Morning Oregonian., November 13, 1907, Page 10, Image 10

in
THE MORNING OKEGONIAN, WEDNESDAY, NOVEMBER 13, 1IM)7.
FORCED TO CLOSE
T
Long-Continued Run on Mer
chants National Bank Ex
hausts Cash.
WILL RESUME BUSINESS
Institution's Suspension .Is ' Only
Temporary and Creditors Will
Lose Nothing Malicious Ru
mors Weakened Confidence.
THE CLOSING OF THE MER
CHANTS NATIONAL BANK.
CAUSED Circulation or malicious
rumors by enemies of the bank and
thoughtless persons, which under
mined the confidence of depositors.
SEQUEL. Steady run starts dur
ing which f2.SO0,OOO In cash was paid
out to depositors resulting; In tem
porary suspension of bank.
PROSPECTS National bank ex
aminer will take charge of the bank
today. If ho reports to the Con
troller of the Currency thnt It Is
sol'ent, as President Watson asserts,
the bank will reopen for business.
After meeting the heaviest run an Ore
fon bank ever saw. the Merchants' Na
tional suspended yesterday morning. Dur
ing the two weeks ended yesterday the
paying tellers had sifted $1,600,000 through
the wickets into the hands of timorous
people. This huge sum was In hard cash.
The bank is solvent, says President J.
Frank Watson, and will reopen within 90
Jays. . Claud Gatch, of Salem, National
bank examiner for this district, will take
charge of the institution this morning
and make a careful investigation of the
bank's condition. He has been directed
to do so by the Controller of the Cur
rency. He will make his report to the
Controller. If, as is confidently expected,
this report discloses a solvent bank, the
Controller will allow such time as seems
necessary for the collection of outstand
ing accounts and the doors will be opened
again for business.
!o receiver. In all probability, will be
appointed for the closed bank. The con
dition of the bank Is not such, appar
ently, that It cannot go on with Its busi
ness. Only when a bank is Insolvent is
a receiver necessary, and In the case of
a National bank, a receiver Is appointed
by the Controller of the Currency.
Causes of Suspension.
Malicious rumors, spread by enemies of
the bank, are believed by President Wat
son to be responsible for its suspension.
These were circulated In various ways.
Anonymous letters to prominent business
men about the city, mysterious teleiiiione
calls, all advising the withdrawal of de
posits from the Merchants' National, and
street reponts helped to instill the fear
of loss In the minds of the public. The
result was that anxious depositors poured
Into the bank.
Although the paying tellers put out gold
through the wickets incessantly during
banking hours, the false rumors-continued
and the run was kept up. It was impos
sible for the bank to realize on its se
curities and useless to press collections
In view of the money "stringency. Mon
day the casTi fell below the 25 per cent of
deposits required by tho National banking
law and it was seen that payments would
have to be suspended.
The Conti oiler of the Currency was in
formed of the conditions by wire Monday,
night, and yesterday morning at 9 o'clock
the directors met at the bank. The situ
ation was placed before them. They
realized that the only thing to do was to
suspend payment until money could be
collected on the bills receivable among the
bank's assets.
The bank had an uphill fight in meet
ing Its clearances. As tho bank holidays
continued, this condition grew worse.
There was always a lrsre adverse bal
ance for the Merchants National to pay.
Creditors of the bank, giving heed to the
riimors of the bank's weak position, de
posited checks on the Merchants Na
tional with other banks for collection. ;
-last Day's Balance, $157,000..
On Monday, the last day the bank did
business, it was required to pay J157.000
to settle its clearances. It handled
checks of other banks that dav amounting
to N09.000. Other 'banks handled checks
drawn on it amounting to a total of $266,
000, leaving the above difference.
The Portland Clearlng-House Associ
ation did. vrythlng it could to help the
Merchants National. Officials of the sus
pended bank agree on this point. The
clearing-house advanced J2SO.O0O in clearing-house
certificates of $5000 denomina
tion, which the Merchants National used
to settle Its clearances. In securing this
loan the ijank gave its note to the clearing-house,
secured by about "$3000.000 In
notes and other commercial paper. When
this note is paid the collateral will be re
turned to the Merchants National.
The National banking act does not al
low a National bank to borrow from
other banks in excess of th.8 bank's capi
tal stock. The Merchants National has
a capital stock of $250,000. so it could not
make further loans and comply with the
law.
