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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 9, 1907)
6 THE MCERKISG OREGQXIAX, SATURDAF, MARCH 9, 1907. PETER GRANT TALKS Gives Story of Failure of Sulli van Trust Company. WILL SOON PAY ALL DEBTS -Affair Were Honestly Conducted, as Examination of Books Will Show, development of Mines Not Interrupted by Crash. ASTORIA. Or., March 8. (Special.) Peter Grant, treasurer of the L. M. Sullivan Trust Company, of Goldfield, Nev., was in the city yesterday visiting Jits mother, and left this morning for Portland en route to his home. Mr. Orant takes a very hopeful view of affairs of his company, and believes that within a short time all the debts will be cancelled and a good surplus left. In spiking: of the matter this evening he said: "The L. M. Sullivan Trust Company Is in much better condition than many puople imagine. Why, T. B. Kickey, presiuent of the State Bank & Trust Company of Nevada, who is one of the board in charge of our company's af-, lairs, and who is also the richest man in Nevada, says that, with proper man ngcment, the entire indebtedness can be puid and leave a balance of not less than $1,000,000 for the stockhold ers. Our company's indebtedness amounts to in the neighborhood of JtiuO.O 10, and at the time of the crash -e had securities and properties worth not less than J3.000.00i), but so soon as the confidence of the public was stiak n, down went the values with a rush. Arrangements have been made, how ever, so that the company Is transact ing business as usual, and in the de velopment of the mines excellent re sults are being attained. "As to the cause, of the failure of the company, it must be laid to poor management, or perhaps a mistaken policy. It was certainly not dishon esty, for, had it been, we could never have effected so satisfactory an ar rangement with the creditors after they had examined the books. "The Sulllyan Trust Company was Incorporated with a capital stock of 3'nit,U00, every dollar of which was paid up. G. G. Rice was the manager of the business, and he directed its every detail. The company purchased a number of mines, floated -the stock and began development work. The busi ness wc handled was enormous, and the mines we were developing were show ing excellent prospects. Just how much money we handled I do not know, and could not estimate without referring to the books, but it ran well into the millions of dollars, and wo must have paid out more than we took in or the troubla would not have arisen. Now to show "wh-jt caused our financial dif ficulties, our company made a rule that there slfould never be a time when our stocks were not aalable. That is. If a purchaser of any of our stock wished to dispose of it, the company would buy It in atho ruling market price, end every stock was kept as high or higher than it was first listed. Thus, when we sold tVie stock In a mine the profit were placed in a pool to stand behind all the stocks we were han dling. All went well until the miners' strike commenced. This resulted in a big slump in the market, and in an ef fort to keep the price of our stocks up Jlr. Kice invested fully I4nu,0.11 of the ronipany s funds, all the cash it had on hand. Had we had another million dol lars to work with, the plan would have been a success: hut as it was he over reached the limit before the slump In prices was stopped, and the crash came. Tt was the fact that the failure re sulted from an effort"- of this kind that rendered it easy to effect a settlement with our creditors. I have just returned from Sun Francisco where I met all the reditors of the company. They are the State Hank & Trust Company of which Mr. Rickey is president, a few brokers in San Francisco, Salt Iike and Nevada. After they had made a thorough exami nation of the books we reached an agree ment without resorting to the courts. In fact, each creditor signed an agreement not to take the difficulty into the courts. 1 "nder this agreement Mr. Sullivan. Mr. Rice and myself retire from all active connection with the management of the company, which is turned over to a com mission with Alex Russell as manager. The other members of the commission are Sir. Rickey, James A. Pollack, of San Kraneiseo; Charles A. Hudson, of San Francisco, and W. H. Molse. of Salt T-ake. This commission holds all the company's assets in . trust and as It realises on them 40 per cent is to be paid to the Slate Rank & Trust Company. 