was started on,
when Slhs B. Dutcher, a director and
a member of the Qnancc committee,
wa callej to the stand.
Mr. Dutcher was questioned regard
ing the securities held by the Metro
politan and as to the syndicate opera
tions of his company. He was asked
the salaries of the company's officers,
but could, not remember them. He will
present pie list of. officers' salaries to
the committee tomorrow. Mr. Dutcher
was still on the stand vhon the com
Earlier in the day Treasurer Crom
weil had taken th stand . to contlnuo
hie explanation of the Mutual Life's
syndicate operations. In explaining the
relations of the Mutual with trust
companies. Mr. Cromwell stated the In
terest ingx fact that on the purchase of
$1.12t.oM worth of shares of the Guar
antee Title & Trust Company, the Mu
tual had received dividends of 51.22Q,
Otf, making these shares cost noth
ing and realizing a pro lit. Mr. Cromwell
stated that these shares were now
selling at over See.
" Can't Buy Bonds Direct.
On the advantage of dealing through
syndicates - In preference to buying
railroad bonds direct. Mr. Cromwell
said he had actually tried to buy bonds
directly from a railroad company. He
went to his friend. Stuyvesant .Fish,
president Jf the Illinois Central, and
Itw Fls told him" thnt' he could not
afford to hell the bonds to the Mutual.
In his testimony after the recess ex
plaining tne purchase of Bank of Cal-
Ifornla stock. Mr. Cromwell said that
the Issue prlco of new stock was 350.
Mr. Cromwell hoped to get the shares
at this figure, but In the end the
shareholders, to whom under the Cali
fornia law the rights to the new issue
belonged, held out ana tne Mutual ob
tained its 5000 shares at an average
price of 3S0.S. The sale was en
tirely by Individuals and there was no
syndicate. The transaction was left
entirely to William Babcock with ab
solute confidence that he was dealing
fairly with the Mutual. '
Mr. Hughes asked how the Increase
or decrease of bank balances was con-
"I control them," said Mr. Cromweft.
But finally, he added, the finance com
mittee must approve all his actions,
for all the bank balances were scru
tinized by the committee every week.
His own powor of regulation there
fore, was temporary, and anything he
might do could be revoked within a
Trnst Compnnles Help "West.
Mr. Cromwell was asked whether 'ho"
incroased or decreased his holdings In
the debentures of the -United States
Mortgage & Trust Company to assist
the trust company. He replied:
"Not entirely so? It is partly to help
our whole Western clientele know
that through one of our companies they
can get money on bond and mortgage.
"The advertising, printing, station
ery and postage account of the Mutual
is S1.134.S34; of tno New York' Life.
$8ol.2S5; of the Equitable. $772,646.50."
"How are advances made to agents
by the Mutual?"
"It Is done through the general
agents of the departments, but I un
derstand the amounts are not large."
"You have an account with the
American Exchange Bank?" I
"We have had It for nearly a gene
ration." "You do not receive any Interest?"
"None whatever; Its, president Is one
of, our trustoes and he tells us frankly
If we want Interest we must go else
where, but we have not thought It gra
cious to close cur account."
Assets of Metropolitan Life.
It was at this point that Mr. Dutcher
was called. The list of stocks and secu
rities held by the Metropolitan on Jan
uary 1. 1905, was manced for identifi
cation; also the lists of purchases and
sales of securities and syndicate par
ticipations In the last ten years were
produced and put In as evidence. Of
$75,000,000 of the securities held by the
Metropolitan, about $65,000,000 were
purchused from Vermllye & Co. and
W. A. Reld Company. Mr. Dutcher said
the president usually did the purchas
ing of securities for the Metropolitan.
It appeared from the questioning
that the president of the Metropolitan
had 3olc discretion In which banks and
trust companies deposits should be
kept. , . ...
Big Balnnces at Banks.