"We expect to reopen and go ahead,"
said President Watson last night. "It
looks to me as if we are about over the
flurry as far as Portland is concerned. I
think the worst is over, and there will be
no more bank failures here. We are vic
tims and have been slaughtered, and that
Is the end of it.
Quiet Drain for Weeks.
"Since tho failure of tho Oregon
Trust & Savings Bank, last August, we
have paid out of our deposits $2,300,000.
and of that sum we have liquidatecl
over $1,500,000 since the bank holidays
were declared.
"The Clearlng-House Association was
very considerate to us and let us have
all the money we are permitted to take
under the national banking act, which
Is the amount of our capital stork.
Our New York correspondents, the
Hanover' National, the National Bank of
Commerce and the Merchants National,
united in making olTers of assistance
to tide us over the emergency. We'
were prevented from taking advantage
of their offers by the national banking
act.
"The Merchants National is abso
lutely solvent and we are confident
that we shall be able to resume opera
tions In a short time."
Since depositors began to withdraw
their money last August, the loans and
discounts, which were then $3,326,
431.64. have been reduced about
$500,000. this Bum having been col
lecte'd in cash. This, together with the
cash on hand at that time, $1,665,416.88,
was paid out, reducing the deposits to
$2,916,052.11, which is about the pres
ent figure.
The securities held by the bank are
said to be good. They are miscella
neous in character, consisting of stocks
THOUGH
SOL
and bonds, together with considerable
commercial paper. This has stood the
test of the national bank examiner.
That official examines' every note In
the bank twice a year.
A. L. Mills, president of the First
National Bank, in discussing the sus
pension of the Merchants National, said
last night:
"It should be distinctly understood
that the Merchants National has only
suspended payment. The officers say,
and I am confident they are sincere,
that they expect to liquidate a portion
of its securities and secure new capi
tal and resume business. Its failure Is
immediately due to recent heavy with
drawals and other heavy demands
made upon it since October 28. The
Clearing-House Association has ex
tended to it every aid within its power,
having loaned It $250,000, the amount
of the capital of the bank, which Is the
full limit permitted by law.
"The bank has not attempted to force
any of Its debtors because of the wide
spread disaster it would occasion and
has preferred Instead to take the medi
cine Itself rather than inflict a bur
den on the business community of the
city. There has been a strange lack of
confidence In the bank for some time.
There was no reason for any such feel
ing, and why It should have been sin
gled out and persecuted with rumor
after rumor as to its soundness is past
my understanding. The bank "suspends
today after having lost $157,000 In the
clearings yesterday. This loss has been
running on an average of $75,000 a day
for some time. ' .
Mills Blames Public.
"Had the depositors exercised toward
the bank the same forbearance that the
bank showed toward the people who
owe the bank, the Merchants National
would be open today.
"I believe this should be a lesson to
Vt'r,-r.yr,yt.:i?imim n.n, .ih.il .u . j n i.mj--w 4
i ' " v J j
r p ;;
T limd i is ii lnh iiilM1simiiiii
L. Frank Wateon. President of the
Merchants National Bank Who Is
Confident It Will Beopen.
the people of Portland not to make ex
cessive demands on the banks when the
banks themselves, in order to sustain the
business Interests of the town, are not
pressing the collection of their notes.
Should the banks be driven to press col
lections against debtors it would mean
the destruction of the greater part of the
business Interests of the community."
The notice of suspension of the bank
was posted a few minutes before 10
o'clock yesterday morning. It read as
follows:
Portland. Nov. 12. 1907.
Having been una.ble to realize on our se
curities rapidly enough to meet tho heavy
demands that have lately been made upon
us. we have been compelled to temporarily
suspend payment.
Since the commencement of the holiday
season. ' October . 20. we have liquidated
about ($1,500,000) one million Ave hundred
thousand -dollars of our deposits, without
aid, other than that granted by the Clear-'
ins-House Association,
The Clearing-House Association loaned us
up to t'.ie limit permitted by -the National
banking act. Tho bank is solvent.
We have sought the advice of the Con
troller of the Currency, and confidently ex
pect to resume business in a short time.
MERCHANTS NATIONAL, BANK,
Portland, Oregon.
Crowd Quickly Gathers.
Almost Immediately a. crowd gath
ered From where the people came, no
body knew. They stood In front of the
institution and read the notice, and
their number grew. -The first news
many had of. the suspension was when
they came to transact business. Men
looked alipost desperate as they read
the notice, and a woman stood on the
curb sobbing.