40 per cent to the brokers, who aro credi tors, and 20 per cent to the U M. Sulli van Trust Company. This arrangement permitted the company to proceed with the transaction of business and under it an excellent showing is being made. Since the commission ha-s been handling the business a Tioh strike has been made in the Kagle Nest mine, a hoist has been placed in the Lou Dillon, which is de veloping into a fine property. Consider able work has also been done on the Kairview. the Silver Pick, Stray Dog and Hailstone. "How long it will require to straighten tip the aiTairs of the company is of course a matter of speculation, but the indications are that it will not bo many months. In the meantime I am giving my attention to a number of mining in terests whuh I own outside those hciil by The trust company." lilt; IDAHO MILL 18 BIKXKU Sand Point Industry Destroyed. In volving; Loss of $175,000. SPOKANK. "Wash.. March S (Special.) The big mill of the Humhird Lumber Cnmpnny at Sand Point. Idaho, whs de stroyed by lire shortly before midnight, involving a loss of $17i.010. The mill Is UMated on the Northern Pa cific truiks adjoining the residence por tion of the town, and for a time It was feared that the whole town might be burned, but a strong wind carried the llames in the opposite direction and also iway fi-oin the lumber yards connected with the mill, thus saving the immense sunount of lumber stored and waiting fcbipment. " The Humbird mill has operated for about six years and is largely owned by tit. Paul parties. J. A. Humbird is the president: Frederick Weyerhaeuser, vice president, and F. K. Weyerhaeuser, secre tary. These officers are all residents of tit. Paul, Minn., and T. J. Humbird. the general manager of the company, makes his residence in Spokance. NO VERDICT IX LIBEL SllT 7ury Stands 6 to 6 in Case Against Editor E. C. Kibbe. ABERDKKN, Wash.. March . (Spe cial) A disagreement of the Jury, six, to six. In the rase of F. H. Archer, Against E. C. Kibbe, editor of the Glma Chronicle, on, the charge of criminal libel, was returned this morning ' at Montesano, where the case was tried before Judge Rice. It is not likely the case will come up again. The suit was the outcome of the po litical conditions last Fall, when Kibbe charged Archer with falsifying the rec ords in "the office of Assessor, of which he had charge. The campaign waged by Kibbe on the entire Republican county ticket was such as to create a lot of scandal. Another suit against Kibbe brought by Sheriff McWhinney Is still to come up. ADVERTISE OLD YAMHILL. Business Men of McMinnville Plan a Publicity Campaign. - M'MINNVILJ.E, Or., March 8. (Spe cial.) The business men of McMinn ville held a session In the City Hall tonight under the supervision of Tom Richardson, of the Portland Commer cial Club. The meeting was held to discuss a method of systematic ad vertising for Yamhill County and to take advantage of the colonist rate to the Pacific Coast. A speech was made by Tom Richardson. He was followed by John Wortman, of the First Na tional Bank, and B. C. Apperson, of Mc Minnville National Bank, and C. C. Murton and Frank Fenton. who spoke in favor and urged the adoption of a plan of advertising. An executive committee will be appointed and a professional advertiser will be secured to have entire charge of the work. The meeting was entirely representative of the business interests of McMinnville and Yamhill County. GIRL ORATOR 15 WINNER KATHKIUXE KOMIG, OF XEW BERG, GIVEN FIRST PLACE. F. V. Galloway, of Eugene; Gets Second Place in Intercollegiate Oratorical Contest. McMINNVILLE. Or., March 8. (Spe cial.) In the thirteenth annual ora torical contest held here tonight, Katherlne Romlg, of Pacific College, Newberg, was awarded first place, and F. V.' Galloway,' University of Oregon, second place. The- other contestants ranked as follows: W. E. Gwinn, Pa cific University, third: J. E. Schroder, O. A. C, fourth: J. H. Howard, McMinn ville, fifth: J. E. Junton. O. S. N. S., sixth; F. W. Neal, Albany College, sev enth. Trill, the orator from Willam ette University, was not permitted to enter. The judges were: Composition, Pro fessor H. Herdman, . E. B. Piper. D. S. Jordan; delivery, Judge Sears, Thomas Richardson. J. E. Weirlin. President Riley, of McMinnville College, presid ed. Music was furnished by the Boys' and Girls' Glee Club of the college. The decision was popular. About 400 students attended from the contesting colleges. Pacific University sent a train of 100 and Pacific College 150. At a special meeting of the execu tive committee of the State Oratorical League, William Trill was thrown out of the contest on charges of plagiar ism. The copied parts were taken from a speech delivered by Senator Bcveridge before Congress in 1900. At the contest this evening a resolu tion from Willamette University facili ty was read condemning Trill in his action. ABERDEEN