When the investigation was opened to
day Mr. Cromwell continued his explan
ations of syndicate operations in which
the Mutual Life participated. Balances of
$7,000,000 'to $10,030,000 maintained In the
National Bank of Commerce of New York
In 1S04. were explained by Mr. Cromwell,
who said the reason for keeping such
large sums in that bank was that the
bank paid the company 2 per cent inter
est, while the Insurance company could
not have loaned the money on call at that
The Mutual Life, being a large stock
holder In the bank, he said, was natu
rally favorably disposed toward maintain
ing a large balance there, especially when
the money was not needed.
Mr. Cromwell, when questioned further
on the subject, said that later, when the
market rate for money on call was 3&
per cent, the Mutual Life Insurance Com
pany's deposit was still kept in the Na
tional Bank of Commerce at 2 per cent,
Mr. Cromwell said that, as the com
pany only Invested in first-class securi
ties. It could not get the highest rate of
Interest. It had only $o,0C0.000 In fore
closed property, whereas It had acquired
property now worth $33,000,000 at a cost of
$1S,COO.OOO. The large profit thus earned
through rise in values more than made
up for any apparent loss through low In
terest. Mr. Hughes elicited from the witness
that the Mutual Life received 3fe per
ceriT on debentures taken from the United
States Mortgage Sc. Trust Company,
though the latter loaned money on mort
gages at 4 per cent. The difference went
to the Trust Company.
Mr. Cromwell was excused with a re
quest to prepare a statement showing how
much more the Mutual Life would have
obtained had It loaned directly on real
estate instead of "through tho trust com
panies Not Swerved by Self-interest.
James A. Jarvle, a member ofhe Arm
of Arbucklo Bros., a trustee of the Mu
tual Life Insurance Company and. a mem
ber of the finance committee, and Charles
R. Henderson, trustee and member of the
finance committee of the Mutual Ufe,
were next called.
Mr. Henderson said he had participated
in some of the syndicates In which the
Mutual Life was also interested, but that
he had never allowed his private Interest
In such syndicates to affect his advice to
George F. Baker, president of the First
National Bank, trustee and member of the
finance committee of the Mutual Life,
next testified. Mr. Baker also said that
he was a director of the Guarantee Tru3t
Company, of the Morton Trust Company,
and of the National Bank of Commerce.
He said that it was Just aid to the bank
ers to have the insurance companies take
larga blocks of stock. It helped the mar
ket. Mr. Baker said he had participated in
syndicates in whlcbthe Mutual had been
Interested, but had jiot allowed such par
ticipation, to affect his Judgment. Both
he and Mr. Jarvle promised to" supply lists
of such corporations.
Frederick Cromwell, treasurer of the
Mutual Life, was recalled. Letters
from W. S. Babcock to Robert
Grannlss, vlco-presldent of the Mutual,
were put In evidence. These letters re
lated to the Bank of California (San
Francisco) investments of the Mutual
Life Insurance Company. One of them,
dated February 2, 1905, recommended the
purchase of this bank. The proposition
made to the Mutual was to buy COCO shares
at $375. Mr. Babcock, writing Mr. Crom
well under date of February 10, f said he
was confident when It was known how
greatly the Mutual was interested, the
shares would go up to $450. '
Trices Submit to Raisuli.
TANGIER. Sept. 14. The warring tribes
have submitted to, Raisuli and peace has
.been restored. In the suburbs. ,
Governor of Indiana Accuses
Sherrick of Misappro
HE IS HELD PRISONER
Charging That Sherrick Applied
$1 45,0 00 to Own Use, Governor
Removes Him Charge
Xotes Are Forged.
INDIANAPOLIS, Sept. 15. Detecttves
from the Indianapolis department .t 1:30
this morning went to the home of ex
Audltor of State David E. Sherrick with
the Intention of taking him to the cen
tral police station to have served on him
a warrant Issued by the County Prose
cutor. On account of reasons not at this time
clear they concluded not to bring him to
the central police station, but will remain
on guard at his home, and today he will
be brought in and served with- a warrant
issued by the County Prosecutor charg
Declaring that Governor Hanley had
made false charges against him, which
cannot be substantiated, William S. Wick
ard. secretary-treasurer and general man
ager of J. H. Murry &. Co., stated tonight
that he would bring suit for damages
against the Governor.