One of the rumors that helped close
the bank and has been in circulation
for some time was to the effect that
the Merchants National had loaned Lar
ry Sullivan, the Goldfleld promoter,
$400,000. This, like the other stories
afloat that' Injured the bank's credit,
was utterly untrue. It s a singular
fact that since the drain on the bank
started last August the number of de
positors In the bank has increase;!, but
the total of deposits has decreased.
The business community has general
confidence in the officials of the Mer
chants National. J. Frank Wat-son,
president, has been its head since 1893,
the bank having been established In
1886. When Mr. Watson became its
head the deposits in tb institution
were only $175,000. The high-water
mark of deposits was -reached early
In the present year, when the total was
nearly $6,000,000. The bank is the third
largest in the state.
The Merchants Savings Trust
Company, an institution recently start
ed In quarters next door to the Mer
chants National, and of which Mr.
Watson is also president. Is not affected
in any way by the suspension of the
Merchants National, says Mr. Watson.
This bank wHl go ahead and do busi
ness as usual.
Will Reopen and Kxpand.
It is the intention of the management
of the Merchants National to take over
the banking room of the smaller insti
tution, which will move to the building
now being fixed for it on the corner of
Sixth and Washington streets, when
the closed bank is reopened. It is
likely that the capital stock of the
Merchants National will be Increased,
for this has been planned for some
time. However. Mr. Watson is not
ready to make a definite announcement
on this matter Just now.'
A small amount of state funds Is tied
up in the Merchants National Bank, but
is fully protected by a surety' bond.
State Treasurer Steel says he is not sure
of the exact amount, but it is in the
neighborhood of $10,000. The bond which
protects this sum is for $40,000.
Multnomah County has about $78,000 on
deposit In the closed bank, which sum is
unsecured. There is no provision in the
law whereby the county can demand se
curity for its deposits, says County Treas
urer Lewis, but he is confident that the
county's funds ire safe and that none of
the money will be lost.
Officers of the Merchants ' National
Bank are J. Frank Watson, president: R.
L. Durham, vice-president; R. W. Hoyt,
cashier; George W. Hoyt, assistant
cashier. Directors are J. Frank Watson,
R. W. Hoyt, R. D. Inman, F. S. Morris.
George W. Hqyt, R. L. Durham and C.
E. Smith.
The last statement issued by the bank
in response to the Controller of the Cur
rency, on August 22, shows the following
condition:
Assets -
Loans and discounts $3,326,431.64
U. S. bonds to secure circulation.. 250,000.00
U. S. and other bonds and pre
miums 733.327.93
Real estate and bank premiees. . . . 8.000.00
Cash and due from banks 1.665.410.88
Total
Liabilities
Capital stock
Surplus and undivided profits..,.
Circulation
Deposits
.$5.9S3.176.46
.$ 250.000.00
272.374.S4
. 244.150.(10
. 5.218.852.11
Total $5,983,116.46
Portland bankers believe that the worst
is now over. It was thought some days
ago that the - crisis, had been safely
passed, and it was believed that no more
of the local Institutions would close their
doors. However, yesterday's develop
ment brought assurance to local bankers
that bottom has been reached. On the
whole, the feeling about the city was bet
ter yesterday. Currency continues to
pour into the Portland banks.- Th6 First
National received $100,000 in gold yester
day and will get $200,000 today. On Mon
day or Tuesday of next week $950,000 ad
ditional will arriv.e for the same bank.
Every other bank In the civ is forti
fying Its reserves in the same way and
large sums are being received dally.
OFFICIALS ARRAIGXED TODAY
Ross, Hill and Burkhart Will Ap-
pear In Municipal Court.
Officials of the insolvent Title Guarantee
& Trust Company will be arraigned this
morning in Municipal Court for their pre
liminary hearing. J. Thorburn Ross, pres
ident; George H. Hill, vice-president, and
T. T. Burkhart, treasurer, will appear be
fore Judge Cameron at 9 o'clock. The
charge Is that the officials accepted de
posits after they knew the bank was in
solvent. It ,is the belief that the attorneys for
the defense will waive the preliminary
examination and try out the case in the
State Circuit Court. It is understood
technical points will be raised that may
as well be settled once for all by the Cir
cuit Court.
Business Men Back X'p Bank.
GLENDALB, Or., Nov. 12. (Special.)