BOY IS MISSING Raymond Olson May Have Drowned or Run Away to Sea. ABERDEEN, Wash.. March 8. (Spe cial.) One of the s strangest cases of dis appearance ever reported on Gray's Har bor is that of Raymond Olson, the 16- Kajmond Oleon, Aberdeen Boy Who I U MtMinff. f year-old son of Kphraim Olson, an em ploye of th Gray'e Harbor Gas Com pany. Kour wepkn ago, on Saturday fore noon, Fohruary 9, young Olson and two companions, all members of the High School, went ia a boat for a day's hunt ing and pleasure. Arriving at Hoquiam the two companions of Olson went up town for a stroll, leaving Olson in charge of the boat, which had been drawn up on the bank of tho IKTquiam River. Olson was on the doc when the two other boys started, but he was nowhere to be seen when they returned, nor has anything been hoard of him since. The polk-e for a time concluded that young pteon had been drowned or shot and that hisv com panions, fearinat the conaeqnences of per sonal responsibility, refused to tell. No amount of sweating, however, has in duced them to tell anything but tbe story that Olson was left on the dock and was gone when they cot back. Search since tor the body or for a possible clew have been fruitless. The parents of Olson will not accept the fheory of drowning, and especially in view of the fact that the tide was out when the boys landed at Hoquiam and that the boat had tc be drawn up in the mud bank. They say that the boy had once or twice talked of shipping as a cabin boy on some vessel, but that he had been dissuaded from do ing so and finally had decided to put his plans off until vacation. They still cling to the runaway theory. Young Olson was a member of the High School and bright in his studies. His borne relations were pleasant. Buying Timber on Siusla. ECGENB. Or.. March 8. Special. 3. N. Hovey and M. B. Starrett. of De troit, Mich., have Just purchased $15,000 acres of timber land from the settlers along the Sluslaw River. The holders re ceived from $1000 to $4000 per claim for their holdings, the majority of which have been recently proved up on. Schilling's Best is the standard in the American tea and coffee market y M ' SENATOR IN A RAGE Member of Boise Upper House Seeks to Insult Governor. JOHN WHART SHOWS HEAT Tearing Bill to Bits, He Declares: . '"I Do This to Show My Con tempt for- the ' Man . Down Stairs." BOISE, Idaho, March 8. (Special.) Though the hour set for the Legislature to adjourn was 1 o'clock this afternoon, the gave did not drop for the last time until 7:30 o'clock. The clocWs were stop ped at 1 o'clock, but the work went on. There was an immense amount of busi ness to be cleared and the clerks could not get through with it sooner. A very sensational incident occurred in the Senate during the morning session. Senator John W. Hart, of Fremont County, expressing contempt for the Governor in a manner that astounded everybody. It came about over an anti-pass bill that had been reposing -with the state affairs committee ever since a similar bill from the House had been defeated in the Senate. They moved that the committee be discharged from further consideration of the measure. The motion was defeated by a vote of 8 to 10. Then Hart arose with passion in his face, and taking the bill from his pocket, tore it to pieces. He said: "There Is the bill, and there is the re port on it. That is what I think of it. You may send a messenger to the man down stairs, who has been trying to run this session and tell him what I think of him and his bill." A little later on a motion was made to reconsider the vote by which the House bill had been passed, prohibiting appoint ment of members of the Legislature to offices which they had assisted in creat ing. The member making the motion said he thought it was not fair to the Gov ernor to pass such a bill during the clos ing hours. .Hart arose and said: . "J. move to lay that motion on the table. Further, I wish it understood that I made this motion to further show my contempt for the man down stairs." His motion carried. There were no important bills discussed during the closing day, thougit a num ber, of minor measures got through. The statement that the employers' liability bill passed was an error. It went to conference, where it died. The test oath bill also died) in conference. In all, 172 bills were sent to the Governor. MEMBERS PORT OF COLUMBIA Reported From Salem Governor Has Decided on Appointees. SALEM, Or.. March 8. (Special.) Though no official announcements have been made, and possibly will not be made soon, it is rumored in political circles Uiat Governor Chamberlain will appoint as members of the Port of Columbia Com mission Dr. Andrew