"The notes that I ave David E. Sher
rick, aggregating $50,853, are genuine and
the Governor's statement that they were
forged by me is absolutely without foun
dation," said Mr. Wlckard. "I am the.
general manager and sole financial agent
of J. H. Murry & Co., and I am the only
person who has tho power or the author
ity to sign collateral paper for the firm."
RESIGNS AFTER THREE CALLS
Sherrick Ignores Governor's Demand
He Account for Money
INDIANAPOLIS, Sept. 14. Following
three demands for his resignation, which
was not forthcoming at noon today. Gov
ernor J. Frank Hanley Issued an order
taking cognizance of a vacancy In tV
office of Auditor of tho State,- at thjysame
I time appointing Warren BIgler. of Wa-
Jbash tnuecd-DavrrjE'. Sherxiclrr who
was, In effect, summarily removed. Later
In the day Mr. Sherrick forwarded his .
resignation to the Governor, and it was '
Upon receipt of Mr. BIgler's acceptance
he was notified to arrange for his bond as
soon as possible. In order that he might
take chargo of tho office at once. This
was done, and Mr. BIgler will become
Auditor of State tomorrow morrdng.
In the order which resulted In the vir
tual removal of Sherrick, Governor Han
ley charged that the Auditor had been
guilty of a "plain and Inexcusable viola
tion of the law and a gross betrayal of
a public trust" in Investing and loaning
funds belonging to tho state to the
amount of $145,030. This sum, the Gov
ernor alleges, was misused, having been
Invested for private purposes.
Case Laid Before Prosecutor.
No arrests have been made, but at a
conference tonight between Governor
Hanley and Charles Benedict, Prosecut
ing Attorney for Marion County, the
Chief Executive laid before the Prosecut
ing Attorney certain evidence bearing on
the case. Wlllar S. Wlckard, secretary
and treasurer of J. C. Murry & Co., hard
wood lumber dealers, who Is mentioned
In the Governor's statement, denied that
the debt of J. C. Murry & Co.
to the Auditor of State was in any way
In a formal statement Issued rela
tive to the matter, the governor says he
has been investigating the conditions in
the auditor's office since the last of Aug
ust, having received Information that
Sherrick had not made the July settle
ment for the state funds, which had ac
cumulated from January 1 to July 1, 1S05.
He immediately asked for a settlement,
which was mado. This amount was about
In addition to this amount, tho Auditor
in his statement to tho Governor admit
ted that he was at that time chargeable
with state; funds paid in since the July
settlement amounting to $145,197, for
which he filed a schedule, enumerating
the assets which he had to meet this
amount owing to the state. These items
include notes, stocks and security
amounting to $152,883, on which, accord
ing to the Governor's letter .only $37,555
could be realized.
Sherrick Slow to Resign.
At the 'time that thl3 analysis of the
assets submitted by Sherrick was made,
the Governor formally requested Sher
rick to resign. The resignation wa3 not
forthcoming. The Governor requested
that Sherrick turn over to John E. Reed,
the settlement clerk In the' Auditor's of
fice, the securities enumerated, and this
was done. The Governor also demanded
that settlement to the extent of $145,191
be made with the state by noon today,
and on being advised by "persons whom
he thought to be "In a position to know"
that the settlement could not be made,
he again sent a message, this time verbal,
requesting Sherrick to resign. At noon
the request had not been complied with,
and It was repeated. Again It was not '
complied with, and the Governor entered
an executive order finding the office va
cant and appointing Blgeler.
At 3 o'clock Sherrick sent his resigna
tion to Governor Hanley, who accepted
It and entered an order appointing War
ren Bigler. of Wabash, to the office of
State Auditor. BIgler was appointed by '
David E. Sherrick's .bond, on file In the
Secretary of State's- office, 13 for $100,000,
and was furnished by the American Sure