At a largely-attended meeting the busi
ness men, manufacturers and ranchers
of this vicinity indorsed the action of the
Glendale State Bank in going on a cer
tificate basis, and agreed, to stand by
the bank through a flurry. By an unani
mous vote the meeting passed a resolu
tion expressing the confidence of the pub
lic in the officials and management of
the bank. Having a reserve on hand
greater than that required of National
banks, the Glendale State Bank has been
very liberal in its cash payments, having
been open all through the holidays. It
seemed wisest, however, to fall in line
with the other banks of Southern Oregon
in handling the situation.
Tillamook Bank Loses $2800.
TILLAMOOK, Or., Nov. 12. (Special.)
President Harrison makes the statement
that the Tillamook County Bank is only
affected to the amount of $2800 by the fail
ure of the Merchants National Bank.- Lo
cal banks have adopted the clearing-house
certificate plan, the business men' agree
ing to accept the paper money.
BRUTE USES RAZOR, THEN
CRUSHES GIRL'S SKULL.
Three Days' Search Reveals Lifeless
Body of 7-Year-Old Clem
entine Naliu.
VANCOUVER, B. C, Nov. 12. (Spe
cial.) The most frightful crime of Its
kind ever committed In British Columbia
came to light this evening with the find
ing of the body of 7-year-old Clementine
Nahu, daughter of Captain Thomas
Nahu, of. North Vancouver. The little
girl had been killed by the blow of a
steel wedge, which shattered her skull.
The killing had followed her outrage,
and two blood-stained razors lying on
the ground beside the lacerated body
told a story of frightful torture. Tho
crime was ope of frightful fiendishness.
The child disappeared at n6on Saturday,
and it' was not until dusk this evening
that the body was found in the bushes
a quarter of a mile from her father's
home. Still grasped in the child's hands
were the car tickets her mother had
given her wjth which to make the' trip
to Vancouver. " .
Since Sunday, morning hundreds of
people have Joined in the search for the
child. Tonight the entire police force
of Vancouver has been turned loose on
the case. A negro, a former convict, was
seen in the neighborhood at the tlrhe the
murder is supposed to have been con
mitted, and that evening disappeared.
He Is suspected of the murder.
THINKS "OREGON" IS IRISH
Name Bcstovred by Emerald Isle
Sailor With IMzarro's Fleet.
HILLSBORO, Or., Nov. 11. (To the
Editor.) It was with much interest that I
perused articles by Messrs. Galvan! and
Gill. In yesterday.'s Oregonlan-. relative to
the origin of the name of Oregon. "
The undersigned taJtes no stock In the cor
ruption of Spanish names, whatever, and
quite agrees with the late Colonel Joseph
L. Meek, Oregon's first United States Mir.
Fhal. who said that tho Pacific Coast In'
mans, as late as- 1828. still held to the legend
that .Oregon was given Us name by the
first Irishman- visitlntr the Coast. Colonel
Meek said that when Pizarro came to Mexi
co, preparatory to going to Peru, he sent
a squadron of sailing vessels to the north.
In the hopes of finding treasure. Before
leaving Spain he picked up an Irishman, who
was attracted by the expectation of some
sharp fighting tn the new world. After
three months in Mexico, which was spent in
a vain search for gold, the ships sailed
north In quest of treasure.
The vessel on which the Irishman sailed
reached the mouth of the Columbia River
just as the sun was sinking, and a heavy
ebb tida had stranded thousands of silver
side salmcn .on the sandspits In Young's
bay. "Pat" saw them through the glass
shining like the wealth of the Indies, and
thinking they were gold, shouted, "Ore
ag'ln." and the Spaniards, thinking their
companion spoke of some country as If
known to him, took up the name, and thus
It was that Oregon was named.
' LEW SIUS.
Railroad Unions May Federate. ,
NEW YORK, Nov. 12. Plans are be
ing discussed for a federation of rail
way employes, according to the Times
today, so that strikes of the members
of one brotherhood wjll involve a
strike of the others. The organizations
are the Brotherhood of Locomotive En
gineers, the Brotherhood of Locomotive
Firemen, the Brotherhood of Railway
Trainmen, the Order of Railway Con
ductors and the Order of Railroad -Operators.
A federation of this kind was
suggested when the late P. M. Arthur
was the head of the Brotherhood of Lo
comotive Engineers but the plan fell
through because the engineers did not
take kindly to it, being conservative
in the matter of sympathetic strikes.
The brotherhoods are federated on
some of the individual railroad sys
tems, but have acted so far as a pre
ventive of strikes.