C. Smith. It. J.' In man and J. C. Ainsworth. of Portland; Frank J. Taylor, of Astoria, and D. D. Plue, of Rainier. The law requires that three Commissioners shall be residents of Multnomah County, one of Columbia and one of Clatsop. Political gossip also indicates that James Steel, & brother of State Treasurer Steel, will be, appointed State Bank Examiner and Dr. R. E. L. Steiner-Superintendent of the Oregon Insane Asylum. Steel was for a number of years cashier of the First National Bank of Portland. Steiner is a practicing physician in Salem, and formerly a resident of Klamath Falls. MXX SCHOOL. BOARDS TO MEET Directors arid Clerks WIH Discuss Matters, in Convention. ALBANY, Or., March 8. (Special.) School directors and clerks of Linn Coun ty will meet in this city tomorrow in a convention for the consideration of school needs. The gathering comes from an idea advanced by School superintendent W. L. Jackeon. How to accomplish the best possible results with the facilities at hand will be the theme of the conven tion. Among the questions which will be taken up are( the establishment of Joint district high schools in rural communi ties, school libraries, pay of teachers, sanitation, etc. . State Superintendent of Public In struction J. H. Ackerman and some other educators 'will be present, but the prin cipal part of the time of the convention will be devoted to discussion among .the school officers themselves. DEAD OF . THE NORTHWEST Mrs. Eva Huntington Moon. CASTLE ROCK, Wash.. March 8. (Spe cial.) Mrs. Eva Hqntington Moon. whoee grandfather took up the original donation claim upon which the town of Castle Rock now stands, died last Sun day at New Hope. Idaho, of consumption. Mrs. Moon was born in this city 24 years ago, being the eldest daughter of Charles A. Huntington. Funeral services were held here today. Improve Astoria Water Works. ASTOTUA, Or.. March 8. (Special.) The Astoria Water Commission, at a meeting this evening, decided to build either a 100,030.000-gallon of a 220,-OOO.OilO-gallon storage reservoir at the headworks of the water system on Bear Creek. The clerk was instructed to call for bids on the construction, the bids to be filed on or before May 2. Three sets of plans and specifications for the proposed reservoir have been prepared, and the estimated cost of each is 55,0i)0, $75,000 and J90.000, re spectively. In Jail for Passing Bad Check. OREGON CITY, Or., March 8. (Spe cial.) W. M. Edwards this- afternoon waived examination and was committed to the county Jail in default of fJOO bail. Edwards Is charged with obtaining money under, false pretences, having passed a check for $10 on a Colorado bank last week on George Bros." restaurant. He also tried to pass a check: at Krausee Bros shoe store. Made Pastor at Oakvllle. ALBANY. Or.. March 8. (Special.) Rev. M. M. Gilchrist, formerly a San Jose editor, has been installed as pastor of the United Presbyterian Church at Oakville, Linn County. He has recently been preaching at Morgan HUL Cal. The church of which he now assumes the pas torate is one of the first congregations organized in Oregon. Company I Passes Inspection. WOODBCRX. -Or.. March 8. Opecial.) The annual inspection and muster of Company I. Third Infantry. O. N. G.. took place at the armory in this city tonight. Colonel James Jackson, L". s. A., beinv the inspection officer. The company ac quitted itself in a highly creditable man ner, and Colonel Jackson expressed him self to Captain Settlemter as well' pleased with the maneuvers and general appear ance of the well-drilled company. A dance followed the inspection. Basketball at Eugene. EUGENE. Or.. Marc 8. (Special.) In two spirited games of basketball between the Roseburg and Eugene High Schools this evening the Roseburg girls' team defeated the Eugene girls by a score of 12 to 1. "The Eugene boys defeated the Roseburg boys by a score of 32 to 16. In the latter- game Eugene threw 14 field baskets and Roseburg 4, This ties Rose burg and Eugene for Inter-scholastic championship of Western Oregon, and ar rangements are being .made to play off the tie at Coryallls next Friday night. . ...Bringing Deford Back for Trial. . HOQUIAM. Wash.. March 8. (Special.) Sheriff Ambrose, having Fred -Deford In charge, left here today for Canyon City. Or., where Deford will be tried for cattle rustling. Deford's breaking of jail en abled Sheriff Ambrose to take his man from this state to Oregon without get ting out extradition papers. Drowned While Rafting Logs'. TILLAMOOK. Or., March 8. (Special.) Peter Berns was drowned this morning in the Wilson River while rafting logs at the Hadley boom. He was a young man, unmarried, about 24 years old and a son of