To talk long distance "Home-phone-it."
GUI DEPOSIT -SAFE
Funds In Merchants Bank Are
Amply Protected.
STATEMENT BY TREASURER
Werleln Explains System of Hand
ling; Municipal Money and De
clares It Has Always Had Tacit
Indorsement of Council.
City Treasurer Werleln is entirely satis
fled with his position regarding the de
posit of city funds in the Merchants Na
tional Bank. He said yesterday that he
had been informed by leading bankers of
the city that he was amply secured for
the deposit of $100,101.15 in that Institution,
and that he could hold the commercial
paper against possible demand for Its re
linquishment. "I could have withdrawn $125,000," said
Mr. Werlein, "about the first of the
month, but was advised that while the
agreement to pay it would be carried out.
It was to the best .Interests of the busi
ness men of the city and the other banks
to allow the money, to remain where it is.
Claud Gatcb, National Bank Exam
iner, Who Will Report on Condition
of Merchants National Bank to
Controller of the Currency.
Since making my report to the ways and
means committee,' when the amount in
the Merchants Bank was, in round num
bers, $109,(KX), I have checked out $9000,
making our account with that bank ex
actly $100,101.15.
"There has been no time that the proper
authorities' have not been informed con
cerning the conduct of this office, and as
far back as February, 1906, I addressed a
communication to the Council with refer
ence to tlfe refusal of the banks to com
ply literally to the requirements of the
new charter. In tliat lutter I stated: 'I
am of the opinion that section 293, city
charter, as amended, will have to b con
strued liberally rather than literally in
order to secure for the city the best in
terest returns on its funds-, and also in
sure the safety of same.' The Council
took no action at that or in fact at any
other time since, which," of course, left It
for me to make the best terms possible
for the safety of the city funds and to
secure interest thereon. My action was
approved by the Council at its last meet
ing. Not Safe in Vaults.
"I understand some suggestion has been
made that the city funds over and above
that deposited under the strict reading of
the charter should have been kept in the
vaults in the City Hall. I do not believe
the funds would be safe there. Besides,
It would be necessary to have .armed
guards on duty day and night, for if it
became known there was a large amount
of cash carried in this office it would be
a temptation for hold-up men to make
us a call, and the office force is not large
enough to make much resistance. I have
been furnished with a special officer
whenever I have requested one to be
stationed there, but even the Mayor him
self has eent for him to go elsewhere In
the building, and we nave been without
protection for hours at a time. As for
having the city's money placed in a safety
deposit vault, down town, it strikes me as
a rather ridiculous proposition. The tying
up of this deposit will work no incon
venience to the city whatsoever. We will
continue to do business at the same old
stand and in the same old way."
. Mayor Lane said concerning the city
funds:
"A report was made to the Council that
the ways and means committee had ex
amined the securities held by the City
Treasurer and was satisfied that the city
was amply protected in Its deposist with
the several banks. I have no reason to
doubt the correctness of that report, and
presume it is correct in every particular.
The charter does not impose any duty on
the Mayor with reference to making ex
aminations of the City Treasurer's meth
ods of conducting the affairs of his office,
nor on passing on the kind of securities
he shall accept. That is in the hands of
the Council. The Mayor may suspend the
Treasurer in case of misconduct or mis
feasance in c-fflce, and passes on tho suffi
ciency of his official bond. That is all
the charter requires of the Mayor In con
nection with that office.
City Savings Tied Up.
"By careful economy and close scrutiny
of the city's expenditures we turned back
Into the city treasury up to the first of
January nearly $150,000 by saving on ap
propriations. This sum would be avail
able, for use by the Council in building -a
new Jail, crematory, emergency hospital
and other useful purposes, and quite nat
urally I do not like to see this money
tied up or lost in bank failures.
"If the Treasurer had adhered strictly
to the provisions of the charter we would
now have in the city's safes $600,000 in cur
rency or coin. I fancy the possession of
that amount of cash would be quite ac
ci table to the banks at th'is time, and if
it became necessary to give the charter
a so-called 'liberal' reading at any time,
which I doubt, now would have been a
good time to do it. As I said before, the
Council approved the action of the Treas
urer, and If it wants to indorse an il
legal action it probably can do so without
either niy sanction or disapproval."
Depositors Meet Tonight.
Iepositors in the Title Guarantee &
Trust Company will meet tonight in Arion
hall, Second and Oak streets, to discuss
the situation and to agree upon the rec
ommendation of a receiver. A special
committee will recommend a number of
candidates from among the depositors
themselves, and after the meeting tonight
choose one from the list. The lourt will
be asked to appoint him in the place of
George H. Hill, the recent appointee.
SEE KISER'S SCENIC PHOTOS.
New store. 248 Alder street
I "- i
' " ' I
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1 mss
1
'III
.SEiimmuuBHiioaraiiiuuoiHH
SURETY GALLED 01
State Takes Steps to Recover
Under Steel's Bond.
RECEIVER REFUSES CASH
Attorney-General Then Files Two
Claims for $50,000 Each With
Company , Which Bonded
Oregon's Treasurer.
Demand for JIOO.OOO was served on the
American Surety Company yesterday, by
the state on account of the failure Of the
Title Guarantee & Trust Company, which
has deposits of state funds amounting to
$395,961.24. The surety company gave two
$50,000 bonds to the state for the wrecked
bank. The written demand was signed
by State Treasurer Steel and presented by
Attorney-General Crawford. The demand
was first made on Receiver Hill, of the
bank, and on his refusal to give over the
money, Mr. Crawford: presented it to ,V.
J. Clemens, resident vice-president of the
surety company. Two demands were
made by the state, under the two bonds,
each of which was as follows:
To the American Surety Company of
New York: You are hereby notified that The
Title Guarantee & Trust Comoany of Port
land, Oretron, has failed and a receiver ap
pointed and placed in charge of its property
and business and that said company at the
time of the appointment of such receiver
was Indebted to me as Treasurer of the
State of Oregon In- the sum of $393,051.24
and that as such State Treasurer I have
demanded payment of he said sum from
said company and from said receiver, and
payment thereof has been wholly refused,
and
Whereas. Said Title Guarantee & Trust
Company on the llth day of June. A. D.,
1007, duly executed a bond as principal and
your company as surety to me In the sum
of $50,000 conditioned among other things
for the prompt payment upon the check or
written demand of the said State Treasurer
of all money coming into fts hands as the
property of the State of Oregon or said
Treasurer,
Therefore, you- are hereby notified that
the State Treasurer of the State of Oregon
duly made written demand upon said Title
Guarantee & Trust Company and upon G. H.
Hill, receiver thereof, for the payment of
said money and that no part of same has
been paid, but payment thereof has been
wholly refused and denied, and
You are further notified that the condi
tions of said bond have been broken and
payment of said bond to the amount of
$50,000, the penalty thereof is hereby re
quired and demanded of the American
Surety company of New York, by me as
State Treasurer of Oregon, and for the use
and benefit of the said state. '
Dated at Portland, or., November 12. 1007.
GEORGE A. STEEL.
State Treasurer of Oregon.
Mr. Clemens would not say that the
surety company would admit its liability
and pay the money, but there is no doubt
that it wRl do so.
The state has made no demand as yet
for further indemnity from the surety
company, under bonds for $550,000 addi
tional, for Mr. Steel's handling of state
fynds as State Treasurer. - The question
first to be determined Is whether Mr.
Steel violated the law in depositing tho
money with the Title bank. As his breach
of the law seems clear, it 13 only a ques
tion of time, until the state will ask the
surety company to pay under these bonds
also. One bond Is for $250,000 and the
other is for $300,000.
District Attorney Manning Is probing
the bank to gain evidence that will enable
him to prosecute the-officials of the insti
tution for receiving deposits when they
knew it insolvent. He believes the bank
was insolvent many months before its
failure. Yesterday he summoned Meas
urer Steel to testify as to the assignment
of timber land collateral, whereby the
bank sought to protect the state funds by
taking a timber land mortgage and a tim
ber land trust deed out of the general as
sets of the bank and turning them over to
Steel as security for state money. This
transaction. It is believed, reveals that the
bank officials knew the bank was insol
vent. Steel will testify again today.
Mr. Manning also beard testimony from
Receiver Hill, as to whether any o the
directors borrowed large sums of money
from the bank. It has been reported that
President J. Thorburn Ross owes the
bank $30,000. He did owe the bank that
sum once, but has reduced it to $15,000.
The debt was incurred some ten years
ago, before the company entered the
banking business.
HILL'S REMOVAL IS ASKED
Ross Bank Depositors Kile Petitions
in Federal Court.