Frank Berns, a dairyman of this countyi. LIBRARY FOR STATE USE VXIVERSITT OF OREGON" WOHK IXG OX NEW PLAN. Intention Is to Make Library at Eu gene One of General Reference for People of the State. UNIVERSITY OF OREGON. Eugene, Or., March 8. (Special.) The general de mand for information along economic and technical lines has caused the university authorities to consider seriously the pro position of turning the University library into a general reference library for the whole state. As soon as the funds pro vided for by the recent appropriation be come available It is proposed to set aside a definite sum for the support of the li brary and for the purchase of books. Heretofore the library facilities have been utterly inadequate, but as the new build ing will be completed in July, and as it seems reasonably certain that there will be sufficient funds for the purchase of a good supply of up-to-date books, the Uni versity of Oregon library will provide facilities for research work along all lines. Demands for information on such sub jects as pure food laws, taxarion. Tail road rates and kindred subjects are "fre quently made upon the university, and are usually answered by advanced students or instructors. It has been suggested that the university secure the services of a competent research worker, so that any citizen of the state may get information upon any stibject by communicating with the librarian. Students of the department of econo mics recently made, an investigation of legislation of other states upon many im portant subjects and sent copies of their reports to several members of the Legis lature. If the plans that have been sug gested are carried out, the university li brary will serve as an information bu reau for the whole state. The new library building, which will be the handsomest building on the campus when completed, is 50 by 90 feet and two stories high, with a high basement. Owing to the crowded condition of the university, it will be necessary to use the upper floor of the library building for classroom pur poses until additional campus buildings are provided for. Land Owners Hold Up the State. SALEM. Or., March 8. (Special.) The Board of Trustees of the Oregon Insane Asylum today made an inspection of the asylum grounds and of the 25-acre tract, for the" purchase of which the Legislature appropriated JIO.OOO. The Board is satis fied that JIO.OOO Is too high a price as compared with the market value of land the same distance from the city, but as the state is practically compelled to ac quire the land In order to make needed ad ditions to the asylum, the Board will very likely pay more than it thinks the land is worth rather than suffer the delay of condemnation proceedings. Mark F. Skiff, of Salem, has protested against the state paying WOO an acre for this land. The Board reached no conclusion today. Harrison's Case Goes Over. ABERDEEN", Wash., March 8. (Spe cial.) The case of Captain Harrison, of the steamer Fleetwood, charged with an assault upon his engineer, came up in Justice Fox's court today. An at tempt was made to take the case out of the jurisdiction of the court on the pround that the assault occurred on the high seas, . but Justice Fox held that he had the right to the cause. The case was then adjourned until Tuesday next. Irmgard Reaches Hoquiam. HOQUIAM, March 8. (Special.) The barkentine Irmgard arrived in port today, having been 14 days outside the entrance awaiting a chance to put in. Finally fail ing to secure a tug, the Irmgard headed for Cape Flattery, where the master se cured the services of the tug Sea Lion to bring his craft to Gray's Harbor. Will Study City Charters. OREGON CITY, -Or., March 8. (Spe cial.) Organization of the new charter commission of this city was perfected i.ladG from WHEAT FLAKE CELERY is an improved wheat food made from the entire wheat grain with celery to render it more palatable. The foods that are the most natural are the most healthful. If people would use the foods intended by nature, nothing would be lost in strength and vitality. If yon wish to be the possessor 'of good, sound health, include Dr. Price's Food in your bill of fare. Palatable Nutritious Easy r8 Cm W serves hot-' f it Is ht wi for few alit; r enk m M wilt. My Stgntur y-y j , t AH Groeerc last night by the election of Mayor E. G. Caufleld as chairman and City Re corder Walter A. Dimlck as secretary. Committees will be named to make a study of the charters and governments of the cities of the United States and Europe tc report at a later meeting. CRABTREE MYSTERY DEEPENS Gaines Takes No Action Against Man Alleged to Set House on Fire. ALBANY. Or.. March 8. (Specials Considerable