Two petitions signed by depositors
In the Title Guarantee, & -Trust Com
pany bank with claims aggregating
$44,0to.73, were filed In the United
States Court yesterday asking for the
removal of George H. Hill as receiver
of the suspended bank. The petitions
set forth that Hill as vice-president and
director of the bank took an active
part In incurring tho obligations and
liabilities of the corporation which led
up to and caused' its insolvency. An
other reason assigned for demanding
the removal of the present reoelver Is
that Hill is under indictment by a
grand Jury on the charge of receiving
money from depositors when he knew
the bank to "be insolvent. The peti
tioners ask the court to appoint a dis
interested person after Hill's removal.
McAllister & Upton appear as attor
neys for 18 of the bank's creditors
whose deposits aggregate $26,314.
These petitioners are: E. H. Nichols,
P. J. Cueslnberry, W. A. Post, John
Epton, H. L. Shirvin, Will Murphy, C.
R. Van Norman, E. Epton, Miss E.
Clancy, Lowell. W. J. Curtis, J. J.
Bloom, H. C. Schroeder, F. J. Steln
metz. Ulysses Schaurer, Robert E. Lit
tle, C. F. Ehman and GcVdfrey Ehman.
Spencer & Farrell are attorneys for
six other depositors whose claims
amount to $17,761.73. Their names and
the deposit of each follow. McClung
& Wetherbee. $11,449.84; E. J. G. Gor
don, $2660; C. F. Fischer, $1127.46; M.
W. and J .D. Hunt, $1600; F. L. Schull,
(435; A. Hanerdon, $489.43.
Two Enter Clearlng-House.
The Portland Trust Company of Ore-
am&ilbiiwiiiuiji
ARE THE STANDARD FURS OF THE WORLD
JThu pay squirrel Automobile Coat is only one of the many at.
tracrively made McKibbin garments for women who motor.
J ! there a good fur dealer in your town? If so ask him.
J If not write a and we'll put you in touch with a McKibbin
dealer at once.
McKIBBIN, DRISCOLL & DORSEY . I
PTIR KANuT ACTUEEES
SAINT PAUL
gon and the Hibernia Savings Bank
were admitted to the Portland Clearing
house Association at a meeting of the
organization yesterday. Both banks ap
plied for membership, realizing its ad
vantages. This action means that these
two institutions are in excellent condi
tion, for all banks are examined before
being admitted as members. Two such
robust institutions as members will add
to the bank clearings of the city. Both
banks have acted in full harmony with
the clearing-house in the present trouble,
although not yet members.
Demur In Sehnabel Case.
C. J. Sehnabel not having withdrawn
his petition In the United States Court
demanding that the Title Guarantee &
Trust Company be declared a bankrupt,
Attorneys Dolph, Mallory. Simon and
Gearin, tor the bank, yesterday illed a
demurrer to the application which Was
filed by Matthias Foeller, A. L. Glan
elli and B. C. Ely. The demurrer Is
based on the following grounds: That
the bank is not subject to the provi
sions of the act entitled "An ftct to es
tablish a uniform system of bank
ruptcy throughout the United States,"
approved July 1 180S, and the amend
ments thereto; that tho petitioners are
not entitled to the relief prayed for or
for any other relief from the Title
Guarantee & Trust Company, and that
the court has no Jurisdiction to ad
Judge the banking institution a bank
rupt. .Clearing-House- at Welser.
WEISER, Idaho, Nov. 12. (Special.)
The' three Welser banks have organized
a Clearing-House Association. About $40,
000 in securities were deposited by the
three banks, against which clearing-house
certificates to the amount of $30,000 will be
issued. The Weiser banks were never in
better condition. Cash deposits are more
than $800,000 and the reserve fund is . 5
per cent larger than at this time last year.
Forest Grove Banks Solid.
FOREST GP.OVE, Or., 12. (Spe
cial.) While the closing of the Merchants
National Bank has caused some uneasi
ness in financial circles here, especially
as it is the Portland correspondent of one
of the local banks, yet it has produced no
marked outward effect and business has
gone on about as usual. There has been
no run on any of the banks, and deposits
have been about equal to the withdrawals.
Astoria Increases Cash Reserve.
ASTORIA, Or., Nov. 12. (Speclal.)-It
Is doubtful If there is another city on
the Coast whose banking institutions are
in better condition than are those in
Astoria at the present time. During the
past few days they have been receiving
shipments of coin from outside sources,
until their cash reserves are now larger
than ever before.
Banking Paper in La Grande. .
LA GRANDE, Or., Nov. 12. (Special.)
J. W. Scriber. cashier of the Farmers &
Traders' National Bank, of this place, has
received a large amount of Portland
clearing-house certificates, which he Is
issuing to the customers of the bank and
those desiring same.
i
Starvation Sits
At Loaded Tables
You Can Lead a Dyspeptic to the Ta
ble, but You Cannot Make
Him Eat.
There comes a time in the lives of a
great many men and women when even
a sirloin steak ceases to be poetry. It
becomes a protest. The appetite be
comes fitful and fretful. Nothing on
the bill of fare can coax it.
The. appetite Is there and yet it isn't.
This makes eating a mere matter of
machinery the mouth doesn't water.
The stomach has been worked overtime,
and the body and the brain are paying
the penalty.
There are thousands of people in
every station of life who are walking
What If a Man Galna the Whole World
and Loaei HIa Appetite!
the earth today with dyspeptic stom
achs. They wear a dejected, forlorn ap
pearance, their energy is at zero, noth
ing interests them, and they interest no
one. their faces are shrunk, their nerves
are wilted and their shoulders sag.
Everything on the table may look de
licious, but nothing will be tempting.
That's one suro sign of dyspepsia.
If you have ever felt bloated after
eating and Imagined it was your food
that filled you; if you have felt your
food lie "like a lump of lead" on your
stomach; if you have had a bad, sour
breath, difficulty in breathing after a
meal, suffered from eructations, burn
ing sensations, heartnurn, brash, or gas
on the stomach, make up your mind you
nave ayspepsia. Ana the cnances are
you have had it a long time.
Your stomach Is overworked, abused,
fagged out. The gastric and digestive
Juices are weak, the muscles of the
stomach are Jaded, and the whole busi
ness needs new life. It needs some
thing which will take hold of the food
as it comes fn and do the digesting,
and let your stomach cake a rest.
Stuart's Dyspepsia Tablets do that
very thing. They contain a most pow
erful Ingredient which helps the stom
ach in the process of digestion, cures
dyspepsia, sour stomach, indigestion,
heartburn eructations, acidity or fer
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ach, Increase the flow of gastric juice,
and do two-thirds of what the stomach
would have to do without them. That
gives the stomach some rest, and a
chance to get right again.
. You feel the change first In your
mind and heart and then over your
whole body. You'll feel rosy and sweet
Thut's the object. You can get these
effective little tablets almost anywhere
on earth for 50c a package.
Send us your name and address to
day and we will at once send you by
mail a sample package free. Address
F. A. Stuart Co., 150 Stuart Bldg., Mar
shall, Mich.
A
Lc & i H - ? ,
I I. m
A
Very
fpmmmS&!S Prartirnt
Boy's Overcoat
XTRAGOop Reefer
YOU'LL get two things
out of a call at this
store. First, an idea of
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tween XTRAGOop, sold only
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stores.
XTRAGOOP
CLOTHES FOR.BOYS
are made on the same prin
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The foundation reliable
fabrics, linings, trimmings.
The construction skillful,
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other clothes; and better
service because they're
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THE REEFER For boys 3 to
16; short, of heavy materials, warm
Sam'l Rosenblatt & Co.
Corner Third and Morrison.
HELP FOR YOU!
Toa Oldest and Most Reliable Specialist in th4
Northwest for the euro of
CHRONIC, NERVOUS AND PRIVATE DIS
EASES. MEN suffering fron. evil effects of youthful
Indi6cretlon. later excesses, recent exposure,
nervous debility, varicocele, unnatural dis
charges, lost vitality, falling memory, unfitness
to marry, blood, skin, kidney or private dis
eases are speedily cured. The State Xledlcal
Institute employs tho most approved methods)
and they will attend you personally and com
plete a perfect cure. In strict con Ode nee at
moderate expense.
WRITE your troubles if you cannot call at
our office. Thousands cured by correspon denes
and medlrlnes sent secretly. Free to men
Medical book free, 160 pages, 25 picture. ;
First copy cost $1000; sent free. Writ for
It tody rnd address
STATE MEDICAL INSTITUTE
172 Washington Strret.
SKA 1 ILK, W ASH.
Chamberlain's
Cough Remedy
During: the past 39 years no rem
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more effectual In Its cures of
Coughs, Colds and Croup
than Cnamberlaln's Ooug-h Remedy. In
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maybe given aa confidently to a baby
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