mystery surrounds the at tempt to burn the home of ex-Sheriff M. C. Gaines, near Crabtree, and the subse quent sensational developments. Though it is common talk, among people in the vicinity of -Crabtree that Gaines has forced a confession from Ed Young, a neighbor, that he started the fire Gaines found on his parlor "floor, Gaines has made no complaint either to the District Attor ney or Sheriff in regard to the matter. Before he learned the identity of the incendiary Gaines was very anxious to trace him down and telephoned to this city for bloodhounds. But since he se cured a confession, and, according to the statements made to hie neighbors, it seems that he has, no action has been taken. Gaines and Young have long been en emies. BIG INCOME FOR UNIVERSITY Lands In Heart of Seattle Will Re turn Millions in Rentals. SEATTLE, Wash., March S. (Spe cial.) Under the terms of a lease en tered into today by regents of the State University and James A. Moore, rep resenting a party of local capitalists, the old University site in the heart of the city has been given over to the capitalists at a graded rental that will yield $3,955,000 during the SO, years' life of the leaso. Already J12.000 has been paid os rent for the past two years. Buildings to the value of $2. 000,000 will be placed on the site after the hill has been graded down to street level. At the end of 50 years . these improvements will revert to the state. The arrangement has given universal satisfaction, and there is assured the State University, a revenue annually, that will go a great way toward main taining it. BANQUETED BY SEATTLE ELKS Grand Exalted Ruler Melvin Will ' Stop in Portland Over Sunday. SEATTLE, Wash., March 8. (Spe cial.) Returning from a trip to New York, where he was the guest of hon or at the annual banquet of Lodge No. 1, Grand Exalted Ruler Henry A. Mel vin, of B. P. O. E., of Oakland, Cal., was received here today and shown over the city by leading Elks. Tonight the Elks of Western Washington .are assisting Seattle Lodge, No. 92, to en tertain the distinguished member of the craft. An elaborate banquet is in progress, -with Judge Melvin, Mayor W. H. Moore and others speaking. To morrow Judge Melvin will be the guest of Tacoma Elks. Leaving the latter place Sunday, he will return home, stopping off at Portland. Permit No Search for Gold. OLYMPIA, Wash., March 8. (Spe cial.) According to a 'ruling made in the Land Commissioner's office, traces of gold sufficient to warrant the appli cation for mineral rights have been found on the grounds set apart for the Washington Hospital for the Insane at Steilacoom. . Three employes of the institution asked leases to investigate. The. request was refused. Commission er Ross classing the asylum . property in the same category as that set apart for other institutions over which -he has no jurisdiction. Forger Works Wapato Merchants. NORTH YAKIMA. Wash.. March 8. (Special.) A clever forger got In his work on a number of Wapato merchants yester day. A fine-looking young man came to that place in the afternoon, after bank ing hours, and - made a number of pur chases, giving a check each time, payable to C. Olson and signed by F. A. Walker, a prominent rancher living nearby. He cashed four checks ranging from $10 to $15. This morning when these checks were presented to Wapato State Bank they , were found to be forgeries. The, young man left during the night. Mystery at Yakima Solved. NORTH YAKIMA, Wash.. 'March 8. (Special.) Upon investigation by Coro ner Frank and Sheriff Edwards this after noon, the story of the finding of a young woman buried along the roadside be tween here and Selah turns out that it is the body of an Indian squaw. There was considerable excitement in official circles for a time, but the mystery was soon solved after the body was exhumed and the red shawl in which the squaw was buried was revealed. Deer Captured in the Water. HOQUIAM, Wash., March 7. (Spe cial.) Charles Anderson caught a deer today, the animal having taken to the water to get away from two hounds. The deer was brought to this city and turned over to Game Warden Loebdell, of Aberdeen, who put the animal in the city park, with others retained there. Will Teach Physical Culture. CORVALLI3, Or., March 8. (Special.) B. S. Hartson has arrived to become as sistant in the physical culture department at the college. He is a graduate of the University of Minnesota, where he was for years assistant in the physical cul ture department. Mllwankie Country Club. Eastern and California races. Take Bell wood or Oregon City car, startlnf from First and Alder streets. 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